Tesla’s Q1 delivery numbers will be a major disappointment for investors. Even more concerning for investors is that it’s difficult to see how sales rebound in the coming quarters.

The EV maker delivered 336,681 vehicles in Q1 and produced 362,615. Analysts polled by Visible Alpha had delivery expectations of 372,410.

Tesla attributed falling deliveries to disruption at their manufacturing hubs. In reality, several factors are weighing on deliveries.

Musk is facing political backlash for his interference in European politics and his role in the White House. Tesla’s market share in Germany has fallen to around 4% from 16% after Elon Musk showed support for far-right parties in the country.

Tesla is also facing increased competition from Chinese EV makers such as BYD, which offer high-quality EVs at lower prices.

Analysts at Counterpoint Research predict that BYD will replace Tesla as the world’s top EV manufacturer after Tesla’s poor first quarter.

“There’s no way to sugarcoat it, Tesla’s first-quarter delivery numbers are a disappointment, though many investors were already preparing for a soft number,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“A drop from last year is no surprise, but the scale is worse than many had expected. On a positive note, high-margin energy deployment was very strong, and that should help to balance out the earnings impact of the delivery disappointment.”

“Headlines will point to branding issues, and it’d be naive to assume that’s not a factor here, but it misses the key point. Deliveries have been significantly impacted by downtime at factories as Tesla launched the long-awaited refreshed version of the Model Y, its best-selling car. If reviews are anything to go by, the new Model Y should be a major hit, and with it coming in as China’s best-selling car in March, demand in this key market is clearly strong.”

Investors will hope Tesla’s growing focus on autonomous vehicles will justify its lofty valuation.

The FTSE 100 slipped on Wednesday as markets braced for Donald Trump’s much-feared announcement of his plans for tariffs on some of America’s biggest trading partners.

It’s a big day for global markets. Donald Trump’s pledge to his core voter base to start a fight with the rest of the world by implementing a range of economically damaging trade tariffs is set to come into force. 

Trump’s announcement, scheduled for 4 p.m. Eastern time from the White House Rose Garden, will reveal the full extent of his plans to level the playing field with reciprocal tariffs.

Trump has long signaled the tariffs, so any negativity in markets will likely be a result of disbelief that he followed through with them, rather than any major surprise.

Stocks were understandably nervy, and the FTSE 100 was 0.8% weaker at the time of writing.

“Investors are on tenterhooks as the clock ticks down what’s expected to be the biggest wave of tariffs on US trading partners. It’s been dubbed Liberation day by President Trump, but it’s more like entrapment day, with more countries set to be tangled up in a web of fresh duties,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown.

“The internationally focused FTSE 100 is on the back foot in early trade as concerns swirl about the effect on growth prospects for economies around the world.”

What happens next is the question. Do global governments fight back with tariffs of their own? Or do they try to negotiate? The answer to this question will be the key driver of markets in the coming weeks. 

A think tank has suggested the UK could lose up to 25,000 jobs in the car manufacturing industry due to Trump’s tariffs. Industry in Mexico, Canada and other countries could also suffer similar fates. Will impacted countries respond with additional tariffs on US goods or just suck it up?

Equity investors are not hanging around to find out, and the recent sell-off resumed on Wednesday with large swathes of the FTSE 100 trading in negative territory.

Those FTSE 100 companies that are likely to be impacted by tariffs the most were the most heavily hit.

“Keir Starmer has focused a lot of his energy on keeping the conversation going with Trump. If that approach doesn’t prove fruitful, we could see heightened volatility among shares in companies linked to the pharma, food and drink, aviation, chemical and automotive sectors – the biggest sources of British exports to the US,” said AJ Bell’s Russ Mould.

“It was telling that GSK, AstraZeneca, Rolls-Royce and Melrose were among the top fallers on the FTSE 100, given they are in the firing line if Trump doesn’t give the UK special treatment.”

Rolls Royce was the biggest faller on the day, shedding 3.5% of its value.

Housebuilders were weaker as the threat of inflation and higher interest rates for tariffs weighed. Persimmon and Taylor Wimpey fell 3.4% and 2.9% respectively.

There was a minor bid in Marks & Spencer and Next as investors bought up quality.

Raspberry Pi announced its FY 2024 results, showing a modest 2% decline in revenue to $259.5 million but a more substantial 57% drop in profit before tax to $16.3 million for its first year as a London-listed company.

However, the results were ahead of analyst expectations, and shares rose over 8%, helped by a bullish outlook for the year ahead.

Eben Upton, CEO of Raspberry Pi, was upbeat about the company’s prospects, saying: “I am confident that we will continue to see gradual improvements in end-demand during the current year and increased traction with direct-to-OEM engagement, effectively complementing our reseller and licensee channels.”

The computing firm weathered an industry-wide destocking phase following an exceptional 2023 performance. Unit sales fell by 5% to 7 million devices, while the company significantly expanded its product lineup with 22 new releases—a 267% increase from the previous year.

Despite these headwinds, the company projects a positive outlook for 2025, pointing to normalised channel inventory and strengthening end-market demand through Q4.

Raspberry Pi expects gross profit per unit to increase year-on-year, supported by secured memory supply through Q4. Management expressed confidence in “solid and sustainable sales growth” for 2025, with several promising OEM customer discussions potentially contributing significantly to performance in 2026 and beyond.

“Raspberry Pi has snuck over the line in narrowly beating analysts’ estimates in what is the company’s first full year report since its IPO. The bar was set pretty high given 2023 was a very strong year and inventory issues were a drag on profits for a large part of the year,” said Adam Vettese, market analyst at eToro.

“Sales of the flagship Raspberry Pi5 have been key to helping the new kids on the block establish a foothold in a market dominated by some very heavy hitters. Expanding their reach through strategic partnerships with a now boosted profile post-IPO seems to be working well.”

Sandwich maker Greencore and chilled foods specialist Bakkavor have struck a deal to create a food giant which will have over £4bn in combined revenues.

Greencore announced on Wednesday that it had reached an agreement in principle with Bakkavovor for an all share offer to be satisfied by a mix of shares and cash.

The 200p per share deal would value Bakkavor at £1.2bn on a fully diluted basis, and represent a 33% premium to Bakkavor’s share price of 151p as of the close 13th March when Greencore first made a move.

Today’s agreement follows a couple of earlier offers by Greencore that Bakkavor said undervalued them.

Bakkavor shares were 6% higher at 189p at the time of writing on Wednesday.

The deal has clear benefits. The newly combined entity would have a much bigger coverage of the convenience food market, and merging their supply chains will produce efficiencies across the group. 

Greencore’s strength in sandwiches will be complemented by a broad range of new products within the Bakkavor fold, including pizzas, soups, and salads.

The tie-up will also deepen Greencore’s geographical reach with additional exposure to the US and China.

Although the offer is exciting from an M&A perspective, it further highlights the vulnerabilities of UK-listed companies to takeover approaches due to their low valuation.

The FTSE 100 was firmly higher on Tuesday as investors buckled up for Donald Trump’s ‘Liberation Day’ of economically damaging trade tariffs set to come into force tomorrow.

London’s leading index was 0.6% higher at the time of writing.

US indices reversed early losses yesterday to finish the session overnight in positive territory, which boosted European equities on Tuesday as bargain hunters stepped into beaten-down names across European indices.

“The fact the S&P 500 ended ahead on Monday, and chunks of Asia and Europe were in positive territory on Tuesday, goes to show that investors have indeed taken time to reflect on the state of events and moved out of panic mood,” said Russ Mould, investment director at AJ Bell.

“The FTSE 100 bounced back with aplomb, rising 0.6% thanks to broad-based strength in the index. While pharma, banks and miners led the way, the fact only four FTSE 100 stocks were in negative territory in early trading suggests investors were fired up and ready to go.”

How equities will react to the confirmation of tariffs on some of America’s closest trading partners tomorrow is anyone’s guess.

There is a school of thought that the recent sell-off in global equities has priced in the impact of tariffs. On the other hand, there’s the complacency argument that the market is properly pricing the impact of tariffs because it still believes tariffs are being used as a negotiating tactic and won’t be around for long. 

Housebuilding shares rose on the latest house price data showing the average UK house price rose 3.9% over the past year, despite remaining unchanged on a month-on-month basis.

“UK house prices rose nearly 4% from last year, according to the Nationwide House Price Index, though growth paused month-to-month and there could be softness to come as buyers accelerated purchases to sidestep expected tax hikes,” explained Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“Despite this short-term slowdown, conditions look promising for a rebound as the year progresses, driven by a strong job market, increasing take-home pay, and the potential for cheaper loans if interest rates come down.”

Persimmon rose 1.3% and Taylor Wimpey added 0.6%.

Banks were higher as investors awaited the next step in the legalities related to the motor financing scandal. Should the courts rule against the banks, they could be on the hook for billions in redress. 

Lloyds shares were 0.7% higher despite it being one of the banks most heavily exposed to potential redress.

“It’s crunch time for UK banks as the supreme court starts hearings this week, looking into motor finance mis-selling and whether car dealers and lenders unlawfully hid commissions from consumers,” Matt Britzman said.

“There’s a lot on the line, especially Lloyds which was the most exposed of the major UK banks. It’ll likely be a few months before the outcome is known, but some estimates suggest it could cost Lloyds around £6bn if it’s forced to refund all motor finance commissions.”

Kingfisher was the top riser, continuing its recovery from a recent selloff. Shares were 2.9% higher.

The difficulties faced by the construction industry are well-documented and today, are clearly visible in Travis Perkins’s full-year results.

Volumes were weaker as builders held off on new construction projects. However, the real blow for Travis Perkins’ financials is that after years of price inflation, the company is experiencing price deflation, especially in timber goods.

This is welcome news for the construction industry as a whole, but increased competitiveness in the merchanting business means Travis Perkins has to pass on the lower prices to their customers.

The result was a 98% drop in operating profits for the year and 9% drop in Travis Perkins shares as of the time of writing on Tuesday.

“Travis Perkins’ full-year results make for grim reading, with the company reporting a 23% drop in annual profits. Shareholders cannot seem to catch a break as Travis Perkins shares have sunk to a 16-year low in 2025, hammering home the difficulties the company is facing,” said Mark Crouch, market analyst at eToro.

“The building materials supplier attributes the disappointing performance to a slow recovery in the construction sector, as the UK economy continues to struggle. With interest rates remaining stubbornly fixed in place, uncertainty is weighing heavily on both investors and consumers, leaving them hesitant to act.”

The company’s outlook underlines how desperate they are for interest rate cuts. Unfortunately, the Bank of England seems to have other ideas, and we may only see one or two more in the rest of 2025.

Travis Perkins said: ‘the pace and rate of an overall recovery in construction activity levels remains uncertain and will likely need further cuts to interest rates and an uplift to consumer confidence levels to stimulate a meaningful increase in demand’.