Tesla sells nearly $1 billion worth of bitcoins, creditors file for Itapemirim bankruptcy and what matters in the market

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Tesla produces less and disposes of bitcoins

Despite production difficulties in China, Tesla nearly doubled its second-quarter profit compared to the same period in 2021. The result, however, breaks the automaker’s streak of rising quarterly earnings.

​The company also reported that it sold about 75% of the bitcoins he had in his box ($936 million), amid the meltdown in crypto prices this year.

In numbers: net profit was $2.26 billion (R$ 12.5 billion) in the second quarter, down compared to $3.3 billion of the previous three months. From April to June 2021, the profit had been US$ 1.14 billion.

What explains: Tesla delivered fewer vehicles in the second quarter as Chinese lockdown policies hampered production at its Shanghai factory. This bottleneck made her lose the lead in the trams.

• Elon Musk, the automaker’s CEO, said that was also the reason the company sold 75% of the bitcoin it owned. He said the company needed cash on hand to weather this turmoil.

More about Tesla:

A Florida jury found the manufacturer 1% negligent in the death of an 18-year-old whose Model S sedan crashed into a wall after the vehicle’s speed limiter was disabled.

The teenager and his father, according to the jury, were 99% guilty.

Creditors file for bankruptcy of Itapemirim

EXM Partners, administrator of the judicial reorganization process of Grupo Itapemirim, asked the Court for the bankruptcy of Viação Itapemirim and other companies.

Understand: the allegation is that the judicial reorganization process of Itapemirim is not being carried out, with the creditors still not receiving.

• The administrator reinforced that the Itapemirim Group has not been accountable since November 2021 and pointed out the default of labor obligations from December to June this year.

New owner? EXM Partners claims to have received a proposal – which it considered advantageous to creditors – from Transportadora Turística Suzano for a 12-month lease “of all lines, counters, brands and part of the operational properties of the recovered”.

Remember: In judicial recovery since 2016, the Itapemirim group has tax debts of almost R$2 billion.

• In addition to not fulfilling the plans, the creditors complain that the company diverted money to finance Ita Transportes Aéreos.

The signals coming from commodities

The recent drop in the prices of several commodities linked a yellow signal of risk of a global slowdown, with the market predicting a lower demand in a scenario of recession.

In numbers:

• Soy: with futures contracts traded below $15oilseed prices are close to the level of the beginning of the year and 18% below the June peak.

• Corn: futures prices fell to $5.88 per bushel (the equivalent of 27.2 kg), the lowest level in six months.

• Iron ore: it is well below the level it was at before the start of the Ukrainian War. It is affected by the drama of the Chinese property market, which affects construction-related commodities.

What explains: the drop in demand expectations reflects the market’s accounts for a possible global recession to come, mainly caused by high interest rates around the world.

Impact on inflation? If the fall in agricultural commodities persists, Brazilians could even see a relief in food prices at the supermarket. For this, however, the exchange needs to help, which has not been happening.

• After touching R$4.61 in April, the dollar started to strengthen against the real and closed this Wednesday’s trading session at R$5.462.

Fine could end Didi’s ‘hell’

China must impose a fine of more than $1 billion (R$ 5.3 billion) in Didi, of transport by app, to end investigations against the company, according to the Wall Street Journal.

Understand the case: the company that owns 99 in Brazil was prevented by Beijing from adding new users shortly after it made its IPO (initial offering of shares) on the New York Stock Exchange (NYSE) in June 2021.

• At the time, Chinese authorities opened an investigation into how the company managed user data, in what was interpreted by the market as one of the most symbolic cases of repression against companies that went public in the US.

• The fine and the goodbye to the American market should pave the way for the company to be able to add users again and make an IPO on the Hong Kong Stock Exchange, according to the WSJ.

History: the fine will be the highest levied on a Chinese big tech since Alibaba was ordered to pay $2.75 billion (R$14.8 billion) in April 2021 for anti-competitive practices.