Transfin.
HomeNewsGuidesReadsPodcastsTRANSFIN. EOD
  1. News
  2. Explained

Tesla to Cut Workforce by 7%, Germany Considers Banning Huawei from Providing 5G Equipment, US Finalizes Tax Rule on Pass-through Businesses et al.

Professor of Financial Economics and Part-time Value Investor, Transfin.
Jan 19, 2019 3:36 PM 4 min read
Editorial

Tesla to cut workforce by 7% to lower price of its Model 3 sedan. Germany considers banning Huawei from providing 5G equipment in the country. US finalizes tax rule on pass-through businesses.

 

Now to Today's Top Business News Stories in Our End Of Day Wrap Up:

 Tesla to Cut Workforce by 7%, Germany Considers Banning Huawei from Providing 5G Equipment, US Finalizes Tax Rule on Pass-through Businesses et al.

RBI

RBI Governor in his maiden speech focusses on the need to maintain macroeconomic and financial stability; inflation remains a worry.

 

A Fine Balance: In his maiden speech after taking over as the RBI Governor, Shaktikanta Das at the Vibrant Gujarat Summit focused on the need to preserve domestic macroeconomic and financial stability while pushing for sustainable growth, especially in light of a possible global economy meltdown.

 

Growth OK, Inflation a Worry: Das said that with inflation being highly volatile across groups - fuel, food and the rest, a potential policy rate cut will have to be carefully weighed in.

 

Up Close: He also stressed on the need to maintain the asset quality of banks and uphold corporate governance with focus on transparency and accountability.

 

US

US finalizes tax rule on pass-through businesses.
 

An Overhaul: The US Treasury on Friday released final regulations for a tax deduction of up to 20% for so-called pass-through businesses, which include partnerships, S corporations and sole proprietorships under President Donald Trump’s 2017 overhaul of the tax system.
 

And This: The Treasury also proposed new regulations for the real estate industry, which:

 

  • Include a safe harbor rule to ensure access to the deduction for companies involved in the rental real estate market
  • Allow mutual fund shareholders to receive deductions on dividends from real estate investment trusts

 

The Bezos Fortune: Click here for a sneak peek into the world’s richest man’s fortunes.

 

STARTUP

Uber to add multi-modal transportation options in India. Paytm partners with Zomato to offer food delivery services. Insurance startup Turtlemint raises $25m in a funding round led by Sequoia.

 
Schedule a Ride: As part of its expansion plan in India, the ride hailing service, Uber is set to expand services to intra-city buses, quadricycles, electric scooters and electric auto-rickshaws, along with increasing presence from the current 36 cities to 50 cities by the end of this year.
 

Also, this: Food delivery platform Zomato partners with Paytm, allowing its customers to order food directly from the digital payments app. The service is currently available for all Paytm Android app users in Delhi-NCR and will be made available across India and on the iOS app as well.

Turtlemint: Mumbai-based online insurance distribution platform Turtlemint has raised $25m funding led by Sequoia India and existing investors Nexus Venture Partners and Blume Ventures.

Online Insurance Distribution: Turtlemint provides recommendations to customers based on proprietary algorithms and data analytics and caters to nearly 25,000 licensed insurance experts, across 700 cities, to help customers select and complete their insurance purchase using their proprietary MintPro app.

 Tesla to Cut Workforce by 7%, Germany Considers Banning Huawei from Providing 5G Equipment, US Finalizes Tax Rule on Pass-through Businesses et al.

 

AUTO

Tesla to cut workforce by 7% to lower price of its Model 3 sedan.

 

Lay off: As per a WSJ report, Tesla is planning to lay off 7% of its full-time workforce as it struggles to maintain profitability while lowering the price of its Model 3 sedan. The cheapest version of the car starts at $44,000 and Tesla aims to reduce the price to $35,000 this year.

 

Perspective: The move comes in the backdrop of the US federal government slashing tax credit for Tesla buyers from $7,500 to $3,750 this year, following which the auto-maker had lowered the prices of the Model S, Model X and Model 3 by $2,000. Tesla currently has about 45,000 employees.

 

Tesla share price fell c. 13% on Friday.

 

Read the email sent by Elon Musk Tesla to employees explaining the need for job cuts here.

 

TECH

Germany considers banning Huawei from providing 5G equipment in the country.

 

Huawei Continues to Face the Heat: The German government is considering banning Huawei from providing 5G equipment in the country amidst mounting fears that Huawei’s 5G technology will enable Chinese espionage through its mobile networks.

 

The Bigger Picture: US, Australia and New Zealand have largely banned the telecommunications giant from supplying 5G equipment in their countries, citing security concerns.

 

Click here to know more about Huawei’s CFO, Meng Wanzhou, the public face of the telecom giant’s global fight.

 

(Don't want to miss out on these End Of Week Wrap Ups? Subscribe Now to our No Nonsense Email Digest and get the day's Top 6 Business stories straight to your mailbox.)