Raphael Stevens

Rivian confirmed that it’s on track to build 25,000 vehicles in 2022, in line with the lowered guidance it issued in March.
Rivian delivered 4,467 of its electric trucks and SUVs to customers in the second quarter.

Production of electric Rivian R1T pickup trucks on April 11, 2022 at the company’s plant in Normal, Ill.
Michael Wayland / CNBC

Electric-vehicle startup Rivian Automotive said it produced more than 4,000 vehicles in the second quarter and that it remains on track to build 25,000 vehicles in 2022.
Shares of Rivian opened sharply higher and held on to the gains, ending the day at $29.66, up 10.4%.

Rivian said in a statement that it produced 4,401 of its electric R1T pickups and R1S SUVs in the quarter and that 4,467 vehicles were delivered to customers in the period. The company didn’t break out production or deliveries by model.
The company said last year in its IPO roadshow that it expected to build 50,000 vehicles in 2022. But it cut that guidance by half in March, saying that ongoing global supply-chain issues had “added a layer of complexity” to its efforts to ramp up production. The company said Wednesday it still expects to make 25,000 vehicles this year.
Although still small, the market for electric pickups is expected to grow rapidly over the next few years. Ford Motor said Tuesday that it sold 1,837 of its electric F-150 Lightnings in June and that it has sold 2,296 in total since beginning production in late May.
From the beginning of production in late 2021 through the end of June, Rivian produced a total of 7,969 vehicles.

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The changes come a little more than five months into Barry McCarthy, a former Spotify and Netflix executive, working to boost the morale at Peloton as part of a turnaround push.
The moves will allow eligible employees to access their equity grants earlier.
Instead of an equity grant, Peloton’s hourly workers will be eligible for a one-time cash bonus.

In this photo illustration the Peloton Interactive logo seen displayed on a smartphone screen.
Rafael Henrique | LightRocket | Getty Images

Peloton sweetened incentives for its workers with one-time cash bonuses and changes to its stock compensation plan as it fights to hold onto employees and fix its struggling business, according to internal memos seen by CNBC.
The changes come a little more than five months into Barry McCarthy, a former Spotify and Netflix executive, working to boost the morale at Peloton as part of a turnaround push. McCarthy was named CEO in early February, replacing founder John Foley, as the company’s expenses spiraled out of control and demand for its bikes waned from a pandemic peak.

At that time of the C-suite shakeup, Peloton announced it was slashing roughly $800 million in annual costs. That included cutting 2,800 jobs, or about 20% of corporate positions. Now, investors are waiting to see if McCarthy can grow sales and win over customers as surging inflation squeezes budgets and a competitive labor market makes it harder for companies to hold onto employees.
Peloton shares on Tuesday hit an all-time low of $8.73, down more than 70% year to date, amid a broader market selloff. The stock had traded as high as $129.70 almost exactly one year ago.
Shari Eaton, Peloton’s chief people officer, said in an interview Wednesday that the company is taking the actions so employees can benefit as the company works on its turnaround efforts.
“The extraordinary circumstances that we find ourselves in now really give us that chance to pause and look at what it is that we can do to ensure future success,” Eaton said.

Unlocking equity

In one of the internal memos, Peloton told employees that eligible team members will have their post-IPO options repriced to Peloton’s closing price on July 1 of $9.13.

As an example, Peloton said options granted granted on March 1 had an exercise price of $27.62, meaning they were “underwater,” and employees were not benefitting financially until the stock passed that threshold. After the repricing, Peloton employees will be able to exercise their options after the price passes $9.13.
Peloton said it does not have plans for any future repricing events.
The company is also accelerating the vesting requirement by one year for eligible unvested restricted stock units that have more than eight vesting dates left in their vesting schedule. That lets employees access the value of the stock units sooner, Eaton said.
The change does not apply to hourly employees or C-suite executives, the company noted.

Cash bonuses

Not every Peloton employee owns or wants stock in the company. Instead of an equity grant, Peloton’s hourly workers in September will be eligible for a one-time cash bonus to be paid before the end of February, according to one of the internal Peloton memos.
Many of the company’s hourly employees have said they would prefer to receive cash compensation over longer-term equity grants, Eaton said in a phone interview.
Peloton said people who are employed on an hourly basis as of July 1 will be eligible for the one-time bonus as long as they stay with the company through Jan. 23. The amount of the bonus will vary for people across the business, Eaton said. Any equity awards granted in the past will remain unaffected.
Peloton also told its employees Wednesday that it recently finished conducting its first pay equity study with Aon, a third party consultancy.
The company said it identified less than 4% of its workforce, or 206 people, had a base pay disparity relative to peers that could not be explained by factors such as level of work, geography or tenure. Peloton said it took immediate action to eliminate the disparities.

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Toyota sold its 200,000th plug-in electric vehicle during the second quarter, initiating a phaseout of U.S. tax credits of up to $7,500 for its customers.
The wind-down of the credit for Toyota customers is expected to be complete in October 2023, the company said Wednesday. The phaseout will begin Oct. 1.
Tesla and General Motors have already triggered the phaseout for their future customers who purchase an all-electric or plug-in hybrid electric vehicle.

A Toyota bZ4X on display at the New York Auto Show, April 13, 2022.
Scott Mlyn | CNBC

Toyota Motor said it sold its 200,000th plug-in electric vehicle during the second quarter, triggering a phaseout of U.S. tax incentives of up to $7,500 for people who buy the cars.
The Japanese automaker joins Tesla and General Motors in initiating a phaseout of the credit for future consumers who purchase an all-electric or plug-in hybrid electric vehicle. The milestone comes at an inopportune time, with Toyota ramping up production of its new all-electric bZ4X.

In June, the CEOs of General Motors, Ford Motor, Chrysler parent Stellantis and Toyota Motor North America urged Congress to lift the cap on the number of EVs a manufacturer sells before the credits start phasing out. But Toyota and other automakers with nonunion workforces in the U.S. opposed a tax credit program last year by the Biden administration that included additional credits for EVs built by organized labor.
Opponents of the tax program say that the credits have largely benefited the wealthy and that the government shouldn’t subsidize the purchases. Supporters of the credits say they have spurred adoption of electric vehicles and assisted in lowering the cost of the pricy vehicles for consumers.
The winding down of the federal tax credits starts two quarters after an automaker sells 200,000 plug-in vehicles. The value of the tax credit is halved every six months until it hits zero.
Toyota’s wind-down of the credit will begin Oct. 1 and be complete by October 2023, the company confirmed Wednesday to CNBC.
The winding down of the credits is pending any changes to the EV tax credit program, which started in 2008 and was expanded in 2009.
Nissan and Ford Motor are the next nearest manufacturers close to tapping out on credits, according to Bloomberg News, which first reported Toyota’s phase-out initiating. Nissan has sold 166,000 electric vehicles as of the end of 2021, followed by Ford’s 157,000, according to Bloomberg.

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Netflix and Matt and Ross Duffer have formed Upside Down Pictures, a new production company that will develop film and television projects as part of the brothers’ overall deal with Netflix.
Among the announced projects is a “Stranger Things” spin-off. The company also teased a new stage place set within the world and mythology of the show.
Additional projects include a new live-action television adaptation of “Death Note” and a series adaptation of Stephen King and Peter Straub’s “The Talisman.”

(L-R) Matt Duffer and Ross Duffer attend Netflix’s Stranger Things ATAS Official Screening at Raleigh Studios Hollywood on May 27, 2022 in Los Angeles, California.
Emma Mcintyre | Getty Images Entertainment | Getty Images

Netflix plans to bolster its offerings with more content from its most popular property, “Stranger Things.”
The streaming giant revealed Wednesday that the creators of the hit series, Matt and Ross Duffer, have formed Upside Down Pictures, a new production company that will develop film and television projects, including a “Stranger Things” spin-off, as part of the brothers’ overall deal with Netflix.

The company also teased a new stage play set within the world and mythology of the “Stranger Things.”
Streaming experts expected Netflix to double-down on franchises, as subscriber growth has slowed and, recently, decreased. Additional “Stranger Things” content is a natural move for Netflix. Not only does it already have an overall deal with the Duffer Brothers, “Stranger Things” just topped a billion hours viewed on the streaming platform, a feat that has only been accomplished by one other show, “Squid Game.”
“Matt and Ross are an exceptionally unique talent with a vision so crisp and clear,” said co-CEO Ted Sarandos in a statement Wednesday. “They are all about the details —  it’s no accident that ‘Stranger Things’ has pierced the zeitgeist to become the epic pop culture phenomenon it is today.”
Hilary Leavitt, who developed “Orphan Black,” “Ozark” and “The Great,” has been hired to run Upside Down Pictures.
The new production company will “aim to create the kind of stories that inspired the Duffers growing up,” according to a statement. “Stories that take place at that beautiful crossroads where the ordinary meets the extraordinary, where big spectacle co-exists with intimate character work, where heart wins out over cynicism.”

Upside Down Pictures also plans a live-action adaptation of Japanese manga “Death Note.” Netflix had previously released an American “Death Note” adaptation in 2017.
Additional projects include an original series from the creators of “Dark Crystal: Age of Resistance,” and a series adaptation of Stephen King and Peter Straub’s epic fantasy novel “The Talisman.”

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GM only sold 484,200 vehicles during the second quarter in China, its largest market globally.
The sales were down 35.5% from a year earlier and the lowest since 461,700 vehicles during the first quarter of 2020.
The company said its brands in China are “focused on resuming production and operations.”

WUHAN, CHINA – 2022/05/18: Employees wearing masks work on a car assembly line at the SAIC General Motors Co. The SAIC General Motors Wuhan Branch has resumed production following epidemic prevention and control rules. (Photo by Ren Yong/SOPA Images/LightRocket via Getty Images)
Sopa Images | Lightrocket | Getty Images

DETROIT – General Motors on Wednesday reported its worst quarterly sales in China since the beginning of the coronavirus pandemic, amid a resurgence of Covid-19 cases in the country and ongoing global supply chain problems.
The Detroit automaker said it sold 484,200 vehicles from April through June in China, its largest market globally. Sales were down 35.5% from a year earlier and the lowest since 461,700 vehicles during the first quarter of 2020, when government Covid restrictions brought China’s production to a standstill.

Shares of GM were down more than 4% during intraday trading Wednesday. Shares of the automaker have declined about 47% in 2022.
In a release, GM said its brands in China are “focused on resuming production and operations.” The company’s China sales were released less than a week after GM warned investors that supply chain issues would materially impact its second quarter earnings, while maintaining its previous guidance for 2022.
GM CFO Paul Jacobson last month described the situation in China during a Deutsche Bank investor conference as “obviously challenging,” citing “some short-term issues that we’ve had to work through.”
GM’s sales in China include those through joint ventures and its well-known Buck, Cadillac and Chevrolet brands, all of which experienced significant declines of between roughly 22% and 79%.
Mainland China’s daily Covid case count, including those without symptoms, has surged from a handful of cases to around 200 or 300 new cases in the last several days. The number of cities restricting local movement due to Covid more than doubled in a week to 11 as of Monday, up from five a week earlier, according to Ting Lu, chief China economist at Nomura.

GM’s second-quarter sales in China follow the automaker on Friday reporting a 15.4% decline in its U.S. sales during that time period.
– CNBC’s Evelyn Cheng contributed to this report.

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Unilever said last week the sale of the Ben & Jerry’s business would keep the ice cream products available in Israel and its occupied territories.
Ben & Jerry’s said in a lawsuit that Unilever’s decision was made without the approval of its independent board.
Ben & Jerry’s had said last year it would stop sales in the West Bank territory occupied by Israel.

A tub of Ben and Jerry’s ice cream, manufactured by Unilever Plc.
Chris Ratcliffe | Bloomberg | Getty Images

Ben & Jerry’s is suing parent company Unilever to stop the sale of its Israeli business to a local licensee, a move the consumer products giant said would keep the ice cream products available in Israel and its occupied territories.
Ben & Jerry’s said in a lawsuit filed in federal court in New York Tuesday that Unilever’s decision was made without the approval of its independent board, which has the primary responsibility for safeguarding the integrity of its brand’s name.

A judge on Tuesday denied Ben & Jerry’s application for a temporary restraining order but ordered Unilever to show cause by July 14 for why a preliminary injunction should not be issued. 
In a statement, Unilever said that “the deal has already closed” and that it does not comment on pending litigation. A Ben & Jerry’s representative did not respond to a request for comment.
The suit marks the latest development in a controversy that was set off last year when Ben & Jerry’s said it would stop sales in the West Bank territory occupied by Israel since the Six Day war in 1967.
Israel’s government sees the occupied territories as part of its economy and any efforts to boycott business in the areas are seen as applying to the country. Stopping sales of the ice cream in the occupied territories would have ended sales throughout Israel.
In its suit, Ben & Jerry’s said that its brand is “synonymous with social activism” and that as part of its deal to be acquired by Unilever in 2000, it had reserved the “primary responsibility for safeguarding the integrity” of the Ben & Jerry’s brand through its independent board.

It said that Unilever had publicly recognized the brand’s right to make decisions about its social mission. But then last week, Ben & Jerry’s said Unilever “abruptly reversed course.” 
Unilever announced last week that it sold the Israeli branch of its Ben & Jerry’s business to American Quality Products, which licenses the ice cream products in Israel. American Quality said it would continue selling Ben & Jerry’s under Hebrew and Arabic names throughout Israel and its occupied territories. 
Despite the right of Ben & Jerry’s independent board to make decisions about the brand’s social mission, Unilever said in announcing the sale that it had the right to enter into the agreement because it had reserved primary responsibility for financial and operational decisions.
After Unilever announced the sale, Ben & Jerry’s said in its lawsuit that its board held a special meeting on Friday and voted to sue over the decision.
In an interview with CNBC after last week’s move by Unilever the Israeli licensor, Avi Zinger of American Quality Products, said any potential lawsuit would be “between Unilever and Ben & Jerry’s. I already have a deal.”
— CNBC’s Candice Choi contributed to this report.

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The Federal Reserve recently raised interest rates by three-quarters of a percentage point, the most aggressive hike since 1994. This rise puts the key benchmark federal funds rate at a range between 1.5 and 1.75%.
The Fed’s intention is to help combat inflation.

Watch this video to find out what rising interest rates mean for you.

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