Tag Archives: Finance

Fisker halts work on new EV models until it finds more money

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Fisker has announced its future plans alongside preliminary 2023 and Q4 earnings, and it's not looking great for the EV manufacturer. The company plans to lay off 15 percent of its workforce — nearly 200 people — as it shifts from a direct-to-consumer to a Dealer Partner model. The company is halting all investments in upcoming models and will resume only if in partnership with another automaker.

The company's fourth-quarter revenue increased to $200.1 million from $128.3 million in Q3. However, its gross margin was negative 35 percent, and it lost $1.23 per share. Its sole EV on the market, the Ocean SUV, also had 10,193 units produced but 4,929 vehicles delivered.

The automaker first introduced its pivot to a Dealer Partner Model in January and claims it has received interest from 250 dealers across North America and Europe, along with 13 signed agreements. "We are aware that the industry has entered a turbulent, and unpredictable period," Henrik Fisker, chairman and CEO of Fisker, said in a statement. "With that understanding and taking the lessons learned from 2023, we have put a plan in place to streamline the company as we prepare for another difficult year. We have adjusted our outlook for 2024 to be much more conservative than in 2023." The company plans to deliver between 20,000 and 22,000 Ocean models across the world. 

Fisker is currently negotiating with "a large automaker" for an investment and joint production of future EVs. This means that previously announced vehicle production, such as the Alaska EV pickup with humungous cup holders and a designated cowboy hat space, will be on hold indefinitely. Fisker originally planned to start production on the Alaska EV pickup in early 2025. 

This article originally appeared on Engadget at https://www.engadget.com/fisker-halts-work-on-new-ev-models-until-it-finds-more-money-140050091.html?src=rss

Fisker halts work on new EV models until it finds more money

Posted on by

Fisker has announced its future plans alongside preliminary 2023 and Q4 earnings, and it's not looking great for the EV manufacturer. The company plans to lay off 15 percent of its workforce — nearly 200 people — as it shifts from a direct-to-consumer to a Dealer Partner model. The company is halting all investments in upcoming models and will resume only if in partnership with another automaker.

The company's fourth-quarter revenue increased to $200.1 million from $128.3 million in Q3. However, its gross margin was negative 35 percent, and it lost $1.23 per share. Its sole EV on the market, the Ocean SUV, also had 10,193 units produced but 4,929 vehicles delivered.

The automaker first introduced its pivot to a Dealer Partner Model in January and claims it has received interest from 250 dealers across North America and Europe, along with 13 signed agreements. "We are aware that the industry has entered a turbulent, and unpredictable period," Henrik Fisker, chairman and CEO of Fisker, said in a statement. "With that understanding and taking the lessons learned from 2023, we have put a plan in place to streamline the company as we prepare for another difficult year. We have adjusted our outlook for 2024 to be much more conservative than in 2023." The company plans to deliver between 20,000 and 22,000 Ocean models across the world. 

Fisker is currently negotiating with "a large automaker" for an investment and joint production of future EVs. This means that previously announced vehicle production, such as the Alaska EV pickup with humungous cup holders and a designated cowboy hat space, will be on hold indefinitely. Fisker originally planned to start production on the Alaska EV pickup in early 2025. 

This article originally appeared on Engadget at https://www.engadget.com/fisker-halts-work-on-new-ev-models-until-it-finds-more-money-140050091.html?src=rss

Reddit files for IPO and will let some longtime users buy shares

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After years of speculation, Reddit has officially filed paperwork for an Initial Public Offering on the New York Stock Exchange. The company, which plans to use RDDT as its ticker symbol, will also allow some longtime users to participate by buying shares.

In a note shared in the company’s S-1 filing with the SEC, Reddit CEO Steve Huffman said that many longtime users already feel a “deep sense of ownership” over their communities on the platform. “We want this sense of ownership to be reflected in real ownership—for our users to be our owners,” he wrote. “With this in mind, we are excited to invite the users and moderators who have contributed to Reddit to buy shares in our IPO, alongside our investors.”

The company didn’t say how many users might be able to participate, but said that eligible users would be determined based on their karma scores while “moderator contributions will be measured by membership and moderator actions.”

The filing also offers up new details about the inner workings of Reddit’s business. The company had 500 million visitors during the month of December and has recently averaged just over 73 million “daily active unique” visitors. In 2023, the company brought in $804 million in revenue (Reddit has yet to turn a profit). The document also notes that the company is “exploring” deals with AI companies to license its content as it looks to expand its revenue in the future.

Earlier in the day, Reddit and Google announced that they had struck such a deal, reportedly valued at around $60 million a year. “We believe our growing platform data will be a key element in the training of leading large language models (“LLMs”) and serve as an additional monetization channel for Reddit,” the company writes.

This article originally appeared on Engadget at https://www.engadget.com/reddit-files-for-ipo-and-will-let-some-longtime-users-buy-shares-234127305.html?src=rss

Rivian is laying off 10 percent of its salaried employees

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Electric car maker Rivian announced on Wednesday that it’s laying off 10 percent of its salaried workforce to cut costs after facing a quarterly loss. The Amazon-backed company reported that it lost $1.5 billion in the fourth quarter of 2023 and said that it expects to build 57,000 electric vehicles in 2024, the same number it built last year.

“Our business is facing a challenging macroeconomic environment — including historically high interest rates and geopolitical uncertainty — and we need to make purposeful changes now to ensure our promising future,” Rivian’s founder and CEO RJ Scaringe wrote to employees in an email, CNN reported. "We must strategically prioritize our growth areas of the business, including the launch of Peregrine and R2 as well as investing in our go-to-market capabilities."

As part of its plans to cut costs, Rivian will shut down a factory in Illinois in the middle of this year and will upgrade its manufacturing line to boost production rates by 30 precent.The company is expected to unveil the R2, a compact SUV in the $40,000 to $60,000 range, on March 7, although deliveries of the vehicle won’t start until 2026.

This article originally appeared on Engadget at https://www.engadget.com/rivian-is-laying-off-10-percent-of-its-salaried-employees-010440428.html?src=rss

Twitch is increasing channel subscription prices for the first time

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Amazon has been looking to bolster Twitch's bottom line for a while. After laying off around 500 workers and reducing how much streamers make from Prime subscriptions, the streaming service is increasing the price of its subscriptions for the first time.

Twitch says it's "updating prices in several countries to help streamer revenue keep pace with rising costs and reflect local currency fluctuations." The first markets to feel the impact of those changes are the UK, Canada, Australia and Turkey.

As of March 28, Tier 1 subscriptions and gift subs will be more expensive in the UK, Canada and Australia. A base/gift sub is going up from £5 to £6 in the UK, $7 CAD to $8 in Canada and $8 AUD to $9 in Australia. Tier 2 and 3 prices will remain the same in those countries.

In Turkey, Twitch is significantly increasing the price of all three tiers. For instance, a Tier 1 sub will soon cost 43.90 lira ($1.42) instead of 9.90 (32 cents) — the value of the Turkish lira has plummeted over the last 15 years.

These price changes only apply to subscriptions bought on the web. Twitch says it will update prices on its mobile apps in the coming months. It's currently more expensive to buy a sub on the Twitch iOS app. The service also expects to update pricing in other countries later this year.

On the plus side, streamers will have the same revenue share, so they'll earn more from subscriptions in the UK, Canada, Australia and Turkey. Twitch recently announced changes to streamer payouts from Prime subscriptions. They'll soon earn a (generally lower) fixed amount for each Prime sub, dispensing on the subscriber's location. Meanwhile, it'll soon be easier for smaller streamers to qualify for the Partner Plus program and benefit from a better subscription revenue split.

This article originally appeared on Engadget at https://www.engadget.com/twitch-is-increasing-channel-subscription-prices-for-the-first-time-181202078.html?src=rss

Walmart is buying smart TV maker Vizio for $2.3 billion

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Walmart is buying Smart TV manufacturer Vizio for $2.3 billion, the retail giant announced as part of its latest earnings report. While Walmart has long been one of the major sellers of Vizio TVs, the company says the acquisition "enables a profitable advertising business that is rapidly scaling" via the company's SmartCast OS. The deal is still subject to regulatory approval. 

Vizio sells solid mid-range TVs, most equipped with its SmartCast operating system that supports free ad-supported content. The company recently refreshed its lineup with a more intuitive user interface and faster startups and app switching. 

Walmart, meanwhile, prominently features the brand on its shelves (along with TCL), as anyone who has gone there lately has probably noticed. The retailer already has its own TV house brand, ONN, but those sets are very much on the low end, usually selling for under $500. 

More importantly, the companies plan to combine their respective ad businesses. Walmart already has a $2.7 billion ad business, but Vizio would increase its access to key consumer info like viewership data. It would also effectively give Walmart more eyeballs for its ads — for instance, companies that sell goods at Walmart could also run ads on Vizio TVs, all of which could be tracked by the retailer. 

"We believe the combination of these two businesses would be impactful as we redefine the intersection of retail and entertainment," said Walmart VP Seth Dallaire. "Our technology will help bring a scaled, connected TV advertising platform to Walmart Connect," added Vizio CEO William Wang. 

The acquisition may also be a counter to Amazon's in-house Fire TV business, both in terms of television retailing and advertising, as The Wall Street Journal reported last week. Amazon has one of the largest ad businesses in the US behind Alphabet and Meta, and smart TVs help it gather personalized consumer data for targeted advertising. 

This article originally appeared on Engadget at https://www.engadget.com/walmart-is-buying-smart-tv-maker-vizio-for-23-billion-130725953.html?src=rss

An earnings typo sent Lyft’s stock price into the stratosphere

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In an absolutely bananas turn of events, a typo in an earnings report caused Lyft shares to skyrocket nearly 70 percent after Tuesday’s closing stock market bell, as reported by CBS. There was an extra zero in the report that suggested a five percent margin expansion in 2024, instead of a .5 percent margin. This sent investors into a tizzy, as the company has long struggled to turn a profit.

The mistake was even present in Lyft’s slide deck, which was part of that earnings report, and an accompanying press release. The company quickly corrected the mistake, calling it a clerical error, but the stock surge had already begun. Lyft CFO Erin Brewer addressed the issue in an earnings call yesterday evening which caused the stocks to reverse course. It’s worth noting that the earnings report was still good news for Lyft, even without that mistake, so the stock price experienced a more stable increase of around 35 percent.

Now, onto the blame game. Lyft CEO David Risher appeared on CNBC’s Squawk Box to take responsibility for the mistake, saying “look, it was a bad error, and that’s on me.” Risher went on to note that it was “super frustrating” for everyone on the team and said that he could see a fellow employee’s “jaw drop” when discovering the issue.

The good news? Even with that adjustment, this is Lyft’s best day since the company’s initial IPO offering back in 2019. Yesterday’s earnings report indicated $1.22 billion in revenue for the quarter, an increase of four percent from last year. Bookings increased 17 percent for the quarter, accounting for $3.7 billion. Risher called it a “great quarter.”

A misplaced zero on a spreadsheet isn’t the ridesharing giant’s only concern. Thousands of Lyft and Uber drivers are going on strike today to demand better pay and safer working conditions. The striking workers are primarily clustered around ten major US airports, though it’s only planned to last for a few hours.

This article originally appeared on Engadget at https://www.engadget.com/an-earnings-typo-sent-lyfts-stock-price-into-the-stratosphere-193904095.html?src=rss

Sony predicts it’ll sell fewer PS5s than first thought

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Sony has lowered its PlayStation 5 sales forecast for fiscal 2023 significantly and now expects to sell 21 million units, down from a previous forecast of 25 million. That's despite posting record quarterly revenue and selling 8.2 million PS5s over the holiday season. So far this fiscal year, Sony has sold 16.4 million consoles, bringing its total to 54.8 million overall. (The company sold 19.1 million PS5s in fiscal 2022.)

Sony announced in December that it had sold 50 million PS5 units over three years, as of December 9, 2023. That's just a week longer than it took the PS4 to achieve the same number, and the latter wasn't bogged down by supply chain issues and a worldwide pandemic. 

Revenue was up 16 percent over the same quarter last year, thanks in part to improved sales of non-first-party titles. However, operating income was down significantly (26 percent), due a drop in first-party sales and losses on hardware due to promotions. In other words, PS5 sales aren't meeting the company's expectations despite discounts. 

Sony has seen higher sales in all three quarters this year compared to last. That might not continue this year though, as it's forecasting sales of just 4.6 million for Q4 2023 (February to April), down from 6.3 million in Q4 2022. 

In terms of new first-part games, Sony noted that Marvel's Spider-Man 2 has sold 10 million units (as of February 4) since its release in October 2023.

Almost all other Sony divisions saw higher revenue, including its Imaging & Sensor Solutions division (Sony makes sensors for iPhones and many other devices), along with Pictures and Music. That resulted in a record 3.75 trillion yen for Q3 ($24.9 billion) compared to 3.08 trillion yen the year before ($20.5 billion). 

This article originally appeared on Engadget at https://www.engadget.com/sony-predicts-itll-sell-fewer-ps5s-than-first-thought-091816189.html?src=rss

Target is offering a $10 bonus credit when you buy a $100 Apple gift card

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If you plan on picking up an Apple product in the near future, a new deal at Target is worth a quick PSA. Through February 17, the retailer is throwing in a $10 Target credit for no extra cost when you buy a digital Apple gift card worth $100 or more. We've seen this deal several times before, but if you already need a Apple Thing and often shop at Target anyway, it's hard to complain about what is essentially free money. 

As a reminder, besides retail products you can apply Apple gift card credit toward subscription services like Apple Music, Apple TV+ and iCloud+, as well as purchases in storefronts like the App Store or Apple TV app. Just note that you'll only be able to redeem the offer once per account, according to Target's listing, and that it may take up to four hours for the store credit to arrive via email.

Follow @EngadgetDeals on Twitter and subscribe to the Engadget Deals newsletter for the latest tech deals and buying advice.

This article originally appeared on Engadget at https://www.engadget.com/target-is-offering-a-10-bonus-credit-when-you-buy-a-100-apple-gift-card-152932992.html?src=rss

Toyota unveils a three-row electric SUV for the US market

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While Toyota helped lead the hybrid charge with its Prius, the company has been less active in EV production. But that might be in the past, as Toyota has announced another $1.3 billion for its Kentucky facility, with a focus on EVs. In particular, the company is building a new three-row electric SUV that will be available for US customers. 

Toyota's Kentucky operation is its flagship facility, with nearly 9,400 employees. "Today's announcement reflects our commitment to vehicle electrification and further reinvesting in our US operations," Kerry Creech, president of Toyota Kentucky, said in a release. "Generations of our team members helped prepare for this opportunity, and we will continue leading the charge into the future by remaining true to who we are as a company and putting our people first for generations to come."

Little is known so far about the three-row electric SUV, as Toyota only mentions it briefly in relation to the investment. However, it follows the company's prior announcement of its Urban SUV concept slated to launch in Europe this year. 

The $1.3 billion investment will also go towards creating a battery pack assembly line at its Kentucky factory (a separate manufacturing plant in North Carolina produces the batteries). Toyota has big plans for its battery production, previously announcing three battery ranges focused on higher performance and low cost slated for 2026 and onward. The company is also working on its first solid-state batteries, which have the potential to charge an EV from 10 to 80 percent in 10 minutes. Toyota's bZ4X EV currently takes 32 minutes to do so. 

This article originally appeared on Engadget at https://www.engadget.com/toyota-announces-a-three-row-electric-suv-for-us-customers-092545458.html?src=rss