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TimesLIVE
6 days ago
- Automotive
- TimesLIVE
Musk warns of 'rough quarters' ahead as US EV tax credit ends
Tesla CEO Elon Musk said on Wednesday US government cuts in support for electric vehicle (EV) makers could lead to a 'few rough quarters' for the company before a wave of revenue from self-driving software and services begins late next year. Shares fell nearly 5% after Musk responded on a quarterly results conference call to questions about new US government policies under President Donald Trump. Musk's EV maker posted the worst quarterly sales decline in more than a decade and profit that missed Wall Street targets, but its profit margin on making cars was better than many feared. Musk is pursuing autonomous driving to power privately-owned vehicles as well as robotaxis it plans to put into production next year. In the meantime, it is working on a new, cheaper car, though CFO Vaibhav Taneja said production would ramp up next quarter, slower than expected. It produced initial units by the end of June. The company did not provide an update on its full-year deliveries forecast, citing the economy and timing of the new car rollout. 'Tesla's disappointing results aren't surprising given the rocky road it's travelled recently,' said eMarketer analyst Jacob Bourne. 'A truly affordable model will hit the bullseye in boosting sales if Tesla can effectively position it right without detracting from its higher-priced models.' The second straight quarterly revenue drop, with a 12% fall, comes despite the launch of a refreshed version of its best-selling Model Y SUV that investors had hoped would help revive demand. A 51% dive in sales of automotive regulatory credits, which other carmakers who have difficulty complying with government emissions rules buy from Tesla, also hurt revenue and profit. Revenue fell to $22.5bn (R395.55bn) for the April-June quarter from $25.50bn (R448.27bn) a year earlier, slightly behind analyst targets compiled by LSEG. Adjusted profit per share of 40c (R7.03) lagged the Wall Street consensus. The automotive gross margin, which excludes regulatory credits, was 14.96%, above Wall Street estimates, helped in part by lower cost per vehicle. Pricing and margins are important as Tesla wrestles with demand and faces falling government support. Tesla global deliveries dropped 13.5% in the second quarter and the US government later this year is cutting $7,500 (R131,846) tax credits for EV buyers. 'We probably could have a few rough quarters,' Musk said, when asked about the credits. 'I'm not saying we will, but we could — Q4, Q1, maybe Q2, but once you get to autonomy at scale in the second half of next year, certainly by the end of next year, I think I'd be surprised if Tesla's economics are not compelling.' Tesla said in April it would start producing the more affordable model by the end of the first half and sources told Reuters the vehicle, a stripped-down version of its Model Y SUV, would be delayed by at least months. Tesla on Wednesday did not disclose any details of the model, how many units it had made or how it would be priced. Musk responded to a question of what the vehicle would look like by saying, 'It's just a Model Y', joking that he 'let the cat out of the bag there'. Tesla's line-up is relatively old, despite a recent refresh of the flagship Model Y, and it faces rising competition from cheaper EVs, especially in China, and a persistent backlash against Musk's far-right political views. The company also said it continued to expect volume production of its custom-built robotaxi — called the Cybercab — and Semi Truck in 2026. Much of the company's trillion-dollar valuation hangs on its bet on its robotaxi service — a small trial of which was started in Austin, Texas, last month with about a dozen Model Y SUVs — and on its development of humanoid robots. 'Autonomy is the story,' Musk said on the conference call, describing plans to roll out autonomous ride hailing to about half of the US population by the end of this year. Tesla is looking for robotaxi regulatory approval in the San Francisco Bay Area, Nevada, Arizona, Florida and other places, he said, and the company is close to getting regulatory approval for supervised Full Self-Driving driver assistance software in the Netherlands. The robotaxi business was likely to have a material impact on financials around the end of next year, Musk said. Investors are concerned about whether Musk will be able to devote enough time and attention to Tesla after he locked horns with Trump by forming a new political party this month. He had promised weeks earlier he would cut back on government work and focus on his companies. A series of high-profile executive exits, including a longtime Musk confidant who oversaw sales and manufacturing in North America and Europe, is also adding to the concerns.
The Citizen
23-07-2025
- Sport
- The Citizen
Franchises confirm 30 players for fourth season of SA20 league
The remaining 84 slots in the respective squads will be confirmed at the player auction in Johannesburg on 9 September. Fast bowler Kagiso Rabada has been announced as a wildcard pick by defending champions MI Cape Town for next season's SA20 league. Picture: Sydney Seshibedi/Gallo Images A total of 24 players have either been retained or pre-signed contracts with SA20 teams, while all six wildcard players have also been announced, ahead of next season's fourth edition of the popular T20 league. Each of the six franchises were permitted a maximum of six retained or pre-signed players, comprising a maximum of three South African and three overseas players, during the player retention window which closed last week. In addition, each franchise was allowed a wildcard pick, which could be any player who was part of the team's squad in season three. The list of 30 players, which were released on Wednesday, included 17 foreigners and 13 South Africans. Upcoming auction The remaining 84 slots in the respective squads were set to be confirmed at the player auction in Johannesburg on 9 September, where the franchises had a collective maximum purse of R131 million they could still spend on compiling their squads. Notable South African players available to be picked up at the auction include Proteas World Test Championship final heroes Aiden Markram, Lungi Ngidi, Wiaan Mulder and Keshav Maharaj, along with top young talent Dewald Brevis and Kwena Maphaka. T20 specialists Quinton de Kock, Anrich Nortje and Tabraiz Shamsi are also available. 'When the league first drafted its regulations in season one, we always saw this forthcoming season as an opportunity for a strategic reset, and this is exactly where we envisioned being,' said SA20 league commissioner Graeme Smith. 'There's now a strong balance between pre-signed and retained international and Proteas players, alongside a significant purse available for the auction. 'After three seasons, the franchises have developed a good understanding of the South Africa cricket ecosystem and adopted a distinct strategy which sets the stage for the most exciting auction yet.' The 2025/26 SA20 league will be held between 26 December and 26 January, shortly ahead of the T20 World Cup to be held in India and Sri Lanka in February. Signed players and remaining salary caps Durban's Super Giants (R29.5 million): Sunil Narine, Noor Ahmad, Jos Buttler, Heinrich Klaasen (wildcard) Joburg Super Kings (R21.5 million): Faf Du Plessis, James Vince, Akeal Hosein, Richard Gleeson, Donovan Ferreira (wildcard) MI Cape Town (R11.5 million): Ryan Rickelton, George Linde, Corbin Bosch, Rashid Khan, Trent Boult, Nicholas Pooran, Kagiso Rabada (wildcard) Paarl Royals (R14.5 million): Lhuan-dre Pretorius, David Miller, Bjorn Fortuin, Mujeeb Ur Rahman, Sikandar Raza, Rubin Hermann (wildcard) Pretoria Capitals (R32.5 million): Will Jacks, Sherfane Rutherford, Andre Russell (Wildcard) Sunrisers Eastern Cape (R21,5 million): Tristan Stubbs, Allah Ghazanfar, Adam Milne, Jonny Bairstow, Marco Jansen (wildcard)
IOL News
06-07-2025
- Business
- IOL News
SACTWU reduces stake in HCI while acquiring three key properties worth over R500 million
The South African Clothing and Textile Workers Union (SACTWU) has reached agreement with Hosken Consolidated Investments (HCI), in which it owns a large shareholding, for a cash injection of over R100 million and the purchase of three investment properties. Image: David Ritchie The South African Clothing and Textile Workers Union (SACTWU) will lower its stake in Hosken Consolidated Investments (HCI) as part of two agreements that include buying three HCI properties, including Gallagher Estate, for R549.7 million in total. HCI stated in a regulatory, related party announcement to the JSE on Friday that the reason for the transactions was that SACTWU wished to increase its cash holdings for its operations, and to increase its interests in additional investment properties to generate more regular, ideally monthly cash flow to fund its operational and member benefit programs and other related employment projects. Because HCI only distributes cash dividends to shareholders on a six-monthly basis, SACTWU had recently been disposing of HCI shares on the market through the JSE order book to enable it to fund its ongoing obligations. However, these disposals were not sustainable over a longer period, and SACTWU engaged HCI to find solutions for its cash flow requirements. In terms of a cash share purchase agreement, HCI subsidiary Squirewood Investments 64 Proprietary concluded an agreement with its material shareholder SACTWU, in terms of which Squirewood will purchase 1.1 million HCI shares owned by SACTWU, for R131 per HCI share, or R144.1m in total. HCI's share price closed 2.12% lower at R127.27 on the JSE on Friday. In another transaction, HCI will sell its shares in and shareholder loan claims against three owned property subsidiaries in the HCI group: Gallagher Estate Holdings, HCI Rand Daily Mail, and HCI Solly Sachs House, to SACTWU for R549.7m in total. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Squirewood will purchase 4.2 million HCI shares beneficially owned by SACTWU, which represents about 4.9% of the total HCI shares in issue, for a purchase price of R131.00 per HCI share, or R549.7m in total. SACTWU is the beneficial owner of about 23.8% of the total HCI shares, and should the Squirewood share transaction and property purchase be implemented, the trade union will be left holding about 18.4% of the total HCI shares in issue. SACTWU has held its interest in HCI since 1997, primarily as an income-generating asset and significant investment vehicle to fund the trade union's objectives, aiming to benefit union members through investments in, inter alia, media, hotels, casinos, coal mines, and transport. SACTWU holds significant property interests outside of its investment in HCI, with most of its properties being occupied by the union itself. 'The parties agreed, given SACTWU's desire to increase its interests in property, that investments in immovable property generating sustainable monthly cash flows would likely be the most appropriate asset class for SACTWU to acquire to service its needs,' HCI said. SACTWU conducted due diligence on HCI's property assets, two independent valuations were done, and 'pursuant to their investigation, SACTWU selected the three subject companies it wishes to acquire,' HCI stated.
SowetanLIVE
04-07-2025
- Automotive
- SowetanLIVE
Tesla stares down a second year of dwindling sales
Tesla is headed for another year of shrinking sales after it posted a second straight drop in quarterly deliveries, dragged down by CEO Elon Musk's right-wing political stances and an ageing vehicle line-up that has turned off some buyers. The carmaker now needs to deliver more than one million vehicles in the typically strong second half to avoid another annual sales decline — a task that some analysts say could prove difficult due to tariff-driven economic uncertainty and threats to phase out key EV incentives under the Trump administration's sweeping tax bill, including the $7,500 (R131,620) credit on new sales and leases. It reported on Wednesday that deliveries fell 13.5% in the second quarter, missing analysts' expectations, despite Musk saying in April that sales had turned a corner. Shares, down about a quarter this year, rose 4.5% as the drop was less severe than the bleakest analysts views, partly helped by a modest demand recovery in the competitive Chinese market, where its refreshed Model Y has gained some traction. Some investors welcomed the numbers, though with caution. 'You need two dots to draw a line. I don't think you can get too excited yet until you have some confirmation (of a demand recovery),' said Camelthorn Investments adviser Shawn Campbell, who personally holds Tesla shares. 'We've had so much bad news — almost any good news is going to help at this point.'
TimesLIVE
03-07-2025
- Automotive
- TimesLIVE
Tesla stares down a second year of dwindling sales
Tesla is headed for another year of shrinking sales after it posted a second straight drop in quarterly deliveries, dragged down by CEO Elon Musk's right-wing political stances and an ageing vehicle line-up that has turned off some buyers. The carmaker now needs to deliver more than one million vehicles in the typically strong second half to avoid another annual sales decline — a task that some analysts say could prove difficult due to tariff-driven economic uncertainty and threats to phase out key EV incentives under the Trump administration's sweeping tax bill, including the $7,500 (R131,620) credit on new sales and leases. It reported on Wednesday that deliveries fell 13.5% in the second quarter, missing analysts' expectations, despite Musk saying in April that sales had turned a corner. Shares, down about a quarter this year, rose 4.5% as the drop was less severe than the bleakest analysts views, partly helped by a modest demand recovery in the competitive Chinese market, where its refreshed Model Y has gained some traction. Some investors welcomed the numbers, though with caution. 'You need two dots to draw a line. I don't think you can get too excited yet until you have some confirmation (of a demand recovery),' said Camelthorn Investments adviser Shawn Campbell, who personally holds Tesla shares. 'We've had so much bad news — almost any good news is going to help at this point.' While Tesla has leaned on offers such as low-cost financing to boost demand, it is yet to roll out long-promised cheaper models in a market where snazzy and feature-packed EVs from its Chinese rivals have been winning over buyers. Tesla had said it would start producing a cheaper vehicle — expected to be a pared-down Model Y — by the end of June, but Reuters reported in April it was delayed by at least a few months. An escalating feud between Musk and US President Donald Trump over the tax bill has also worried investors as it could potentially alienate more buyers after Musk's embrace of right-wing politics eroded demand in Europe and the US and increase regulatory scrutiny of the robotaxis that are central to its nearly trillion-dollar valuation.
