Tesla ‘sale’, highlights from day one of the Davos forum and what matters in the market

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Tesla’s ‘salon’

After failing to reach its daring goal of increasing vehicle sales by 50% last year – it reached 40%–, Tesla started 2023 with aggressive discounts in the US, China and Europe.

In numbers: the automaker opted to cut the prices of its vehicles by up to 20% according to the Reuters agency, in an attempt to heat up demand for its electric cars.

  • In the US, the price of a version of the Model 3, its flagship, has dropped 14%for US$53,990 (R$ 275 thousand), while the Model Y, another very coveted model, dropped almost 20%for US$52,990 (BRL 270 thousand). Values ​​do not include taxes and other fees.
  • In China, where prices have dropped to 24% in relation to September, owners of vehicles purchased last year protested in front of the automaker’s dealerships in the first week of this year, demanding benefits or credit after discounts. Tesla denied.

Which explains: the strategy of reducing prices is not uncommon in the automotive market, but billionaire Elon Musk’s automaker had not adopted such a measure for almost two years.

  • If until the beginning of 2022 the company could not handle customer demand, now it is trying to revive demand for its electric vehicles amid inflation and high interest rates – Musk blames the Fed (American central bank) for the brake on demand.
  • That alone, however, does not explain. Competition has also grown, and in the first half of last year, the automaker saw the Chinese BYD surpass it in the position of global leader in sales of electric vehicles.

In 2022according to a survey reported this Monday by the Wall Street Journal, sales of electric vehicles reached 10% the total commercialization of cars for the first time in history.

  • Demand was mainly driven by growth in the markets of China (up 19%) and Europe (up 11%).

Pessimism hits CEOs

For 39% of CEOs in the world (and 33% in Brazil), the companies they run will be economically unviable in ten years if there are no major changes.

The study carried out by the consultancy PwC is released annually at the meeting of the World Economic Forum, in Davos. This year’s survey polled more than 4,400 top executives from over a hundred countries.

Which explains: Among the concerns of executives about the future of the business they are in charge of, are the context of high inflation and the reorganization of production chains after the bottlenecks generated by the pandemic.

  • Political tensions as a reflection of the war in Ukraine and cybersecurity are also scary.

In numbers: 73% of CEOs say they expect a slowdown in the global economy this year, in a sample of how pessimism has replaced the optimism of early last year.

  • In the previous survey, when the sharp rise in interest rates was not on the radar, 77% expected acceleration of the economy.

Optimism: 2 out of 3 (66%) Brazilian executives say they believe in an acceleration of the national economy. The positive view of the country is also echoed by other emerging countries, such as the Chinese (64% optimistic) and Indians (57%).

How was the first day in Davos:

  • The Minister of the Environment and Climate Change, Marina Silva, declared at the opening panel that the Lula government is committed to “zero deforestation, protection of indigenous peoples, democracy and sustainability”.

BTG’s criticism of 3G Capital

BTG Pactual was the first Americanas creditor to appeal the decision on Friday (13) that protects the retailer for 30 days against the early maturity of debts.

The petition sent by the bank’s lawyers to the TJ-RJ states that a fraud generated the “inconsistencies” of BRL 20 billion and also targets 3G Capital, the fund of billionaires Lemann, Telles and Sicupira, a trio that until 2021 was the controller and today is the company’s main shareholder.

See excerpts from the document:

  • “The three richest men in Brazil (with assets valued at BRL 180 billion), anointed as a kind of demigods of ‘good’ world capitalism, are caught with their hands in the cash register of what, since 1982, has been one of the main trio companies”.
  • “Two days later, they have the nerve to come to court to ask for a precautionary measure, preparatory to a judicial recovery, to prevent creditors from legitimately protecting their assets in light of the biggest corporate fraud in the history of the country”.
  • “It’s the fraudster dressing up as the boy in the old forensic anecdote, who, after killing his father and mother, begs the jury for clemency on account of being an orphan.”

Other side: in a note, Americanas said that “it continues to believe in the protection of the precautionary measure and in the commitment of the creditors to return with a proposal. Americanas will soon appoint its negotiation team with the creditors”.

The reaction in the market: the decision that protected the retailer from creditors went down badly with investors, with analysts considering that the negotiation between the two sides should become increasingly difficult.

‘Is it R$20 million?’ When two group executives presented a report to Sergio Rial, then CEO of the company, showing what looked like an error in the accounting entries, Rial did not capture the order of magnitude: “Ah, it’s R$ 20 million”, he reacted, according to interlocutors.

  • The assistants then repeated the real figure: “No, it’s R$ 20 billion”. Rial ordered everything to stop and called the team on an emergency basis, including the director of investor relations at the time, André Covre, informs reporter Julio Wiziack.

This Monday, Rial was replaced by Rothschild in the task of negotiating with creditors. He, who is also chairman of the board of Santander Brasil, continues as advisor to the trio of 3G billionaires.

It’s lost about what caused the accounting breach and the repercussions of the scandal at Americanas? Here is what is known about the case so far.


Operators want to compete with electric

The popularization of solar energy in Brazil, which became the second largest source in the national matrix amid the race for subsidy, attracted the attention of large operators in the telecommunications sector.

Giants like Claro and Oi already have projects in progress, while TIM should debut this year. To compete with electric companies, they are betting on a “solar subscription” model.

Understand: In this format, customers deduct the credits that are generated in a remote solar plant, called “shared distributed generation”, from the value of the electric energy.

  • This way, they have access to the discount without having to install solar panels at home.

Operators bet in its differentials to grow in the sector and build customer loyalty. The possibility of offering bonuses and discounts on other services, such as internet and telephony data, is mentioned, in addition to having a strong brand to bring credibility to the service.

Each of their plans:

  • Claro Energia offers services to customers in Minas Gerais, Paraná and Santa Catarina, and promises 10% savings in relation to the energy tariff in the regulated market, the conventional one.
  • Oi entered the market in Minas Gerais, but is already planning expansion.
  • TIM is preparing to debut this year, in partnership with another company, which will result in a new brand.

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