Finimize - 💪 Tesla triumphed

What’s going on here?

Numbers out over the weekend showed that Tesla’s hard work is paying off, with record-high deliveries last quarter.

What does this mean?

Tesla’s full results are due out later this month – and while you shouldn’t really count your chickens before they hatch, these delivery numbers are some pretty promising eggs. See, the firm delivered a whopping 466,000 vehicles last quarter, a 10% uptick from the previous one and a massive 84% leap from the same time last year. And that outpaces its already ambitious aim of selling 50% more cars every year. The recipe for that success: a mix of price cuts, government tax credits, and time-sensitive perks like three months of free fast-charging. Plus, the fact Tesla managed to narrow the gap between production and deliveries will ease investor worries about a buildup of unsold inventory.

Why should I care?

For markets: Not quite stock still.

Tesla shares have been on a tear lately, with a rally of over 150% this year pushing the company’s market value to more than $800 billion. But it’s not just about selling cars. Companies like General Motors, Ford, Volvo, and Rivian have all signed deals to adopt Tesla’s battery charging standards, opening up a new revenue stream for the company. That said, canny investors will still keep an eye on how profit margins are faring – especially since over 90% of the cars Tesla delivered were the less profitable Model 3 and Y offerings.

The bigger picture: BYDing its time.

Tesla’s not the only one setting records. Chinese rival BYD also posted its best-ever numbers last quarter, with over 700,000 “new-energy vehicles” sold – half fully electric sales, half plug-in hybrids. So while Tesla still leads in purely electric vehicle sales, it’s actually growing more slowly than BYD. And with the Chinese upstart looking to expand globally, the race for the crown is only set to heat up.

What’s going on here?

The pound sterling took a bow after wrapping up a show-stealing second quarter.

What does this mean?

The UK rarely gets to step into the limelight these days, but last quarter its currency got a full-on standing ovation. See, the pound sterling was the top dog among the Group of Ten nations, rising around 3% against the US dollar and marking its longest quarterly winning streak since 2021.

So, why the surge? Well, higher interest rates make a currency more attractive to savers and investors – and the Bank of England’s war on inflation has involved a full-blown rate-hiking crusade. Plus, markets are betting that there’s even more where that came from: they see rates hitting 6.3% by February, their highest level since 1998.

Why should I care?

The bigger picture: Party’s over.

The pound might be beating its peers, but it’s anyone’s guess how long it can keep up the pace. Plus, some analysts are actually scratching their heads and wondering why it hasn’t rallied even further. The main suspect: fears that British growth could wind up hitting the brakes. That might be why last month’s surprise hike triggered more of a shrug than a cheer for the pound – and since then, the currency’s shown some other signs of fatigue too, falling from the giddy heights it hit in June.

For markets: Index in trouble.

While a strong pound might be good news for British holidaymakers, it’s not so rosy for the UK’s main stock market index, the FTSE 100. After all, the index’s companies earn about 75% of their revenue overseas, which shrinks when converted back into a stronger pound. Throw in weak oil prices hitting its sizable oil contingent, a glut of interest-rate-sensitive stocks, and the lack of big tech groups to ride the AI wave, and you start to see why the FTSE 100 has been left out of this year’s global stock market bonanza.