Raphael Stevens

Rivian Automotive plans to offer $1.5 billion in convertible notes.
Rivian said it expects its third-quarter revenue to come in between $1.29 billion and $1.33 billion, roughly in line with Wall Street estimates.
It also estimated that it had cash and equivalents of $9.1 billion as of Sep. 30.

Taylor looks at Rivian electric trucks at the auto maker’s newly opened storefront in the Meatpacking District of Manhattan on June 23, 2023 in New York City.
Spencer Platt | Getty Images

Shares of Rivian Automotive fell sharply on Thursday, after the company surprised investors with a plan to offer $1.5 billion in convertible notes.
It also provided a preliminary estimate of its third-quarter revenue that was in line with Wall Street estimates.

Shares closed down over 22% on Thursday.
In a regulatory filing late Wednesday, Rivian said it expects its third-quarter revenue to come in between $1.29 billion and $1.33 billion, roughly in line with Wall Street estimates of $1.3 billion, according to LSEG, formerly known as Refinitiv.
Rivian also estimated that it had cash and equivalents of $9.1 billion as of Sep. 30, down from $10.2 billion at the end of the second quarter.
Rivian took steps earlier this year to slow spending and bolster its balance sheet, including a 6% staff reduction in February and a $1.3 billion sale of convertible notes in March. The company also delayed the launch of its upcoming smaller R2 vehicle platform to 2026, from 2025. But news of the latest offering came as a surprise to investors.
Rivian plans to offer $1.5 billion worth of senior, unsecured “green” convertible notes due in 2030. Buyers will have the option to purchase up to an additional $225 million worth of notes, the company said.
Rivian on Monday reported third-quarter deliveries that were better than Wall Street had expected. The EV maker will report its third-quarter earnings after the U.S. markets close Nov. 7.

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Rivian stock sinks after the EV maker announces a convertible note offering. More

Lucid said a new single-motor, rear-wheel-drive version of the Air Pure sedan will start at $77,400.
The new model is $5,000 cheaper than Lucid’s prior lowest-cost version of the Air.
Lucid has struggled with demand for the Air, a well-regarded but expensive electric luxury sedan.

The Lucid Air Pure is the least-expensive version of Lucid’s electric Air luxury sedan.
Meghan Reeder | CNBC

Shares of Lucid Group fell on Thursday after the company launched a cheaper version of its Air electric luxury sedan in a bid to stoke demand.
The stock closed down about 7% on Thursday following the news.

Lucid said it will now offer a single-motor, rear-wheel-drive version of its Air Pure sedan starting at $77,400 with 410 miles of range. That’s $5,000 lower than its previous lowest-cost model, the dual-motor all-wheel-drive version of the Air Pure, which is still available.
The new single-motor Air Pure is available for order immediately, Lucid said.
Lucid’s shares are down over 24% since the beginning of 2023 through Thursday’s close as concerns linger about ongoing demand for the Air. While the Air has received strong reviews and can claim the longest range of any electric vehicle currently available in the U.S., it’s expensive, a growing concern as consumer borrowing costs have risen and as rivals including EV giant Tesla have cut prices sharply over the past several months.
The new rear-wheel-drive version of the Air Pure is the first Lucid offering to start below $80,000. At the high end, the 1,234 horsepower Sapphire version of the Air costs $249,000.
Lucid hasn’t yet released its third-quarter production and deliveries totals. It’s expected to report its third-quarter financial results in early November. More

Clorox shares fell after the company said a cyberattack disclosed in August significantly hurt sales in the prior quarter.
Raymond James also downgraded Clorox, saying it doesn’t expect a recovery in the stock in the short term.

Clorox disinfecting wipes are seen displayed for sale at a Walmart Supercenter in Austin, Texas, on Sept. 18, 2023
Brandon Bell | Getty Images

Shares of Clorox fell more than 5% Thursday, a day after the company said an August cyberattack significantly weighed on sales and profits during the prior quarter.
The stock hit a 52-week low and is down more than 11% so far this year.

While the Pine-Sol and bleach maker said it had contained the hack, which severely hampered its production, it said it continues to deal with the fallout even as its operations gradually get back to normal.
Raymond James also downgraded the stock to market perform Thursday morning, citing the larger-than-expected material effect the attack had on the company.
Raymond James said it struggles “to see a recovery in the stock near-term, as it would be based on a view of a quick sales and profit bounce back from the attack during a period in which consumers appear to be making more price conscious choices and as commodity costs start to move upward again.”
Clorox said after the bell Wednesday that it expects to report a 23% to 28% decline in sales during the quarter that ended Sept. 30.
Clorox also said it estimates its gross margin for the quarter will be down from the year-ago period. It expects to post a per share loss of 35 cents to 75 cents. On an adjusted basis, it projects a loss of up to 40 cents a share. More

Torsten Muller-Otvos, the Rolls-Royce CEO who turned an aging brand into a coveted badge of success for pop stars, athletes and young entrepreneurs, is retiring after 14 years.
Muller-Otvos brought new shine to the Rolls-Royce brand and became a leader in the luxury world by attracting a new generation of wealthy buyers.
“The brand is contemporary today, I would say cool again,” Muller-Otvos told CNBC. “That indicates to me that we got it right, not just me but the entire team.”

Rolls-Royce CEO Torsten Muller-Otvos unveils the new coachbuilt Rolls-Royce Boat Tail on May 27, 2021, at the Home of Rolls-Royce in Goodwood, West Sussex, England.
Jeff Spicer | Getty Images Entertainment | Getty Images

Torsten Muller-Otvos, the Rolls-Royce CEO who turned an aging brand into a coveted badge of success for pop stars, athletes and young entrepreneurs, is retiring after 14 years.
Rolls-Royce announced Thursday that Muller-Otvos, 63, the longest serving CEO of Rolls-Royce in nearly a century, will retire on December 1. He will be replaced by Chris Brownridge, currently chief executive officer of BMW UK.

Muller-Otvos brought new shine to the Rolls-Royce brand and became a leader in the luxury world by attracting a new generation of wealthy buyers. With sleek models like the fast-back Wraith, and edgy design schemes like Black Badge, Rolls-Royce’s sales grew more than six-fold during his tenure, from 1,000 cars sold in 2010 to more than 6,000 last year.
The average age of a Rolls-Royce buyer fell from 56 to 43. One in five buyers today is a celebrity.
“The brand is contemporary today, I would say cool again,” Muller-Otvos told CNBC. “That indicates to me that we got it right, not just me but the entire team. That makes me extremely proud as I look back and see what a fabulous, fabulous journey we had.”
Muller-Otvos also launched Rolls-Royce into its next big chapter with last year’s unveiling of the first fully electric Rolls, called Spectre. The two-door, 577-horsepower behemoth can do zero to 60 in 4.4 seconds and is already sold out in the U.S. through 2025, despite its steep price of over $413,000.
The big question going forward for Rolls is whether it can maintain its cool factor, and strong sales, if the U.S. economy starts to falter. The U.S. remains its largest market, and while Mutter-Otvos said demand and orders remain strong, the company is always prepared for a correction.

“The luxury market is not immune against any any recessionary developments,” he said. “For us, the business is still very strong, but it is on a different level compared to what it used to be right after the pandemic. I would say that has normalized now to levels we are used to, but we are still in a very strong position.”
Muller-Otvos is the longest-serving CEO of Rolls-Royce since Claude Johnson, who brought Charles Rolls and Henry Royce together in 1904 and served until 1926.
Muller-Otvos said when he joined Rolls-Royce, it was an elite brand that was aging fast. Its signature, the four-door Phantom, was designed for chauffeurs to ferry around members of the graying leisure class smoothly and silently. Muller-Otvos visited private bankers around the world to find out how the wealthy were quickly changing — especially with the rise of tech wealth.
“That was quite an eye-opening moment,” he said. “All the private banks told me their clients were getting younger, far more informal and with a lot more women. We said to ourselves, we need something to attract this younger consumer. It needed to be rejuvenated. That’s not something you can do in just two years. That is a long, long story that takes many years to achieve.”
In 2013, Rolls-Royce unveiled the Wraith, a racy, two-door coupe with a twin-turbo V12 that was designed for the wealthy to drive, rather than to be driven in.
That was followed in 2015 by the Dawn convertible, and in 2019 by the Cullinan SUV, which became a favorite of NBA stars and other big athletes. Rolls-Royce debuted the Black Badge line in 2016, featuring higher performance and an all-black color scheme (including the famous Spirit of Ecstasy hood ornament).
Muller-Otvos also ushered in a new era of customization, which lured new customers and bigger profit margins. Dubbed “Bespoke,” the program allows Rolls-Royce buyers to choose their own fabrics, paint colors, materials and interior lighting schemes to make a one-of-a-kind Rolls.
The customization program is one reason the average sale price of a Rolls-Royce has doubled since Muller-Otvos took over, to about 500,000 euros.
“None of our clients want just a product off the shelf,” he said. “They want it to carry their individual signature and their individual story. We have put a lot of resources into Bespoke and now every car leaving [our factory] is fully bespoke.” More

Disney’s ESPN inked a multi-year deal with Tiger Woods and Rory McIlroy’s startup TGL golf league.
TGL, which will operate in partnership with the PGA Tour, will kick off on Jan. 9, and feature 18 PGA Tour players split into six teams.
Hedge fund billionaire and New York Mets owner Steve Cohen has invested in the league.

Rory McIlroy shakes hands with Tiger Woods on the 18th green after they completed a practice round prior to the 2023 Masters Tournament at Augusta National Golf Club in Augusta, Georgia, April 3, 2023.
Christian Petersen | Getty Images

Disney’s ESPN has nabbed the broadcast rights to air matches from TGL, the startup golf league led by Tiger Woods and Rory McIlroy.
TGL, which is in partnership with the PGA Tour, will have its debut on Jan. 9 as part of a multi-year deal. A preview show will air on Disney’s broadcast network ABC on Dec. 30.

The early games of the TGL season will air near other sports events and appear on Disney’s ESPN+, a move that allows the streamer to bulk up on more live sports rights.
The inaugural match will air the night after the College Football Playoff’s title game, and the second will come the following evening after an NFL wild-card playoff game. Both of the TGL matches will air on traditional TV’s ESPN and streamer ESPN+. The rest of the matches will air on ESPN’s TV networks, as well as ESPN+.
The launch of the new league comes as professional golf finds itself at a major crossroads following a proposed deal between the Tour and Saudi Arabia’s Public Investment Fund-backed rival LIV Golf in June. The agreement between the PGA Tour and LIV has yet to be finalized. The Tour has attracted potential outside investors, including Endeavor Group Holdings and Fenway Sports Group, CNBC recently reported. Some of the outside investors are considering making a rival pitch to PIF’s proposal.
TGL, a new primetime, high-tech golf league created by Woods, McIlroy and former NBC Sports executive Mike McCarley has attracted stars from the PGA Tour. In addition to Woods and McIlroy, other top players including Jon Rahm, Justin Thomas, Collin Morikawa, Matt Fitzpatrick, Justin Rose, Adam Scott, Xander Schauffele, Max Homa, Rickie Fowler and Billy Horschel have committed to play. More players are expected to be announced.
The PGA Tour is an investor in the new league, and the new league has said the event timing will be complementary to the players’ schedules in the Tour.

Steve Cohen, billionaire and the owner of MLB’s New York Mets, is also an investor after buying the founding rights to the New York team in TGL. His team will be managed by his family office, Cohen Private Ventures.
The league will feature the Tour players split into six teams, who will play two-hour, head-to-head match-play matches in a specially built arena in Palm Beach Gardens, Florida. The matches will incorporate live action as well as the latest golf technology. More

Constellation Brands reported double-digit sales growth in its beer business as the division continues to dominate.
Revenue growth was driven by demand for its Modelo Especial and Modelo Chelada brands as well as Corona Extra.
The company raised its guidance for its fiscal 2024.

In this photo illustration, bottles of Modelo Especial beer sit on a table on June 14, 2023 in Los Angeles, California.
Mario Tama | Getty Images

Constellation Brands on Thursday reported earnings and revenue that topped analysts’ expectations for its fiscal second quarter of 2024.
The Mexican beer powerhouse, owner of the Modelo Especial and Corona Extra brands, reported double-digit sales growth in its beer business as the division continues to dominate the overall beer and high-end categories. Meanwhile sales of wine and spirits lagged.

The company raised its fiscal 2024 earnings per share outlook to a range of $9.60 to $9.80, up from a prior range of $9.35 to $9.65.
Here’s what Constellation reported for the three months ended August 31, compared with what Wall Street was expecting, based on a survey of analysts by LSEG, formerly known as Refinitiv:

Earnings per share: $3.70 adjusted vs. $3.36 expected
Revenue: $2.84 billion vs. $2.82 billion expected

Constellation’s beer portfolio posted 12% sales growth, boosted by 8.7% growth in shipments. The Modelo brand family was a particular bright spot: Modelo Especial grew nearly 9%, while Modelo Chelada brands posted growth of more than 40%.
Modelo Especial remains the best-selling brand in the U.S. beer category, the company said.
The company’s wine and spirits brands, however, underperformed year over year. The category posted a 14% decrease in sales and nearly 8% decrease in depletions — an industry term for the number of cases sold to retailers by a distributor.

The division wasn’t without its standout brands, though: Constellation’s Meiomi and Kim Crawford wine brands saw 7% and 6% depletion growth, respectively, while its craft spirit, Mi Campo tequila, reported more than 60% depletion growth.
“We continue to expect solid growth acceleration and margin improvement from our overall Wine and Spirits Business in the second half,” said CEO Bill Newlands.
Back in June, the company delivered an earnings beat and reiterated its forecast. In its previous quarter, beer sales rose 11% year over year driven by stable consumer demand and higher pricing. More