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| Hello Insiders! Today's business newsletter covers: - 🔋 Tesla battery supplier CATL presents a new battery that charges in 10 minutes.
- 📉 Home Depot beats Wall Street earnings and revenue estimates.
- 🛑 Intel terminates $5.4B acquisition of Israel-based Tower Semiconductor due to regulatory issues.
Also, tell us how you think businesses can adapt to changing consumer behaviors and preferences here! If you find this newsletter useful, please share it with your friends and colleagues. Thank you. Arbër
p/Arber | |
| 1 | | CATL, a company best known for being Tesla's battery supplier, has announced a new 250-mile-range battery that charges in 10 minutes. Mass production of the battery is expected to begin in late 2023. More: - CATL claims the new battery, "Shenxing," is the world's first 4C superfast charging Lithium Iron phosphate battery.
- Tesla began using iron phosphate batteries in 2021 for its shorter-range cars, replacing nickel-cobalt-aluminum batteries.
- Iron phosphate batteries are cheaper to manufacture and have good stability, but their disadvantage is that they negatively impact range.
- Deliveries of the battery will begin in 2024, according to the company.
Zoom Out: - CATL, founded in 2011, has a 35% market share in EV battery production globally.
- As of 2022, the company had $48B in revenue and over 30,000 employees.
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What happened: Home Depot reported better-than-expected Q2 earnings and revenue figures, beating Wall Street estimates. The retailer had $42.92B in revenue, while analysts estimated $42.23B. The report means the company is maintaining its momentum, as it consistently grew its net sales earnings in the previous four years. More details: The company reported a net income of $4.66B, down from $5.17B in the same period in 2022. In terms of earnings per share, the retailer posted $4.65 against the $4.45 expected. The company's Q2 net sales are the highest in the last four years, surpassing its 2019 Q2 net sales figure by more than $12B. Home Depot stated that it expects consumer demand to stabilize as consumers have returned to their pre-pandemic shopping habits. Regarding inflation, the company said that prices are stabilizing and, in some cases, it has lowered product prices. Home Depot added the total amount that consumers are spending in a single shopping trip has decreased, but the number of their trips has begun to increase. Why it matters: Investors questioned whether Home Depot could maintain its sales volume from COVID-19 and whether inflation and rising housing costs have affected consumers' willingness to invest in housing-related projects. | | | |
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| 3 | | Intel has terminated the $5.4B acquisition of Israeli chipmaker Tower Semiconductor because regulators have not approved the deal. Intel will pay a $353M penalty fee to Tower. More: - According to reports, Intel did not receive approval in time from Chinese regulatory authorities, a decision that has not been announced publically by either side.
- Intel aimed to acquire Tower to boost its expertise in radio frequency and industrial sensors.
- Shares of the Israel-based Tower fell more than 8% on the United States and Tel Aviv exchanges.
- Intel first announced its bid for Tower Semiconductor in February 2022.
Zoom Out: - Earlier this year, it was announced that Intel would launch a $25B factory in Israel, the largest-ever international investment in the country.
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| 4 | | Vietnamese EV maker VinFast is now worth more than GM, Ford, and Stellantis, as the company's stock price surged in its first trading day. The company's valuation reached $85B, while its share price was above $37. More: - VinFast founder Pham Nhat Vuong owns about 99% of the company, leaving around 1.3 million shares available to be traded.
- According to Vuong, VinFast has broken even in Vietnam and will be profitable globally in the next few years, as it has already delivered 20,000 vehicles.
- In 2022, the company posted a net loss of $2.1B.
- While VinFast has scaled relatively quickly, it has had issues penetrating the U.S. market. Earlier this year, the National Highway Traffic Safety Administration warned consumers of a software error in VinFast vehicles that could lead them to crash.
- The company was founded in 2017 in Hanoi, Vietnam.
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| 5 | | Tencent has missed Q2 profit estimates, despite a 10% surge in profit YoY. Sales grew in the gaming, cloud, and fintech divisions. More: - Tencent had $20.46B in revenue, while analysts estimated $20.79B.
- The company's cost-cutting measures helped it improve its financial performance in Q2.
- Tencent has had three consecutive quarters of revenue growth, recovering from a decline in 2022.
- Due to the spread of COVID-19 in China and issues with regulatory authorities freezing the approval of new games, Tencent's net profit in 2022 dropped 16% compared to 2021.
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| 6 | | Reimbursement platform Class Wallet has closed its $95M funding round. Guidepost Growth Equity was the lead investor. More: - Class Wallet offers a digital wallet that enables schools and public institutions to create spending rules, digitize invoices, automate payments, and create financial reports.
- The company claims that 32 U.S. states and 10% of teachers in the U.S. use the service.
- In addition to Guidepost Growth Equity, Education Growth Partners and Lazard Family Office Partners also participated in the round.
- Since its inception in 2014, the company has raised around $101M.
- The company is based in Hollywood, Florida.
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| 7 | | Quick Hits: - The AWS Cookbook — packed with practical insights and hands-on examples — is a must-have for your cloud toolkit.*
- X, formerly known as Twitter, has made XPro (previously known as TweetDeck) a paid subscription product.
- Amazon has increased the price of Amazon Music Unlimited's individual plan for Prime members to $9.99. The price of the family plan has also increased to $16.99 per month.
- Electrify America, Volkswagen's EV charging subsidiary, has launched a 75-megawatt solar farm in Southern California.
- Alibaba's subsidiary, DingTalk, will spin off from its cloud division as it prepares to list the department as a publicly traded company.
- This AI company, backed by top VCs, is eliminating a $1 trillion problem in hospitality. Join the revolution and learn how to invest in Jurny today!*
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Term of the Day Rule of 40: Rule of 40 is a metric that analyzes the balance between the growth and profitability of a SaaS organization. Question of the Week Do you share details about your salary with your coworkers? Join the conversation |
INSIDE BUSINESS LEADERBOARD (30 DAYS) |
 | Writer | | Arbër is an Inside writer who also has experience in entrepreneurship. He has experience covering Consumer Tech, Venture Capital, NFTs, Crypto, etc. Arbër holds a Bachelor's degree in Business from XAMK University in Finland. When he is not reading(and writing) business news, he chooses to watch sports or anime...and then read news about sports or anime. | | This newsletter was edited by Aaron Crutchfield | |
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