- Tesla Profit Hits a Quarterly Record
- Investigation Against Chinese Food Distribution Giant Meituan
- Apple Will Invest $430 Billion in 5 years
Tesla Profit Hits a Quarterly Record
Tesla reported first-quarter results after the bell on Monday. The company made a profit above expectations with the support of Bitcoin earnings. Tesla’s net profit in the first quarter was $438 million, 93 cents per share. Analysts expected earnings per share to be 79 cents.
The sale of some Bitcoin positions contributed to the higher-than-expected profit. Tesla, which has an investment of $1.5 million in Bitcoin, sold 10% of it in the first quarter.
Bitcoin sales generated $272 million in revenue, while the blackout in the first quarter was a $101 million positive contribution from Bitcoin. Tesla’s turnover increased by 73.6% in the first quarter and reached a level of 10.39 billion dollars, above the expectations of 10.29 billion dollars.
The company recorded in the balance sheet announced last night that there was a net cash outflow of $1.2 billion connected with the Bitcoin assets it holds. Making a statement after the balance sheet, Tesla CEO Elon Musk stated that he did not sell Bitcoin and that Tesla sold 10 % of the Bitcoin in his balance sheet to test its liquidity. He noted that the aim is to try the currency’s liquidity to keep Bitcoin as an alternative asset on the balance sheet.
Tesla TSLA CFO Zach Kirkhorn also stated that there are too many reasons to be optimistic about Bitcoin, and Tesla will continue investing in Bitcoin. “We believe in the long-term value of Bitcoin,” he said.
The company said Monday it expects more than 50% vehicle delivery growth in 2021 overall, which implies minimum deliveries of around 750,000 vehicles this year.
Investigation Against Chinese Food Distribution Giant Meituan
The State Administration for Market Regulation (SAMR) launched a monopoly investigation against food giant Meituan after Alibaba.
SAMR said that its investigation was focused on the practice whereby a company forces vendors to use their platform exclusively, known as “choose one from two.”
To be noted, due to a similar investigation, Chinese e-commerce giant Alibaba was fined $2.8 billion.
Nomura analysts stated that China’s third-largest internet company could be fined approximately 4.6 billion yuan ($709 million).
According to Trustdata, Meituan, which competes with Alibaba-backed Ele.me and others, had 68.2% of China’s food distribution market in the second quarter of 2020. Bike sharing, community group purchasing, and restaurant reviews are among Meituan’s other services.
Shares of Meituan, the fifth-largest company on the Hang Seng Index by weighted market capitalization, fell 0.5 % to HK$305 (US$39), marking the first decline in three trading days.
Bloomberg Intelligence stated that they do not expect a harsher penalty than the $2.8 billion imposed on Alibaba, and a more proportional penalty may be charged.
The Chinese government is concerned about the data obtained from online services by giant companies such as Alibaba, Tencent, and Meituan.
The company, of which 42-year-old billionaire Wang Xing is CEO, was found guilty of unfair competition in two more cases this year.
Apple Will Invest $430 Billion in 5 years
Apple, one of the US technology giants, has announced that it has accelerated its investments in the country and plans to invest $430 billion in the next five years.
“At this moment of recovery and rebuilding, Apple is doubling down on our commitment to US innovation and manufacturing with a generational investment reaching communities across all 50 states,” said Tim Cook, Apple’s CEO. “We’re creating jobs in cutting-edge fields — from 5G to silicon engineering to artificial intelligence — investing in the next generation of innovative new businesses, and in all our work, building toward a greener and more equitable future.”
In the statement made by Apple, it was stated that in the last three years, the company’s investment target of 350 billion dollars in 5 years determined in 2018 had been significantly exceeded.
In the statement, which pointed out that the company directly employs 2.7 million people across the country, it was reported that Apple is the largest taxpayer in the USA, paying about $45 billion in corporate tax in the last five years alone.
In the statement, it was noted that the company plans to invest 430 billion dollars in the next five years and provide employment to 20 thousand people.
It was stated that within the scope of the said investment target, an investment of over $1 billion in North Carolina is planned, and it was reported that the construction of a new campus and engineering center in the region would be started.
The statement stated that a $100 million fund would be created to support schools and community initiatives across the state of North Carolina, and a contribution of more than $110 million will be made to infrastructure spending.