Live updates: follow the latest news on Russia-Ukraine
Tesla chief executive Elon Musk said on Sunday the US electric car maker and his rocket company SpaceX are facing significant inflationary pressure in raw materials and logistics.
Musk in a tweet also asked about inflation rate outlook and said his companies "are not alone", retweeting an article saying the Ukraine-Russia conflict sent commodity prices to their highest levels since 2008.
Russia's military offensive in Ukraine has been pushing up the prices of metals used in cars, from aluminium in the bodywork to palladium in catalytic converters to the high-grade nickel in electric vehicle batteries, and drivers are likely to foot the bill.
While metals have not yet been the target of Western sanctions, some shipping companies and car parts suppliers are steering clear of Russian goods, putting more pressure on vehicle manufacturers already reeling from a chip shortage and higher energy prices.
Escalated by housing, food and gas prices, the US consumer inflation had its steepest spike in the last four decades, likely cementing the case for an interest rate hike by the Federal Reserve.
Tesla's shares, which closed 5 per cent lower at $795.35 on Friday, have lost about 25 per cent year-to-date.
The electric-car maker last week raised prices of its US Model Y SUVs and Model 3 Long Range sedans by $1,000 each and some China-made Model 3 and Model Y vehicles by 10,000 yuan ($1,582.40). Mr Musk said in January that Tesla would not develop a $25,000 car he promised during 2020 battery day, saying he had too many things on his plate.
US electric vehicle maker Rivian Automotive said last week supply-chain issues could cut its planned production in half, citing soaring raw material prices and supply chain constraints.
Japan's Toyota Motor Corp said it would scale back domestic production by up to 20 per cent for April-June to ease the strain on suppliers struggling with shortages of chips and other parts.
Tesla and SpaceX did not immediately respond to Reuters' requests for comment.
Surging costs of raw materials made worse by Russia's military offensive in Ukraine could set back the dream of Tesla chief executive Elon Musk and other auto executives to create cheaper electric vehicles.
Meanwhile, rising prices of nickel, lithium and other materials are likely to slow and even temporarily reverse the long-term trend of falling costs of batteries, the most expensive part of EVs, hampering the broader adoption of the technology, Gregory Miller, an analyst at industry forecaster Benchmark Mineral Intelligence, had said last week.
Kat Wightman's tips on how to create zones in large spaces
- Area carpets or rugs are the easiest way to segregate spaces while also unifying them.
- Lighting can help define areas. Try pendant lighting over dining tables, and side and floor lamps in living areas.
- Keep the colour palette the same in a room, but combine different tones and textures in different zone. A common accent colour dotted throughout the space brings it together.
- Don’t be afraid to use furniture to break up the space. For example, if you have a sofa placed in the middle of the room, a console unit behind it will give good punctuation.
- Use a considered collection of prints and artworks that work together to form a cohesive journey.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
if you go
The flights
Fly direct to Kutaisi with Flydubai from Dh925 return, including taxes. The flight takes 3.5 hours. From there, Svaneti is a four-hour drive. The driving time from Tbilisi is eight hours.
The trip
The cost of the Svaneti trip is US$2,000 (Dh7,345) for 10 days, including food, guiding, accommodation and transfers from and to Tbilisi or Kutaisi. This summer the TCT is also offering a 5-day hike in Armenia for $1,200 (Dh4,407) per person. For further information, visit www.transcaucasiantrail.org/en/hike/
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KILLING OF QASSEM SULEIMANI
