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Ford now expects to be building EVs at a rate of 600,000 per year sometime during 2024, a delay from earlier estimates that it would reach that level by the end of 2023.
Ford also said it now expects its EV business unit, Ford Model e, to post an operating loss of about $4.5 billion this year.
In a statement, CEO Jim Farley argued that the more gradual ramp-up of electric vehicle production could be a boon for Ford.

Ford CEO Jim Farley poses for a photo at the launch of the all-new electric Ford F-150 Lightning pickup truck at the Ford Rouge Electric Vehicle Center on April 26, 2022 in Dearborn, Michigan.
Bill Pugliano | Getty Images

Ford Motor said Thursday pushed back production targets for its electric vehicles, citing slower-than-expected adoption.
Ford now expects to be building EVs at a rate of 600,000 per year sometime during 2024, a delay from earlier estimates that it would reach that level by the end of 2023. The automaker had previously targeted a rate of more than 2 million per year by the end of 2026, but now says it doesn’t know when it’ll achieve that volume.

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“The transition to EVs is happening, it just may take a little longer,” CFO John Lawler said following the automaker’s second-quarter earnings results.
“It will be a little slower than the industry expected,” he said.
But Lawler emphasized that Ford’s EV spending plan and its profitability goal for its electric vehicle unit haven’t changed. He said that Ford is still targeting an 8% operating margin for its EV business, and that it isn’t planning to reduce its capital spending on the vehicles.
“We’re going to find a way to get to that 8%,” Lawler said.
In a statement, CEO Jim Farley argued that the more gradual ramp-up of electric vehicle production could be a boon for Ford.

“The near-term pace of EV adoption will be a little slower than expected, which is going to benefit early movers like Ford,” Farley said, noting the success of Ford’s first generation F-150 Lightning and Mustang Mach-E EVs. “While others are trying to catch up, we have clean-sheet, next-generation products in advanced development that will blow people away.”
While Ford overall was solidly profitable during the second quarter, the Model e unit posted an operating loss of $1.8 billion. More

American Airlines’ pilots union has accepted a sweetened labor deal.
The union had a preliminary agreement but a richer deal at United Airlines derailed voting.
Pilots at both United and American still need to vote on their tentative agreements.

American Airlines plane
Silas Stein | picture alliance | Getty Images

American Airlines pilots’ union said Thursday that they agreed to a sweetened offer for a new labor contract, less than two weeks after a richer deal at rival United Airlines derailed voting at American.
The new preliminary agreement includes pay matching with United, whose pilots are on track to get about 40% raises over four years, and at Delta Air Lines, whose aviators approved their contract in March, as well as other improvements. American CEO Robert Isom last week increased the company’s offer by about $1 billion.

“We appreciate the Allied Pilots Association for its collaborative work to reach an updated agreement on a four-year contract for American’s pilots,” American said in a statement. “It’s a contract we’re proud of and one our pilots deserve.”
American’s pilots would start voting on the new deal in August.
The deal is the latest in the transportation industry where workers are seeking, and getting, higher wages. A shortage of pilots has emboldened unions to seek bigger raises and other improvements after the pandemic stalled negotiations.
UPS and the International Brotherhood of Teamsters earlier this week struck a preliminary labor agreement to raise pay for more than 300,000 workers, a deal that averted a massive strike that could have rippled throughout the U.S. economy. Workers will vote on that deal next month. More

SpaceX was set to launch a Falcon 9 rocket and then a Falcon Heavy rocket from Florida as little as 45 minutes apart on Thursday evening.
But SpaceX postponed the Falcon Heavy launch on Thursday evening, according to an FAA advisory and confirmed by a Space Force spokesperson.
Space Force noted that the pair of SpaceX launches would have broken a record set by the Gemini 11 mission in September 1966.

(L)A SpaceX Falcon Heavy rocket stands at pad 39A at the Kennedy Space Center several hours before a scheduled launch in Cape Canaveral, Florida, and (R) A Falcon 9 rocket stands at Cape Canaveral’s SLC-40 pad.
Getty (L) | SpaceX (R)

SpaceX on Thursday night came close to breaking a record that’s stood for over half a century, with back-to-back launches that had been set to fly from Florida’s Space Coast.
The company is targeting 10:20 p.m. ET for the launch of its Falcon 9 rocket from the Space Force’s Space Launch Complex 40 (SLC-40), carrying Starlink satellites.

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A Falcon Heavy rocket was set to lift off a couple miles away as little as 45 minutes later. But SpaceX postponed the Falcon Heavy mission, which is to deliver the Jupiter 3 satellite for broadband provider EchoStar into orbit. The launch from Launch Complex 39A (LC-39A) at NASA’s Kennedy Space Center is now scheduled to launch on Friday evening instead.

The rockets of NASA’s Gemini 11 mission lift off on September 12, 1966. (Left: An Atlas-Agena D rocket launches from SLC-14. Right: A Titan II rocket launches from SLC-19.)
Courtesy: NASA

Space Launch Delta 45 is the unit of the U.S. Space Force that manages the Eastern Range: A designated U.S. rocket range for launches from either Kennedy or Cape Canaveral.
SLD 45 noted in social media posts on Thursday that the pair of SpaceX launches could have broken a record set by the Gemini 11 mission in September 1966. That NASA mission used an Atlas-Agena D rocket and a modified Titan II rocket, which launched 1 hour, 37 minutes and 25 seconds apart.

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“This could represent the shortest time between Earth to orbit launches from the Eastern Range in our written records,” SLD 45 wrote. “Follow along as we attempt to re-write the record books on the Space Coast!”
Rocket launches require that regulators clear windows of time, in part due to the increasingly crowded airspace needed for each mission.
The launches would have represented SpaceX’s 51st and 52nd this year.

Falcon 9 livestream More

Airline stocks fell this week on signs of weaker domestic fares.
Carriers still raked in record revenue in the second quarter due to strong demand.
Meanwhile, international travel has come back in force this year, which could be a potential challenge to domestic-focused airlines.

Scott Olson | Getty Images

Sky-high airfare was a boon for U.S. airlines coming out of the Covid-19 pandemic.
But airline executives are now seeing lower domestic fares as carriers’ schedules swell and customers opt for trips abroad over closer destinations that were popular during the pandemic.

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Southwest Airlines, Alaska Airlines and American Airlines are among the carriers that have forecast slower revenue growth or weakness for the third quarter, despite strong demand.
The NYSE Arca Airline Index is down more than 6% this week, slimming its gains to 37% so far this year. Airline shares have largely outpaced the S&P 500 this year, which is up marginally this week and has advanced 18% in 2023.
Domestic U.S. airfare is currently averaging $258 for a round-trip ticket, down 11% from last year and 9% from 2019, according to fare-tracking company Hopper. International tickets, in comparison, are up 8% from 2022 and are 23% more expensive than 2019, averaging $958. The latest U.S. inflation report showed a sharp drop in airfare.
The shift marks a new chapter in airlines’ recovery from the pandemic and a potential challenge to domestic-focused airlines after the peak summer travel season, which traditionally fades in mid-August when schools reopen.
That’s happening while corporate travel demand still hasn’t recovered to pre-pandemic levels.

Southwest on Thursday said it expects unit revenue to drop as much as 7% in the current quarter from a year ago on a 12% increase in capacity.
An airline’s revenue per available seat mile is a measure of how much a carrier generates compared with how much capacity it is offering.
The Dallas-based airline blamed its forecast on faster-than-usual capacity growth. Overall, Southwest still expects record revenue for the quarter, but estimated unit costs, excluding fuel, would rise between 3.5% and 6.5% from the same period in 2022.
Southwest said it would refocus its network next year to adapt to changing travel patterns after the pandemic, such as weak business-travel demand growth. The airline’s shares dropped more than 9% Thursday, wiping out its 2023 gains.
Meanwhile, Alaska Airlines this week forecast third-quarter revenue ranging from flat to up 3% and unit revenues down about 9% “at the midpoint,” with capacity up as much as 13% compared with last year.
“As we approach the rest of the year and beyond, it is clear our environment is evolving as domestic leisure fares have recently started to come down from their peaks,” Alaska Airlines CEO Ben Minicucci said on an earnings call Wednesday.
American Airlines last week said it expected unit revenues for the current quarter to fall as much as 6.5% from a year ago, but it noted full-year unit revenues would be up in the low single digits. The airline still forecast a profit for the summer quarter.
Delta Air Lines and United Airlines’ very upbeat forecasts that topped expectations reiterated strength in international revenue, particularly trips to Europe and Asia, as they ramp up flights. More

Anheuser-Busch InBev, the parent company of Bud Light, announced it will lay off about 350 employees, or less than 2% of its corporate staff, across the U.S.
The layoffs will not affect employees such as brewery and warehouse staff, drivers and field salespeople, among others, the company said.
Sales of Bud Light have fallen after conservative boycotts over the company’s partnership with transgender influencer Dylan Mulvaney and following a corporate response to the backlash that others considered inadequate.

An employee adjusts bottles of Bud Light beer at an Anheuser-Busch InBev facility in Virginia, Aug. 8, 2018.
Andrew Harrer | Bloomberg | Getty Images

Beverage giant Anheuser-Busch InBev announced it will lay off hundreds of corporate employees as sales of its flagship lager Bud Light falter.
In a statement to CNBC on Thursday, a company spokesperson said the job cuts affect less than 2% of U.S. employees. Anheuser-Busch has about 18,000 employees nationwide. The layoffs will include about 350 of those people.

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The company said it will cut positions across every corporate function. Anheuser-Busch added the changes will “simplify and reduce layers within its organization.”
The layoffs will not affect employees such as brewery and warehouse staff, drivers and field salespeople, among others, the company added.
“While we never take these decisions lightly, we want to ensure that our organization continues to be set for future long-term success,” Anheuser-Busch CEO Brendan Whitworth said in a statement. “These corporate structure changes will enable our teams to focus on what we do best — brewing great beer for everyone and earning our place in the moments that matter.”
Bud Light sales have sagged following a conservative boycott over its March Madness partnership with transgender social media influencer Dylan Mulvaney. The company faced backlash from other consumers, and Mulvaney herself, over its decision not to defend the collaboration.
Amid the uproar, shares of Anheuser-Busch have dipped more than 2% this year, versus the S&P 500’s nearly 20% gain.

In May, Bud Light lost its top spot in the U.S. beer market to Constellation Brands’ Modelo. The brand held 8.7% of overall beer sales for the four weeks ending July 1, according to data shared by consulting firm Bump Williams. Bud Light had 7% market share during that same period, the data found.
The firm also found Bud Light sales dropped 28% for the week ending June 24 when compared with the same period last year.
Anheuser-Busch is also the target of a government investigation led by Florida Gov. Ron DeSantis. Last week, DeSantis said he instructed the State Board of Administration to immediately launch a review into whether Bud Light’s parent company breached its shareholder duties over its partnership with Mulvaney.
DeSantis suggested the probe could lead to a lawsuit on behalf of the shareholders of Florida’s pension funds. Florida has $53 million worth of stock in Anheuser-Busch.
“Anheuser-Busch InBev takes our responsibility to our shareholders, employees, distributors and customers seriously,” a spokesperson for the company told CNBC in a statement last week.
“We are focused on driving long-term, sustainable growth for them by optimizing our business and providing consumers products to enjoy for any occasion,” the spokesperson added.
— CNBC’s Kevin Breuninger contributed to this report. More

McDonald’s teased a new spinoff restaurant brand it’s creating.
The company will test CosMc’s in a handful of sites in “a limited geography” in early 2024.
CosMc is an alien from outer space who craves McDonald’s food and appeared in its advertisements decades ago.

1980s McDonald’s Commercial screenshot featuring CosMc.
Source: McDonald’s | YouTube

McDonald’s is creating a spinoff restaurant chain called CosMc’s, executives said Thursday.
The fast-food giant shared few details about the project during its second-quarter earnings call.

“CosMc’s is a small format concept with all the DNA of McDonald’s, but with its own unique personality,” McDonald’s CEO Chris Kempczinski said.
The company will test CosMc’s in a handful of sites in “a limited geography” in early 2024. McDonald’s said it will share more details about those plans at its investor day in December.
The name for the new brand comes from CosMc, a McDonaldland mascot who appeared in advertisements in the late 1980s and early 1990s. CosMc is an alien from outer space who craves McDonald’s food.
The brand will revive CosMc after the return of another McDonald’s mascot, Grimace, jolted its U.S. business. In June, the burger chain introduced the Grimace Birthday Meal, which included a bright purple milkshake.
Grimace and his combo meal went viral on social media, driving traffic and sales for U.S. restaurants.

“This quarter, if I’m being honest, the theme was Grimace,” Kempczinski said.
McDonald’s past endeavors to expand beyond its primary business haven’t been successful. In the late 1990’s, it bought Donatos Pizza and Boston Market and a stake in a fledgling Chipotle Mexican Grill.
Less than a decade later, it had divested from all three, which had become distractions as McDonald’s struggled. Chipotle and McDonald’s also butted heads over franchising plans and drive-thru lanes. More

Shein’s Executive Vice Chairman Donald Tang told investors the company reached record profitability in the first half of 2023, driven by U.S. sales momentum, according to a letter obtained by CNBC.
Tang also expanded on the company’s marketplace strategy and said the total value of merchandise sold since the beginning of 2023 has tripled to nearly $100 million in Brazil.
The fast-fashion retailer plans to launch marketplaces in Mexico, Italy and Spain, among other locales.

Customers hold shopping bags outside the Shein Tokyo showroom in Tokyo, Nov. 13, 2022.
Noriko Hayashi | Bloomberg | Getty Images

Shein notched its highest profit ever during the first half of this year, the company told investors in a letter, as rumors swirl over whether the fast-fashion juggernaut will file for a U.S. initial public offering.
The missive Wednesday from Executive Vice Chairman Donald Tang, which was obtained by CNBC, noted sales volume growth accelerated and profits improved during the first half of 2023 compared with the latter half of 2022.

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“We recorded the highest first half net profit in the company’s history, compared to a near break-even during the same period in 2022,” Tang wrote in the letter. “In particular, our continued momentum in the U.S. reinforces our leading position in the market.” 
The Chinese apparel company has used its wide selection of low-priced dresses, crop tops and jeans to win over Gen Z and millennial shoppers and cement itself as a leading retailer in the crowded fast-fashion space. 
The company brought in $23 billion in sales in 2022 and is now worth $66 billion, according to a May report from The Wall Street Journal, which cited people close to the company. 
Shein has long focused on churning out thousands of new styles based on the latest trends, but the company has also worked to grow its marketplace. 
The program brings in third-party vendors who sell a wide variety of goods to Shein’s customers. It allows the retailer to boost its revenue, deliver products faster and capture new shoppers without the headache of production and inventory management. 

In the letter, Tang delved into Shein’s marketplace strategy and its recent launch in Brazil and the U.S. He told investors the total value of merchandise sold since the beginning of 2023 has tripled to nearly $100 million in Brazil, with 6,000 active marketplace sellers. 
“This now makes up over one-third of Brazilian total [gross merchandise value],” Tang noted. “In addition, we are continuing to expand the product categories on our marketplace beyond fashion and apparel to other categories, including home appliances and other home products.” 
Shein announced the launch of its marketplaces in Brazil and the U.S. in May. The company also has plans to start marketplaces in Mexico, along with Germany, Spain, France and Italy. 
Tang didn’t disclose how the program has fared so far in the U.S. 

IPO rumors swirl as congressional scrutiny intensifies 

Shein, which is reportedly mulling a U.S. public offering, faces mounting scrutiny over its trade practices and supply chain, along with accusations over intellectual property infringements and the use of forced labor. The company denied the IP accusations and has said it has “zero tolerance” for forced labor.
In June, the U.S. House Select Committee on the Chinese Communist Party released a report criticizing Shein’s use of the de minimis rule, which allows retailers to import products into the U.S. duty-free and with less scrutiny as long as the packages are valued under $800. 
On Tuesday, Tang sent a letter to the American Apparel and Footwear Association calling on the industry to work toward reforms to the de minimis rule. He told investors in the Wednesday letter that Shein has followed the law as written, but it’s “simply not critical to the success” of the business. 
“Reforms should create a more level, transparent playing field — one where all retailers play by the same rules, and where the rules are applied evenly and equally, regardless of where a company is based or ships from,” Tang wrote Wednesday. “We welcome the opportunity for constructive engagement with Congress, the Biden Administration, and others in the industry to determine the specific reforms needed.” More

NBCUniversal’s portfolio of sports, including Sunday Night Football, Premier League soccer and Nascar, has been a big driver for fledgling streaming service Peacock.
President Mike Cavanagh said Thursday the company would take a look at upcoming NBA media rights.
Cavanagh noted it’s unlikely Comcast does any deal with ESPN, which Disney recently said it was shopping around to potential partners or investors.

Kansas City Chiefs tight end Travis Kelce (87) runs the ball in for a touchdown against the Tampa Bay Buccaneers during the first quarter at Raymond James Stadium, Oct. 2, 2022.
Kim Klement | USA Today Sports | Reuters

NBCUniversal’s sports portfolio has been driving growth at its streaming service Peacock, and the company has no plans to let up, with other sports rights deals top of mind.
Sports are a double-edged sword for media companies contending with relentless cord cutting and trying to make their streaming services profitable.

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Live sports content has long been the glue holding together the traditional cable TV bundle, which is losing customers at a faster clip while costing media organizations more. At the same time, sports are serving as a propeller of growth for streaming, especially for fledgling services such as Peacock and Paramount Global’s Paramount+.
NBCUniversal’s parent company, Comcast, on Thursday touted that Peacock nearly doubled its customer count year over year to 24 million. Sports were a big part of the conversation.
“Sports continues to be a huge driver, with the NFL, Nascar, golf, Premier League, the World Cup on Telemundo — including the Women’s World Cup going on right now — Big Ten starting this fall, and the Paris Olympics coming up next year,” President Mike Cavanagh said on an investor call after Comcast’s second-quarter earnings report.
NBCUniversal airs most of its sports properties, including Sunday Night Football and Premier League soccer, simultaneously on its TV networks and Peacock, a similar model to Paramount’s NFL playbook.
According to Cavanagh, simultaneous streaming has given the company and its sports assets “tremendous reach,” and all at a lower cost to the consumer.

Peacock is priced at $4.99 a month for its ad-supported tier — though it’s reportedly increasing $1 a month — a big price difference from the cost of typical cable TV bundles.

Building up sports

NBCUniversal is considering bringing the National Basketball Association back to its portfolio, too.
While Cavanagh said NBC didn’t “necessarily need it given the portfolio we have,” the company would still take a look at the upcoming media rights.
The NBA won’t begin formal negotiations with companies outside the current rights holders, Warner Bros. Discovery and Disney, before April 2024, unless those partners waive their exclusive negotiation rights.
CNBC earlier this year reported NBC Sports was considering a bid for NBA rights.
Meanwhile, Disney executives have said it’s a matter of “when, not if” ESPN’s live channels will be offered a la carte through streaming services.
Earlier this month, Disney CEO Bob Iger opened the door to selling its cable TV channels, but said ESPN was still part of the Disney playbook going forward. Instead, Disney is having discussions with potential partners or minority investors for ESPN.
Professional leagues, including the NBA, NFL and MLB, have been part of those discussions, CNBC previously reported.
ESPN Chairman Jimmy Pitaro at CNBC x Boardroom’s inaugural event earlier this week debunked any notion that ESPN channels on streaming would upend the traditional TV model.
“The [traditional TV] model has been very good to Disney,” Pitaro said, noting ESPN would still live on traditional TV and that the network was working with pay TV distributors.
An ESPN deal would be less likely for NBC Sports, Cavanagh said Thursday.
Any sort of swap or tie up of the businesses, as Cavanagh said has been speculated about NBC Sports and ESPN, would be “very improbable,” given “tremendous issues around tax minority shareholder structuring.”
Disclosure: NBCUniversal is the parent company of NBC and CNBC. More