Toronto, Ontario — This week, Tesla dabbles in beer sales while analysts critique its 2023 profitability promises; VinFast tries to cut costs on batteries and General Motors workers ratify a new agreement.
Tesla gets tumultuous
Analysts expect Tesla’s Q3 margins to drop compared to the previous quarter, mainly due to the automaker’s recent decisions to favour its units-sold numbers over profitability.
Tesla cut its vehicle prices by more than six percent across various models between July and September. As a result, its margins sit at a four-year low of 18.1 percent, Reuters reported.
Tesla shareholder and senior portfolio manager Thomas Martin told Reuters he doesn’t think price cuts are over, and “mainly, for that reason, demand is still weak.”
This adds to frustration about Cybertruck production, delivery dates and self-driving functionality concerns.
As of Monday at 12:20 p.m., shares of Tesla traded at US$253.09, up almost one percent from market open, but down 4.61 percent over the last month.
Amid the analyst conversations circulating Monday morning, Tesla listed bottles of its CyberBeer on its website—$150 for two bottles.
In-house supply
EV maker VinFast announced that it would acquire a 99.8 percent stake in battery maker VinES in its efforts to strengthen its internal production chain.
The acquisition will help VinFast secure a supply of EV batteries as it seeks to save between five percent and seven percent on overall battery costs.
VinFast and VinES are both part of the Vingroup network of companies—Vietnam’s largest conglomerate.
As of noon Monday, shares of VinFast traded at US$6.87, down 81.46 since its August debut on the Nasdaq.
Seal the deal
Unifor members from General Motors Canada voted to ratify their tentative agreement with the automaker over the weekend following a 12-hour strike.
Just over 4,000 members from Oshawa, St. Catharines and Woodstock, Ont., voted on the agreement; workers were 80.5 percent in favour of the deal.
The new work agreement promises pay increases of nearly 20 percent for long-term workers, $10,000 bonuses for full-timers and more.
Unifor President Lana Payne said the deal brings “life-changing improvements” for GM Unifor members.
