By NEIL HARTNELL
NEW car sales exceeded 2024’s “banner year” by 12 percent during the first two months of 2025, with one Bahamian auto dealer yesterday asserting that current global uncertainty “won’t become the end of the world”.
Ben Albury, the Bahamas Motor Dealers Association’s (BMDA) president, told Tribune Business there was too much at stake for the US and other nations
By NEIL HARTNELL Tribune Business Editor
BAHAMIAN small business expectations that 2025 would be “a year of stability” have been dashed by the global economic turmoil unleashed by Donald Trump, a consultant to the sector revealed yesterday.
Mark A Turnquest, founder of the 242 Small Business Association and Resource Centre, told Tribune Business that many merchants and entrepreneurs fear the “tremendous” 30-40 percent reduction in electricity costs enjoyed during the year’s first two months will now be outweighed by the uncertainty and loss of confidence caused by the US president’s trade and tariff policies.
While agreeing it is “a no brainer” that The Bahamas will benefit by being exempted from the $1 per port call fee that the US had planned to levy on Chinese-made ships, he added
that its imposition would have merely provoked further price hikes for local consumers and a loss of sales, plus reduced profits, for merchants and vendors. Relieved that one potential “tremendous burden” has been eliminated, Mr Turnquest told this newspaper: “We were just slowly getting over the shipping cost increases and inflation from COVID. We thought that, before Trump came into power in January, this would be a year of stability.
“We really thought this was going to be a year of stability because our electricity bills went down. We were really optimistic this would be a year of stability. We don’t know what will happen in the summer, but we’ve seen a tremendous reduction in electricity costs year-over-year. It’s almost a 30-40 percent fall. That was in January and February compared to January and February of last year.
for them not to resolve their current trade-related disputes as Donald Trump last night confirmed tariffs on Chinese imports will “come down substantially, but it won’t be zero”.
Voicing optimism that “a lot of this stuff is going to work its way out”, with 18 nations yesterday said to have offered trade agreement proposals to the US, he added that Bahamian auto dealers still have time to “see this play out” with domestic market forces presently causing them more concern.
WEDNESDAY, APRIL 23,
Mr Albury, who is also Bahamas Bus and Truck’s general manager, told this newspaper that the main issue that BMDA members are focused on is “market saturation” given that the industry has enjoyed “a good run” for the past several years since emerging from the COVID-19 pandemic.
During this time, many persons and companies wanting to acquire
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Bahamas was yesterday urged to “take with a grain of salt” the International Monetary Fund’s (IMF) modest upward revisions to this nation’s projected economic growth for 2025 and 2026.
Gowon Bowe, Fidelity Bank (Bahamas) chief executive, told Tribune Business that this nation should not let its guard down over the Fund’s improved forecasts given the “real” threats poised to “come down the pipeline” from Donald Trump’s unpredictable tariff policy and the price increases this will cause.
He spoke out after the Fund, in unveiling its latest World Economic Outlook, actually increased its economic growth predictions for The Bahamas this year and next while, at the same time, slashing those for every major developed economy including the US.
Bahamian gross domestic product (GDP) growth was revised upwards by ten basis points, or 0.1 percentage points, for 2025 and 2026 when compared to both the IMF’s October 2024 World Economic Outlook and its Article IV report on this country that was released in January this year.
The Bahamas’ 2025 GDP growth has been revised upwards to 1.8 percent for 2025, as opposed to the previous 1.7 percent estimate, while that for 2026 has also been raised by the same margin - from 1.6 percent to 1.7 percent. The IMF provided no rationale or explanation for The Bahamas’ shift, which came as it warned of a “major negative shock” unleashed into the global economy from Mr Trump’s trade policies. While the US president has suspended imposition of these so-called “reciprocal” tariffs on most countries, with the exception of China, for a 90-day period through to early July, the ongoing
A BAHAMIAN contractor has been awarded $150,000 after the Supreme Court ruled that an expatriate homeowner breached the agreement for him to rebuild her Dorian-devastated Hope Town house.
Justice Constance Delancy, in an April 10, 2025, verdict found in
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
A FAMILY Island installer has warned that the likes of Cable Bahamas and the Bahamas Telecommunications Company (BTC) may find themselves “out of business” due to a “major” surge in demand for Starlink.
Erick Darling, owner of HBS Systems, said his company is seeing a rapid
favour of James Baillou, trading as Baillou Construction II, over the $400,000 contract to rebuild Cliona Bacon’s Hope Town property, ‘By The Steps’. Despite finding both sides to be “generally truthful” with the evidence they gave, the judge said she “preferred” that given by the contractor and awarded him the unpaid $150,000 balance plus interest.
increase in demand for Starlink’s satellite Internet installations, especially among Family Island residents who have grown tired of poor service from traditional telecommunications and Internet Service Providers (ISPs).
Speaking to Tribune Business, Mr Darling warned that Cable Bahamas and BTC might find themselves “out of business” in the provision of Internet services on several Family Islands as residents
new vehicles have now done so, and taken on the required debt financing to close the purchases.
As a result, given the relatively small size of the Bahamian market, Mr Albury said “there’s only so many vehicles we can sell”, and dealers are watching closely in anticipation of having to reduce new auto orders if demand slackens.
For now, the BMDA president said interest and floor traffic in dealer showrooms “remains strong”, with Mr Trump’s tariffs not impacting vehicle prices because most autos are imported to The Bahamas directly from Japan, China and other markets without having to touch the US and its new border levies. Apart from China, most of the planned US tariffs have been paused for 90 days and held at a ‘baseline’ 10 percent.
“I haven’t had any dealer express any concerns to me,” Mr
uncertainty continues to damage business, consumer and investor confidence. While stocks recovered modestly yesterday, trillions of dollars in value has been wiped off global stock markets, while the US dollar is at a near three-year low.
Given The Bahamas’ deep-rooted reliance on the US for the bulk of its tourists, goods imports and other long-standing commercial ties, as well as this nation’s well-known vulnerability to external shocks from both recessions and climate change, most observers would have forecast a downward - rather than upward revision - by the IMF to this nation’s GDP growth forecasts given all the negative forces in play.
However, Justice Delancy rejected Mr Baillou’s claim for defamation over allegations that Ms Bacon “intentionally and falsely accused” himself and his workers “of dishonesty in misappropriating building materials” purchased for use in reconstructing her home and using them on other work sites. Setting out the dispute’s origins, the judge noted that both parties signed a document, entitled ‘Estimated costs to make repairs to Cliona Bacon’s house’ on April 7, 2021. The estimated price, including both materials and labour, was $400,000 and divided into four stage payments of various sums between $50,000 to $150,000. Some $300,000 was to cover labour costs, with the balance going on materials. No completion date was specified, and Ms Bacon terminated their agreement just over five months’ later on September 18, 2021, because “she was dissatisfied with the quality of the claimant’s [Mr Baillou’s] workmanship and the pace of construction”. At that time, the contractor had received the first
are exploring the satellite rival due to frequent connectivity issues.
“The demand has been so huge that we can’t even handle it. Especially on the Out Islands like Eleuthera, Acklins, the Internet is horrible, so people have been going crazy for Starlink. We do at least one new Starlink instillation every day,” said Mr Darling.
“Cable Bahamas and BTC might find themselves out of business on some
Family Islands, based on the amount of persons who are booking, inquiring and installing. I mean they are just dropping the two of them like water.” Mr Darling said the major benefit of satellite internet service in The Bahamas is that it provides all residents with a reliable alternative so they no longer have to accept poor service. He explained that, as the market grows, new players such as Amazon’s
By FAY SIMMONS Tribune Business
THE Government yesterday signed a power purchase agreement (PPA) with CVB Utilities for a 20 mega watt (MW) solar generation plant combined with 5 MW hours battery storage for New Providence.
Prime Minister Philip Davis KC said The Bahamas is “harnessing the power of the sun” for the first time with the instillation of utility-scale solar microgrids throughout the country. CVB Utilities is connected to Compass Group, one of whose principals is understood to be Cameron Symonette,
head of the Symonette Group. Speaking at the signing of the PPA, the Prime Minister added that energy reform, which is being led by Bahamian companies, engineers and policymakers, will result in more affordable energy for businesses and residents.
“This signing is another important step forward in our new energy era. At CV Bethel, right next to the school, we are installing a solar photovoltaic and battery storage system that will supply energy to the national grid,” said Mr Davis.
“We’re not just installing new technology. We are investing in a more affordable way of life for Bahamians, in the ability of our businesses to compete,
and in a more sustainable and resilient electricity grid to support our economy.”
JoBeth Coleby Davis, minister of energy and transport, said Bahamas Power & Light (BPL) workers will gain new skills and training through their involvement with the project. The agreement includes key performance indicators that will lock in rates plus penalties for non-performance.
“The renewable farm from CVB Utility Company will be near CV Bethel High School on East Street South and will provide a minimum of 20 megawatts of power with five megawatt hours of battery energy storage systems,” said Mrs Coleby Davis.
“The workers of BPL will be involved in this project,
“We were also very pleased not to have any disruption or electricity outages. There were one or two, but those took place at night instead of the day. It did not impact or affect any of us. There were no complaints.” The US Trade Representative’s Office, in unveiling its Chinese ship reversal, eliminated the fees for all vessels involved in “short sea shipping” of less than 2,000 nautical miles.
That covers The Bahamas and wider Caribbean region, and ensures they are totally exempted from levies that would have neardoubled existing freight costs and sent prices for local firms and consumers soaring. “It’ll be great because we don’t have to make any adjustments in the near term,” Mr Turnquest said.
affording them the opportunity to acquire new skills and knowledge through training and development. To ensure that we protect the Bahamian consumers from significant price fluctuations we’ve included key performance indicators to lock down rates and provide penalties for non-performance.”
She added that all the agreements the Davis administration has entered into related to energy reform will be tabled in Parliament “in short order”.
“As we continue with our transformation, it is my pledge as minister of energy and transport to keep the Bahamian people informed and updated on our plans and progress, and in short order, our Prime Minister and minister of finance
percentage of Chinesemade vessels in a shipping operator’s fleet and a flat $1m fee per vessel if this percentage was 25 percent or higher.
will be tabling all of the agreements in the House of Assembly,” said Mrs Coleby-Davis. Justin Cunningham, director of CVB Utilities, said the project is a “major step” towards reducing the country’s reliance on fossil fuels and the company is prepared to begin work “immediately”.
“This project will not only enhance the national energy security, but it will also demonstrate the viability and scalability of utility solar-plus storage solutions. This grid tied system will export 20 MW of power, leveraging cutting edge photovoltaic storage and technology to stabilise, optimise and strengthen the national grid,” said Mr Cunningham.
“The project represents a major step forward towards energy independence and reduced reliance on imported fossil fuels. Having engaged in the Bahamian energy sector for over 20 years, and with over 80 years collective project experience, the Compass Group has the expertise, strategic foresight and unwavering dedication to deliver this project to the highest standards. “Our approach will emphasise engineering excellence, rigorous project management, seamless co-ordination with all stakeholders, ensuring successful implementation and aligning with national priorities.”
would place a massively disproportionate burden on our smaller vessels, increasing costs between 100 and as much as 500 percent.”
“The consumer has the power, especially with small businesses, because we don’t have the fire power to compete with big business. The most important thing for us is to compete with moderate prices, excellent customer service, and high employee loyalty. We don’t want anything to negatively affect us because we don’t have the capacity to make any adjustments in our prices. We are maxed out on prices and profit margins.”
Peter Goudie, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) labour division head, said the US
“That is a major victory for us because we were really concerned. We were on pins and needles. We are small. We don’t have no what I call capital to waste in reference to an increase in prices that is unexpected. This is something that’s very beneficial to us. A rise in shipping costs is a rise in product costs, is a rise in prices, and will be a reduction in sales and a reduction in profits. It’s simple economics.
climb down on the Chinesemade ship fee was “just about perfect and couldn’t have come at a better time” ahead of the Easter holiday.
“I think everybody was getting really jumpy and wondering by how much the cost of living was going to increase, not just in The Bahamas. That’s the best news we could have had,” he added.
The proposed Chinesemade ship fees are part of the Trump administration’s drive to “restore America’s maritime dominance”, and reverse the lead China has established in the shipbuilding, maritime and logistics, by driving/incentivising shipping firms to construct new-build vessels in the US if they wish to avoid significant cost hikes.
To give effect to this, the US Trade Representative proposed a fee structure that included an up to $1.5m levy “per vessel entry of a Chinese-built vessel to a US port”, plus escalating charges based on the
However, in its decision unveiled late on April 17, just prior to the Easter weekend, the US Trade Representative’s Office revealed that included among “certain Chinesebuilt vessels not subject to the fee” are those “engaged in short sea shipping - voyages of less than 2,000 nautical miles from certain US ports”. This distance more than covers The Bahamas, meaning all shipping servicing this nation will be exempt.
Tropical Shipping, in its last feedback to the US Trade Representative’s Office, had warned that the original proposal would disproportionally impact carriers such as itself - and their clients in The Bahamas and wider Caribbean - because their smaller vessels mean they have fewer shipping containers over which to spread the huge fee increase that would result.
“The typical loaded TEUs (twenty-foot
equivalent units) on the vessels serving the Caribbean are approximately 850 TEUs per vessel. The fees per entrance of a vessel to a US port as set out in the proposed action, if applied to vessels of this size, would almost double current freight rates in the region with an average freight increase of approximately $2,500 per 40-foot container,” it warned.
“As a comparison, if you applied the proposed $1m fee to a vessel that calls on a single US port directly from China carrying 16,000 nominal TEUs, it would increase the cost per 40-foot container by only $125.
Many witnesses highlighted the disproportionate and crippling impact the proposed action would have on smaller or specialty vessels typically operating short sea routes. Broadly applying port fees per short sea ships, similar to oceangoing, long haul ships,
And pointing to the likely impact for its own cost structure, Tropical Shipping added: “Tropical vessels enter the Port of Palm Beach 15 times per week on average. Under the proposed action, and based on our current fleet of vessels, Tropical would be charged port fees of $11.25m per week ($750,000 x 15) or $585m per year.
“Fees of this magnitude unquestionably threaten the ability of Tropical to continue operations. The added port entry fees for Tropical would necessarily have to be spread by Tropical across all operating costs for freight inbound to and outbound from the United States on its arriving vessels subject to the proposed fees.”
By FAY SIMMONS
THE Prime Minister’s Office last night joined the Central Bank in warning that images of Philip Davis KC as well as the latter’s officials are being manipulated to promote a likely investment scam.
The Prime Minister’s office, in a statement, said a “deepfake” artificial intelligence (AI) video featuring the likeness of Mr Davis is being employed to suck Bahamians into parting with their money using the
fake promise that persons will receive up to $10,000 every month if they invest just $250 with the Central Bank. Confirming that the matter has been passed to the Royal Bahamas Police Force for further investigation, the Prime Minister’s Office warned against sharing or relying on “digitally manipulated” videos. “The Office of the Prime Minister wishes to advise the public that a video currently circulating online purporting to show Prime Minister Philip Davis promoting an investment scheme is fake and
two stage payments worth $250,000 to leave $150,000 outstanding.
This prompted Mr Baillou to launch a breach of contract claim in the Supreme Court on November 29, 2021. He alleged that Ms Bacon had “obstructed” him fulfilling the contract by “constantly unreasonably complaining of the workmanship and skill of various workers including the plumber”. She had also purportedly demanded that some workers be fired, and that others perform work outside the scope of their duties.
Mr Baillou also claimed Ms Bacon had denied him access to the property, and the chance to complete all required work, and “falsely accused the plaintiff of using her materials on another job and in stealing the same, thereby causing damage to his character and lowering him in the eyes of his workers”.
Setting out his claim for defamation and slander, the contractor argued that Ms Bacon’s claims were “false and malicious”, causing him to “suffer mental distress,
damage and loss in his trade, profession and calling”.
“Abaco is a small society, especially with the reduction in population after Hurricane Dorian. News, whether good or bad, travels fast,” Mr Baillou asserted in his claim. “Given the construction boom existing in Abaco, the likely cost of damage to the plaintiff as a building contractor is huge.
“The reckless and false defamatory statements by the defendant are likely to cause the plaintiff to suffer millions of dollars in lost job opportunities. The plaintiff is a Bahamian citizen who lives and works in Abaco. He is dependent upon his good character at home.”
Ms Bacon, though, in her defence and counter-claim denied any breach of contract and instead alleged that the agreement was breached by Mr Baillou “by failing to show up on site to perform any work at all for a period of nine weeks following his being paid the second instalment of $100,000”.
“Following a nine-week unauthorised hiatus when the plaintiff failed to have any workmen whatsoever on site despite repeated
generated using artificial intelligence (AI) technology,” said the statement. “This video was not produced, authorised or endorsed by the Office of the Prime Minister or any government agency. We strongly caution the public against sharing or relying on digitally manipulated media designed to mislead or exploit.”
The Central Bank last week also released a statement warning of an AI-generated video circulating with the likeness of bank officials. It warned that users should always be “sceptical” and avoid giving
promises and assurances, which the plaintiff made and failed to keep, it became clear that the workers which did eventually show up, and the sub-contractors engaged by the plaintiff were not performing the works to Code, or according to the plans laid out by the architect/ engineer,” she countered.
“After nine weeks of the plaintiff’s failure to place a team on site, the plaintiff dispatched two workers (not part of the original crew) to begin work. Their level of skill and work ethic was substandard and the errors in their work were repeatedly brought to the attention of the plaintiff, who would always respond that he would ‘fix it’.
“There were times when they did not show up at all, or stated that they had no materials to work with despite the defendant having funded $250,000 to the plaintiff by this point.
The plaintiff eventually admitted that his workers were not performing properly and agreed to find another building team, and did replace a number of workers.”
Ms Bacon claimed she would also visit the construction site to inspect the progress of works and find “workers lounging about or unable to work due to lack of materials which she had already paid for, or waiting for fuel for a generator
personal information to individuals and companies they are not familiar with.
“The public is cautioned to avoid falling victim to fake Internet ads, videos and social media posts impersonating the Central Bank’s officials regarding investment opportunities being offered by the Central Bank of The Bahamas. Links associated with these posts should not be clicked,” said the Central Bank.
“With the prevalent use of artificial intelligence (AI), the public is encouraged to beware of ‘deepfakes’. Deepfakes
- repeatedly - such that the defendant had to engage the workers and become her own contractor to some degree”.
She added that she resorted to another contractor to complete the job, and further alleged: “The defendant’s complaint was that the plaintiff received the second installment of $100,000 and immediately thereafter went to work on another site Hope Town and did not return to the defendant’s site for a period of nine consecutive weeks, during which time the plaintiff lied repeatedly to the defendant about when they would begin again on her site.
“The plaintiff has also flatly refused and/or failed to provide the defendant with any accounting at all as to the application of her money, despite having indicated and agreed through the defendant’s agent that he would provide an upto-date accounting and monthly statements moving forward.”
And Ms Bacon, in rejecting the defamation claims against her, also counterclaimed against Mr Baillou and his company for negligence and breach of duty of care. However, the Bahamian contractor returned fire by alleging that no architectural or engineering plan, which complied with Bahamian building laws and
are fake, AI-generated or manipulated, images, videos and audio recordings impersonating reputable individuals, or portraying activities that did not take place.
“Members of the public should always be sceptical and avoid giving out personal information to individuals or companies they do not know. They should also refrain from making payments to unknown persons.
“Except for purchases of Bahamas Government bonds, savings bonds and Treasury Bills, the Central Bank does not offer
regulations, was ever produced for the new home.
Instead, Mr Baillou added that he was provided with “sketches” by an American engineer who was not licensed to practice in The Bahamas. At trial, he indicated that the work was estimated to take five to six months, but he was never provided with a set of approved plans or a building permit.
“He experienced delays in executing the works on the site as a result of COVID-19 infections among the construction crew, as he and his workers had to quarantine as per the Government’s emergency orders. Further the pandemic also adversely affected the chain of supply of materials required for the job,” Justice Delancy said of his evidence. Mr Baillou also switched construction crews following Ms Bacon’s complaints. However, Ms Bacon “conceded that while she got an approved set of plans from the local Town Planning Committee she did not provide that document to the claimant. She also agreed that she relied on a report of a Mr Cox, who is not a qualified or approved ‘inspector’, and the works were not inspected by a government inspector”.
Justice Delancy, in her decision, noted that Ms Bacon never demanded that Mr Baillou complete
loans, banking or any other private investment services to the general public. Legitimate payments to the Central Bank can only take place via local commercial banks, and only through the secure channels which each commercial bank is able to verify,” the Central Bank added.
“The links provided on social media and other platforms should never be used to get to commercial bank websites. All Central Bank communications can be verified by navigating to its website or official social media pages.”
the works by a certain date. And she accepted that the COVID-related delays to the project were not unreasonable.
“It is not disputed that the claimant began the works without an approved set of plans. The court accepts the claimant’s evidence that the defendant never provided him or his sub-contractors with fully stamped and approved plans for the renovations to her home,” she added.
“The defendant conceded under cross-examination that she received ‘approved drawings’ from the Local Town Planning Board after the works began but never shared them with the claimant.... The court having heard the witnesses and observed them as they gave their evidence finds that they were all generally truthful in the evidence they gave.
“I nonetheless preferred the evidence of the claimant and his witnesses. The claimant asserts that it has been paid $250,000 to date, but that $150,000 remains owing.” Justice Delancy, though, dismissed Mr Baillou’s defamation claim as “without merit” and noted that he had failed to prove any loss.
FROM PAGE B1
Albury disclosed in relation to the Trump tariffs.
“I’ve had a few one-onone consultations, and we don’t see much of a threat to us because the product is imported from China comes direct. It doesn’t go through the US. The product from Japan comes direct from Japan. It doesn’t go through the US.
“We wouldn’t be subject to any of those tariffs at this point in time. It’s a wait and watch scenario. I don’t see any thing threatening in the short run. We’re going to have to keep our eyes on the long-term and any effect that result in a recession.”
Hopes for a negotiated solution were revived yesterday after the US treasury secretary, Scott Bessent, was reported to have told a private meeting with investors and business
leaders that the high tariffs were unsustainable and he expects a “de-escalation” between the US and China. The US has imposed import taxes of 145 percent on China, which has countered with 125 percent tariffs on US goods.
“I think we are already seeing a lot of countries negotiating with the US, and I think a lot of it is posturing,” Mr Albury told this newspaper. “I don’t think it’s going to turn out to be the end of the world. We dodged the bullet on that $1m per port call Chinesemade ship fee. That’s a good thing.
“I think a lot of this stuff is going to work its way out. It’s in everyone’s best interests that it does. Trade with the US is too important. They are the biggest consumer in the world, so for people who are producers it’s definitely in their interests to come to some sort of
Project Kuiper and China’s SpaceSail will also provide competition for Starlink and give even more alternatives.
“The service is affordable, fast and consistent, and that means a lot to people who are trying to conduct business. A lot of these people had no choice but to accept bad service. Now they have another option available to them and soon they will have even more satellite internet alternatives,” said Mr Darling.
Kiko Dontchev, vice-president of launch at SpaceX, revealed last week that Starlink has grown to 9,000 commercial users within
The Bahamas. He said the company will be donating 56 units to the Disaster Risk Management Authority (DRM) to ensure there is constant communication for first responders, and those affected should a natural disaster strike.
“Starlink has been so critical to allowing folks to have communications when the worst happens,” said Mr Dontchev. “When you don’t have the ability to talk to each other, there’s misinformation spreading. You just want to tell your loved ones, I’m okay.
“Starlink has helped save lives. We’re going to give that feature to The Bahamas. It’s going to be up to them. It’s going to be up to DRM to manage it when there’s an issue or a natural disaster happens. The service is free and allows you to use and talk to your loved ones.”
Both Cable Bahamas and BTC have raised concerns that Starlink could interfere with the sector’s competitiveness and
agreement. I think it will all come to a conclusion very soon.”
Mr Albury said the greatest danger for the Bahamian auto sector and, by extension, this country’s wider economy is if the global trade and tariff dispute - with all the uncertainty and potential damage to consumer, business and investor confidence that will cause - lasts for an extended period of time. Higher prices, and a potential US and global recession, would also undermine the Bahamian tourism industry.
“When we see a downturn in the US it usually takes six to 18 months to fully impact us,” the BMDA president said. “We’re able to watch this play out. As of right now, interest has been very strong and we have a lot of customers shopping. It’s too early to tell what the impact will be.
possibly emerge as the country’s next mobile phone provider.
The Utilities Regulation and Competition Authority (URCA), has rejected concerns that local providers are competing on an “unlevel playing field”. But Cable Bahanas is “unconvinced” that it is receiving regulatory treatment comparable with that enjoyed by Elon Musk, the Tesla and Twitter (X) magnate’s, new market entrant.
“The Cable Bahamas group believes satellite regulation must be equitable and comparable to the telecommunications regulatory regime. The Cable Bahamas group added that it is unconvinced that the playing field is level for the Cable Bahamas group,” URCA revealed of the company’s stance.
Cable Bahamas based this on how much Starlink is paying to URCA for its annual class licence, and queried how much the satellite Internet provider is contributing to the regulator’s budget in percentage terms. It also challenged if “an initial licence award fee was charged and paid for the granting of a
“I checked, and the industry was actually ahead 12 percent over the first two months of last year. It’s still early, only two months, but that’s very positive. That’s very good. There seems to be a high level of confidence and our sales, as indicated, are still very strong compared with last year and last year was a banner year for us.”
Mr Trump’s tariff unveiling took place after that two-month period, and the BMDA’s March sales figures are not yet available. But Mr Albury told Tribune Business: “The biggest concern for members is market saturation. We’ve had a good run now and a lot of people have taken on financing to buy new vehicles. A lot of people have done new purchases and are not looking to replace them.
“Because we’ve done so much, the market is only
licence”, and added that a spectrum-based service was equivalent to introducing a new cellular mobile operator.
URCA, in reply, said Starlink’s licence restricts it to providing broadband Internet services and it is not permitted to offer mobile services in conformity with a policy that restricts the sector to just two operators - Aliv (Cable Bahamas) and the Bahamas Telecommunications Company (BTC).
“Regarding satellite regulation and the specific inquiries raised, URCA clarifies that Starlink currently provides broadband Internet services at fixed locations in The Bahamas but is not licensed for voice telephony or traditional mobile services,” URCA added.
“The licence conditions imposed on Starlink align with the Government’s policy to refrain from introducing additional competition in the cellular- mobile market. To address concerns regarding transparency, URCA has made the Starlink licence conditions available on our website for public access....
“Starlink is subject to the applicable fees as set out in its licences. On a related note, URCA does not discuss a company’s individual revenue numbers and licence fee payments.”
so big, and there is only so much it can sustain. So common sense tells us there’s only so many vehicles we can sell in a population of this size. If anything, we will be keeping an eye on that to manage inventory levels and not ordering to the extent we were over the last two years. We cannot expect the market to grow at the same rate every single year.”
Explaining that the new auto market tends to move in cycles, with dealers having to “work through the dips” and be ready to exploit any increased demand, Mr Albury added: “Right now I can’t seem to get as much product as I need. It cannot come quickly enough. We’re being cautious with our projections. A lot of purchases are made six months in advance, so we always have to be looking at cash flow and inventory.”
Also asserting that the auto industry “absorbed higher costs much better than I thought it would” during COVID and its aftermath, the BMDA president said The Bahamas’ position as a high-end tourist destination may help to offset any fall-out from the Trump tariffs given its typical client base is more protected from any impact.
“I can tell you that I was in Eleuthera this weekend and there was no shortage of tourists. It was bustling,” he added. “It was crazy, crazy business. They were coming in on yachts, private jets and renting homes on the beach. I think we’re in a good position as far as tourism. We really don’t attract the back-packing tourist so to speak. I think it will have to be an extended shock to make a big difference.”
By JOSH BOAK Associated Press
PRESIDENT Donald Trump said Tuesday he has no plans to fire Federal Reserve Chair Jerome Powell, just days after his statement that he would like to terminate the head of the U.S. central bank caused a stock market selloff.
"I have no intention of firing him," Trump told reporters. The U.S. president had previously insinuated otherwise as he said he could fire Powell if he wanted to, having been frustrated by the Fed putting a pause on cuts to short-term interest rates. Powell has said that Trump's tariffs are creating uncertainty about slower growth and higher inflationary pressures, while the president maintains that inflationary worries are essentially non-existent.
The president maintains that energy and grocery prices are falling, so the Fed should cut its benchmark rates because inflation is no longer a threat to the U.S. economy, Trump said. His remarks indicated that he still plans to use the bully pulpit to pressure a U.S. central bank that is committed to resisting political
pressure as part of its mandate to stabilize prices and maximize employment.
Trump's frustration led him to post on social media last Thursday: "Powell's termination cannot come fast enough!" The Fed chair's term ends in May 2026. On Tuesday, Trump continued to air his grievances about Powell, even though he said the Fed chair would stay on the job despite the president's belief that inflation is no longer a problem.
"It's all coming down," Trump said. "The only thing that hasn't come down, but hasn't gone up much, are interest rates. And we think the Fed should lower the rate. We think that it's a perfect time to lower the rate. And we'd like to see our chairman be early or on time, as opposed to late. Late's not good."
Trump again attacked Powell on Monday on his Truth Social account, saying that "there is virtually No Inflation."
The comment built on a statement by Trump last week that said he believed he could fire Powell, a move that shook financial markets and frightened investors that interest rates might be subject to politics instead of economic fundamentals.
Albury disclosed in relation to the Trump tariffs.
“I’ve had a few one-onone consultations, and we don’t see much of a threat to us because the product is imported from China comes direct. It doesn’t go through the US. The product from Japan comes direct from Japan. It doesn’t go through the US.
“We wouldn’t be subject to any of those tariffs at this point in time. It’s a wait and watch scenario. I don’t see any thing threatening in the short run. We’re going to have to keep our eyes on the long-term and any effect that result in a recession.”
Hopes for a negotiated solution were revived yesterday after the US treasury secretary, Scott Bessent, was reported to have told a private meeting with investors and business
leaders that the high tariffs were unsustainable and he expects a “de-escalation” between the US and China. The US has imposed import taxes of 145 percent on China, which has countered with 125 percent tariffs on US goods.
“I think we are already seeing a lot of countries negotiating with the US, and I think a lot of it is posturing,” Mr Albury told this newspaper. “I don’t think it’s going to turn out to be the end of the world. We dodged the bullet on that $1m per port call Chinesemade ship fee. That’s a good thing.
“I think a lot of this stuff is going to work its way out. It’s in everyone’s best interests that it does. Trade with the US is too important. They are the biggest consumer in the world, so for people who are producers it’s definitely in their interests to come to some sort of
agreement. I think it will all come to a conclusion very soon.”
Mr Albury said the greatest danger for the Bahamian auto sector and, by extension, this country’s wider economy is if the global trade and tariff dispute - with all the uncertainty and potential damage to consumer, business and investor confidence that will cause - lasts for an extended period of time. Higher prices, and a potential US and global recession, would also undermine the Bahamian tourism industry.
“When we see a downturn in the US it usually takes six to 18 months to fully impact us,” the BMDA president said. “We’re able to watch this play out. As of right now, interest has been very strong and we have a lot of customers shopping. It’s too early to tell what the impact will be.
“I checked, and the industry was actually ahead 12 percent over the first two months of last year. It’s still early, only two months, but that’s very positive. That’s very good. There seems to be a high level of confidence and our sales, as indicated, are still very strong compared with last year and last year was a banner year for us.”
Mr Trump’s tariff unveiling took place after that two-month period, and the BMDA’s March sales figures are not yet available. But Mr Albury told Tribune Business: “The biggest concern for members is market saturation. We’ve had a good run now and a lot of people have taken on financing to buy new vehicles. A lot of people have done new purchases and are not looking to replace them.
“Because we’ve done so much, the market is only
EVs in the spotlight as China claims a leading global role at Shanghai’s auto show
By ELAINE KURTENBACH AP Business Writer
LEADING automakers will be showcasing their latest designed-for-China models at the Shanghai auto show this week, struggling not to be edged aside in the world's largest car market while watching for U.S. President Donald Trump's next steps in his trade war.
Some industry experts view this year's show in the sprawling industrial outskirts of Shanghai as a tipping point. Three decades after Beijing set out to build a world-class auto industry, local manufacturers account for about two-thirds of sales inside China, and a growing share of global exports.
The exhibition opens to the public on Thursday and runs until May 2.
Electrics gaining ground
Encouraged by government subsidies for scrapping older cars for the latest models, Chinese drivers have embraced the switch to electrics, with
sales of battery powered and hybrid vehicles jumping 40% last year. A total of 31.4 million vehicles including buses and trucks were sold last year in the world's biggest market by sales, up 4.5% compared to a year earlier, the China Association of Automobile Manufacturers reported. Growth in sales of EVs was offset by falling sales of traditional gasoline and diesel-powered vehicles, which still accounted for just over half of new car sales. Chinese electric vehicle maker BYD nudged past Tesla as the world's biggest maker of EVs by sales last year, reporting revenue of over $100 billion. It recently announced an ultra fast EV charging system that it says can provide a full charge for its latest EVs within five to eight minutes, about the time needed to fill up at the pump. It plans to build more than 4,000 of the new charging stations across China.
Survival of the fittest
To gain access to China's potentially huge market, foreign automakers like
NOTICE is hereby given that LEA DEZIEL CHARRON of P.O. Box 76 Ocean Club Estate, Paradise Island, New Providence, Bahamas, applying to the Minister responsible for Nationality and Citizenship, for Registration/Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 23rd day of April, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE is hereby given that MYJACQUES RODNEY of #52A Hutchinson Street, New Providence, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/ naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 16th day of April, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE is hereby given that JEAN-GARY LOUIS of Golden Isles Road, Nassau, The Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for registration/ naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 23rd day of April, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
Volkswagen, General Motors, BMW and Ford set up joint ventures with stateowned local companies beginning in the 1980s and 90s, helping them build the capacity and technology to compete on a world scale. They also created sprawling supply chains in Shanghai and other major manufacturing hubs, helping to nurture other big names in Chinese automaking, such as BYD, Geely and Great Wall Motors.
Facing brutal competition at home, Chinese automakers are expanding rapidly into many world markets, winning market share with relatively affordable sedans, SUVs and pickup trucks.
Shanghai's auto show is a gathering for the "survival of the fittest," Zhou Lijun, director and chief researcher of the industry analysis group Yiche Research Institute, said. It's also a turning point in that local automakers have switched from a supporting role to being the real protagonists on the world stage, he said.
That doesn't mean all the EV makers go it alone. BYD teamed up with Daimler, now the Mercedes-Benz Group, to launch its Denza premium brand, featured on billboards in Southeast Asian capitals like Bangkok. Tariffs and other challenges Opening markets wider to foreign competition has given car buyers a choice of more affordable, innovative vehicles. But that has been a mixed blessing for older automakers like GM, Ford, Toyota and VW that now face fiercer competition both at home and abroad. Trump doubled down on tariffs on Chinese goods, raising them to up to 145%.
His recent announcement of a 90-day pause temporarily spared many other countries including Japan from 24% across-the-board tariffs. But a 10% baseline tariff and a 25% tax on imported cars, auto parts, steel and aluminum exports remains in place.
so big, and there is only so much it can sustain. So common sense tells us there’s only so many vehicles we can sell in a population of this size. If anything, we will be keeping an eye on that to manage inventory levels and not ordering to the extent we were over the last two years. We cannot expect the market to grow at the same rate every single year.”
Explaining that the new auto market tends to move in cycles, with dealers having to “work through the dips” and be ready to exploit any increased demand, Mr Albury added: “Right now I can’t seem to get as much product as I need. It cannot come quickly enough. We’re being cautious with our projections. A lot of purchases are made six months in advance, so we always have to be looking at cash flow and inventory.”
Also asserting that the auto industry “absorbed higher costs much better than I thought it would” during COVID and its aftermath, the BMDA president said The Bahamas’ position as a high-end tourist destination may help to offset any fall-out from the Trump tariffs given its typical client base is more protected from any impact.
“I can tell you that I was in Eleuthera this weekend and there was no shortage of tourists. It was bustling,” he added. “It was crazy, crazy business. They were coming in on yachts, private jets and renting homes on the beach. I think we’re in a good position as far as tourism. We really don’t attract the back-packing tourist so to speak. I think it will have to be an extended shock to make a big difference.”
in Europe or elsewhere," Zhou said.
Not that long ago, Japanese automakers were doing the same, as they fought trade friction with the United States over their own exports. Now, Toyota, Honda and Nissan employ hundreds of thousands of U.S. workers at their U.S. factories.
"The trade war between China and the United States has blocked direct exports from China to the United States, but it hasn't blocked local production there or the establishment of global production bases
Higher U.S. and European tariffs on foreignmade EVs are prompting Chinese newcomers to shift production closer to those markets as more Western consumers opt for the latest Chinese models.
NOTICE is hereby given that ANNEARIE A E of P.O. Box 76 Ocean Club Estate, Paradise Island, New Providence, Bahamas, applying to the Minister responsible for Nationality and Citizenship, for Registration/Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 23rd day of April, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE is hereby given that MAUDELIS VINCENT of #22 Young Street, New Providence, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/ naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 16th day of April, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE is hereby given that ONAL DAWSON of Abaco, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/ naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 16th day of April, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
But as Trump's 25% tariffs on foreign-made vehicles shows, other factors may slow that expansion.
A report by the Rhodium Group shows that nearly half the world's markets are restricting imports from China, in part because of national security concerns linked to the advanced electronics in EVs and other high-tech vehicles. About 12% of the global market is relatively open, including countries like Australia and South Africa, and Russia is a major market but is nearly saturated, it says.
NOTICE is hereby given that BENOIT ALE ANDRE CHARRON of P.O. Box 76 Ocean Club Estate, Paradise Island, New Providence, Bahamas, applying to the Minister responsible for Nationality and Citizenship, for Registration/Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 23rd day of April, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE is hereby given that RA HAELLE CHARRON of P.O. Box 76 Ocean Club Estate, Paradise Island, New Providence, Bahamas, applying to the Minister responsible for Nationality and Citizenship, for Registration/Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 23rd day of April, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE is hereby given that ALICIA ANN TRICIA COURTNEY of Sears Hill, Nassau, The Bahamas, applying to the Minister responsible for Nationality and Citizenship, for Registration/Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 16th day of April, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
By STAN CHOE AP Business Writer
U.S. stocks jumped in a widespread rally Tuesday, and other U.S. investments steadied a day after falling sharply on worries about President Donald Trump's trade war and his attacks on the head of the Federal Reserve.
The S&P 500 climbed 2.5%. The Dow Jones Industrial Average rose 1,016 points, or 2.7%, and the Nasdaq composite gained 2.7%. All three indexes more than made up their big losses from the start of the week.
The value of the U.S. dollar also stabilized after sliding against the euro and other competitors, while longer-term Treasury yields held steadier as more calm returned to financial markets. Sharp, unusual moves for the dollar and for Treasurys have recently raised worries that Trump's policies are making investors more skeptical about U.S. investments' reputation as the world's safest.
The only prediction many Wall Street strategists are willing to make is that financial markets will likely continue to veer up and down as hopes rise and fall that Trump may negotiate deals with other countries to lower his tariffs. If no such deals come quickly enough, many investors expect the economy to fall into a recession.
The International Monetary Fund on Tuesday slashed its forecast for global economic growth this year to 2.8%, down from 3.3%. But Vice President JD Vance also said he made progress with India's prime minister, Narendra Modi, on trade talks Monday.
A suite of better-thanexpected profit reports
from big U.S. companies, meanwhile, helped drive U.S. stocks higher.
Equifax jumped 13.8% after reporting a better profit for the first three months of 2025 than analysts expected. It also said it would send more cash to its shareholders by increasing its dividend and buying up to $3 billion of its stock over the next four years.
3M climbed 8.1% after the maker of Scotch tape and Command strips said it made more in profit from each $1 of revenue during the start of the year than it expected. The company also stood by its forecast for profit for the full year, though it said tariffs may drag down its earnings per share by up to 40 cents per share.
Homebuilder PulteGroup rose 8.4% after it likewise delivered a stronger profit for the start of 2025 than analysts expected.
It's been benefiting from some of the sharp moves in the bond market. Drops for Treasury yields during the first three months of the year translated into lower mortgage rates for potential customers, though yields have been largely rising since early this month.
CEO Ryan Marshall said buyers "remain caught between a strong desire for homeownership and the affordability challenges of high selling prices and monthly payments that are stretched."
Tesla rose 4.6% ahead of its earnings report, which arrived after trading ended for the day. That trimmed its loss for the year so far to roughly 41%.
Elon Musk's electric car company had already reported its first-quarter car sales dropped by 13% from the year before. It's been hurt by vandalism, widespread protests and calls for a consumer boycott amid
a backlash to Musk's oversight of cost-cutting efforts for the U.S. government.
Stocks also showed how Trump's tariffs could create winners and losers as he tries to remake the global economy and trade.
First Solar jumped 10.5% after the U.S. Department of Commerce finalized harsher-than-expected solar tariffs on some southeast Asian communities.
U.S. defense contractors, meanwhile, had some of the market's sharpest losses after RTX said tariffs on Mexican and Canadian imports, along with other products, could mean an $850 million hit to its profit this year. RTX, which builds airplane engines and military equipment, fell 9.8% even though it reported a stronger profit for the latest quarter.
By JONEL ALECCIA and MATTHEW PERRONE Associated Press
U.S. health officials on Tuesday said they would urge food makers to phase out petroleum-based artificial colors in the nation's food supply, but stopped short of promising a formal ban and offered few specifics on how they intended to achieve the sweeping change.
Food and Drug Administration Commissioner Marty Makary said at a news conference that the agency would take steps to eliminate the synthetic dyes by the end of 2026, largely by relying on voluntary efforts from the food industry. Health Secretary Robert F. Kennedy Jr., who joined the gathering, said he had heard from food manufacturers, but had no formal agreements with them.
"We don't have an agreement, we have an understanding," Kennedy said.
The officials said the FDA would establish a standard and timeline for industry to switch to natural alternatives, revoke authorization for dyes not in production within coming weeks and take action to remove remaining dyes on the market.
"Today, the FDA is asking food companies to substitute petrochemical dyes with natural ingredients for American children as they already do in Europe and Canada," Makary said.
The proposed move is aimed at boosting children's health, he added.
"For the last 50 years we have been running one of the largest uncontrolled scientific experiments in the world on our nation's children without their consent," he said.
The process to revoke approved additives from the food supply typically takes several years and
requires public comment, agency review and final rulemaking procedures. Industry groups said that the chemicals are safe and suggested they would try to negotiate with regulators to keep them available.
"FDA and regulatory bodies around the world have deemed our products and ingredients safe, and we look forward to working with the Trump Administration and Congress on this issue," said Christopher Gindlesperger, spokesman for the National Confectioners Association. "We are in firm agreement that science-based evaluation of food additives will help eliminate consumer confusion and rebuild trust in our national food safety system."
Health advocates have long called for the removal of artificial dyes from foods, citing mixed studies indicating they can cause neurobehavioral problems, including hyperactivity and attention issues, in some children. The FDA has maintained that the approved dyes are safe and that "the totality of scientific evidence shows that most children have no adverse effects when consuming foods containing color additives."
The FDA currently allows 36 food color additives, including eight synthetic dyes. In January, the agency announced that the dye known as Red 3 — used in candies, cakes and some medications — would be banned in food by 2027 because it caused cancer in laboratory rats.
Artificial dyes are used widely in U.S. foods. In Canada and in Europe — where synthetic colors are required to carry warning labels — manufacturers mostly use natural substitutes. Several states, including California and West Virginia, have passed laws restricting the use of artificial colors in foods.
NOTICE is hereby given that ACHIL EDNER of General Delivery off Fish Street, Rock Sound, Eleuthera, Bahamas, applying to the Minister responsible for Nationality and Citizenship, for Registration/Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 23rd day of April, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE is hereby given that ANDREY VOTINOV of Ocean Club Estate, Paradise Island, New Providence, Bahamas, applying to the Minister responsible for Nationality and Citizenship, for Registration/Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 23rd day of April, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
By BERNARD CONDON
AP Business Writer
ELON Musk says he'll be spending less time in Washington slashing government costs and more time running Tesla after his electric vehicle company reported a big drop in profits.
Musk said on a conference call with analysts Tuesday that "now that the major work of establishing Department of Government Efficiency is done," that he will be "allocating far more of my time to Tesla" starting in May.
Musk said he expects to spend "a day or two per week on government matters for as long as the president would like me to do so."
Tesla struggled to sell vehicles as it faced angry protests over Musk's leadership of DOGE, a jobs-cutting group that has divided the country. The Austin, Texas, company reported a 71% drop in profits and a 9% decline in revenue for the first quarter.
"Investors wanted to see him recommit to Tesla," said Wedbush Securities'
Dan Ives. "This is a big step in the right direction." Investors sent Tesla shares up more than 5% in after-hours trading, although they are still down more than 40% for the year.
The company reconfirmed that it expects to roll out a cheaper version of its best-selling vehicle, the Model Y sport utility vehicle, in the first half of this year. It also stuck with its predictions that it will be able to launch a paid driverless robotaxi service in Austin, Texas, in June and have much of its fleet operating by itself next year.
"There will be millions of Teslas operating autonomously in the second half of the year," Musk said in a conference call after the results were announced. He later added about the personal use of autonomous vehicles," Can you go to sleep in our cars and wake up at your destination? I'm confident that will be available in many cities in the U.S. by the end of this year."
Auto analyst Sam Abuelsamid at Telemetry Insight said he doubts Musk's predictions.
"The system is not robust enough to operate unsupervised. It still makes far to many errors," he said. "It will suddenly make mistakes that will lead to a crash."
The planned rollout of the robotaxi without a steering wheel or pedals comes as federal regulators still have open investigations into whether the technology that Tesla hopes will allow cars to drive themselves is completely safe.
Tesla's driver-assistance technology that can steer or
stop a car but still requires humans to take over at any time — its so-called Autopilot — is being probed by the National Highway Traffic Safety Administration for whether it alerts divers sufficiently when their attention wanders. And the company's Full Self-Driving, which is only partial self-driving and has drawn criticism for misleading drivers with the name, has come under scrutiny for its tie to accidents in low-visibility conditions like when there is sun glare.
Another challenge to Tesla, which once dominated the EV business: It is facing fierce competition for the first time.
Earlier this year, Chinese EV maker BYD announced it had developed an electric battery that can charge within minutes. And Tesla's European rivals have begun offering new models with advanced technology that is making them real Tesla alternatives just as popular opinion has turned against Musk. The Tesla CEO also alienated potential buyers in Europe by publicly supporting far-right politicians there. Tesla said Tuesday that quarterly profits fell by 71% to to $409 million, or 12 cents a share. That's far below analyst estimates. Tesla's revenue fell 9% to $19.3 billion in the January through March period, also below Wall Street's forecast. Tesla's gross margins, a measure of earnings for each dollar of revenue, fell to 16.3% from 17.4%.
Tesla has said it will be hurt less by the Trump administration's tariffs than most U.S. car companies because it makes most of its U.S. cars domestically.
But it won't be completely unscathed. It sources some materials for its vehicles from abroad that will now face import taxes. Tesla warned in announcing its results that tariffs will hit its energy storage business, too.
"While the current tariff landscape will have a relatively larger impact on our Energy business compared to automotive," the company said, "we are taking actions to stabilize the business in the medium to long-term and focus on maintaining its health."
Retaliation from China will also hurt Tesla. The company was forced earlier this month to stop taking orders from mainland customers for two models, its Model S and Model X. It makes the Model Y and Model 3 for the Chinese market at its factory in Shanghai. The company's side business of selling "regulatory credits" to other automakers that fall short of emission standards boosted results for the quarter. Tesla generated $595 million from credit sales, up from $442 million a year ago.
