Toronto, Ontario -- In this week’s Tuesday Ticker, a Volkswagen supplier is driven out of the market and Tesla investors celebrate Elon Musk's farewell to the White House.
Gear Fears
German aluminum gearbox manufacturer Bohai Trimet filed for bankruptcy after 40 years of operation. Under German law, the company has three months to restructure or find a buyer before facing permanent closure. An insolvency administrator has been appointed and the plant will continue operating during this period.
The bankruptcy could create serious short-term supply chain disruptions for Volkswagen, which buys gearboxes and other aluminum parts from the supplier. If the company can’t find a buyer or successfully restructure within three months, the OEM will be forced to turn to more expensive suppliers or face production delays.
Tesla stocks rebounded after Elon Musk announced he would reduce his involvement in the Trump Administration.
DOGE Departure
This week, Elon Musk announced a significant reduction in his involvement with the U.S. government's Department of Government Efficiency to refocus on Tesla's operations. Shares rose nine percent after the announcement.
The move comes week after the company revealed it saw a 71 percent drop in net income and a nine percent decline in revenue during the first quarter of 2025.
Despite the company’s poor performance, it has moved forward on several key milestones this year. During the first quarter, Tesla's energy storage business grew 156 percent on a year-over-year basis. The company also confirmed it would be launching a new robo-taxi service in Texas during the summer months.
