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Rivian shares slide after EV recalls nearly all cars by Reuters

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© Reuters. Rivian Automotive’s startup logo is seen at an electric car plant in Normal, Illinois, US on April 11, 2022. Photo taken on April 11, 2022. REUTERS/Kamil Krzaczynski

(Reuters) – Shares of Rivian Automotive Inc fell nearly 9% Monday after the electric car maker recalled nearly all of its vehicles, exacerbating investor fears that the company may not be able to meet its 2023 production target.

The Amazon.com (NASDAQ:)-backed company on Friday recalled about 13,000 vehicles due to a possible loose lock that could cause the driver to lose steering control.

Rivian began selling its electric vehicles in the third quarter of last year, and has so far delivered 13,198 vehicles.

“We have greater concerns about the production outlook for 2023,” RBC Capital Markets said in a note on Monday. It added that adding battery and motor assemblies as well as stopping work required at the plant to increase its capacity could hamper Rivian’s production pace.

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While a broad recall could harm the brand and cause long-term credibility issues for future production, Wedbush Securities said in a note, it does not believe the recall will affect Rivian’s production or delivery targets for this year.

Shares of the company fell to $30.79 in early trading – the lowest in more than a month. It has fallen 67.3% this year due to a sell-off of stocks driven by the uncertain macroeconomic environment and lower production expectations.

The company in March halved its production forecast for 2022 to 25,000 due to persistent supply chain issues.

Wall Street expects the Rivian to produce 23,590 vehicles this year, according to Visible Alpha.

A district court in Georgia, where Rivian is building its $5 billion manufacturing plant, last week rejected a joint proposal by the state’s Department of Economic Development and the company to secure local incentives for its project in the state.

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The Local Development Authority said in May that the company would receive $1.5 billion in incentives from the state.

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Tesla is preparing to bring out the short Model Y in China as demand fades

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Tesla (TSLA) – Get a free report China will suspend production of its Model Y sedan during the last week of the year, reports said Friday, adding to concerns about weak demand in the world’s largest auto market.

Reuters reported on Friday that the Model Y production suspension will begin December 25 and run through January 1, according to a company note, and will eventually reduce production of the sedan by about 30% from November levels.

The move would be the first time Tesla has voluntarily reduced production levels since the factory opened in 2018, despite Covid restrictions and scheduled maintenance that curtailed production earlier this year.

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Telecom Italia piques investor interest as government reviews network options, by Reuters

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© Reuters. FILE PHOTO: The Team logo is seen at the company’s headquarters in Rome, Italy on November 22, 2021. REUTERS/Yara Nardi/File Photo

Written by Elvira Polina and Giuseppe Fonte

Milan (Reuters) – Telecom Italia BIT 🙂 (TIM) is exploring investor interest in buying its assets, sources familiar with the matter said on Friday, as officials within Italy’s right-wing government seek agreement on how to fix the debt-laden company’s problems. The Italian government said last month that it would seek to identify the “best market-friendly options” by the end of the year to counter ailing TIM, and laid out a planned bid for the group’s telephone network by state lender CDP.

The discussed multi-billion dollar deal, part of a broader project to create a unified Italian network company with CDP’s broadband unit Open Fiber, was a focal point of CEO Pietro Labriola’s strategy to split TIM into several units and cut €25 billion ($26.4 USD) . billion) debt pile.

Labriola is looking to prepare for any outcome of the talks within the government. Three informed sources told Reuters that the executive had been working privately with US fund KKR recently. The sources said the US fund, which already owns a stake in TIM’s last-mile network and had a bid to take over TIM as a whole that was rejected this year, recently renewed interest in tightening its grip on TIM’s terrestrial network. TIM has also made contacts with other potential investors interested in buying into its domestic service operations, including French telecoms group Iliad and Poste Italiane, the sources said.

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Any deal involving foreign investors and TIM assets would be subject to government scrutiny under “golden power” regulation, which gives Rome the possibility to block the deal.

According to sources, at least two have expressed interest in TIM’s Brazil-listed subsidiary TIM SA. However, in Labriola’s view, selling a unit that generates about 30% of the group’s underlying profit could be dangerous to TIM’s credit rating, unless it comes up with an excellent rating, according to People. Telecom Italia, KKR, Poste and Iliad all declined to comment.

Discussions within Prime Minister Giorgia Meloni’s administration focus on how to take control of TIM’s precious landline network, an asset considered strategic. The government has not yet started talks with TIM stakeholders – including major investor Vivendi (OTC:). Raising cash to reduce debt and shore up its finances is key for TIM, which has been under pressure for years in its highly competitive domestic market and hit by multiple credit rating downgrades to junk territory over the past year.

($1 = 0.9475 euros)

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Alphabet’s Google has a huge problem with its Ads Manager

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It may be a boon for readers, but it is a boon for Alphabet (The Google) – Get a free report Google is having trouble with its Ads Manager, which is an essential part of the search giant’s business.

The company posted a message on the Google Ads Status dashboard shortly after 8pm EST, saying “We are investigating reports of an issue with Google Ad Manager… Ads Manager is not serving ads to affected users.”

The message added that affected users They are able to access the Google Ad Manager, but error messages, long response times, and/or other unexpected behaviors appear. “

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