Five Chinese state-owned companies listed in the U.S. announced on Friday that they would voluntarily delist from the New York Stock Exchange. The companies – Oil giant Sinopec, China Life Insurance, Aluminum Corporation of China, PetroChina, and a separate Sinopec entity, Sinopec Shanghai Petrochemical Co – said they would apply to delist their American Depository Shares this month. More: - The companies said they would keep their listings in Hong Kong and mainland China.
- The move comes after the U.S. SEC warned the five companies and many others that they were failing to meet U.S. auditing standards.
- The U.S. and China have been in talks to resolve a long-disputed auditing disclosure, with the U.S threatening to ban Chinese companies from U.S. exchanges.
- China prohibits foreign inspection of company audit documents citing national security concerns.
- The announcement also comes amid rising tensions between the U.S. and China following the visit to Taiwan by U.S. House Speaker Nancy Pelosi.
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U.S automakers and dealers are trying to determine if they can still offer the $7,500 tax credit to customers who buy new electric vehicles. Under the $430B climate, healthcare, and tax bill, dubbed the Inflation Reduction Act, rules governing the $7,500 tax credit may be replaced by incentives designed to bring more battery and EV manufacturing to the U.S. More: - One of the major changes to the EV industry that would come with the bill is a ban on tax credits for vehicles assembled outside North America.
- This change would impact about 70% of the 72 current EV and hybrid models in the U.S. market.
- The bill also introduces new restrictions on battery sourcing and critical minerals, price caps, and income caps that will make all current EVs ineligible for the entire $7,500 tax credit.
- The Congressional Budget Office estimates only roughly 11,000 EVs may qualify for the $7,500 tax credit in 2023.
- The U.S. House of Representatives passed the bill on Friday in a 220-207 vote along party lines.
- The bill will go on to President Biden’s desk to be signed into law.
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Peleton Interactive Inc. is reducing its retail operations and getting rid of North American warehouses in a bid to cut back on losses. The New York-headquartered company has announced 784 job cuts. Third-party partners for the company will handle the last-mile delivery of equipment. According to the company, the move will reduce delivery costs by half. More: - Orders at Peloton continue to decline, falling short of forecasted volume.
- The move is part of the larger restructuring initiative outlined by CEO Barry McCarthy — a former Spotify and Netflix CFO — who was roped in earlier this year to turnaround the company.
- An $800M restructuring plan is in the works.
- The firm had announced its plans to lay off 2,800 employees in February this year.
- Peloton will also hike the prices of its premium stationary bike and treadmill by $500 and $800, respectively.
- The firm will report its Q4 earnings on Aug. 25.
Zoom out: - In an effort to minimize expenses, electronics and appliance retailer Best Buy removed hundreds of employees from its workforce throughout the week.
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Chinese EV battery maker Contemporary Amperex Technology Co. Ltd. (CATL) announced plans to build a battery factory in Hungary. The investment is set to cost $7.6B (€7B) and will have a manufacturing capacity of 100GWh per year. More: - CATL is currently the world's largest car battery manufacturer.
- Construction of the facility is set to start later this year, with the build time forecasted to be five and a half years.
- The facility is expected to create 9,000 jobs.
- Mercedes-Benz has been roped in as a partner for the battery facility, with the batteries from the factory expected to power its upcoming EV lineup.
- The CATL production facility in Erfurt, Germany, will be operational by the end of the year.
- BMW was the foundation customer for the Erfurt factory.
- In addition, CATL is constructing two new battery sites in the Shandong and Fujian provinces in China, with an investment of $2B (14B yuan) and $1.9B (13B yuan), respectively.
- The company had planned to invest $5B in Mexico or the U.S., but the plans have been delayed due to House Speaker Nancy Pelosi's trip to Taiwan.
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Private equity firm Blackstone expects to invest at least $2B in technology debt deals over the next few years. The move comes as venture capital funding has reduced in recent months. Blackstone hopes tech firms will increasingly seek out debt financing or a mix of equity and debt. More: - According to recent data from Crunchbase, venture-backed startups in the U.S. raised nearly $15.9B in debt in 321 deals in the first seven months of the year.
- Last month, U.S. startups raised more than $1.4B in publicly announced debt, up from $824M raised in July 2021.
- This is Blackstone’s first major push into lending to startups and tech companies.
- The firm will compete with other big-name players in the debt capital space like Silver Lake and Hercules Capital.
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EV automaker Rivian announced its Q2 earnings, reporting a $1.7B loss during the quarter. The company reported $364M in revenue. Reported revenue beat analysts’ estimates of $337.5M. Adjusted loss per share came in at $1.62 per share, against expectations of $1.63 per share. More: - Despite maintaining its full-year guidance, the company warned investors to expect wider losses.
- Full-year losses are projected to come in at $5.4B, higher than the initial projections of $4.75B as reported earlier in May.
- Capex estimates for the full year are down from $2.6B to $2B.
- Cash and equivalents dropped from $17B at the end of March to $15.5B at the end of Q2.
- According to the company, it has enough cash to cover its operations until 2025, when it launches its new smaller product platform, dubbed R2.
- The company is on track to produce 25,000 vehicles this year, in line with forecasts outlined in the preceding quarter.
- It delivered 4,467 vehicles and produced 4,401 in the current quarter.
- The net pre-order backlog for North America totaled 98,000 at the end of the June quarter.
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- Johnson & Johnson said it will stop selling talc-based baby powder globally in 2023. The company’s talc-based power hasn’t been sold in the U.S. and Canada since 2020. The powder is at the center of tens of thousands of lawsuits filed by women who developed ovarian cancer after using the talcum powder regularly.
- German nuclear power operators plan to continue with the decommissioning of the country’s last three remaining nuclear power plants. The German government has been weighing whether to keep the facilities running over the winter as the country struggles with meeting energy demands.
- Samsung Electronics Vice Chairman Jay Y. Lee received a presidential pardon that would allow him to formally take over the leadership at the electronics conglomerate. Lee was convicted of bribery charges and served 18 months in prison before he was released on parole.
- The recently passed Inflation Reduction Act includes a minimum tax rate of 15% for highly profitable companies like Amazon and Verizon. The tax is expected to help pay for large investments in climate and health care.
- Gannett laid off dozens of reporters at newspapers across the country in response to the quarterly loss it reported last week.
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 |  | Vanessa Omeokachie is a Researcher at Inside. Her interests include finance, tech, and startups. In her free time, she enjoys reading, hiking, attending music festivals, and traveling. Connect with her on Twitter @VanessaOmeo or through email at vanessa@inside.com Karan Chafekar is a Management Consultant, Business enthusiast, and Licensed Pilot. |  | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 Ford. | |
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