It’s a bumper day for manufacturing data being released, with Germany, France, Italy, Spain, UK, South Africa and the US being amongst those in the line up. Whilst it might not sound the most exciting headline, manufacturing data is an important gauge of how much an economy is physically producing and as a result how much is being demanded, like checking how much the cogs are turning. We will therefore see if the reality of output is matching up with relative market optimism.
Tesla announced that they had produced a record number of vehicles in the second quarter of 2023, increasing production by over 80% from the same period last year. Having slashed costs to try and keep up with the ever growing competition, it seems that the affordability moves have kept the brand competitive. With their earnings announcement due on the 19th July, we will see how the cost cutting has affected profitability of the company.
Today we’re due the IPO of Surf Air Mobility, who is planning an unusual direct listing on the New York Stock Exchange. A direct listing means that there is no underwriting bank involved, so it’s cheaper and existing shareholders can start selling from day one. As a company, they’re focused on the development of hybrid and fully electric aircraft, which is great for the planet, seemingly less great for their bank. They’ve run up a net loss of $20.6 million in the first 3 months of 2023 alone, which will make it a proposal that appeals to high risk investors, or those who simply want to be part of driving change.
Sources: AJ Bell, BBC, Nasdaq, Bloomberg