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    GM CEO Mary Barra says Tesla charging deal will save the automaker up to $400 million

    GM expects to save up to $400 million through an EV-charging deal with Tesla.
    GM said in October 2021 it planned to spend $750 million on electric vehicle-charging infrastructure in the U.S. and Canada.
    The deal between GM and Tesla will grant GM EV owners access to more than 12,000 of Tesla’s fast chargers, starting next year.

    DETROIT — General Motors CEO Mary Barra said a charging deal with Tesla announced Thursday will save the automaker up to $400 million of a planned investment in building out EV charging in the U.S. and Canada.
    GM said in October 2021 it planned to spend $750 million on electric vehicle-charging infrastructure in the two countries. That includes home, workplace and public charging throughout the U.S. and Canada, GM said at the time.

    “We think we can save up to $400 million in the original three-quarter of a billion dollars that we allocated to this, because we’ve been able to do it faster and more effectively,” Barra said Thursday in an interview with CNBC’s Phil LeBeau on “Fast Money.” “We’re really looking for ways that we can be more capital efficient, as we go forward.”
    Barra, in response to a question about licensing other Tesla technologies, said the Detroit automaker is “going to always look for ways to be more capital-efficient” and “if there’s other opportunities to partner, you know, we’re going to be very open to them.”

    Elon Musk and Mary Barra
    Getty Images; NYSE

    The deal between GM and Tesla will grant GM EV owners access to more than 12,000 of Tesla’s fast chargers, starting next year, using an adapter. It will also include GM adopting Tesla’s charging port instead of a current industry standard.
    The GM deal follows crosstown rival Ford Motor announcing a similar deal with the Elon Musk-owned automaker. The CEOs of both Detroit automakers announced the deals alongside Musk on Twitter.
    Wall Street analysts hailed the Tesla-Ford deal as a “win-win” when that deal was announced last month.
    Both GM and Tesla stocks were up more than 3% during extended trading Thursday. More

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    GM to use Tesla charging network, joining Ford in leveraging the EV leader’s tech

    General Motors will follow crosstown rival Ford Motor in partnering with Tesla to use the electric vehicle leader’s North American charging network and technologies.
    GM, like Ford, will begin installing a charging port used by Tesla, known as NACS, instead of the current industry-standard CCS, in its EVs starting in 2025.
    Both GM and Tesla stocks were up about 3% during after-hours trading Thursday.

    DETROIT — General Motors will follow crosstown rival Ford Motor in partnering with Tesla to use the electric vehicle leader’s North American charging network and technologies.
    Under the deal, GM vehicles will be able to access 12,000 of Tesla’s fast chargers using an adapter and the Detroit automaker’s EV charging app, starting next year.

    GM, like Ford, will also begin installing a charging port used by Tesla known as NACS, or the North American Charging Standard, instead of the current industry-standard CCS, in its EVs starting in 2025.
    GM CEO Mary Barra told CNBC’s Phil LeBeau on Thursday that, as a result of a deal, the automaker expects to save up to $400 million of a previously announced $750 million investment to build out EV charging.
    The partnerships with now two leading Detroit automakers is a major win for Tesla and its charging technology. It is expected to add pressure on other automakers — as well as the U.S. government, which is investing billions in building out an EV charging network — to adopt Tesla’s technology.
    Wall Street analysts hailed the Tesla-Ford deal as a “win-win” when that deal was announced last month. Both GM and Tesla stocks were up about 3% during after-hours trading Thursday.
    The deal was announced by Barra and Tesla CEO Elon Musk during a live audio discussion on Twitter Spaces. It comes as GM ramps up production of its fully electric vehicles in pursuit of Tesla-level sales volumes in the segment.

    U.S. President Joe Biden listens to General Motors Chief Executive Mary Barra during a visit to the Detroit Auto Show to highlight electric vehicle manufacturing in America, in Detroit, Michigan, September 14, 2022.
    Kevin Lamarque | Reuters

    It also marks a stark reversal in strategy for GM. Weeks ago, when Ford announced its own partnership with Tesla, GM was working with engineering organization SAE International to develop and refine an open connector standard for CCS.
    “I think we have a real opportunity here to really drive this to be the unit unified standard for North America, which I think will even enable more mass adoption, so I couldn’t be more excited,” Barra said during the discussion, which lasted less than 10 minutes.
    Adding to the curiosity of rivals partnering: the Twitter Spaces was Barra’s first tweet since Oct. 27, because she stopped using the social media platform when Musk became owner. GM also discontinued advertising on the platform at that time.
    A GM spokesman said Thursday its brands and some executives continue to use Twitter but the company has not resumed any advertising on the social media platform. Barra told CNBC after the Twitter discussion that “it’s possible” the company could eventually reinstate advertising, as it searches for a new chief marketer and is “reimagining” its marketing.
    The GM-Tesla deal, like Ford’s, is likely to be beneficial for both companies. It is expected to more than double access to fast chargers for GM’s and Ford’s customers and increase use of Tesla’s network.
    Tesla says it has roughly 45,000 Supercharger connectors worldwide at 4,947 Supercharger Stations. The company does not break out how many are in the U.S. The U.S. Department of Energy reports the country has only about 5,300 CCS fast chargers.

    A view of Tesla Superchargers on February 15, 2023 in San Rafael, California.
    Justin Sullivan | Getty Images

    Tesla previously discussed opening its private network to other EVs. White House officials announced in February that Tesla committed to opening up 7,500 of its charging stations to non-Tesla EV drivers by the end of 2024.
    Musk on Thursday said Tesla owners will not be given priority to the company’s chargers, calling access “an even playing field” for EV owners.
    “The most important thing is that we’ve witnessed the electric vehicle revolution,” Musk said.
    Public charging of electric vehicles is a major concern for potential buyers, and no automaker other than Tesla has successfully built out its own network. Instead, those automakers have announced partnerships with third-party companies that have often proven unreliable and frustrating to owners.
    Most U.S. drivers log vehicle miles from home to locations nearby. But EV buyers who want to take longer road trips, or who don’t have access to a garage with a charger, often worry about access to reliable, public charging.
    — CNBC’s Lora Kolodny and John Rosevear contributed to this report. More

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    Planet stock drops after satellite imagery and data venture lowers annual revenue guidance

    Shares of Planet fell as much as 20% in after-hours trading, from its close at $4.90.
    Despite the lowered guidance, Planet co-founder and CEO Will Marshall said in a statement that the company continues “to see strong demand for our proprietary data solutions, driven by global events and the growing awareness of our capabilities.”
    Planet’s customer base increased to 903, up from 882 at the end of the fourth quarter.

    A satellite image captured by a SkySat shows the breached Kakhovka dam in Ukraine, June 6, 2023.

    Shares of Planet fell after the satellite-imagery and data-analysis company cut its annual revenue guidance following when it reported first-quarter results Thursday.
    The company lowered its guidance for its current fiscal-year 2024 revenue to a range of $225 million to $235 million, down from its previous forecast of between $248 million and $268 million. Planet also said it expected wider losses on an adjusted EBITDA basis, increasing its forecast to a range of between $58 million and $67 million from a range of between $37 million and $47 million.

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    Shares of Planet fell as much as 20% in after-hours trading, from its close at $4.90.
    Despite the lowered guidance, Planet co-founder and CEO Will Marshall said in a statement that the company continues “to see strong demand for our proprietary data solutions, driven by global events and the growing awareness of our capabilities.”
    Planet Chief Financial Officer and Chief Operating Officer Ashley Johnson further emphasized the “challenging macro environment,” and said the company remains “focused on the path to profitability.” She added the company’s balance sheet “is strong,” with $375 million in cash and equivalents and no debt.

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    For the first quarter, Planet reported revenue of $52.7 million, up 31% from $40.1 million in the same period a year ago, but effectively flat from the prior quarter.
    The company’s first-quarter net loss was $34.4 million, or 13 cents a share. That narrowed 22% from its net loss of $44.4 million, or 17 cents a share, a year prior.

    Planet’s customer base increased to 903, up from 882 at the end of the fourth quarter. Its customer base is split into three parts by revenue: 44% is defense and intelligence, 29% is commercial and 27% is civil government.
    The company follows a fiscal-year calendar that ends Jan. 31. More

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    FDA advisors recommend AstraZeneca, Sanofi antibody to protect babies from RSV

    A group of independent advisors to the U.S. Food and Drug Administration endorsed the monoclonal antibody nirsevimab, which protects infants from respiratory syncytial virus.
    Nirsevimab is a monoclonal antibody made by AstraZeneca. The medication would be marketed by Sanofi.
    If the FDA gives final approval to nirsevimab, it would become the first medical intervention available in the United States that can protect all infants from RSV.
    RSV is the most common cause of hospitalization among American infants, killing nearly 100 infants every year, according to scientists.

    Westend61 | Getty Images

    A panel of independent advisors to the Food and Drug Administration unanimously recommended Thursday that the antibody nirsevimab be approved for use to protect infants from respiratory syncytial virus, the leading cause of hospitalization among newborns.
    If the FDA approves nirsevimab, the antibody would become the first medical intervention available in the U.S. that can protect all infants from RSV. The FDA, which is not obligated to follow the recommendation of its advisory panel, is expected to make a final decision on nirsevimab in the third quarter.

    Nirsevimab is a monoclonal antibody made by AstraZeneca. The medication would be marketed by Sanofi.
    The advisory panel voted 21-0 to recommend its approval.
    In a separate vote, the advisors also recommended nirsevimab’s use in children up to 2 years old who remain vulnerable to the virus in their second RSV season. That vote was 19-2.
    RSV kills nearly 100 babies in the United States every year, according to scientists.
    Infants hospitalized with RSV often require oxygen support, intravenous fluids and are sometimes placed on a ventilator to support their breathing.

    The virus is a major public health threat. A surge in RSV infections last year overwhelmed children’s hospitals leading to calls for the Biden administration to declare a public health emergency in response.
    RSV circulates at the same time as the flu and Covid-19, which puts added pressure on hospitals.
    There is a second monoclonal antibody used against RSV called palivizumab. But this antibody is only for preterm infants and those with lung and congenital heart conditions that are at a high risk of severe disease. Palivizumab also has to be administered monthly.
    Nirsevimab, by contrast, would also be administered to healthy infants, who make up a majority of the hospitalizations. It is also given as a single dose, which would make administration easier.
    Nirsevimab is not considered a vaccine because it is a monoclonal antibody.
    It is unclear whether the federal Vaccines for Children program will provide nirsevimab for uninsured and underinsured children for free because the antibody is regulated as a drug.
    Nirsevimab is already approved in Canada, Europe and the United Kingdom.
    Nimish Patel, an expert on medications for infectious disease, said nirsevimab performed “extraordinarily well” in both premature and term babies.
    “The once-seasonal dosing is a huge advance and this is probably the closest thing to an RSV vaccine that we have and it really moves the field forward,” said Patel, a member of the FDA committee and a professor of clinical pharmacy at University of California, San Diego.

    Effectiveness

    Nirsevimab was up to 75% effective at preventing lower respiratory tract infections that required medical attention and 78% effective at preventing hospitalizations, according a review by the FDA.
    A more conservative estimate by FDA put the antibody’s effectiveness at about 48% against lower respiratory tract infections that required medical attention. This estimate assumed patients with missing data on their health outcomes had lower respiratory tract infections that required medical attention.

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    Nirsevimab is administered as a single injection with the dose depending on the infant’s weight. Infants that weigh less than 5 kilograms would receive a 50 mg injection for their first RSV season, and those weighing 5 kilograms or greater would receive a 100 mg injection.
    Children less than 2 years old who remain at risk for severe RSV in their second season would receive a single 200 mg injection of nirsevimab.

    Safety

    The FDA did not identify any safety concerns in its review of nirsevimab.
    Other monoclonal antibodies have been associated with serious allergic reactions, skin rashes and other hypersensitivity reactions.
    The FDA did not find any cases of serious allergic reactions in the nirsevimab trials and cases of skin rash and hypersensitivity reactions were low in infants who received the antibody. But Dr. Melissa Baylor, an FDA official, said cases of these side effects will likely occur if nirsevimab is approved.
    Twelve infants who received nirsevimab in the trials died. None of these deaths were related to the antibody, according to the FDA’s review.
    Four died from cardiac disease, two died from gastroenteritis, two died from unknown causes but were likely cases of sudden infant death syndrome, one died from a tumor, one died from Covid, one died from a skull fracture and one died of pneumonia.
    “Most deaths were due to an underlying disease,” Baylor said. “None of the deaths appeared to be related to nirsevimab.”
    There has been very close attention to safety due to historical failures in the development of RSV vaccines. Scientists first tried to develop a vaccine in the 1960s with an inactivated virus, but that shot actually made disease from RSV worse in some children when they received their first natural infection, resulting in the death of two infants.
    Manish Shroff, head of patient safety at AstraZeneca, said the company will keep a close eye on the safety of nirsevimab through a large global monitoring system: “Safety is of utmost importance,” he said.
    Baylor said there are also unanswered questions about how nirsevimab would interact with vaccines in development that confer protective antibodies to the fetus by administering the shot to the mother.
    It’s unclear if giving nirsevimab to infants whose mothers received such RSV vaccines would provide additional protection or create potential safety issues, Baylor said.
    The FDA’s advisors endorsed Pfizer’s maternal RSV vaccine that protects infants in May. The agency is expected to make a decision on Pfizer’s shot in August. More

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    Stocks making the biggest moves after hours: DocuSign, General Motors, Vail Resorts and more

    The DocuSign website on a laptop in Dobbs Ferry, New York, April 1, 2021.
    Tiffany Hagler-Geard | Bloomberg | Getty Images

    Check out the companies making headlines after hours.
    DocuSign — DocuSign jumped 5.6% in extended trading after the electronic agreements firm beat analysts’ first-quarter expectations on the top and bottom lines. DocuSign posted first-quarter adjusted earnings of 72 cents per share, topping consensus estimates of 56 cents, according to Refinitiv. It reported revenue of $661 million, exceeding expectations of $642 million.

    Vail Resorts — Shares fell 3.9% after Vail Resorts missed third-quarter earnings expectations. The mountain resort company posted earnings of $8.18 per share, while analysts polled by Refinitiv expected $8.84 per share. It reported revenue of $1.24 billion, lower than the estimate of $1.27 billion.
    General Motors — General Motors advanced 3% after CEO Mary Barra and Tesla CEO Elon Musk said the automaker will join Ford Motor in partnering with Tesla to use the electric vehicle maker’s charging network in North America. Tesla shares also popped 3% in extended trading.
    Comtech Telecommunications — Shares declined 2.8% after Comtech Telecommunications reported fiscal third-quarter earnings results. The satellite communications firm reported a GAAP loss of 33 cents per share, wider than the year-ago period when it posted a loss of 6 cents per share. It slightly beat on revenue expectations, reporting $136.3 million, compared with consensus estimates of $136 million, according to FactSet. More

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    House lawmakers introduce bipartisan bill requiring total disclosure of ticketing fees

    Lawmakers introduced the TICKET Act to force ticket vendors to disclose all fees upfront at the time of purchase.
    The House bill is a companion to legislation introduced in the Senate in April.
    Ticketing sites and associated fees have come under intense scrutiny in recent months, driven largely by a fumbled Ticketmaster presale for Taylor Swift’s Eras Tour late last year.

    An illustration of a Live Nation Entertainment logo is seen on a smartphone and a pc screen.
    SOPA Images | Getty Images

    WASHINGTON — Lawmakers introduced a new bipartisan bill on Thursday targeting ticketing-fee disclosures in an effort to increase transparency in the entertainment industry.
    The “Transparency in Charges for Key Events Ticketing Act,” or TICKET Act, is modeled after current advertising guidelines for airline tickets, which require disclosing the full ticket price before purchase. Reps. Jan Schakowsky, D-Ill., and Gus Bilirakis, R-Fla., are co-sponsoring the bill.

    “Fans are incredibly frustrated by how hard it has become to buy event tickets. With every ticketing debacle, from Beyoncé to Taylor Swift, and so many more, their frustration grows,” Schakowsky said in a statement. “Consumers deserve to be protected from fraudulent tickets, surprise costs, and excessive fees.”
    The bill is a companion to legislation introduced by Sens. Ted Cruz, R-Texas, and Maria Cantwell, D-Wash., chair of the Senate Commerce Committee, in April. Its release follows a subcommittee hearing on regulating extra surcharges, or “junk fees,” which have become a particular focus of the Biden administration.
    “The price, they say, really should be the price you pay,” Cantwell said during the Thursday hearing. “And that can be added to, but it needs to be disclosed.”
    The House bill mirrors the Senate measure in mandating ticket vendors to display the total price of a ticket, including all required fees, in any advertisement or piece of marketing.
    An itemized list of the base ticket price and associated fees must also be disclosed at the start of the purchase, according to the bill, and vendors must also be upfront about “speculative” tickets not in the seller’s possession.

    Bilirakis said the bill will bring “much-needed transparency to the whole ticketing industry.”
    “There is nothing more disappointing for an avid fan than being lured into the prospect of an affordable ticket to see his or her favorite sports team or band only to learn later in the checkout process that the final price tag is significantly higher,” he said, adding that he’s “committed to working towards reforms that protect consumers and provide certainty in the marketplace.”
    Schakowsky and Bilirakis cited studies from the New York Attorney General’s Office and the Government Accountability Office that show ticketing fees can contribute anywhere from 21% to as much as 58% of the total cost of tickets.
    Ticketing sites and associated fees have come under intense scrutiny in recent months, driven largely by a fumbled Ticketmaster presale for Taylor Swift’s Eras Tour late last year. The site buckled under overwhelming demand, prompting calls for antitrust action against parent company Live Nation. More

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    Carvana shares surge after the company boosts second-quarter guidance

    Online used-car retailer Carvana said its second-quarter results would likely come in ahead of its earlier expectations as cost-reduction measures take hold.
    Shares gained 56% during the trading session.
    “The team’s persistent focus on driving profitability has resulted in significant savings and efficiencies, and this work will persist as we continue to execute our plan,” CEO Ernie Garcia said in a statement Thursday.

    A Carvana glass tower sits illuminated on Feb. 23, 2022, in Oak Brook, Illinois.
    Armando L. Sanchez | Tribune News Service | Getty Images

    Shares of online used-car retailer Carvana surged Thursday after the company said its second-quarter results would likely come in ahead of its earlier expectations as cost-reduction measures take hold.
    Shares gained 56% during the trading session.

    The company said it now expects to report adjusted earnings before interest, tax, depreciation and amortization, or EBITDA, of more than $50 million in the second quarter of 2023. Wall Street analysts surveyed by FactSet had expected the company to roughly break even on that basis.
    Carvana said it also expects its gross profit per unit, or GPU, to be above $6,000 in the second quarter. That would be a new company record and an increase of more than 60% from the second quarter of 2022.
    The company posted a GPU of $4,303 in the first quarter of 2023, up 52% from a year earlier.
    Carvana’s most recent guidance in May called for a positive adjusted EBITDA and adjusted gross profit per unit of $5,000 in the second quarter.

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    Carvana shares surged Thursday after the company boosted its second-quarter guidance.

    The company’s shares enjoyed a strong run-up during the pandemic as buyers turned to online sources for used cars. The company borrowed heavily to keep up with demand — but it found itself in a steep hole last year, as interest rates began rising and used-car prices softened. It responded with an aggressive cost-cutting effort.

    Carvana’s stock fell about 98% in 2022 but has recovered significant ground in recent months: Through Thursday’s close, it’s up more than 400% since the start of 2023.
    “The team’s persistent focus on driving profitability has resulted in significant savings and efficiencies, and this work will persist as we continue to execute our plan,” CEO Ernie Garcia said in a statement Thursday. “Our progress continues to positively impact the business even faster than expected.” More

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    Warner Bros. Discovery stock rises for second straight day as company pays down debt

    Warner Bros. Discovery’s stock jumped a second straight day after the company announced it paid down a chunk of its debt.
    The media giant, which is saddled with a hefty debt load following the close of its merger last year, has been working to cut costs and make its streaming business profitable.
    The debt paydown was overshadowed by the ouster of CNN’s CEO.

    Pavlo Gonchar | Lightrocket | Getty Images

    Warner Bros. Discovery saw its stock rise for a second straight day Thursday, after announcing it had paid down a portion of its debt load this week.
    The financial update, announced Wednesday, had been overshadowed by the turmoil at its news outlet CNN, where CEO Chris Licht was ousted. Shares closed up nearly 7% Thursday after closing more than 8% higher Wednesday. The stock is up 49% so far this year.

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    The media giant has been contending with a heavy debt load stemming from the 2022 merger of Warner Bros. and Discovery. The company, which ended the first quarter with $49.5 billion in debt, has been in the midst of various cost-cutting initiatives such as and layoffs and content spending reductions.

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    Warner Bros. Discovery’s stock rose in recent days after the company announced it was paying down some of its heavy debt load.

    In a public filing, Warner Bros. Discovery said it had repaid about $1.5 billion in debt on two of its loans. The company also announced it commenced a $500 million cash tender offer to purchase any or all of its floating rate notes, a portion of its debt that carries a high interest rate and matures in March 2024.
    That resulted in $2.05 billion in second quarter debt reduction, about $1 billion more than Wells Fargo had forecast, according to Steven Cahall, an analyst at the bank.
    The analyst noted that Warner Bros. Discovery guided that it would have roughly $930 million in second quarter free cash flow, after ending the first quarter with $2.6 billion in cash.
    “We take the debt reduction to indicate management confidence in 2023 cash generation and deleveraging,” Cahall wrote.

    Warner Bros. Discovery executives have said on recent earnings calls that the company is sticking with its goal of lowering its debt-to-EBITDA leverage to below four-times.
    Whatever meaningful cash the company generates will likely go toward repaying debt, said a person familiar with the matter who was not authorized to speak publicly. Public offers, such as the cash tender offer announced this week, will likely serve as the vehicle toward paying down debt, the person said.
    Warner Bros. Discovery has also been working to make its streaming business profitable. CEO David Zaslav recently said on a company earnings call that the streaming business is expected to reach profitability in the U.S. in 2023, a year ahead of its expectations. The company recently relaunched and rebranded its flagship streaming service as Max, combining content from HBO and its portfolio of cable-TV networks like the Discovery Channel and TLC.
    During the first quarter Warner Bros. Discovery had reported $10.7 billion in revenue, as well as a net loss of $1.1 billion. More