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- 📈 Tesla Shares in Freefall – Again!
📈 Tesla Shares in Freefall – Again!
Shell Cuts Costs, Boss Cashes In
This is Cliff Equity, the UK’s business newsletter that keeps you informed on what’s important in tech, business and finance in less than 5 minutes
In today’s stories:
Tesla Shares in Freefall – Again!
Shell Cuts Costs, Boss Cashes In
DIY Giant’s £307m Loss: A Tough Year Ahead
The summary: Tesla’s European sales nosedive, political drama, and fierce competition from China are giving Musk a proper headache—but with a Trump-backed lifeline and a rallying stock, the ride isn’t over just yet!
The details:
Tesla’s European Meltdown – Sales plunged 40% last month, despite EV sales booming elsewhere. Seems Musk’s magic touch isn’t working wonders across the pond.
BYD Steals the Spotlight – The Chinese rival has overtaken Tesla in global revenue, proving that cheaper, more frequent model releases beat Twitter tirades.
Politics Over Performance? – Musk’s flirtation with right-wing politics, from backing Germany’s AfD to his Trump ties, is driving boycotts and trade-ins at record rates.
Market Mayhem – Shares nosedived 50%, with investors worried about Musk’s distractions, tariffs, and even "Tesla terrorists" causing chaos. Can a Trump Tesla save the day?
Why it matters: Tesla’s sales slump isn’t just about cars—it’s a cautionary tale of what happens when a CEO treats politics like a side hustle. With Chinese rivals like BYD surging ahead and investors losing patience, even Musk’s die-hard fans are questioning whether his focus is on Tesla or Twitter spats. If things don’t turn around, the only electric shock left might be in the company’s valuation.
The summary: While Shell tightens its purse strings (for everyone but the boss), waters down climate pledges, and showers shareholders with billions, it’s a cracking time to be an investor—just not so much for the planet or your energy bills!
The details:
Belt-tightening… for everyone but the boss – Shell plans to slash up to £5.4bn in costs while handing CEO Wael Sawan a tidy 8.5% pay rise to £8.6m, prompting green campaigners to call it “obscene.”
Climate promises? Watered down, like a weak cuppa – The oil giant will spend just 10% of its budget on lower-carbon ventures by 2030 and has quietly ditched a key 2035 emissions target, opting instead for a vague 2050 goal.
Profits dip, but shareholder pockets stay deep – Despite a fall in profits to $23.7bn last year, Shell splashed $8.7bn on dividends and a further $13.9bn on share buy-backs to keep investors smiling.
“Corporate greed” in full swing – Critics fume as Shell doubles down on oil and gas while energy bills soar, calling for governments to finally hold Big Oil to account.
Why it matters: Shell’s cost-cutting spree and CEO pay hike highlight the age-old tradition of tightening belts—just not the ones in the boardroom. With climate goals quietly shoved down the priority list, the oil giant’s focus on profits over the planet is as subtle as a foghorn. Meanwhile, shareholders are toasting their dividends, while the rest of us brace for higher energy bills and more climate chaos.
The summary: Kingfisher’s profits have taken a hit thanks to rising costs and a wary consumer, but with dividends still afloat, it's clear that even in choppy retail waters, there’s a bit of a silver lining!
The details:
DIY Profits Take a Hammering – B&Q owner Kingfisher saw a 35% drop in yearly pre-tax profit (£307m), blaming weaker consumer sentiment, especially in France. Sales in the UK & Ireland barely budged, while group sales dipped 1.7%.
Retailers Feeling the Squeeze – Government budgets in the UK and France are tightening the screws, with rising costs expected to make 2024 another tricky year for retailers and their customers alike.
A "Perfect Storm" Looms – Kingfisher, alongside Tesco and M&S, warns of a retail cost tsunami from April, with hikes in national insurance and business rates potentially costing 300,000 jobs by 2030.
Dividends Despite the Downturn – Shareholders get a small consolation prize: a 12.40p per share dividend, proving that even in choppy waters, there's still a lifeboat for investors.
Why it matters: Kingfisher’s profit plunge is yet another sign that consumers are tightening their tool belts, making life trickier for retailers already battling higher costs. With taxes and business rates on the rise, even the biggest names on the high street are bracing for job losses and leaner years ahead. Meanwhile, shareholders still get their slice, proving once again that no matter how stormy the retail seas, dividends remain unsinkable.
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