Business news in brief
By The Associated Press
Tesla 1Q profit falls 55%, but stock jumps
Tesla’s first-quarter net income plummeted 55%, but its stock price surged in after-hours trading Tuesday as the company said it would accelerate production of new, more affordable vehicles. The company said it made $1.13 billion from January through March compared with $2.51 billion in the same period a year ago.
Investors and analysts were looking for some sign that Tesla will take steps to stem its stock’s slide this year and grow sales. The company did that in a letter to investors Tuesday, saying that production of smaller, more affordable models will start in the second half next year, sooner than previous guidance. The smaller models apparently include the Model 2 small car that is expected to cost around $25,000.
Starbucks appears likely to win Supreme Court dispute
The U.S. Supreme Court has appeared to side with Starbucks in a case that could make it harder for the federal government to seek injunctions when it suspects a company of interfering in unionization campaigns.
Justices noted during oral arguments on Tuesday that Congress requires the National Labor Relations Board to seek such injunctions in federal court and said that gives the courts the duty to consider several factors.
The case stems from Starbucks’ firing of seven workers who tried to unionize their Tennessee store in 2022. At the labor board’s request, a federal judge ordered Starbucks to rehire the workers. Starbucks wants the Supreme Court to curb the board’s power in such cases.
GM reports strong first-quarter profits
DETROIT | Despite a small dip in U.S. vehicle sales, General Motors’ first-quarter net income rose more than 25% on strong deliveries of pickup trucks and other higher-profit vehicles.
The automaker said that while its average sales price per vehicle was down slightly from last year at just under $50,000, pickup sales remained strong, and it’s not seeing the price erosion across its lineup that other companies have experienced.
GM on Tuesday said it made $2.97 billion from January through March, with revenue increasing 7.6% over the same period a year ago to just over $43 billion. That topped the $41.15 billion that analysts polled by FactSet were calling for.
—From AP reports
