Tesla shares fell 5.6% on Monday and are expected to continue falling when U.S. markets open after the company announced layoffs. Some of the job cuts will be concentrated in China's sales division, Reuters reported, citing sources familiar with the matter.
The company plans to cut 10% of its global workforce overall as competition intensifies in the electric vehicle (EV) market, according to a report.
read more: FTSE 100 LIVE: European stocks fall as China's growth fails to cheer traders
Price wars between Tesla and Chinese rival BYD are eroding Tesla's foothold in China, its second-largest market. BYD has enjoyed an advantage by producing cheaper vehicles while benefiting from ownership of many of the key elements of the EV supply chain, including the region's lithium mines.
Tesla also reported a drop in quarterly unit shipments last quarter.
Microsoft (MSFT)
Software giant Microsoft has announced it will invest $1.5bn (£1.2bn) in UAE-based artificial intelligence (AI) company G42. This will give the company a minority stake and a board seat.
The agreement comes as major powers in the United States continue to block technological advances by foreign actors. A Chinese company has been added to an export blacklist after attempting to acquire AI chips for military use. The United States also has concerns about China's relations with the Gulf states.
read more: Emerging market assets fall to 2024 low amid growth and interest rate risks
Both Microsoft and G42 said they had made commitments to the U.S. and UAE governments about security measures.
The stock fell nearly 2% in Monday trading, but is expected to rebound slightly in Tuesday trading.
Shares of fintech company Wise fell sharply on Tuesday after its full-year results fell short of analysts' expectations.
Fourth quarter sales were £277.2m, bringing the full year figure to $1.1bn, 1% below consensus estimates.
Jefferies said fourth-quarter revenue of 381.2 million pounds was also lower than expected.
By mid-morning, shares had fallen about 8% in London.
Dr. Martens (DOCS.L)
Dr. Martens shares fell about 30% on Tuesday following news of the top management shakeup. The company's CEO, Kenny Wilson, will step down this year following the shoemaker's recent profit warnings, and will be replaced by Ije Nwokolie, who is currently chief brand officer.
read more: Dr. Martens stock plummets as grim outlook challenges new CEO
The news comes amid rising costs for the company, which says it has no plans to raise prices. The company announced Tuesday that it expects sales to fall and profits to fall by about 70%.
The downgrade follows four warnings regarding 2023 profits.
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