Weekly Market Summary
Week ended September 25, 2020
Throne Speech: Governor General Julie Payette arrives on Parliament Hill
On Wednesday, September 23rd, Canada’s Governor General Julie Payette delivered the throne speech outlining the Liberal Government’s pledge to do “whatever it takes” to support the economy through the pandemic.
Key Takeaways from the speech include:
- 1,000,000 jobs to be created through environmentally–focused measures.
- “Commitment” to early learning and child care programs, and “work toward” a universal pharmacare program.
- An extension of the Canadian Emergency Wages Subsidy (CEWS) through next summer.
- New taxes on “extreme wealth inequality,” and “digital giants.”
- The creation of a testing assistance response team to improve COVID testing capacity and reduce wait times.
Summary effect on SMEs: First, the throne speech must pass parliament, which requires the support of at least the Conservatives or NDP, failure to get the votes would lead to an election. If passed, Canadians, SME included, will just have to wait and see if and how the Liberals will deliver on their promises in turbulent times. If the promises are delivered, the extension of CEWS may benefit SMEs as well as new tax regulations.
Sources: The Globe and Mail
Elon Musk Charges the Batteryfield
- On Monday, September 21st, Tesla rolled out a plan to slash the cost of EV batteries at the company’s shareholder meeting and “Battery Day” event.
- Musk announced next-generation batteries, the 4680, that will have 6x more power, provide 5x more energy, and increase driving range by 16%…at half the cost.
- Reducing battery price is key to making EVs cost-competitive with gasoline-powered cars. Tesla’s helped bring battery costs down from over $600/kWh to about $150/kWh…but it needs to land at around $100/kWh to achieve what you could call “petroleum parity,” writes the WSJ.
- Musk said the goal was to make a $25,000 EV…that’s also “fully autonomous” in three years.
- Battery technology is the secret sauce behind today’s electric vehicle revolution. As more carmakers compete in the market and try to persuade customers to abandon their gas guzzlers, companies are pushing to overcome two hurdles to the mass appeal of electric vehicles—price and performance.
Summary effect on SMEs: The EV battery sector is heating up as many manufactures and automakers like GM are pouring resources into developing their own, while companies like China’s BYD are jockeying to offer the cheapest, most powerful option. For SMEs in the technology and energy industries, Tesla’s event has increased the competition field.
Sources: WSJ