AP Business SummaryBrief at 10:10 a.m. EST

Key Takeaways:

• Tesla’s 1.1% sales decline marks its first annual drop since at least 2015, indicating challenges in the electric vehicle market.

• U.S. stock markets rebound to start 2025, ending a four-day losing streak and signaling potential economic optimism.

• Puerto Rico inaugurates a new governor as the island grapples with widespread power outages affecting 1.3 million residents.

• U.S. unemployment claims decrease to 211,000, the lowest since March, reflecting strong job security among workers.

• Investigations into a deadly plane crash in South Korea are underway after 179 fatalities, raising concerns over aviation safety.

A New Year Marked by Economic Shifts and Global Events

As 2025 unfolds, notable developments across the globe signal a year of significant change and challenge. From shifts in the automotive industry to political transitions and economic indicators, these events set the tone for the months ahead.

Tesla Reports First Annual Sales Decline

Tesla, the Austin, Texas-based electric car manufacturer, has reported a 1.1% decline in sales for 2024, marking its first year-over-year sales drop since at least 2015. The company delivered 495,570 vehicles from October through December, bringing total deliveries for the year to 1.79 million. This figure falls short of the 1.81 million vehicles sold in 2023.

Despite offering incentives such as 0% financing, free charging, and low-priced leases, Tesla faced a slowdown in global demand for electric vehicles. The annual decline highlights challenges within the EV market and suggests a more competitive landscape ahead.

Stock Market Rebounds as 2025 Begins

In a positive turn for investors, U.S. stock indexes started 2025 with gains. The S&P 500 rose 0.8% on Thursday, aiming to break a four-day losing streak—the longest since early September. The Dow Jones Industrial Average climbed by 317 points, while the Nasdaq Composite gained 0.9%.

Smaller stocks led the rally following a better-than-expected report on the U.S. job market. These gains helped offset declines in certain sectors, including a slide in Tesla’s shares after its latest delivery update.

Puerto Rico’s New Governor Sworn In Amid Blackouts

In San Juan, Puerto Rico, Jenniffer González Colón took the oath of office as the island’s new governor. The inauguration was overshadowed by widespread frustration over a massive blackout that occurred just days prior. The outages began early Tuesday, leaving 1.3 million customers without power as Puerto Ricans prepared for New Year’s Eve celebrations.

González, a Republican who supports President-elect Donald Trump, has pledged to prioritize stabilizing Puerto Rico’s crumbling power grid. “Our first task is to address this urgent infrastructure crisis,” she stated during her swearing-in ceremony.

U.S. Unemployment Claims Hit Lowest Level Since March

The Labor Department reported a drop in the number of Americans applying for unemployment benefits, with claims falling by 9,000 to 211,000 last week—the lowest level since March. The four-week average of claims decreased by 3,500 to 223,250.

Additionally, the total number of individuals receiving unemployment benefits declined by 52,000 to 1.84 million. These figures suggest that most workers are experiencing stable job security as the new year begins.

Investigations Underway After Deadly Plane Crash in South Korea

A team of U.S. investigators, including representatives from Boeing, is examining the site of a plane crash in South Korea that claimed the lives of 179 people. The Boeing 737-800 aircraft, operated by budget airline Jeju Air, crashed on Sunday, with only two survivors among the 181 individuals on board.

Authorities are conducting safety inspections on all Boeing 737-800 planes operated by South Korean airlines. Preliminary examinations indicate that the pilots received a bird strike warning from ground control and issued a distress signal. However, experts suggest that a landing gear issue was likely the primary cause of the crash.

Global Energy and Industry Developments

In other international news, Ukraine has halted the transit of Russian gas to Europe following the expiration of a prewar transit deal at the end of 2024. This move comes nearly three years into Russia’s invasion of Ukraine and signals further shifts in global energy supplies.

Meanwhile, reflections on the 2024 box office reveal that movie ticket sales have taken a hit, with the annual domestic box office expected to reach around $8.75 billion—down over 3% from 2023. Lessons from the year highlight the success of PG-rated and animated films, as well as the impact of re-releases.

Consumer Trends and Technological Advances

Value-seeking behavior among shoppers and diners in the U.S. influenced retail and restaurant trends in 2024. This shift led to an increase in bankruptcies, with consumer research company Coresight Research tracking 48 retail bankruptcies as of December 20, compared to 25 the previous year.

Additionally, artificial intelligence tools became more integrated into technology services throughout 2024. Two years after the debut of ChatGPT, AI technologies are increasingly embedded in various applications, influencing how users interact with search results and photo editing tools.

Conclusion

The events unfolding at the start of 2025 reflect a world in transition. Economic indicators, industry challenges, political changes, and technological advancements all point toward a year that will be closely watched by individuals and institutions alike. As global dynamics continue to evolve, the impact of these developments will resonate across markets and societies.