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Israeli Defence Minister Yoav Gallant (L) visit the troops participating in Gaza Strip and made a situation assessment with the commanders in Rafah, Gaza on March 13, 2024.

Ariel Hermoni | Anadolu | Getty Images

Crude oil futures fell for a second day Tuesday as the recent rally paused while traders took stock of where the conflict in Middle East was heading.

The West Texas Intermediate contract for May delivery fell 48 cents, or 0.56%, to $85.95 a barrel. The June Brent futures contract lost 32 cents, or 0.35%, to $90.06 a barrel.

Crude prices settled lower Monday after Israel reduced its forces in Gaza over the weekend, suggesting the country’s military campaign might transition to a more limited phase.

But Barclays head of equity derivatives strategy Stefano Pascale said there are still upside risks to oil prices, particularly from geopolitical tensions in the Middle East, despite the recent rally taking a pause.

“Further melt-up may reawaken inflationary concerns, derailing the equity rally,” Pascale told clients in a note Tuesday. Investors will be closely watching the March consumer price index reading on Wednesday to see how oil prices have impacted headline inflation.

Oil Prices, Energy News and Analysis

Oil rallied more than 4% last week as Israel and Iran teetered on the brink of a direct confrontation after Tehran’s consulate in Damascus was destroyed in a missile attack.

“The conflicts in the Middle East increase the risk of a wider regional conflict, which could have implications for oil supply, but it is important to note that Iran has, so far, refrained from getting directly involved in the conflict and OPEC spare capacity is currently elevated,” Amarpreet Singh, energy analyst at Barclays, told clients Friday.

Israel Prime Minister Benjamin Netanyahu vowed late Monday to press on with an offensive against the southern city of Rafah on the Egyptian border, saying a date had been set for the operation.

“This victory requires entry into Rafah and the elimination of the terrorist battalions there.  It will happen —there is a date,” Netanyahu said in an address.

The U.S has warned Israel against launching an offensive against Rafah, where more than 1 million Palestinians who have fled fighting elsewhere in Gaza are taking refuge.

Ceasefire negotiations also appeared deadlocked in Cairo, with Hamas saying Israel’s proposal did not meet Palestinian demands.

WTI has gained 20.8% this year while Brent is up more than 17% as geopolitical tensions mount against the backdrop of rising demand and OPEC+ production cuts that are expected to push the market into a supply deficit this year. Barclays expects a 400,000 barrel per day deficit for 2024.

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Tesla (TSLA) introduces new direct discount in China at critical time

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Tesla (TSLA) introduces new direct discount in China at critical time

Tesla (TSLA) has introduced a new direct discount for the Model Y in China as the latest of a series of incentives to boost demand during this critical end-of-quarter push.

The automaker regularly offers discounts at the end of every quarter, but the incentives to boost demand have been the most wide-ranging ever this quarter.

Over the last month, we have been documenting the many sale incentives and discounts that Tesla has put in place to ensure it creates the demand for a record quarter.

Tesla aims to deliver a record number of more than 515,000 vehicles in Q4 in order for its sales not to be down for the whole year. That’s ~30,000 more vehicles than Tesla’s last record quarter, which was Q4 2023.

In Europe, the incentives include a year of free Supercharging and heavy discounts on inventory vehicles.

In the US, there are also good inventory discounts, 3 months of free Supercharger and Full Self-Driving subscription, FSD transfer, and more.

More recently, Tesla also slashed the lease price of the base Model Y and even offered discounted home charging under Tesla Electric for those taking delivery of new vehicles.

And everywhere, Tesla is heavily subsidizing loans with lower interest rates. That has been the main incentive in China, Tesla’s biggest market, until now.

Tesla’s New Discount in China

Today, Tesla announced that it is offering a ¥10,000, the equivalent of $1,380 USD, discount on the final payment for new Model Y vehicles:

The new discount can be combined with Tesla’s subsidized 0% interest financing, which has been Tesla’s main incentive in China all year.

Electrek’s Take

Based on insurance data, Tesla is tracking ahead of last year’s deliveries in China, but it is going to need to beat its last record by a significant margin to make sure not to be down for the whole year.

Model Y is Tesla’s most popular vehicle, but Tesla is also going against the expectation of the design refresh coming early next year, which can negatively affect demand.

This discount is likely to combat that and maintain Tesla’s current good momentum in China.

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Update: Hyundai and Kia are now recalling more than 200K EVs

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Update: Hyundai and Kia are now recalling more than 200K EVs

We now have more details on the massive recall, which just keeps growing. Hyundai and now Kia are recalling more than 208,000 electric vehicles in Canada and the US to fix a problem with the loss of driving power, which can increase the risk of a crash.

For the second time this year, the automakers are recalling huge swathes of EVs and other “electrified” vehicles in North America, citing concerns about a loss of driving power, the National Highway Traffic Safety Administration (NHTSA) said on Friday.

In the US, Hyundai is recalling 145,235 EVs, including the 2022 through 2024 Ioniq 5, the 2023 through 2025 Ioniq 6, GV60 and GV70, and the 2023 and 2024 G80. In Canada, Hyundai is recalling 34,529 vehicles that were produced between March and November of this year, according to Automotive News Canada.

As for Kia, the recall includes close to 63,000 Kia EV 6 vehicles from 2022 through 2024 in the US, but the company has yet to offer details on its Canada recall.

Kia-EV-sales-goal
Kia EV6 (Source: Kia)

It looks like the issue stems from “the integrated charging control units in these vehicles, which may become damaged and fail to charge the 12-volt battery. This malfunction could lead to a complete loss of drive power, posing safety risks for drivers,” the NHTSA stated.

Back in March, Hyundai, Kia, and Genesis issued a similar recall for 147,110 electric vehicles – that recall centered, again, around damaged integrated charging control units failing to charge the battery.

The South Korea automaker has said that all owners of affected vehicles will be notified by letter mail on the next steps to take. This will involve bringing your vehicle to one of the company’s dealers to inspect and replace the charging unit and its fuse if necessary, along with performing a software update for the charging units.

2025-Hyundai-IONIQ-5-prices
2025 Hyundai IONIQ 5 (Source: Hyundai)

Importantly, no crashes, injuries, fatalities, or fires due to this issue have been reported in the US or Canada, Hyundai reported.


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Curious Tesla vehicles under covers raises some questions

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Curious Tesla vehicles under covers raises some questions

A group of Tesla vehicles spotted under covers at the automaker’s test track at the Fremont factory is raising some questions.

Tesla has a very small test track on the ground of its first factory, Tesla Fremont, in California.

Now and again, people fly drones over the factory and catch glimpses of new cars being tested. Youtuber ‘Met God in Wilderness’ is one of those drone pilots who regularly fly over the factory and while he didn’t catch vehicle being tested, he did catch some curious vehicles under covers next to the track:

The vehicles are all covered, and therefore, it’s hard to tell exactly what they are, but the different shapes are intriguing and raise some questions.

It looks like three, maybe four, different kinds of vehicles:

We know that Tesla is working on three new specific vehicles: a Model Y design refresh, and two new cheaper models based on Model 3 and Model Y.

All three vehicles are expected to be unveiled early next year.

Electrek’s Take

At the risk of stating the obvious, getting much information from vehicles hidden under cover can be hard. It’s even possible that some of those have shape camouflage, which is sometimes used by automakers – although I don’t remember Tesla ever using that.

So here are my best guesses. Take them for what they are: guesses.

The most interesting ones to me are the first two on the left in the picture above. The last vehicle on the left looks like it could be a smaller Model 3.:

The next one could be its Model Y counterpart:

I also wouldn’t be surprised if a Model Y Juniper, the upcoming refresh, is under one of those covers, but we already had good looks at this one.

What about you? What do you think about these Tesla vehicles? Let us know in the comment section below.

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