USA: Intel Disappoints Markets

US multinational Intel reported a net loss of $16.6 billion for the third quarter of 2024. The disappointing financial results were much higher than the $1.1 billion analysts had expected. In concrete terms, revenue was $13.3 billion, down 6% compared to the same quarter in 2023. In a press release issued by the global microelectronics giant and quoted by the US newspaper Wall Street Journal, the company explained that “the loss reflects plans to reduce costs and accelerate depreciation of certain assets.”

As we await the results of the upcoming presidential election, the US economy is in a state of fibrillation. The electric vehicle market is treading water, with US automaker Ford Motors announcing that it will “suspend production of its F-150 Lightning pickup truck for several weeks in light of the still-unsatisfactory demand in the electric vehicle market”” The company specified that the activity of the plant, where F-150 cars are assembled, will be suspended from mid-November to January 6. “We will continue to adjust production to ensure the best combination of sales growth and profitability,” a Ford Motors spokesperson said.

However, things are going quite well for China’s new-energy carmakers: despite draconian sanctions imposed by the US and EU on the Chinese auto industry, Chinese carmaker BYD has overtaken US rival Tesla in terms of quarterly revenue for the first time, reporting sales of $28.2 billion between July and September 2024, up 24% from the corresponding quarter in 2023. This result, while below analysts’ estimates, surpassed Tesla’s reported revenue of $25.2 billion in the same period. BYD reported net income of $1.6 billion, a historic record for the company, with a gross margin of 21.9 percent. These results were driven by record sales of 1.12 million electric and hybrid vehicles. While net income is still lower than Tesla’s $2.2 billion, the Shenzhen giant’s growth is impressive, especially in the context of slowing global demand for electric vehicles.