In a press release put out midday on Monday, Tesla announced it had delivered a record 405,278 vehicles for the Q4 2022 quarter. The number marks a record for the company, but comes in below most Wall Street estimates, even some that were revised lower. Consensus estimates for deliveries stood at 420,760 into the report, according to Bloomberg.
“In 2022, vehicle deliveries grew 40% YoY to 1.31 million,” the company’s press release says. This falls short of the 50% growth figure the company had once projected for the year.
Tesla commented: “We continued to transition towards a more even regional mix of vehicle builds which again led to a further increase in cars in transit at the end of the quarter. Thank you to all of our customers, employees, suppliers, shareholders and supporters who helped us achieve a great 2022 in light of significant COVID and supply chain related challenges throughout the year.”
The breakdown of vehicles included 388,131 Model 3 and Model Y deliveries, which fell short of the 405,597 estimated:
And 17,147 Model S/X deliveries, which fell short of the 18,578 estimate:
Perhaps an interesting delta to keep an eye on is the company’s production versus delivery – production numbers all beat Wall Street estimates across the board, per Bloomberg:
*TESLA 4Q PRODUCTION 439,701 VEHICLES, EST. 438,840
*TESLA 4Q MODEL S/X PRODUCTION 20,613, EST. 18,611
*TESLA 4Q MODEL 3/Y PRODUCTION 419,088, EST. 411,828
Despite the delivery number missing most consensus estimates, we noted days ago that Morgan Stanley’s Adam Jonas had actually revised his Q4 delivery estimate to as low as 399,000 vehicles.
Jonas seems to think headwinds out of China, which have been cited as part of the reason for Tesla’s recent share price plunge, may continue: “According to Morgan Stanley lead China auto analyst Tim Hsiao, Nio just announced a cut to its 4Q delivery target given Covid-related disruption to production and registrations. Despite sequential volume improvement MTD, the uptick of auto/NEV sales has come in weaker than expected given a surge in Covid cases following reopening.”
Jonas also continues to believe that Tesla is well suited to face macro headwinds heading into 2023. He wrote last week:
“On a relative basis, the reiteration of our OW rating must be seen vs. more challenged EV-related peers such as EW-rated Fisker (FSR), UW-rated Lucid (LCID),and UW-rated QuantumScape (QS). Between a worsening macro backdrop, record high unafforability,and increasing competition, there are hurdles to overcome. Yet we do believe that in the face of all these pressures, TSLA will widen its lead in the EV race, as it leverages its cost and scale advantages to further itself from the competition.”
Tesla has also started 2023 by continuing to offer 10,000 yuan incentives in China in a bid to help boost sales, we noted this weekend. The company may also see another subsidy shot-in-the-arm in the U.S. heading into the new year.
Days ago we asked whether or not the Biden administration could work as a tailwind heading into 2023: “At the start of the new year, buyers will once again enjoy a tax credit when they purchase a Tesla vehicle. The original 2010 EV tax credit had a quota of 400K units. For Tesla, the tax credits fully disappeared in early 2020 when Tesla reached that unit sales quota. But thanks to the Inflation Reduction Act (IRA) that Congress passed earlier this year and Biden signed [last week], the tax credits are back in 2023.”
“In the IRA there is a $7,500 tax credit for buyers of EVs, including TSLA and GM, who lost their previous tax credits. However, there are other strict limits on which brands would be eligible for the full credit, based on the selling price and where the cars and components are made. Unless the car is made in North America (NAFTA), the buyer is not eligible for the full tax credit. In addition, at least 50% of the battery parts will need to be made in North America. Lastly, a minimum of 40% of minerals used in the batteries must be sourced from the US or countries with free trade agreements with the US. So even buyers of GM and Tesla cars might only be eligible for half ($3,750) of the tax credit because their batteries and minerals come from a “foreign entity of concern” (China/Russia).”
To finish the year, Tesla has traded the furthest below its 200DMA (61% lower) in the company’s history – whether or not this is a sign of continued bearishness or a setup for a whipsaw higher remains to be seen…
Shares initially fell, before bouncing, in Europe where equity futures trading is open, versus the U.S. where markets are closed for the New Year’s holiday.
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Big banks raise prime lending rates to 6.7% after Bank of Canada hike – Global News
The central bank’s target for the overnight rate now sits at 4.5 per cent following a quarter-point hike on Wednesday.
The central bank’s policy rate sets borrowing rates for other lending institutions, which feeds into terms for Canadian consumer loans like mortgages.
After Wednesday’s decision, TD Bank, Scotiabank, BMO, RBC, CIBC and National Bank all raised their prime lending rate by 25 basis points to 6.7 per cent.
This marks the highest point for the prime lending rate in Canada since 2001, according to data from RateSpy.com.
Believing inflation is set to “decline significantly,” the Bank of Canada signalled Wednesday that it was ready for a pause after 425 basis points of hikes to its policy rate.
Options for homeowners struggling with mortgage payments
© 2023 Global News, a division of Corus Entertainment Inc.
Home Depot investigation: Data shared without consent
Retailer Home Depot shared details from electronic receipts with Meta, which operates the Facebook social media platform, without the knowledge or consent of customers, the federal privacy watchdog has found.
In a report released Thursday, privacy commissioner Philippe Dufresne said the data included encoded email addresses and in-store purchase information.
The commissioner’s investigation discovered that the information sent to Meta was used to see whether a customer had a Facebook account.
If they did have an account, Meta compared what the customer bought at Home Depot to advertisements sent over the platform to measure and report on the effectiveness of the ads.
Meta was also able to use the customer information for its own business purposes, including user profiling and targeted advertising, unrelated to Home Depot, the commissioner found.
It is unlikely that Home Depot customers would have expected their personal information to be shared with a social media platform simply because they opted for an electronic receipt, Dufresne said in a statement.
He reminded companies that they must obtain valid consent at the point of sale to engage in this type of activity.
“As businesses increasingly look to deliver services electronically, they must carefully consider any consequential uses of personal information, which may require additional consent.”
Home Depot told the privacy commissioner it relied on implied consent and that its privacy statement, available through its website and in print upon request at retail outlets, adequately explained the company’s use of information. The retailer also cited Facebook’s privacy statement.
The commissioner rejected Home Depot’s argument, saying the privacy statements were not readily available to customers at the checkout counter, adding shoppers would have no reason to seek them out.
“The explanations provided in its policies were ultimately insufficient to support meaningful consent,” Dufresne said.
He recommended that Home Depot stop disclosing the personal information of customers who request an electronic receipt to Meta until it is able to put in place measures to ensure valid consent.
Home Depot fully co-operated with the investigation, agreed to implement the recommendations and stopped sharing customer information with Meta in October, the commissioner said.
This report by The Canadian Press was first published Jan. 26, 2023.
Meta funds a limited number of fellowships that support emerging journalists at The Canadian Press.
Rent increased more than 18% last year for new tenants, new numbers show – CBC News
A surge in demand pushed Canada’s rental market to its tightest level in two decades last year, with the vacancy rate in purpose-built apartments dipping below two per cent and rent for new tenants going up by 18 per cent.
Those were some of the main takeaways from the Canada Mortgage and Housing Corporation’s annual report on the state of Canada’s rental market.
The figures cited above were for purpose-built rental apartments, so they don’t include what’s happening in condos, or in apartments built out of occupied family homes.
For purpose-built rentals, the national vacancy rate fell to 1.9 per cent last year, its lowest level since 2001.
Booming demand for apartments pushed up the price to get one, too, with the average rent hitting $1,258 a month. That was up by 5.6 per cent from the previous year’s level, and roughly twice the annual average seen for the past 30 years.
But rent didn’t go up at the same pace for every unit.
Apartments where there was a change in tenants saw the rent go up by 18.9 per cent. Those where there was no change in tenancy saw rents go up by only 2.9 per cent, on average. “This reflects the fact that, once a tenant vacates a unit, landlords are generally free to increase asking rents to current market levels,” the CMHC said.
That gap was even more stark in two of Canada’s biggest cities, Toronto and Vancouver, where average rents for a unit that saw a tenant change went up by 29 and 24 per cent, respectively.
Geordie Dent, the executive director of the Federation of Metro Tenants Association, has spent more than a decade as a watchdog for the rental market in Toronto. He says the situation is as dire as he’s ever seen, with a surge in so-called “renovictions,” where landlords are eager to take advantage of higher market rents by evicting tenants and raising rents to someone new
“There’s an incentive for them to try to illegally evict people and raise the rent,” he told CBC News in an interview. He says he hears stories every day of people staying in unsuitable housing situations because of desperation. “They’re afraid that if they get kicked out of their current place for a new one, rent’s going to be like $1,000 higher.”
Things aren’t much better across the country in Vancouver, either. The vacancy rate fell to just 0.9 per cent, with the average price for a two-bedroom hitting $2,002 a month. That’s up by 5.7 per cent from last year, but it’s up by 24 per cent among units that have seen a tenancy change.
Some of those in the lower mainland’s rental market fear the system is irreparably broken.
Vinny Cid was working and living in Victoria, but when his job allowed him to work remotely in 2021, he made the decision to move home with his parents.
He, his sibling and his two parents share a rental home in Richmond, B.C. for $2,800 a month which suits their needs, but he says they are only able to get that because his parents have lived in the unit since 2016.
“The rental situation has devolved quickly,” he told CBC News in an interview Thursday. “I check rental listings almost daily, and something similar today would cost $4,000 or more.”
“It’s depressing to see how prices have spiraled out of control very quickly,” he said.
While his situation works for him for now, should his employment or needs change, he suspects he would have to leave the province, or even the country. And he says he worries for those who don’t have the income and family support he has.
“Everybody is being told to either improvise or get pushed out,” he said. “In terms of outlook, it doesn’t look good.”
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