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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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Mortgage rates dropped for the second week in a row, but that didn’t revive demand from homeowners or potential buyers.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased to 5.74% from 5.84%

People wait to visit a house for sale in Floral Park, Nassau County, New York.
Wang Ying | Xinhua News Agency | Getty Images

Mortgage rates dropped for the second week in a row, but that didn’t revive demand from homeowners or potential buyers.
Rates fell 10 basis points last week and have declined 24 basis points in the last two weeks, but total mortgage demand dropped 5.4% from one week ago, according to data from the Mortgage Bankers Association. This week’s results include a holiday adjustment to account for early closings the Friday before Independence Day.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) fell to 5.74% from 5.84%, with points increasing to 0.65 from 0.64, including the origination fee, for loans with a 20% down payment.
“Mortgage rates decreased for the second week in a row, as growing concerns over an economic slowdown and increased recessionary risks kept Treasury yields lower,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting.
Those concerns showed up in applications to refinance a home loan, which dropped 8% for the week and were down 78% from the same week one year ago. The refinance share of mortgage activity decreased to 29.6% of total applications from 30.3% the previous week.
Home purchase applications also fell for the week and the year – down 4% and 17%, respectively.
“Rates are still significantly higher than they were a year ago, which is why applications for home purchases and refinances remain depressed. Purchase activity is hamstrung by ongoing affordability challenges and low inventory,” said Kan.

Realtor.com published its June housing report last week which showed for-sale inventory recovering, climbing at its fastest yearly pace of all time, up 18.7% year over year. However, there are still 53.2% fewer homes for sale compared with June 2019.
“Our June data shows the inventory recovery accelerated, posting the second straight month of active listings growth in nearly three years. We expect these improvements to continue,” said Danielle Hale, chief economist at Realtor.com, but she added, “The typical buyer has yet to see meaningful relief from quickly selling homes and record-high asking prices.”
According to the Mortgage Bankers Association, the average home purchase loan size is $405,200, which is down from $413,500 for the week ended June 24.

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Northvolt’s announcement comes at a time when European economies are laying out plans to move away from vehicles that use diesel and gasoline.
As the number of electric vehicles on our roads increases, the competition to develop factories capable of manufacturing EV batteries at scale is intensifying.
Northvolt recently said its first gigafactory, Northvolt Ett, had started commercial deliveries to European customers.

Northvolt’s most recent funding announcement comes at a time when major economies are laying out plans to move away from vehicles that use diesel and gasoline.
Mikael Sjoberg | Bloomberg | Getty Images

Electric vehicle battery maker Northvolt on Tuesday announced a $1.1 billion funding boost, with a range of investors — including Volkswagen and Goldman Sachs Asset Management — taking part in the capital raise.
In a statement, Sweden-based Northvolt said the $1.1 billion convertible note would be used to finance the company’s “expansion of battery cell and cathode material production in Europe to support the rapidly expanding demand for batteries.”

Other investors in the raise include Baillie Gifford, Swedbank Robur, PCS Holding and TM Capital.
Northvolt recently said its first gigafactory, Northvolt Ett, had started commercial deliveries to European customers. The firm says it has orders amounting to $55 billion from businesses such as Volvo Cars, BMW, and Volkswagen.
Gigafactories are facilities that produce batteries for electric vehicles on a large scale. Tesla CEO Elon Musk has been widely credited as coining the term.

Read more about electric vehicles from CNBC Pro

Northvolt’s most recent funding announcement comes at a time when major European economies are laying out plans to move away from road-based vehicles that use diesel and gasoline.
The U.K., for instance, wants to stop the sale of new diesel and gasoline cars and vans by 2030. It will require, from 2035, all new cars and vans to have zero-tailpipe emissions. The European Union — which the U.K. left on Jan. 31, 2020 — is pursuing similar targets.

As the number of electric vehicles on our roads increases, the competition to develop factories capable of manufacturing EV batteries at scale is intensifying, with companies like Tesla and VW looking to establish a foothold in the sector.
In a statement issued Tuesday, Northvolt’s CEO and co-founder, Peter Carlsson — who previously worked for Tesla — was bullish about the future. 
“The combination of political decision making, customers committing even more firmly to the transition to electric vehicles, and a very rapid rise in consumer demand for cleaner products, has created a perfect storm for electrification,” he said.
According to the International Energy Agency, electric vehicle sales hit 6.6 million in 2021. In the first quarter of 2022, EV sales came to 2 million, a 75% increase compared to the first three months of 2021. More

Sales contracts for Manhattan apartments plunged by nearly a third in June as the city’s scorching real-estate market started to cool.
“The gradually slowing sales market manifests in all boroughs and at all price points throughout the city,” one industry figure said.
Prices haven’t started falling yet — at least not broadly. But brokers say buyer attendance at open houses and multiple bids have all but evaporated.

FUTURE LIGHT | Photodisc | Getty Images

Sales contracts for Manhattan apartments plunged by nearly a third in June as the city’s scorching real-estate market started to cool amid recession fears and declining stocks.
New York real estate was on a tear through the early spring, with high prices and strong sales. The median sales price for the second quarter rose to a record $1.25 million, according to data from the firms Miller Samuel and Douglas Elliman. The number of sales — at over 3,800 — was the highest total for the second quarter since the housing boom of 2007.

Yet most of those deals were negotiated in the early part of the year. Brokers and real estate analysts say the Manhattan market took a sharp turn downward in June, as stocks and crypto declined, interest rates rose and economists started discussing the potential for recession.
Sales contracts for co-ops and condos in Manhattan fell 30% in the quarter compared to June 2021, according to Miller Samuel and Douglas Elliman.
“Throughout the second quarter, that slowdown has accelerated: fewer signed contracts, fewer bidding wars, more price reductions, and a gradual increase in available inventory,” Coldwell Banker President Frederick Warburg Peters wrote in a market report. “The gradually slowing sales market manifests in all boroughs and at all price points throughout the city.”
Manhattan’s decline is especially sudden given that the market is skewed toward higher-end, wealthier buyers who are less dependent on mortgages and rising rates. In the second quarter, 53% of all apartment purchases in Manhattan were cash. At the high end it’s even higher — 99.6% of purchases above $4 million were cash, according to Jonathan Miller, CEO of Miller Samuel.
Brokers say wealthier buyers in Manhattan are more spooked by the stock-market declines and crypto losses than higher mortgage rates. Added to that are continued concerns about New York’s crime and high taxes.

“This is a market in transition,” said Bess Freedman, CEO of Brown Harris Stevens. “Buyers are in the driver’s seat right now. There is just a lot of uncertainty and weaker confidence.”
Prices haven’t started falling yet — at least not broadly. But brokers say buyer attendance at open houses and multiple bids have all but evaporated. McKenzie Ryan, a top New York broker with Douglas Elliman, said one of her clients is a Manhattan family that had a baby and was looking for more space with a budget of around $4 million.
“They just decided to fully stop their search,” Ryan said. “They still need the space, but interest rates and economic fears are pushing people to pause.”
Buyers aren’t showing up for open houses or showings as they were even in April. She said she had a listing that month that attracted 31 people to the open house. When she held an open house for a similar listing and similar price point in June, only four people showed up.
Along with buyers in finance worried about financial markets, workers and executives in tech and venture capital in Manhattan are also pulling back on real estate, fearing layoffs and cost cuts.
“My clients in tech are just bracing right now for whatever happens,” Ryan said. “Some people have seen a steep loss in wealth since the start of the year.” Ryan said that when sellers are now pricing their listings, they can’t use comparable prices from earlier in the year. She said some are marking them down up to 10% from early 2022 comparables, but it all depends on the apartment.
“There is just not enough data on the market right now,” she said. “It’s just moving and changing so fast.”

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