Tesla has announced a reduction in sales and a plan to lay off 15,000 employees.

Tesla, the electric car company, is planning to lay off over 10% of its workforce, according to an internal memo reported by Electrek. The company has asked managers to identify key team members and has discontinued some stock awards and annual reviews. Additionally, production at the company's Shanghai Gigafactory will be reduced. Tesla had 140,473 employees globally as of December 2023, and the layoffs are expected to affect around 15,000 workers. The company is set to report its quarterly earnings on 23 April, after experiencing a decline in vehicle deliveries during the first quarter. In a shift from its previous goals, Tesla has also abandoned plans to produce low-cost cars. This news comes as the company prepares to slow down after years of rapid growth.

https://internasional.kontan.co.id/news/penjualan-turun-tesla-akan-phk-15000-pekerja
 

China is encouraging banks to increase lending to the advanced manufacturing sector.

The Chinese government has called on banks and financial institutions to provide more credit support to the advanced manufacturing sectors, including electric vehicles, wind turbines, aerospace components, and semiconductors. Regulators have emphasised the need for promoting credit resources to further develop the manufacturing industry and increasing the proportion of medium- and long-term loans in the sector. It is recommended that banks outline separate manufacturing credit plans with clear priorities and objectives for credit support. The National Financial Regulatory Agency (NFRA) believes that these measures will help strengthen the manufacturing industry and promote new forms of industrialisation. However, risk management requirements should not be relaxed, and excessive lending should be avoided by banks and financial institutions. Furthermore, the insurance sector is encouraged to offer long-term and stable financial support for strategic emerging industries.

https://internasional.kontan.co.id/news/china-desak-bank-genjot-kredit-bagi-sektor-manufaktur-canggih

US retail sales for March exceeded expectations.

US retail sales increased in March 2024, exceeding expectations. The growth was primarily driven by a surge in online sales, which is seen as further evidence that the US economy is improving in the first quarter. The US Department of Commerce reported a 0.7% rise in retail sales for March, with February's data also revised higher to a 0.9% increase. Economists had predicted a 0.3% rise for March. The robust retail sales data, coupled with robust employment growth, is reinforcing expectations that the Federal Reserve may delay cutting interest rates this year. Despite higher inflation and borrowing costs, spending continued to rise, and low-income households in particular demonstrated resilience in the face of economic challenges. Bank of America's credit card data indicates that low-income spending is outpacing high-income spending. Overall, these positive retail sales figures suggest a favourable outlook for the US economy.

https://internasional.kontan.co.id/news/penjualan-ritel-as-pada-bulan-maret-2024-melebihi-ekspektasi