Tesla sales halve in Europe; markets welcome US delay to EU 50% tariffs – business live

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"Tesla Sales Decline Sharply in Europe Amid Rising Food Inflation in the UK"

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TruthLens AI Summary

Food inflation in the UK has experienced an upward trajectory for the fourth consecutive month, with the latest data revealing an annual increase in food prices of 2.8% this month, following a 2.6% rise in April. This increase is largely attributed to rising costs in fresh produce, particularly steak, according to the British Retail Consortium (BRC). Despite the rise in food prices, the overall price level remains in deflation, showing a 0.1% decrease compared to the previous year and remaining unchanged from last month. The decline in non-food goods, especially in the electrical sector, has contributed to this deflation as retailers lower prices to stimulate sales ahead of potential impacts from Donald Trump's proposed tariffs on EU imports. In a positive note for EU trade relations, European Commission trade commissioner Maros Šefčovič expressed a commitment to negotiating a trade agreement with the United States, suggesting that constructive discussions are ongoing with US officials to mitigate trade tensions.

In the automotive sector, Tesla has faced significant challenges in Europe, with sales plummeting by 52% year-on-year in April, according to the latest figures from the European Automobile Manufacturers Association (ACEA). This decline is notable as it follows previous monthly decreases, indicating a troubling trend for the electric vehicle manufacturer. The drop in Tesla's sales is believed to be influenced by Elon Musk's controversial political associations and protests against him, which have surfaced at Tesla showrooms this year. In contrast, the broader EU car market showed a slight growth of 1.3% in new car registrations during the same period. Furthermore, Tesla's sales disruptions are compounded by increased competition from Chinese manufacturer BYD, which outsold Tesla in Europe for the first time last month. Amid these challenges, Musk has reportedly shifted his focus back to Tesla and other ventures, indicating a renewed commitment to addressing the company's performance issues in the competitive EV market.

TruthLens AI Analysis

The article highlights significant recent developments in the European and US markets, particularly focusing on the implications of trade tariffs and the automotive industry. It reflects on various economic factors, including food prices in the UK, the status of Tesla sales in Europe, and the impact of US tariffs on EU imports.

Effects of Tariff Delays on Market Sentiment

There is a palpable sense of relief in the financial markets due to the delay of the proposed 50% tariffs by Donald Trump on EU imports. This delay, following discussions with European Commission President Ursula von der Leyen, has created optimism among investors, leading to expectations of a stock rally in London and on Wall Street. The article suggests that this temporary reprieve could facilitate further negotiations, which may stabilize trade relations between the US and the EU.

Automotive Industry Adjustments

Toyota's decision to move some production to the UK is indicative of broader trends in the automotive sector post-Brexit. It suggests a potential recovery or shift in manufacturing strategies aimed at maintaining competitiveness in the North American market. This move may be seen as a positive sign for the UK economy, which has faced challenges since its departure from the EU.

Public Perception and Economic Implications

The article paints a picture of cautious optimism regarding economic recovery. However, it also highlights ongoing inflation in food prices, particularly in the UK. The juxtaposition of rising food costs against the backdrop of falling non-food prices adds complexity to the economic narrative. This may influence public sentiment and consumer confidence, as people grapple with the realities of inflation while hoping for improved trade conditions.

Manipulative Elements in the Narrative

While the article provides factual information, its framing could lead to a perception that the delay in tariffs is a definitive solution to economic concerns. By emphasizing the positive aspects of trade negotiations and automotive production shifts, it may downplay the ongoing challenges faced by consumers and businesses. The language used could be seen as somewhat optimistic, potentially steering public sentiment toward a more favorable view of current economic policies.

Reliability of the Information

The information presented appears to be based on credible sources, such as the British Retail Consortium and Reuters. However, the overall narrative constructed around the tariff delays and automotive industry shifts may contain elements of optimism that do not fully capture the complexities of the economic situation. The article serves its purpose in informing the public while also subtly influencing perceptions through its positive framing.

The article reflects a significant moment in US-EU trade relations and its implications for various sectors, particularly the automotive industry. It aims to foster a sense of hope while navigating the realities of economic challenges, especially in the context of inflation and production shifts.

Unanalyzed Article Content

Food inflation in the UK has risen for the fourth month in a row, figures show, driven by increases in the cost of fresh produce, including steak.

The annual rate of food price rises hit 2.8% this month, after a 2.6% rise in April, according to the latest shop price data from the British Retail Consortium (BRC).

However, prices overall remained in deflation – 0.1% cheaper than a year ago and unchanged from last month – with the cost of non-food goods falling, particularly for electricals as retailers cut prices to drum up business before apotential hit from Donald Trump’s tariffs.

Last night the EU’s trade commissionerMarosŠefčovičsignalled that the bloc was “fully committed” to reaching a trade agreement with the United States.

Šefčovičposted on X last night that he had had “good calls” with US commerce secretary Howard Lutnick and US trade representative Jamieson Greer, and that the European commission “remains fully committed to constructive and focused efforts at pace” towards an EU-US deal.

More car news: Japanese manufacturer Toyota is moving some production of its GR Corolla sports car to Britain.

According toReuters, Toyota will spend around $56m on a dedicated production line at its Burnaston plant in Derbyshire, to produce 10,000 cars annually for export to North America from the middle of 2026.

Reutersreports:

Reuters adds that the Burnaston site has suffered a decline in production since Brexit.

The news should cheer the UK government, as it

There’s a sense of relief in the financial markets after Donald Trump delayed his threatened 50% tariffs on all European Union imports into the US.

Trump had shocked investors last Friday when he announced he planned a 50% tariff on EU imports from the start of June.

But following a call with European Commission president Ursula von der Leyen, that hike in levies has been delayed until 9 July, to give both sides more time to negotiate.

Stocks are set to rally in London today, with Wall Street also set to rise, as trading resumes after the bank holiday break

Yesterday, France’sCACindex rose by 1.2% while Germany’sDAXgained 1.7%, and the euro hit a one-month high against the US dollar.

Tony Sycamore, market analyst atIG,reports that “risk sentiment improved” after Trump announced the delay to his 50% tariffs on the EU.

Ipek Ozkardeskaya, senior analyst atSwissquoteBank, cautions that market rallies are on “thin ice”. She explains:

Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.

Tesla’ssales across Europe halved last month, as the backlash against Elon Musk continues to hurt his electric car company.

The latest sales figures from industry body ACEA, released this morning, show that sales ofTeslacars fell by 52% year-on-year in the European Union in April, down to 5,475 units, from 11,540 a year before.

They fell 49% in the wider “EU + EFTA + UK” area.

The decline follows falls in Tesla sales in Europe in January, February and March, suggesting Musk’s controversial politics and association with the Trump White House are hurting the brand’s popularity, asanti-Musk protestshave popped up at Tesla showrooms this year.

The overall EU car market grew slightly in April,ACEAreports, with new car registrations rising by 1.3% year-on-year, “despite the ongoing unpredictable global economic environment”.

So far this year, new battery-electric car sales have grown by 26.4%, to 558,262 units, capturing 15.3% of the total EU market share.

Sigrid de Vries,ACEA’sdirector general, says:

Tesla’s sales in Europe this year have been disrupted by model changes, as it refreshed its offer with a new Model Y vehicle.

But it also faces tough competition from China’sBYD, which sold more EVs than Tesla in Europe for the first time last month,accordingto market researcherJatoDynamics.

After several months shaking up US bureaucracy through the DOGE initiative, Musk appears to be refocusing on his day job.

Last weekendMuskposted that he was “back to spending 24/7 at work and sleeping in conference/server/factory rooms”, as he became “super focused” on his social media company X, artificial intelligence initiative xAI, Tesla and SpaceX.

10am BST: Eurozone economic sentiment report

11am BST: CBI distributive trades survey of UK retailing

1.30pm BST: US durable goods orders data

2pm BST: US house sales

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Source: The Guardian