almost 2 years ago • 3 mins
Tesla announced over the weekend that it delivered a record number of cars last quarter, and it’s heard rumors that records are even bigger in the Lone Star state.
What does this mean?
Tesla was up against it last quarter: the EV maker’s all-important Shanghai factory had to shut down in March after Covid outbreaks forced the region into lockdown. And that’s on top of the shortage of chips and parts that continues to hobble companies far and wide. Fortunately, the Tesla name carries more weight than your garden variety carmaker: it was able to use its sheer industry presence to wangle the parts from suppliers it needed to keep production going. That might be why Tesla delivered a better-than-expected 310,000 cars last quarter – 68% more than the same time last year and a new quarterly record.
Why should I care?
The bigger picture: Build, build, build.
Still, analysts reckon those supply issues stopped Tesla from delivering as many as 25,000 EVs last quarter – all of which still need to be shipped out in the near future. And given that its Shanghai factory workers’ hands are tied for the foreseeable future, the EV maker will be hoping its new German factory – which opened its doors last month – will help it pick up the slack. It’s also due to open a factory in Texas later this week, and it’s rumored to have more in the pipeline to help it make the most of mammoth demand.
Zooming out: Elon’s branching out.
Elon has been a busy boy: news broke on Monday that the Tesla CEO has built up a nearly 10% stake in Twitter – a revelation that’s come hot on the heels of speculation that he might start his own social media platform. Investors, then, reckon he could take on a bigger role in – if not end up completely buying out – Twitter, and they seemed to like the idea: they sent the social media company’s shares up 26% on the news.
Keep reading for our next story...
Reports over the weekend suggest that Shein is raising funds at a $100 billion valuation, and the Chinese online fashion retailer certainly looks the part.
What does this mean?
Since its launch more than 10 years ago, Shein’s been building up an impressive network of low-cost suppliers to help it churn out clothes for cheap, while using sophisticated algorithms to stay one step ahead of the next fashion must-have. That combination – trendy, without the price tag – went down a treat during the pandemic-driven online shopping boom, and helped the company more than triple its sales in 2020 from the year before.
Shein was going to use that newfound status to list on the stock market earlier this year, but it opted out when war in Europe sent markets into turmoil. Now, though, the company’s found another way to cash in: it’s reportedly in talks to raise around $1 billion from venture capital firms – a move that would see the company valued at $100 billion.
Why should I care?
Zooming in: Big dog.
That valuation would win Shein a couple of huge accolades. For one, it would earn the online retailer the title of world’s third most valuable startup, with only TikTok-owner ByteDance and Elon Musk’s SpaceX ahead of it. And for another, Shein would claim bragging rights over its big-name rivals: its massive valuation would be more than H&M and Zara-owner Inditex combined.
The bigger picture: Sale’s over.
Shein could face a roadblock soon, mind you: the US – Shein’s biggest market – is weighing up new laws that would prevent Chinese companies from using certain tariff exemptions. That’s not a great situation for a company that prides itself on accessible fashion: any jump in costs could force the company to raise its prices and potentially jeopardize those blockbuster sales.
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