Business
Chinese Car Companies Urge Import Taxes on EU Rivals Amid Tariff Threats
Beijing, June 20, 2024 — Chinese car manufacturers have called on the Chinese government to impose import taxes of up to 25% on European Union (EU) rivals if the trading bloc proceeds with tariffs on vehicles from China. The demand was made during a closed-door meeting organized by China’s Ministry of Commerce, which included representatives from European car firms.
The proposed measures specifically target EU cars equipped with large petrol-driven engines. Last week, the EU issued a warning of tariffs up to 38% on Chinese electric vehicle (EV) makers, effective from July 4.
The meeting in Beijing brought together four Chinese and six European car companies. German automaker Volkswagen confirmed its presence at the meeting but declined to comment on the discussions. Porsche also refrained from commenting, while BMW did not immediately respond to inquiries from the BBC.
According to a report from a social media account affiliated with state broadcaster CCTV, the Chinese car companies urged the government to take decisive countermeasures against the EU. They recommended imposing higher provisional tariffs within the limits allowed by World Trade Organization rules, specifically targeting large-displacement petrol vehicles imported from Europe.
This stance echoes a previous article published by the state-run newspaper Global Times, which advocated for 25% tariffs on cars with petrol engines larger than 2.5 liters. Industry experts suggest that such tariffs would primarily impact “luxury or ultra-luxury” vehicles, with limited effects on overall sales volumes.
Bill Russo, an advisor from the firm Automobility, emphasized that additional taxes are unlikely to significantly alter sales dynamics. As tensions escalate between China and the EU, the automotive industry remains at the forefront of trade disputes, with potential implications for both sides. 🚗🌐
Business
Tesla Receives Environmental Approval for Factory Expansion in Germany
Business
Lithuania and Hungary Top List of Best Countries for Property Investment, Study Finds
A new study by UK relocation company 1st Move International has ranked Lithuania and Hungary among the top countries in Europe for property investment, while Belgium and France fall among the worst. The report, which analyzed factors such as property tax rates, income tax on rent, and gross rental yields, highlights Lithuania as the leading choice for real estate investors.
Best Places to Invest in Europe
Lithuania emerged as the top destination for property investment, with the capital city, Vilnius, offering an average rental yield of 5.65%, according to Global Property Guide data. Rent prices in Lithuania have soared by over 170% since 2015, and property prices have seen a 10% increase in the second quarter of 2024. The country’s moderate income tax on rent, set at 15%, along with no restrictions on foreign property ownership, makes it an attractive option for investors.
Estonia ranks as the second-best choice for property investment, with non-residents allowed to buy property and relatively low buying costs at 1.3%. Investors can expect an annual gross rental yield of around 4.5%, with property prices rising by 6.7% in the year leading up to June 2024.
Romania ranks third, boasting a low average rental income tax rate of 10% and an impressive gross rental yield of 6.46%. The low additional costs of buying property add to Romania’s appeal for investors seeking a high return on investment.
Other Key Destinations
Countries in Central and Eastern Europe, such as Hungary, Slovenia, and Poland, are also highlighted as strong opportunities for property investment. In Hungary, rent prices have surged by 180% since 2015, and property prices rose by 9.8% in the past year. Poland saw a 17.7% increase in house prices, while Slovenia recorded a 6.7% rise during the same period, providing solid prospects for investors.
Worst Places for Property Investment
Belgium, France, and Greece rank as the worst places to invest in real estate, according to the report. Belgium’s high transaction costs and income tax on rent, which can reach up to 50%, make it a less attractive option despite an average rental yield of 4.2%. France fares poorly due to its high property costs and declining property prices, which fell by 4.6% in 2024. Greece’s high buying costs and elevated rental income tax rates, exceeding 33%, place it among the least favorable countries for property investment.
Google Trends in Property Investment
The study also examined property search trends on Google, revealing that Spain and Portugal are the most popular destinations for prospective buyers. Spain saw 279,000 global searches related to property purchases between 2023 and 2024, with Portugal closely following with 270,000 searches. However, the popularity of these countries has led to rising property prices and a shortage of affordable housing for locals.
Disclaimer: This article provides general information and should not be taken as financial advice. Always conduct your own research before making any investment decisions.
Business
Tesla Unveils Cybercab Robotaxi at “We, Robot” Event in California
Tesla CEO Elon Musk has unveiled the company’s highly anticipated Cybercab Robotaxi during the “We, Robot” event held at Warner Bros. Discovery studio in California. The Cybercab, an autonomous vehicle with no steering wheels or pedals, is expected to cost under $30,000 (€27,000), marking Tesla’s ambitious leap into the future of transportation.
Musk revealed that the Cybercab would operate at an estimated cost of just $0.20 (€0.18) per mile, significantly lowering transportation costs for consumers. The vehicle, relying entirely on cameras and artificial intelligence for navigation, will also be available for individual purchase, adding a new dimension to Tesla’s offerings.
Alongside the Cybercab, Tesla also introduced the Robovan, another autonomous vehicle capable of seating up to 20 passengers, as well as an upgraded version of its humanoid robot, “Optimus.” Musk suggested that Optimus could begin operating in Tesla’s factories by the end of 2024.
Full-Self Driving and Production Timeline
Tesla aims to start unsupervised Full-Self Driving (FSD) in Texas and California next year, using its Model 3 and Model Y vehicles. Although Musk had previously targeted early 2025 for the full rollout of FSD vehicles, regulatory approval remains a hurdle. He acknowledged that his timelines have often been overly optimistic but hinted that mass production of the Cybercab could commence by 2026, potentially earlier.
Challenges and Competition
Tesla is shifting its focus to autonomous vehicles at a time when it faces slowing global demand for electric vehicles (EVs) and rising competition from Chinese automakers. The company’s core business—car sales—has seen year-on-year declines in the last two quarters, and the Robotaxi is seen as a critical growth driver for the company’s future.
However, Tesla’s venture into autonomous vehicles faces stiff competition from General Motors’ Cruise and Alphabet-backed Waymo, both of which already have driverless cars operating on public roads. Regulatory challenges and customer trust remain significant hurdles for Tesla’s autonomous ambitions.
Tesla’s Financial Struggles
Despite the excitement surrounding the Cybercab, Tesla’s share price has been under pressure, down 4% year-to-date, while the S&P 500 gained 21%. Tesla’s stock has fallen more than 7% since its third-quarter EV delivery report in early October, where the company missed its forecasted delivery target, raising concerns about its growth trajectory.
With third-quarter earnings set to be announced on October 23, analysts are expecting a profit of $0.46 per share, representing a 13.2% year-on-year decrease. Tesla’s financial performance, coupled with its high Price-to-Earnings ratio, suggests that the company may still be overvalued based on recent results.
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