Tesla investors approve stock split; Musk sets goal of 20m cars per year

Tesla investors approve stock split; Musk sets goal of 20m cars per year
Tesla electric vehicles are shown at a sales and service center in Vista, California, on June 3, 2022. (REUTERS/Mike Blake/File Photo)
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Updated 05 August 2022

Tesla investors approve stock split; Musk sets goal of 20m cars per year

Tesla investors approve stock split; Musk sets goal of 20m cars per year
  • Tesla stock closed Thursday at $925.90, down 12.4 percent so far this year
  • Tesla currently produces around 1.5 million per year

DETROIT: Tesla shareholders on Thursday approved a three-for-one stock split, a move that will make the company’s shares more accessible to smaller investors.
Preliminary results of the shareholder vote were announced at the electric car and solar panel maker’s annual meeting at its new factory in Austin, Texas.
CEO Elon Musk also discussed at the meeting a major factory expansion in the future as the company moves toward a goal of making 20 million vehicles per year. It now produces around 1.5 million per year.
Musk said Tesla might announce another factory site this year, and it expects to have about a dozen in the future. Currently the company has assembly plants in Fremont, California; Austin; Berlin and Shanghai. Musk joked that many had suggested Canada as a site for the next new plant.
Tesla stock closed Thursday at $925.90, down 12.4 percent so far this year, but it almost completed a split itself, tumbling more than 40 percent by May after Musk made a $44 billion bid to buy Twitter in April.
Investors were worried that Musk would be distracted from Tesla if he purchased the social media platform.
But Musk backed out of the deal in July and Twitter sued him to force him to make the purchase. A trial is scheduled for October in Delaware Chancery Court. Tesla stock began to recover in July, boosted by better-than-expected second-quarter earnings.
Tesla announced plans for the split in late March when shares were trading over $1,000. It will not affect Tesla’s overall market value or its status as the world’s most valuable automaker.
Share splits are used by companies when their stock price gets too high for retail investors to buy individual shares, or when a company wants more shares to exist in the marketplace to make the stock more liquid to trade.
Tesla has said it was trying to accomplish both of these goals: giving its employees greater quantities of shares as well as making the stock more accessible to retail investors.
Musk sold some shares of Tesla for the Twitter purchase and had planned on using other shares as collateral.
Shareholders also elected Ira Ehrenpreis and Kathleen Wilson-Thompson to the Tesla board.


Oil Updates — Crude edges up; Mexico, Venezuela help Cuba to fight oil fire

Oil Updates — Crude edges up; Mexico, Venezuela help Cuba to fight oil fire
Updated 14 sec ago

Oil Updates — Crude edges up; Mexico, Venezuela help Cuba to fight oil fire

Oil Updates — Crude edges up; Mexico, Venezuela help Cuba to fight oil fire

RIYADH: Oil prices edged up from multi-month lows on Monday as investors’ appetite improved following data on US jobs and Chinese exports that eased recession concerns.

Brent crude futures had risen 22 cents, or 0.2 percent, to $95.14 a barrel by 0439 GMT. 

US West Texas Intermediate crude was at $89.18 a barrel, up 17 cents, or 0.2 percent.

Cuba gets help from Mexico, Venezuela to fight oil fire

Cuba appeared to make progress on Sunday bringing under control a fire at its main oil storage facility that has killed one firefighter, drawing on help from Mexico and Venezuela to fight the raging flames.

A lightning strike on Friday ignited one of eight storage tanks at the Matanzas super tanker port 60 miles east of Havana. A second tank caught fire on Saturday, catching firefighters and others at the scene by surprise. Sixteen people were missing.

Susely Morfa Gonzalez, head of the Communist Party in Matanzas, told local reporters “there are no flames at this time, only white smoke” coming from the first tank hit by lightning.

She said a second tank was still burning, sending up a huge column of black smoke, while a third, which on Saturday night officials feared would explode “is being cooled with water at intervals, in order to maintain an adequate temperature that prevents combustion.”

A secondary fire feeding off oil leaking from the area was also extinguished. No oil had contaminated Matanzas Bay, officials said.

The second explosion on Saturday injured more than 100 people, many first responders, and 24 remain hospitalized, five of those in critical condition.

On Sunday, 82 Mexican and 35 Venezuelan personnel experienced in combating fuel blazes joined the effort, bringing four planeloads of fire-fighting chemicals.

“The help is important, I would say that it is vital and it is going to be decisive,” Diaz-Canel said. 

(With input from Reuters) 


Here’s what you need to know before Tadawul trading on Monday

Here’s what you need to know before Tadawul trading on Monday
Updated 32 min 43 sec ago

Here’s what you need to know before Tadawul trading on Monday

Here’s what you need to know before Tadawul trading on Monday

RIYADH: Saudi stocks started the week lower on Sunday, after worries over recession pushed oil prices to their lowest levels since February.

TASI closed 0.6 percent down at 12,216 points, while the parallel Nomu market lost 0.3 percent to 21,776 points.

The Kingdom posted a SR77.9 billion ($20.8 billion) budget surplus during the second quarter of 2022, the Ministry of Finance reported. 

Elsewhere, Qatar and Bahrain ended flat, while Kuwait and Oman slipped 0.4 and 0.3 percent, respectively.

Outside the Gulf, the Egyptian primary index extended gains by 0.9 percent, after adding over 5 percent in the prior session.

In energy trading, Brent crude reached $95.69 a barrel by 9:07 a.m. Saudi time on Monday, while US West Texas Intermediate reached $89.64 a barrel.

Stock news

Almarai Co. re-appointed Prince Naif bin Sultan bin Mohammed bin Saud Alkabeer as chairman and Suliman Al Muhaideb as vice chairman

Bank Albilad established a closed joint stock company in Riyadh, Enjaz Payment Services Co., with a capital of SR200 million

Wafrah for Industry and Development Co. signed a contract with German food solutions firm GEA to manufacture and supply frozen and cooked meat processing lines

Middle East Paper Co. posted a 216 percent leap in profits during the first half of 2022 to SR192 million

Raoom Trading Co.’s shareholders approved a 25% capital increase plan to SR62.5 million

Alakaria’s unit Al Widyan Saudi Real Estate Co. will reduce its capital from SR100 million to SR500,000

Middle East Healthcare Co. reported a 46 percent profit surge to SR31 million for the first half of 2022

Makkah Construction and Development Co. was suspended from trading due to its failure to announce financial results in the specified period by the Saudi Exchange

International Human Resources Co. set its price guidance for a direct listing on Nomu at SR34 per share

Calendar

August 8, 2022

Start of Naba Alsaha Medical Services Co.’s IPO subscription

August 9, 2022

Alamar Foods Co. will start trading its shares on the Saudi Exchange

August 14, 2022

Saudi Aramco will announce its financial results for the second quarter of 2022

Close of Naba Alsaha Medical Services Co.’s IPO subscription


Saudi Wafrah signs $4m contract with German GEA Food for meat production

Saudi Wafrah signs $4m contract with German GEA Food for meat production
Updated 45 min 41 sec ago

Saudi Wafrah signs $4m contract with German GEA Food for meat production

Saudi Wafrah signs $4m contract with German GEA Food for meat production

RIYADH: Saudi food firm Wafrah for Industry and Development Co. has signed a contract with German GEA Food Solutions, one of the world’s largest manufacturers of food lines and plants.

Under the $4 million contract, GEA Food Solutions will manufacture and supply highly automated lines for processing and packaging frozen and cooked meats for Wafrah, according to a bourse filing.

Wafrah said the company will start upgrading its production capacity and revenue in the second half of 2023.


Bank Albilad launches $53m wholly owned payments arm Enjaz

Bank Albilad launches $53m wholly owned payments arm Enjaz
Updated 08 August 2022

Bank Albilad launches $53m wholly owned payments arm Enjaz

Bank Albilad launches $53m wholly owned payments arm Enjaz

RIYADH: Saudi-based Bank Albilad has established a wholly owned payments arm in Riyadh with SR200 million ($53 million) capital, according to a bourse filing.

Enjaz Payment Services Co., licensed by the Saudi Central Bank as a Major Electronic Money Institution, will handle all payments and remittances activities currently operated as a business division in the bank.

The incorporation of Enjaz is in line with Bank Albilad’s strategy and any major developments in this regard will be announced in due course, it said.

 


Alkhair Capital among Kingdom’s top 10 financial firms with $3.6bn assets

Alkhair Capital among Kingdom’s top 10 financial firms with $3.6bn assets
Updated 08 August 2022

Alkhair Capital among Kingdom’s top 10 financial firms with $3.6bn assets

Alkhair Capital among Kingdom’s top 10 financial firms with $3.6bn assets

RIYADH: Alkhair Capital has seen the value of its assets under management rise to SR13.42 billion ($3.6 billion) in the first quarter, making it one of Saudi Arabia’s top ten financial institutions.

The Riyadh-headquartered investment firm reported a 34.6 percent increase in assets under management in the first quarter of 2022 compared to the year-ago period, according to the Capital Market Institutions Report.

“Alkhair Capital is a pioneer in providing Islamic products, and the recent ranking by the Capital Market Institutions confirms our strong track record and operational excellence,” said Abdullah Al Shilash, CEO of Alkhair Capital Saudi Arabia.

Most recently, Alkhair Capital acted as the financial advisor and underwriter to two Saudi-listed companies’ rights issue offerings.

The first was a SR173 million capital raise for Saudi Industrial Export Co. and the second was Amana Cooperative Insurance Co.’s SR300 million capital hike plan.