World Street | Apple’s $95 million settlement, Tesla’s sales drop, Trump tariffs stir economic fears, and more

World Street offers a sneak peek into the world of business and economy.

Morgan Stanley exited a climate alliance amid political backlash, Hindenburg Research accused Carvana of financial manipulation, and Apple settled a lawsuit over Siri privacy violations. Meanwhile, Tesla reported its first annual sales decline in over a decade, and economists voiced concerns over inflation risks tied to Donald Trump’s proposed trade policies. All this and more on the January 3 edition of World Street.

Morgan Stanley Exits Climate Alliance

Morgan Stanley announced its exit from the UN-backed Net-Zero Banking Alliance, joining Goldman Sachs and Citi in stepping away from the group. The alliance commits members to net-zero emissions by 2050. The bank gave no explanation for its withdrawal, which comes as environmental and diversity initiatives face growing political scrutiny.

Hindenburg Targets Carvana

Hindenburg Research revealed a short position against Carvana, accusing the online car retailer of masking its financial instability with questionable loan practices and accounting tactics. The report, titled “Carvana: A Father-Son Accounting Grift For The Ages,” highlights the role of CEO Ernie Garcia III and his father, Ernest Garcia II, the company’s largest shareholder, in the alleged schemes.

Apple Agrees to $95 Million Settlement

Apple has agreed to settle a class-action lawsuit for Rs. 95 million over claims that private Siri conversations were accidentally recorded and accessed by third parties. If approved by a California federal court, affected users may receive up to Rs. 20 per Siri-enabled device, including iPhones and Apple Watches.

Tesla Reports Sales Decline

Tesla’s global vehicle sales for 2024 rose 2.3 percent in the final quarter, supported by zero-percent financing, free charging, and discounted leases. Despite delivering 1.79 million vehicles during the year, sales fell 1.1 percent compared to 2023’s 1.81 million, marking the company’s first annual decline in over 12 years as EV demand slowed.

Economists Raise Concerns 

A survey of over 200 economists in the U.S. and Europe suggests fears of inflation and slower growth under a potential second Trump presidency. Many pointed to Trump’s tariff proposals, which include a 60 percent hike for China and 10 to 20 percent for other nations, as a key concern. However, some believe the U.S. could still outperform Europe economically under Trump.