Business
2024-04-03-sherwood-tesla-byd

Tesla regained its crown from BYD, but demand for all-electric vehicles is softening

Tesla delivered ~9% fewer vehicles in Q1 of this year than it managed a year prior — the first time its quarterly sales have fallen since the pandemic-induced drop of 2020. The company still shipped some 387,000 cars, giving Tesla back the “world’s largest EV producer” title — a boast it had previously lost to the Chinese battery-producer-turned-automaker BYD, which posted an even more dramatic 42% fall in its deliveries.

The news sent Tesla shares down 5% yesterday, capping a tough start to the year that saw TSLA notch the worst Q1 performance of any stock in the S&P 500 index.

Having been the industry trailblazer for so long, Tesla is now facing increased competition, relying on its aging Model Y and Model 3 to keep its sales engine ticking over — all while battling factory fires, shipping delays, and labor disputes in the Nordics. To jumpstart demand, the company has turned to price cuts (many of them) and even embraced advertising for the first time, after years of resisting.

Somewhere in the middle

Ultimately, however, both Tesla and BYD are battling gravity, as the market for all-electric vehicles softens. Indeed, a recent YouGov survey suggests that the problem might be more deep-rooted, with Americans increasingly skeptical about the true environmental impact of going electric, while the common worries of range anxiety (particularly in cold weather) and cost haven’t gone anywhere.

Ironically, sales of hybrid vehicles (+65% in 2023) are now rising faster than their all-electric counterparts (+46%) — Toyota has reported soaring sales of its iconic hybrid Prius series.

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Starbucks issues apology after viral “Bearista” cup meltdown

Holiday cheer turned into chaos this week for Starbucks after the coffee giant’s new “Bearista” holiday cup sent fans into a frenzy. 

Dropped alongside its 2025 holiday menu, the $30 beanie-wearing glass bear tumbler sparked long lines, sellouts, and even in-store scuffles before Starbucks stepped in with an apology.

“The excitement for our merchandise exceeded even our biggest expectations,” the company said in a statement to People. “Despite shipping more Bearista cups to our coffeehouses than almost any other item this holiday season, the Bearista cup and some other items sold out fast.”

Within hours of launch, frustrated fans flooded Starbucks’ social media pages and even store hotlines. Some customers waited in line before dawn and others said their stores received only a handful of cups. In one Houston location, the craze even turned physical, with police reportedly called to break up a brawl. Meanwhile, the cup is already reselling on sites like eBay, with listings topping $600.

“We understand many customers were excited about the Bearista cup and apologize for the disappointment this may have caused,” Starbucks said. While in-store customers may be upset, investors seem happy about the viral hit, as the stock has risen over 3% on Friday.

If you’re still hoping for a Bearista at market price, that may not be on order: the chain didn’t disclose how many cups were made or whether a restock is planned.

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Target tells workers to smile, wave, and greet shoppers if they come within 10 feet of them

Target just rolled out a new rule for store employees: smile, make eye contact, and greet or wave when a shopper comes within 10 feet — and if they get closer, within four feet, ask whether they need help or how their day is going, according to a new Bloomberg report.

Dubbed the 10-4 program internally, the rule mirrors rival Walmarts own 10-foot policy, formalizing behavior Target had previously only encouraged.

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Monster surges on energy drink buzz, while Celsius sinks on distribution concerns

Shares of Monster Beverage climbed 5% after the bell on Thursday, and held most of those gains into early trading on Friday, following strong Q3 results.

The energy drink giant topped market expectations, with quarterly sales up 17% year over year to $2.2 billion and adjusted net profits growing 41% to $524.5 million — 11% ahead of Wall Street’s estimates. In the report, Monster highlighted its zero-sugar line and new product launches, with a stack of novel flavors already released this year, as bright spots.

During a call with analysts, Chief Executive Hilton Schlosberg said that the global energy drink category “remains healthy with robust growth,” The Wall Street Journal reported, adding that demand for more affordable caffeinated drinks is rising as coffee has become “really expensive.”

Meanwhile, rival beverage business Celsius saw shares fall as much as 23% on its Q3 results yesterday — despite beating expectations, with revenue jumping 173% — largely due to concerns about a change in the company’s distribution channel, as its newly acquired Alani Nu brand joins the PepsiCo distribution network.

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