Home Business and Economics This Week In Business: Tesla, Interest Rates, and More

This Week In Business: Tesla, Interest Rates, and More

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Tesla’s Global Sales Director Goes To Airbnb

Tesla’s senior director of global sales Dan Kim left the company to work for Airbnb. Kim, who joined the company in January, is another in a line of top executives that left the company. He worked under Robin Ren, and his job has yet to be filled. Both Tesla and Kim gave no comment on the situation.

Tesla has experienced high turnover rates this past year. Currently, the company lost around 40 executives this year alone. This includes global head of security Jeff Jones and head of digital product Parag Vaish. It is unknown how Tesla will handle the situation.

Interest Rates Expected To Rise

The US Federal Reserve is expected to raise interest rates on Wednesday. However, it also may cut the number of increases next year as a response to recession fears. They are due to announce the plan at 2 p.m. EST.

They are expected to lift borrowing costs by a quarter of a percentage point to a range of between 2.25 percent and 2.50 percent. In addition, they may modify a statement in their policy about the predicted future increases.

GoPro Production Moves Out Of China

Due to tariff worries, GoPro announced that they plan to move production out of China. This move only affects US-bound cameras, and all GoPro’s meant for China will be produced there still. This caused a slight dip in stock trades.

GoPro CFO Brian McGee said, “Today’s geopolitical business environment requires agility, and we’re proactively addressing tariff concerns by moving most of our U.S.-bound camera production out of China.” They expect to make the move will relatively low costs.

Stock Trade Heading For Worst December

Both the Dow and S&P 500 are heading for the worst December since the Great Depression. Both were down about 8% through Monday, the biggest drop since 1931. With the numbers dropping, the stocks are expected to have their worst annual loss since the 2008 recession.

Sears Will Take $443M From Store Closures

Sears Holdings Corp will take a charge of about $443 million from store closures. The company said some of the charges have already hit in the third quarter, while the rest will hit in the fourth quarter. The charges entail markdowns, severance costs and lease termination costs arising from store closures.

The company announced in October it filed for Chapter 11 bankruptcy protection. Chairman Eddie Lampert offerec $4.6 billion to buy the U.S. retailer earlier this month. This asked for around 500 stores to remain open.

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