Tesla rushes forward – Jersey Evening Post
Global equities edged higher in a relatively quiet week to close their worst quarter since the corresponding period two years ago. While stocks are higher than at the start of the conflict in Ukraine, the blue-chip S&P 500 and the technology-focused Nasdaq fell 4.9% and 9.5% in the first quarter.
European markets are more exposed to the impact of the sanctions against Russia and the Euro Stoxx suffered a drop of 9%. However, the FTSE 100 has bucked the trend and gained 2.6% year-to-date due to its high exposure to energy and materials stocks.
Understandably, corporate news was overshadowed by events in Ukraine, but Tesla‘s earnings release Friday night drew a lot of attention. Shares in the electric car maker rose more than 4% on Monday after revealing it delivered a record 310,048 in the first quarter amid a shortage of computer chips, Covid lockdowns in China and logistical challenges that seriously disrupted other manufacturers.
The earnings announcement caps an impressive three-week run in which Tesla shares have gained nearly 50%. During the period, Tesla opened new factories in Berlin and Austin, Texas, which can increase its annual production to two million cars and last week announced that it would ask shareholders to vote on a another stock split at its annual general meeting. Tesla shares have more than doubled since its 5-for-1 split in August 2020.
The Elon Musk effect also reached Twitter after it was revealed in an SEC filing on Monday that the world’s richest man is its largest shareholder with a 9.2% passive stake in the media company. social.
Twitter shares immediately jumped more than 25% on the news, although Musk, who has more than 80 million followers on the platform, has yet to comment on his investment.
Brent crude fell back toward $100 a barrel after President Biden ordered the historic release of 180 million barrels of oil from the U.S. Strategic Petroleum Reserve to ease supply disruptions.
Western leaders, including Britain’s Boris Johnson, had pressured OPEC to increase production, but the Saudi-led oil cartel held firm. However, the release of one million barrels per day over the next six months will only partially compensate for lost Russian production. The International Energy Agency has warned that sanctions and reluctance to buy Russian crude could affect production by three million barrels a day.
As reports of war crimes in the kyiv region emerged over the weekend, including accusations of civilian massacres in the town of Bucha, the oil pared some of its earlier losses.
In response to these allegations, the EU is working on a new sanctions package on steel, luxury goods and jet fuel. Some EU members, led by Germany, are reluctant to include oil and gas given their dependence on Russian energy.
Inflation continues to pick up amid soaring energy costs and last week it was reported that consumer prices in Germany were up 7.3% from a year earlier in March, the highest since reunification in 1990.
Countries where food and energy make up a much larger proportion of their inflation basket are the ones that suffer the most. Turkey’s consumer price index jumped 61% year-on-year in March as energy and transport costs doubled.
President Erdogan has firmly resisted rising interest rates, traditional medicine to curb inflation, and a period of hyperinflation is a growing risk.
Sri Lanka is also suffering as depleted foreign exchange reserves limit its ability to import energy. Power outages and long queues at gas stations have become the norm in recent weeks, sparking daily protests in the capital Colombo and other cities that have at times turned violent.
President Rajapaksa has asked over a million public sector workers to work from home to ease the pressure on fuel