Samsung Electronics shares fall 1% after rallying on Tesla deal
The deal could bolster the technology company's unprofitable contract business, but Samsung faces challenges in securing additional large customers, analysts said.
Tesla CEO Elon Musk said late on Sunday that Samsung's new chip factory in Taylor, Texas, would make the auto company's next-generation AI6 chip, without elaborating on the timing of the production.
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The Guardian
an hour ago
- The Guardian
Tesla board awards $29bn of shares to Elon Musk
Tesla's board has approved the award of $29bn (£22bn) worth of shares to its chief executive, Elon Musk, after a US court ruled against a previous pay deal for the world's richest person. Musk will pay $2bn to buy 96m shares in the electric carmaker at the same price per share as a 10-year pay package agreed in 2018, which is stuck in legal limbo awaiting a court date for an appeal. The award was based on a recommendation from a 'special committee' of the board. The announcement in a financial filing was accompanied by a shareholder letter from two members of the committee, Robyn Denholm, Tesla's chair, and Kathleen Wilson-Thompson. It described the award as a 'good faith' payment to Musk after the previous pay deal, worth $56bn, was rescinded in 2024 by a judge in Delaware, where the company was incorporated until June that year. 'To recognise what Elon has accomplished and the extraordinary value he delivered to Tesla and our shareholders, we believe we must take action to honour the bargain that was struck in 2018,' the directors wrote. 'After all, 'a deal is a deal'.' Denholm and Wilson-Thompson said they had reviewed investors' letters and posts on X – the social media network owned by Musk – and acknowledged concerns about his focus on his job. 'From those communications, we know that one of your top concerns is keeping Elon's energies focused on Tesla,' they wrote. 'This award is a critical first step toward achieving that goal.' As well as running Tesla, Musk also owns the SpaceX rocket company, the social media platform X, the artificial intelligence company xAI and the brain implant business Neuralink. He has also made forays into Republican politics, damaging the Tesla brand and sales and raising concerns among shareholders. Dan Ives, an analyst at Wedbush Securities and one of the most prominent voices of concern about Musk's political travails, said the award would remove an overhang – a surplus of availability – on Tesla shares, increasing prices. 'Musk remains Tesla's big asset,' Ives said. The award is worth about $29bn based on Friday's closing share price. Musk is worth $350bn, according to the Bloomberg billionaires index. Over the past year, Musk has become embroiled in US politics and a political relationship with Donald Trump that turned toxic after the president entered the White House for the second time, a feat assisted by the Tesla chief executive's financial and personal support. The furore put off left-leaning Tesla buyers inside and outside the US, though competition in the electric car market has also affected sales. A survey from the research firm S&P Global Mobility shared with Reuters showed that Tesla's customer loyalty has plunged since Musk endorsed Trump. It found 49.9% of Tesla-owning households in the market for a new car bought another Tesla last March. This was just below the industry average, but was down from 73% in June 2024. It edged back up to 57.4% in May this year. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Tom Libby, an S&P analyst, said the fall was 'unprecedented', adding: 'I've never seen this rapid a decline in such a short period of time.' Musk is Tesla's largest shareholder, and the new shares will take his stake from 13% to about 15%. He has said he wants greater control over the company to avoid being ousted by 'activist shareholders'. The company is shifting its focus to robotaxis and humanoid robots, in a move that positions Tesla more as an artificial intelligence and robotics firm than a carmaker. 'While we recognise Elon's business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging … we are confident that this award will incentivise Elon to remain at Tesla,' wrote the directors. The award is designed to increase gradually Musk's voting power, something he and shareholders had consistently said was key to keeping him focused on Tesla's mission, the directors added. If the 2018 package is reinstated in full following an appeal to the Delaware courts, the new package will be forfeited. Tesla shares, which have fallen nearly 20% so far this year, rose more than 3% in early trading.
Reuters
an hour ago
- Reuters
Onsemi posts quarterly revenue drop, sees dull third-quarter profit on market uncertainty
Aug 4 (Reuters) - U.S. automotive chipmaker Onsemi on Monday forecast lackluster profit for the third quarter, after reporting a sharp decline in second-quarter revenue, sending its shares down by more than 10%. Sales growth in battery electric vehicles has slowed due to an uncertain economic environment, brought on by global import duties, and elevated borrowing costs in the U.S. Consumers have hit the breaks on big-ticket spending as tariffs threaten to increase the costs of automobiles by thousands of dollars and drive up inflation. This has been forcing automakers to reassess production plans and withhold financial investments, affecting companies such as Onsemi. The company acknowledged during its earnings call that the EV market remains soft, especially in North America and Europe, with recovery being slower than hoped. However, Onsemi said it sees "signs of stabilization" across its end markets, after a prolonged slump in demand due to excess chip supply. The company is among a select group of suppliers providing silicon carbide chips, which are critical for extending the range of EVs. It added that it has not yet seen a broad-based recovery in automotive and expects only low single-digit growth in the third quarter. An end to the $7,500 federal tax credit for electric cars has also cast a cloud over the EV industry's outlook, with some firms expecting a hit to the market growth, opens new tab. Onsemi expects third-quarter adjusted earnings between 54 cents and 64 cents per share, compared with analysts' average estimate of 59 cents, according to data compiled by LSEG. It forecast revenue of $1.47 billion and $1.57 billion for the third quarter, the midpoint of which is slightly above estimates of $1.50 billion. The company's second-quarter revenue of $1.47 billion beat expectations of $1.45 billion, but fell about 15% from a year ago.
Wales Online
an hour ago
- Wales Online
Apple Watch with 'life-saver' ECG feature reduced to £155 in rare deal
Apple Watch with 'life-saver' ECG feature reduced to £155 in rare deal The Apple Watch Series 7 has been reduced to just £155 in the latest Wowcher deal, but there are a few catches if you want to snap up the bargain Additionally, the model offers blood oxygen level monitoring, heart rate tracking, and ECG functionality – all features that are resonating well with consumers. (Image: Apple) Monitoring daily step counts, fitness targets, or the crucial sleep score, smartwatches offer myriad benefits beyond just syncing with a mobile. This is why brands such as Apple, Samsung, Google Pixel, and Garmin have soared in popularity, though their hefty price tags can be daunting. For example, the latest Apple Watch, Series 10, debuted at £399, but a recent Argos promotion has slashed that to £299. Its ultra-sleek design and cutting-edge OLED display are standout features that might warrant the expense, yet it remains a significant outlay. This surge in demand for affordable tech has led to an enticing deal where consumers can snag a different Apple Watch model for just £155. Wowcher has listed the Series 7 on its discount platform at a substantially reduced price because it's refurbished. For money-saving tips, sign up to our Money newsletter here . When it was released back in 2021, this model retailed at a much higher price point, but now those willing to overlook minor cosmetic imperfections can enjoy a substantial discount. Buyers have the option of selecting either a 41mm or 45mm screen size and the condition of their pre-owned gadget. From our extensive coverage of Apple launches, we're aware that the original selling price was £399 for the GPS version, contrary to the £419 claimed by Wowcher. Still, this represents a considerable saving of £244. Wowcher categorises the condition of these models with grades B or C, explaining: "A few signs of wear-and-tear show that it's clearly seen use, but overall it's in good shape. "There might be minor surface marks, but functionality is completely intact." The latest Apple Watch Series 10 (from 2024) operates on watchOS 11, and impressively, the Series 7 remains compatible with this software despite being three years its senior. This compatibility ensures that users can receive updates and maintain their device's performance to the highest standard. The model boasts all the expected features of an Apple watch, including robust battery life, fitness tracking capabilities, and smart notifications, provided you have an iPhone. Additionally, the model offers blood oxygen level monitoring, heart rate tracking, and ECG functionality – all features that are resonating well with consumers, as evidenced by reviews for a competing Amazon listing where the Prime service is offering a refurbished Watch7 for £160. One satisfied customer shared: "So far I love every aspect of the watch, the app is much better than some. I use the watch with Strava app as do running and workouts. I find the GPS, calorie, Heart monitor, and step count all good!". Another buyer commented: "The ECG and oxygen reader has been a life saver too, it's been great for piece of mind. The only reason it's lost a star is because I can't work out why the notifications are not so prominent anymore." However, our shopping team has identified some potential drawbacks to the Wowcher deal that merit attention. One such issue is the delivery cost; while the deal itself is priced at £155, customers will need to fork out an additional £8.99 for shipping. Another point to consider is the process for redeeming the Wowcher voucher. Article continues below Wowcher operates by promoting vouchers, which customers have 14 days to claim after purchase. After completing the checkout process, shoppers receive an email containing a voucher code and instructions on how to redeem it.
