International News 29/04
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The demand for electric cars has declined, resulting in Tesla Motors Inc. laying off more than 6,000 employees.
Tesla has announced plans to lay off 6,020 employees in Texas and California, according to an announcement made ahead of the release of its quarterly results. The layoffs are part of the company's strategy to address slowing demand and falling margins, caused by falling sales and an intensifying price war in the electric vehicle market. In its previous announcement, Tesla did not disclose the number of employees affected. However, it has now been revealed that 3,332 jobs will be cut in California and 2,688 positions in Texas, beginning on 14 June 2024. Elon Musk, CEO of Tesla, previously celebrated the company's creation of over 30,000 manufacturing jobs in California. The layoffs represent 12% of Tesla's total workforce in the Austin area, where its gigafactory and headquarters are located.
The US and China are engaged in a heated trade dispute, prompting many manufacturing companies to relocate to Malaysia.
Foreign companies are relocating their manufacturing facilities from China to other countries due to the ongoing trade dispute between China and the United States. This trend, known as China Plus One, is particularly beneficial for Malaysia, which is the world's sixth-largest exporter of semiconductors. Malaysia has an advantage in this sector, thanks to Intel opening its first international factory in Penang. Intel is also expected to construct another factory in Penang, which will be its first overseas facility for 3D chip packaging. With many semiconductor and electric vehicle companies relocating to Southeast Asia to avoid trade restrictions and strengthen their supply chains, Malaysia has become an attractive destination. Tech companies are drawn to the ecosystem that has developed in Malaysia, particularly in Penang and Kulim, due to the reduced risk in the intense competition between the US and China in the high-tech sector.
JP Morgan CEO Dimon is optimistic that the US economy is experiencing a period of sustained growth.
JP Morgan Chase CEO Jamie Dimon is optimistic about the strength of the US economy, citing healthy employment and consumer finances as factors. He believes that even in the event of a recession, consumer conditions will remain favourable. However, Dimon also voiced concerns about rising sovereign debt, inflation, and geopolitical conflicts, warning of their potential impact on the economy. He expressed the view that inflation may persist longer than expected, leading to higher interest rates. Regarding public policy, Dimon suggested that the government would benefit from having more individuals with practical experience on board. As one of America's prominent corporate executives, he expressed a desire to help his country and called for the inclusion of members from the other party in the cabinet of the next president.