FT News Briefing Tesla profit milestone, US vs China, ex-Wirecard CEO rearrested
Jul 23, 2020
Tesla celebrates a significant financial milestone with its fourth consecutive quarterly profit, raising questions about the sustainability of its success. Meanwhile, U.S.-China relations are heating up, as the U.S. orders the closure of a Chinese consulate amid espionage concerns. In a bold move, American tech investors are attempting to acquire TikTok from its Chinese owner. Additionally, the former CEO of Wirecard faces re-arrest for a long-running fraud, shining a light on corporate corruption in tumultuous times.
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Tesla Stock Surge
- Tesla's stock price has tripled due to investor confidence in Elon Musk.
- This is driven by the fact that Tesla is the only publicly traded company where investors can directly support Musk's ventures.
Tesla's Profitability and S&P 500 Eligibility
- Tesla's four consecutive quarters of net profit qualify them for the S&P 500.
- A significant portion of their profit comes from selling regulatory credits to other carmakers.
US-China Tensions
- The US ordered China to close its Houston consulate, marking the first such closure since the start of the trade war.
- The Trump administration's increasingly tense relationship with China is reminiscent of a 21st-century Cold War.