Plus, Rivian's Q2 EV deliveries outperform expectations
| For July 03, 2023 |  |
| Hey Insiders, Monday's edition of Inside Business looks at the treasury secretary's visit to China and the better-than-expected outcomes from Tesla and Rivian EV manufacturers with deep diving into Tesla's performance and strategy. Plus, some energetic news: Monster is acquiring Vital Pharmaceutical's Bang Energy. Happy Monday! Shriram
p/Shriram | |
| 1 | | Treasury Secretary Janet Yellen is visiting China this week to enhance dialogue between the U.S. and China and foster cooperation between the two countries. This is the second Biden cabinet official to travel to China, following Secretary of State Antony Blinken's visit last month. More: - The three pillars of the U.S.-China economic relationship that Yellen defined in her speech from April will be covered.
- The U.S. and China continue to disagree on matters including Taiwan, anti-espionage measures, and counter-sanctions legislation.
- The Secretary will express worries about China's anti-espionage legislation and a new law on international relations that gives Beijing more leverage to react.
- The Treasury officials anticipate conversations regarding Micron, a memory chip manufacturer that China has barred as payback for U.S. export restrictions.
Zoom Out: |     | |
| 2 | | 
What the numbers say: Tesla exceeded analyst expectations in Q2, delivering 466,140 vehicles; however, its margins may decline due to the focus on stimulating demand. Tesla's stockpiles are continually expanding despite rising sales as production outpaces deliveries. Relevance: Tesla's stock has gained significantly this year (6% on Monday), indicating the market focuses on its long-term growth. Furthermore, the high price of gasoline cars has helped traditional automakers recover from the past year's slump. Where to see the Impact: Tesla's aggressive pricing and expansion strategies have enabled them to dominate the U.S. EV market with over 60% share, while competitive pricing in China has been done to retain the market share. Due to their inability to price their vehicles competitively against Tesla, competitors in the U.S. EV market face difficulties.
| | | |
| 3 | | Monster Beverage is set to acquire bankrupt beverage maker Bang Energy for $362M, subject to approval from the bankruptcy court. Bang's assets and production facility in Phoenix will be transferred to Monster through the acquisition. More: - Bang declared bankruptcy after being ordered to pay Monster and PepsiCo a combined $408M settlement and later sued its ex-CEO for refusing to return control of its social media accounts.
- Due to rising consumer inflation and heightened competition, Monster had to raise prices and endure declining profits.
- Celsius, an energy drink company introduced in 2005, has experienced a surge in popularity, leading to a $550M investment from PepsiCo.
- The Federal Trade Commission (FTC) may examine the merger; second requests for additional information have been made to both corporations.
Zoom Out: - Less than 1% lower, Monster's stock ended trading on Monday at $56.95.
| | | |
| 4 | | After Rivian reported that it delivered 12,640 automobiles in Q2, considerably beating Wall Street experts' predictions of 11,000, its shares soared 17%. Due to production delays, the EV manufacturer has been attempting to cut costs and save money. More: - The electric vehicle manufacturer reiterated its 50,000-unit annual manufacturing goal, and 23,400 automobiles had been built.
- With a 5% rise in 2023, the stock price increase marks Rivian's first upward trading day since late February.
- The better-than-expected EV deliveries from Tesla and Rivian are a positive sign for investors who believe in the potential of EVs, stated CNBC.
- Following the release of the delivery reports from Rivian and Tesla, shares of other troubled EV firms like Lucid and Canoo also increased.
| | | |
| 5 | | Abby Grossberg, a former producer at Fox News, has reached a $12M settlement in her complaint that claimed she was coerced into providing false testimony in the Dominion Voting Systems defamation case. Grossberg said she would have testified on Dominion's behalf if the trial had gone on. More: - As well as charging the network with discrimination, Grossberg filed cases against Fox in New York and Delaware.
- The producer, who had worked with Fox's Carlson and Bartiromo, said network attorneys pressured her to provide false testimony in the Dominion case.
- Fox News agreed with Dominion for $787.5M in April, ending the legal battle over its exaggerated allegations regarding voting equipment.
- Fox News expressed satisfaction with the resolution, which avoided additional litigation.
| | | |
| 6 | | De Beers and its parent company Anglo American have agreed to increase Botswana's share of diamonds mined from 25% to 50%, leading to a 4% share price rise for Anglo American. Although it strengthens the country's connection, this agreement lessens De Beers' authority over the production of diamonds in Botswana. More: - De Beers, established in 1888 by Cecil John Rhodes, formerly controlled the majority of the diamond supply in the globe in the 1980s.
- Currently, The Diamond Consortium receives 75% of the produce from the 50-50 joint venture, with Debswana (the government-owned partner) selling its portion of the output.
- The Belgium corporation's mining permits in Botswana have been renewed for another 25 years, increasing the country's portion of the revenues from 30% to 50% over the following 10 years.
- The shareholders of Anglo American must approve the new sales agreement.
| | | |
| 7 | | Quick Hits: - The powerful probiotic Halle Berry swears by to improve her sugar & carb metabolism. Inside readers get 20% off the first month of any Pendulum membership with code INSIDE20.*
- PwC Australia has parted ways with eight partners, including its former CEO Tom Seymour, as part of an investigation into a leaked confidential government tax plan.
- Lazard's new CEO Orszag has announced the termination of a senior director due to their actions being incompatible with the firm's values.
- AstraZeneca shares declined 6% after a clinical trial yielded less promising outcomes than initially anticipated for their experimental lung cancer drug.
- Thousands of hotel workers in Los Angeles began a strike on Sunday to fight for better wages and benefits amid high housing costs in the region.
- A few months from now, you could be celebrating your new hair. Get 60% off with code FIREWORKS60 from now until July 7th!*
*This is a sponsored listing. | | | |
| Upcoming Events | | JUL
12 | | Monthly Meditation guided by Nicholas Whitaker | | | | | | | JUL
13 | | #ThankfulThursdays Wellness Community Challenge | | | | | | | OCT
16 | | Meet Our Fund 5, Building and Investing in AI | | | | | | * This is a sponsored event | | | |
Term of the Day Non-Disclosure Agreement: A non-disclosure agreement (NDA) is a legally binding contract between parties establishing confidential relationships. Question of the Week What's your stance on employees discussing their salaries with each other? Join the conversation |
INSIDE BUSINESS LEADERBOARD (7 DAYS) |
 | Freelance Writer | | Shriram is pursuing Master’s in Business with Marketing at Warwick Business School. He worked as a Senior Consultant in Tech and Political Consultancies before his Masters. He is passionate about Tech, Marketing, Strategy, Anthropology and Politics. He is also the Postgraduate Ambassador for Warwick Business School. | | This newsletter was edited by Aaron Crutchfield | |
| |
| |
