The electronics manufacturing services (EMS) sector in Malaysia has seen mixed performance in 2024 despite being part of the broader tech upcycle, with rising costs, inflation, and supply chain disruptions offsetting growth from increased global demand and outsourcing trends. Key EMS Performances Winners : SKP Resources Bhd (+76% YTD) V.S. Industry Bhd (+47% YTD) NationGate Holdings Bhd (+51% YTD) P.I.E. Industrial Bhd (+29% YTD) Strugglers : ATA IMS Bhd (-8% YTD) JHM Consolidation Bhd (-36% YTD) Growth Drivers and Challenges Diversification Opportunities : The China+1 and Taiwan+1 strategies have positioned Malaysian EMS players to gain market share. However, reliance on major customers, such as Dyson, continues to be a concern. Cost Pressures : High inflation and production costs have affected profit margins. Company Highlights SKP Resources : Recorded a 27% y-o-y net profit increase , benefiting from a recovery in consumer demand. V.S. Indust...
Tesla’s stock soared nearly 12% in pre-market trading on Thursday after the company forecasted significant electric vehicle (EV) sales growth for next year. The strong growth forecast helped alleviate investor concerns that CEO Elon Musk was shifting focus away from Tesla’s core business of selling EVs.
The stock's surge could potentially add around US$80 billion (RM348.2 billion) to Tesla's market capitalization, reversing a recent decline fueled by worries over Musk's attention being diverted to new projects like robotaxis and AI. Musk has been working to pivot Tesla into an artificial intelligence and robotics company, but he reassured investors on Wednesday by projecting 20%-30% sales growth in 2025, promising more affordable vehicles, and emphasizing cost-cutting efforts to boost margins.
Tesla’s renewed focus on its EV business was welcomed by investors, who had previously been concerned about Musk’s bold but vague announcements regarding driverless taxis and humanoid robots. These new projects had stoked fears of shrinking margins due to price cuts. However, Musk’s pledge to produce two million Cybercabs per year by 2026 reassured some that growth in Tesla’s EV business is still a priority.
Industry experts, like Jessica Caldwell from car research site Edmunds, noted that Tesla was finally providing more clarity on how it plans to grow, which is exactly what investors wanted to hear. However, some investors remain skeptical. Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, criticized Musk for diverting attention from the core business and focusing on ventures like robotaxis and AI.
Despite the optimism, Tesla faces potential regulatory hurdles for its ambitious plans, especially regarding its driverless ride-hailing services. Musk acknowledged the challenges, particularly in California, but expressed confidence that approvals would come next year.
For now, Tesla’s core EV business remains strong, with its fundamentals likely to sustain investor confidence—at least until the next earnings cycle. Caldwell emphasized that while futuristic projects like self-driving cabs are exciting, capturing current sales and streamlining operations are crucial to funding Tesla’s long-term vision.
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