Tesla's Still Booming in the US, Despite Challenges Abroad

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Hello and happy Sunday! As a new week begins, we’re recapping the most notable events shaping the global economy, tech markets, and industry highlights:

• Germany’s Economic Struggles: Europe’s former growth leader slips to the bottom of the G7, with recession fears looming.

• Egg Prices Surge in the U.S.: Bird flu outbreaks cause “eggflation,” nearly doubling prices and squeezing household budgets.

• Record EV Sales in the U.S.: Tesla, Volkswagen, and Honda lead a booming electric vehicle market, but tax credit uncertainties remain.

• Nikola's EV Dreams Collapse: Once valued higher than Ford, Nikola files for bankruptcy, marking another EV startup failure.

• Wingstop’s Earnings Beat, Sales Miss: Rising chicken costs threaten the chain’s margins despite profit gains.

Germany’s Economic Struggles: From Growth Leader to G7 Laggard

Once hailed as Europe’s economic engine, Germany now finds itself lagging behind the G7, 📉🐢 grappling with the consequences of chronic underinvestment, outdated infrastructure, and restrictive bureaucracy.

While Angela Merkel is remembered for her steady leadership through numerous crises, her economic legacy now faces criticism for lacking the reforms needed to maintain Germany’s competitive edge.

Between 2013 and 2023, Germany’s economy expanded at an average rate of just 1.1%, a stark contrast to the U.S. growth of 5% during the same period. The situation worsened as Germany slipped into recession in 2023 and 2024, becoming one of the few advanced economies to do so after the pandemic and inflation crisis.

Looking ahead, the IMF projects a meager 0.3% growth for Germany in 2025, signaling a modest recovery but far from what’s needed to reverse the country’s economic downturn.

Why Your Omelette Costs More: The U.S. Egg Price Surge

Americans are no strangers to rising prices, but the cost of eggs has truly cracked expectations. In January 2025, the average price for a dozen Grade A large eggs soared to $4.95, nearly double the $2.52 price from a year earlier, with overall egg prices rising 50% year-over-year surge according to the U.S. Bureau of Labor Statistics. 🪺💎

So, what’s driving this “eggflation”? The answer lies in devastating bird flu outbreaks. In the first weeks of 2025 alone, 21 million egg-laying hens were culled due to highly pathogenic avian influenza (HPAI). This follows the depopulation of 13 million hens in December 2024. According to the U.S. Department of Agriculture, this sharp reduction in supply has disrupted egg availability, with some regions experiencing severe shortages. Because eggs are difficult to substitute, even minor supply disruptions cause significant price hikes.

Restaurants like Waffle House have even added a $0.50 surcharge per egg in omelettes due to these costs.

Eggs aren’t the only staples affected. Over the past four years, prices for coffee, sugar, and beef have also surged significantly. Egg prices alone have climbed over 200%, with major spikes during the avian flu outbreaks of 2022 and 2024. Meanwhile, tomatoes, bananas, and cheese are among the few staples that have remained relatively stable.

Tesla, Volkswagen, and Honda Drive Record EV Sales

The U.S. electric vehicle (EV) market started 2025 on a high note, with EVs accounting for a record 9.1% of all new vehicles sold in January, according to Cox Automotive. ⚡️💪 This marks a notable jump from 7.4% in January 2024, signaling growing consumer interest in electric mobility.

The top five best-selling EVs last month were:

1. Tesla Model Y

2. Tesla Model 3

3. Volkswagen ID.4

4. Tesla Cybertruck

5. Honda Prologue

Together, these models accounted for 54% of total EV sales, with Tesla maintaining a strong lead despite reports of global sales declines compared to the previous year.

While this growth is a positive sign for the EV industry, uncertainty looms over the $7,500 federal EV tax credit, with potential changes under the Trump administration. Ironically, the fear of losing this incentive could be driving the current sales surge.

From Peak to Plummet: Nikola's Bankruptcy Ends EV Ambitions

Nikola Corporation, once valued at $29 billion and worth more than Ford, has filed for Chapter 11 bankruptcy, marking a dramatic end to its short-lived prominence in the electric and hydrogen-powered vehicle market. 🚛⚡️🪦

The company's bankruptcy filings reveal assets between $500 million and $1 billion, but liabilities totaling $1 billion to $10 billion. Despite a brief 40% stock surge earlier in the week, shares plummeted to $0.37, reflecting years of declining value.

Nikola's rise began on June 9, 2020, when its market cap soared shortly after listing via a SPAC. However, the founder Trevor Milton's conviction for fraud—stemming from misleading claims about the Nikola One prototype and the company's battery technology—led to a sharp decline.

Efforts to avoid delisting through a reverse stock split failed, sealing Nikola's fate. The company now joins Fisker, Canoo, and Lordstown Motors as yet another SPAC-era EV startup that collapsed within five years of going public.

Wingstop’s Earnings Beat, But Sales Miss Drags Shares Down

Wingstop's stock fell sharply following a mixed earnings report for the final quarter of 2024. The company reported earnings per share (EPS) of $0.92, beating analyst expectations of $0.86. However, sales reached $161.8 million, falling short of the $165 million forecast despite a year-over-year increase from $127.1 million in 2023.

The primary culprit behind the shortfall was the rising cost of bone-in chicken wings, which squeezed profit margins.🍗🏷️🏷️ Wingstop’s success since 2020 has largely been driven by its ability to maintain competitive prices, capitalizing on chicken’s lower cost relative to beef. However, these rising chicken costs now threaten that edge.

This latest report marks the second consecutive quarter that has left investors disappointed. Over the past year, Wingstop’s stock has declined by more than 5%, in contrast to a broader market rally.