Good afternoon, friends. It’s a relatively calm day on the news front, and we’ve got a brisk issue for you today.

THE BIG STORY TODAY-

The EGP extended its rally against the greenback today for the second consecutive week — with only a brief two-day pause, as the USD attempted to regain ground. The USD was changing hands at EGP 48.40-48.50 at the National Bank of Egypt and Banque Misr and at EGP 48.38-48.48 at CIB.

The real driver? USD inflows surge. Local banks are witnessing a significant momentum in USD inflows, and the greenback is available in all banks, a source in the banking sector told EnterpriseAM today. This momentum is driven by seasonal tourism revenues, easing regional tensions, and the increasing interest from foreign investors and funds in our local debt and stock markets, the source added.

Short-term debt instruments remain the most attractive options for foreign investors, according to our source.

** For more on the EGP rally — and the reasons behind it, check out our recent in-depth coverage here in today’s morning issue of EnterpriseAM.

THE BIG STORY ABROAD-

Tesla has granted CEO Elon Musk 96 mn shares worth approximately USD 29 bn in an effort to gradually boost his voting power as he continues to push back against court rulings that annulled his original compensation package.

ICYMI– Musk’s 2018 compensation package — valued at USD 50 bn — was voided by a Delaware court last year on account of being “unfair to shareholders,” and due to flawed Tesla board approval processes. Musk would later appeal the ruling in March, citing legal errors. Earlier this year, a special committee was formed to reassess Musk’s compensation.

MEANWHILE- Tesla’s brand loyalty is dropping, and Musk is to blame. Musk’s bromance and subsequent fallout with US President Donald Trump seems to have given Tesla quite the black eye. Having previously had more repeat customers than most major US auto brands — with up to 73% of Tesla-owning households buying another Tesla — it seems the EV maker has since taken hit after hit. Last March, its brand loyalty rate dropped to 49.9% — below industry average. It recovered in May, reaching up to 57.4%, yet is now on par with the rest of the industry after once leading the charge.

Tesla sales are dropping, with the first five months of 2025 seeing an 8% decline in sales for the EV maker in the US and shares down 25.1% YTD. The reason? Political activism at a very bad time — just as EV competition grew. (Financial Times | Reuters | CNBC | ABC)

☀️ TOMORROW’S WEATHER- It’s a sunny day in Cairo tomorrow, with temperatures set to peak at 35°C before cooling down to 24°C. Up north, we’re expecting a high of 28°C and a low of 26°C, according to our favorite weather app.

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