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Ford is recalling 18 electric F-150 Lightning pickups that the company has identified as potentially having a battery cell defect that caused a truck to catch fire last month.
The Detroit automaker said Friday the small recall is for vehicles that were already delivered to customers and dealers.
The automaker reiterated Friday that production of the F-150 Lightning is set to resume Monday at one of its Michigan plants.

Ford CEO Jim Farley announces at a press conference that Ford Motor Company will be partnering with the worlds largest battery company, a China-based company called Contemporary Amperex Technology, to create an electric-vehicle battery plant in Marshall, Michigan, on February 13, 2023 in Romulus, Michigan.
Bill Pugliano | Getty Images News | Getty Images

DETROIT – Ford Motor is recalling 18 electric F-150 Lightning pickups that the company has identified as potentially having a battery cell defect that caused a truck to catch fire last month.
The Detroit automaker said Friday the small recall is for vehicles that were already delivered to customers and dealers. They were assembled with improperly produced battery cells that were built over a four-week period at a Georgia plant from supplier SK On.

A Ford spokeswoman declined to disclose how many trucks Ford has in holding that may have the issue. She said the company is “applying quality actions to already-produced vehicles with batteries built in this four-week window which we have been holding.”
The fire occurred Feb. 4 in a holding lot during a pre-delivery quality check while the vehicle was charging. Ford suspended production of the vehicles and issued a stop-shipment to dealers.
Ford previously declined to disclose details of the issue that caused the vehicle to catch fire or of the implemented solution. Additional details should be available when the National Highway Transportation Administration officially issues the recall notice.
Ford said it is not aware of any reports of accident or injury related to the battery issue or recall.
The automaker reiterated Friday that production of the F-150 Lightning is set to resume Monday at one of its Michigan plants.

The F-150 Lightning is being closely watched by investors, as it’s the first mainstream electric pickup truck on the market and a major launch for Ford. 
Ford initially opened customer reservations for the F-150 Lightning when it was revealed in May 2021. More than 200,000 reservations were placed prior to Ford temporarily closing the process to attempt to align production with expected demand.
Ford has sold fewer than 20,000 of the all-electric trucks so far.

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Boeing can resume deliveries of its 787 Dreamliners as early as next week, the Federal Aviation Administration said.
Boeing said it completed the work on the wide-body jetliners required in order to resume deliveries, which were halted Feb. 23 after a data-analysis error was detected.
The company’s shares rose on the news that the issue was resolved and were trading higher late in the session.

An American Airlines Boeing 787-9 Dreamliner approaches for a landing at the Miami International Airport on December 10, 2021 in Miami, Florida.
Joe Raedle | Getty Images

Boeing can resume deliveries of its 787 Dreamliners as early as next week, the Federal Aviation Administration said Friday, after a data-analysis issue halted deliveries of the wide-body jetliners.
“Boeing addressed the FAA’s concerns,” the agency said in a statement. “The FAA may resume issuing airworthiness certificates next week.”

Boeing earlier Friday said it completed the work needed to resume deliveries of planes to airlines and other customers.
“We have completed the necessary analysis that confirms the airplane continues to meet all relevant requirements and does not require production or fleet action,” a Boeing spokesperson said. “The FAA will determine when 787 ticketing and deliveries resume, and we are working with our customers on delivery timing.” 
Boeing shares rose on the news that the issue was resolved and finished the trading session nearly 1% higher.
On Feb. 23, Boeing paused deliveries of the planes, after a data-analysis error was detected related to the aircraft’s forward pressure bulkhead.
It was the latest in a string of delivery pauses for the jets: A series of manufacturing flaws on the twin-aisle planes forced Boeing to suspend deliveries for much of the two years leading up to last August.
Dreamliner customers include large carriers such as American Airlines. The jets would be handed over just as carriers are gearing up for a busy spring and summer travel season, when they make a large portion of their revenue.

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Sales of luxury homes dropped 45% during the three months ended Jan. 31 compared with the same period the year before, according to Redfin.
Tight supply and higher rates are pushing luxury home prices higher.
Redfin defines luxury homes as those estimated to be in the top 5% based on the estimated market value.

Homes at Rivo Alto Island in Miami Beach, Florida, US, on Wednesday, Feb. 1, 2023.
Eva Marie Uzcategui | Bloomberg | Getty Images

The U.S. housing market is taking a hard hit from higher mortgage rates, and luxury home sales are seeing the worst of it.
Sales of luxury homes dropped 45% during the three months ended Jan. 31 compared with the same period the year before, according to Redfin, a real estate brokerage. Redfin defines luxury homes as those estimated to be in the top 5% based on the estimated market value. Sales of non-luxury homes were down about 38% during that period.

Miami, which had seen a massive influx of wealthy buyers migrating from the Northeast in the earlier days of the Covid pandemic, saw sales drop nearly 69%. That was followed by the Nassau County-Suffolk County region on New York’s Long Island, home to the Hamptons – down nearly 63%. Some of the priciest California markets also saw big drops in sales because they, too, experienced big pandemic sales.
While not all luxury buyers use mortgages, they are affected by the broader economy, and more specifically the stock market. Volatility in financial markets is therefore having an outsized effect on the luxury real estate market.
“The silver lining for the luxury buyers who are still in the market is that competition is sparse, and jumbo loans now often have lower mortgage rates than other loan types, in part because there’s less risk that high-end buyers will default on their mortgages,” said Chen Zhao, Redfin economics research lead in a release. “Wealthy house hunters are also frequently offered additional rate discounts from their banks as a perk for storing substantial funds there.”
Competition is easing not just because of falling demand. Supply is rising. Inventory rose 7% year over year, which was the largest increase since 2015.
Yet supply is also still historically tight – not that much higher than the record lows of 2022. New listings are also down 22%, indicating that supply is higher because homes are sitting longer.
That lack of supply has pushed luxury home prices higher. The median price was up 9% compared with the same period the year before to $1.09 million. Luxury prices hit an all-time high of 1.1 million in the spring of last year.

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Los Angeles-based startup K2 Space, co-founded by brothers Karan and Neel Kunjur, is setting out to build satellite buses to leverage new large rockets such as SpaceX’s Starship.
“The only path to go cheaper over the last decade was to go smaller. What we’re finding is that, with the new launch capabilities of vehicles like Starship, there’s actually an interesting opportunity to go the opposite direction,” Karan Kunjur told CNBC.
Since its incorporation in June, K2 has raised $8.5 million in a seed round led by First Round Capital and Republic Capital.

Cofounders and brothers Karan Kunjur, left, and Neel Kunjur.

A pair of brothers is aiming to challenge the way spacecraft are built, by going against the industry trend and designing massive satellites in a bet that towering rockets such as SpaceX’s Starship are the way forward.
Los Angeles-based startup K2 Space, co-founded by CEO Karan Kunjur and CTO Neel Kunjur, is setting out to build satellite buses — the physical structure of a spacecraft that provides power, movement and more.

While manufacturers have recently pushed to optimize spacecraft by designing as light and compact as possible, with small satellites in the range of tens to hundreds of kilograms, K2 is going the other way and designing systems that would be on par with some of the largest spacecraft ever built.
“The only path to go cheaper over the last decade was to go smaller. What we’re finding is that, with the new launch capabilities of vehicles like Starship, there’s actually an interesting opportunity to go the opposite direction,” Karan Kunjur told CNBC.

An aerial view of a Starship prototype stacked on a Super Heavy booster at the company’s Starbase facility outside of Brownsville, Texas.

The cost per kilogram to deliver spacecraft to orbit has also come down, thanks to increased competition in the rocket launch market the past few years. And K2 sees opportunity beyond just Starship, from rockets in the “heavy” and “super heavy” classes, such as SpaceX’s Falcon 9 or Falcon Heavy, to those in development like United Launch Alliance’s Vulcan, Blue Origin’s New Glenn, or Relativity’s Terran R.
“We’re really building this thing to be launch vehicle agnostic, planning for a world where there are going to be multiple launch providers,” Karan Kunjur said.

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K2 Space, a play on the brothers’ surname and a nod to astronomer Nikolai Kardashev’s scales of civilization, marks Karan and Neel’s first venture together and fuses their previously divergent careers. The former spent 10 years at Boston Consulting Group engaged in company turnarounds and acquisitions, before becoming a vice president at artificial intelligence startup Text IQ before it was acquired in 2021. The latter cut his teeth at SpaceX, where he spent about six years developing systems for its Dragon spacecraft, which now fly cargo and crew to the International Space Station. Then he went to electric aircraft company Kittyhawk for a couple of years before realizing that he wanted to return to the space business.

“Our goal is to follow similar engineering principles that we followed at SpaceX but apply them at a different scale that really hasn’t been explored before in the industry,” Neel Kunjur said.
Since its incorporation in June, K2 has raised $8.5 million in a seed round led by First Round Capital and Republic Capital, and joined by Countdown Capital, Boost VC, Also Capital, Side Door Ventures, Earthrise Ventures, Spacecadet VC and Pathbreaker Ventures. Its backers have invested in a variety of space companies previously, such as First Round’s early backing of now public satellite company Planet.
The brothers have hired seven people so far to join them — bringing on talent with prior experience at SpaceX, Maxar, Arianespace, Blue Origin and more — and are in negotiations to secure a 15,000-square-foot factory in the Torrance, California, area.
K2 has also built an enviable roster of advisors, such as former NASA deputy administrator Lori Garver, former SpaceX director of the Commercial Crew and Cargo program Abhi Tripathi, former SES chief technology officer Martin Halliwell, and Lee Rosen, former U.S. Air Force space launch group commander and SpaceX vice president of mission and launch operations.
For K2, the company is targeting prices that would be unheard of for satellite buses of these sizes. So far it’s planning to build the K2 Mega, a class for up to one ton of payload mass at $15 million each, and the K2 Giga, a class for up to 15 tons of payload at $30 million each. They believe they can achieve those price points by developing new systems such as power, attitude control, thermal control and more.
“Our spacecraft are very, very different than any of the large or small satellites that exist today. We have to go relook at the components and do a lot of in-house development to design new technologies to trade mass and cost in a new way,” Neel Kunjur said.

A slide from the company’s pitch deck.

K2 has so far received a pair of small development awards from the government and said potential customers for commercial, science, and defense applications have signed early agreements.
“We envision a future where we’re the platform that allows them to relax those constraints and be able to build the payloads that they’ve always wanted to that sit on top of this platform,” Karan Kunjur said.
The company plans to launch its first Mega class spacecraft in 2024, before going for a first flight with customers in 2025.
“Knowing firsthand from SpaceX the importance of iteration, we want to improve our learning cycles so that we can get to space, learn from those components, see how they operate in the space environment, and tweak those designs in anticipation of our full launch in 2025,” Neel Kunjur said.
“If we get this right there’s a potential for a step change in how we operate in space,” Karan Kunjur added.

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Spacecraft engine manufacturer and small rocket builder Astra announced on Friday that the company is investigating “potential illegal short selling.”
The company said it hired financial software firm ShareIntel to assist with its review of “suspicious, aberrant or unusual trading activity.”
The announcement comes as Astra faces a delisting deadline of April 4, issued by the Nasdaq last year.

Astra CEO Chris Kemp speaks inside the company’s headquarters during the company’s “Spacetech Day” on May 12, 2022.
Brady Kenniston / Astra

Spacecraft engine manufacturer and small rocket builder Astra announced on Friday that the company is investigating “potential illegal short selling” among shareholders of its common stock.
The company said it hired financial software firm ShareIntel to assist with its review of “suspicious, aberrant or unusual trading activity.”

“Astra remains committed to protecting our investors and maximizing stockholder value,” Chairman and CEO Chris Kemp said in a statement.

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The announcement comes as Astra faces a delisting deadline issued by the Nasdaq last year. With shares at 47 cents as of Friday’s open, Astra has until April 4 for its stock price to return above $1 a share for at least ten consecutive business days, or it would receive a Nasdaq delisting notice. If that happens, Astra is able to appeal the delisting before a Nasdaq hearings panel.
Astra is expected to report fourth-quarter results after market close on Mar. 30.

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Allbirds missed Wall Street’s expectations on the top and bottom lines.
The footwear retailer acknowledged its results were disappointing and announced a broad transformation strategy.
The company said it failed to focus on the core consumer group and plans to realign its focus this year.

A woman walks past an Allbirds store in the Georgetown neighborhood of Washington, D.C., on Tuesday, Feb. 16, 2021.
Al Drago | Bloomberg | Getty Images

Footwear retailer Allbirds on Thursday unveiled a broad overhaul of its strategy and an executive shake-up after failing to post year-over-year quarterly sales growth for the first time in its history.
Shares of Allbirds plummeted during off-hours trading. As of Thursday’s close, shares of the company have fallen 3.5% so far this year to $2.36, giving it a market value of $352.5 million.

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The retailer, which had been in the process of a broad brick-and-mortar expansion that it’s now winding down, was candid about its failures. The company is betting its new strategy will reignite growth, improve capital efficiency and drive profitability in the coming years. 
“While we made important progress, the year came to a challenging close, with results below our expectations due to both execution and macro challenges,” Joey Zwillinger, Allbirds’ co-founder and co-CEO, said in a statement. “We need to improve performance.” 
The company said its most recent quarter was hurt by a “disappointing” holiday season. Results fell short of Wall Street’s expectations on the top and bottom lines.
Here’s how Allbirds did in its fourth quarter compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv:

Loss per share: 17 cents vs. 12 cents expected
Revenue: $84.18 million vs. $96.8 million expected

For the three months ended Dec. 31, Allbirds net loss widened to $24.87 million, or 17 cents a share, from $10.44 million, or 9 cents a share, a year earlier. Sales were $84.18 million, down more than 13% from $97.22 million year over year. 

While full year net revenue increased by 7% to $297.77 million, Allbirds’ net losses in its first full year as a public company ballooned to $101.35 million, more than double the $45.37 million in losses it recorded in 2021. 
Gross margins in the quarter decreased to 43.1% compared to 50.2% in the year-earlier period as selling, general and administrative expenses jumped to $41.6 million, compared to $36.7 million in the fourth quarter of 2021. 

What went wrong?

The shoemaker said its poor performance can be attributed to a series of missteps, including its decision to shift away from its core consumer by introducing products that deviated form that base, including technical performance running products geared for elite athletes. 
Following the successful launch of its Dasher running shoe, the company decided to penetrate deeper into the high-performance category with products like the Flyer. But Allbirds’ customers just weren’t “ready for us to serve them in that area,” Zwillinger told CNBC in an interview Thursday. 
“As we made those adjacent product development decisions, we unfortunately lost a bit of sight of what our core consumer fell in love with us for in the first place and what they continue to want from us,” Zwillinger said. 
“And unfortunately, as you have limited resources, we expended our marketing dollars and our product-development resources on those adjacencies and didn’t do as much work on embellishments of the core franchise and revitalizing those franchises to keep them extremely relevant with the core consumer.” 
Those missteps coupled with a “very promotional” holiday season led the company to miss expectations, Zwillinger said. 
“We just saw those culminating in a way that just came together and put a compound effect and had us miss expectations, which was really disappointing for us,” he said. 

Transformation strategy

The company also made a series of changes to its executive leadership and board of directors. 
Chief Financial Officer Mike Bufano will be stepping down. Annie Mitchell, who previously worked at Gymshark and Adidas, will be taking his place. 
Allbirds also hired a new head of stores for North America, eliminated its chief commercial officer position and appointed former Nike executive Ann Freeman to its board. Eric Sprunk, the former chief operating officer of Nike, has also been appointed as a board advisor.
Allbirds outlined several focus areas it plans to drill down on in 2023. It also hired a chief transformation officer — former Juul Labs executive Jared Fix — to lead the charge. 
The company plans to reconnect with its core consumer by focusing specifically on the products those customers want and offering a more curated seasonal color offering that’s gender specific. 
It will also slow the pace of Allbirds store openings in the United States and continue to partner with wholesalers — such as REI, Nordstrom and Dick’s Sporting Goods — to enhance brand awareness and boost sales. 
In 2022, the company opened 19 new stores in the U.S. As of the end of December, Allbirds had 58 total stores, 42 in the U.S. and 16 abroad. In 2023, it plans to open just three new stores in the U.S. in locations for which it signed leases in early 2022. 
The company is also revisiting its go-to-market strategy in certain international markets and is considering moving toward a distributor model to reduce operating expenses and overall complexity. 
Its final area of focus will be enhancing gross and operating margins by transitioning to a single manufacturing partner in Vietnam. 
Read the full earnings release here.
Correction: Allbirds posted a net loss of 17 cents a share in the latest quarter. An earlier version of the story said the loss was adjusted.

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Alec Baldwin’s lawyers said that New Mexico authorities destroyed the firearm at the center of the “Rust” movie criminal case.
Prosecutors disputed the claim, saying in a statement to CNBC that the gun is in evidence and “available for the defense to review.”
Baldwin, charged with two counts of manslaughter, was holding the firearm that killed a “Rust” crew member but has denied he pulled the trigger.

Hilaria Baldwin and Alec Baldwin speak for the first time regarding the accidental shooting that killed cinematographer Halyna Hutchins, and wounded director Joel Souza on the set of the film “Rust”, on October 30, 2021 in Manchester, Vermont.
MEGA | GC Images | Getty Images

New Mexico prosecutors denied the claim that Alec Baldwin’s lawyers made on Thursday that state authorities had destroyed the firearm that killed cinematographer Halyna Hutchins on the set of the movie “Rust.”
“The court, I don’t think is aware of this point, but I think I should tell the court that the firearm in this case … was destroyed by the state,” Alex Spiro, one of Baldwin’s lawyers, said during a hearing Thursday. “That’s obviously an issue and we’re going to need to see that firearm, or what’s left of it.”

Prosecutors didn’t respond to Spiro’s assertion during the hearing, but in a statement to CNBC said that Spiro’s claim is false.
“The gun Alec Baldwin used in the shooting that killed Halyna Hutchins has not been destroyed by the state. The gun is in evidence and is available for the defense to review,” said Heather Brewer, spokesperson for New Mexico’s First Judicial District Attorney’s office.
 “The defense’s unexpected statement in the status hearing today that the gun had been destroyed by the state may be a reference to a statement in the FBI’s July 2022 firearms testing report that said damage was done to internal components of the gun during the FBI’s functionality testing. However, the gun still exists and can be used as evidence.” 
Baldwin, star and producer of “Rust,” was holding the gun when it killed Hutchins. He has denied he pulled the trigger.
Lawyers for Baldwin and the film’s original armorer, Hannah Gutierrez-Reed, appeared virtually at the Thursday status hearing. The defendants are charged with two different types of involuntary manslaughter following the October 2021 fatal shooting of cinematographer Halyna Hutchins. Both counts carry a maximum possible sentence of 18 months in prison. A jury will decide which of the two counts, if any, to convict on.

The prosecution is already facing pressure for some mistakes it’s made since launching the criminal case just over a month ago. For example, the potential 18-month prison sentence is a lower penalty than Baldwin and Gutierrez-Reed were initially up against.
Special prosecutor Andrea Reeb had originally mischarged Baldwin with a firearm enhancement that would add five more years to his sentence if convicted. Reeb admitted in emails to Baldwin’s lawyers that she had incorrectly applied that enhancement, which was not in effect at the time of the shooting.
Baldwin’s lawyers filed a motion on Feb. 7 for Reeb to recuse herself from the case, which she rejected on Monday.
Reeb is simultaneously serving as special prosecutor on the “Rust” case while serving as a Republican state legislator. New Mexico’s constitution prohibits a member of one branch of government from exercising the power of another branch.
The DA’s office claimed in Monday’s court filings that because special prosecutors “do not fit squarely” within either the executive or judicial branch, the “logical conclusion” is that special prosecutors belong to neither branch. In their February motion, Baldwin’s lawyers had conversely argued that the power of prosecution cannot be neatly categorized as either executive or judicial because it falls into both branches.
A hearing on the disqualification motion will is scheduled for March 27.

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Gap fell short of Wall Street’s expectations on the top and bottom line.
The retailer, which includes its namesake brand, Banana Republic, Old Navy and Athleta, announced a series of executive changes.
The company cleared out some of its inflated inventories, which are down 21% year-over-year.

People walk by the Gap retail store in Century City on September 20, 2022 in Los Angeles, California.
Allison Dinner | Getty Images

Gap reported disappointing holiday-quarter results Thursday and announced a series of executive changes as the struggling retailer continues to search for a permanent CEO.
Shares of the company fell in off-hours trading.

Here’s how the company did in its fiscal fourth quarter compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv:

Loss per share: 75 cents, vs. 46 cents expected
Revenue: $4.24 billion vs. $4.36 billion expected

The company reported net losses of $273 million, or 75 cents a share, for the three months that ended Jan. 28, compared with a loss of $16 million, or 4 cents per share, a year earlier.
Gap reported sales of $4.24 billion, down 6% from $4.53 billion a year earlier. Comparable sales were down 5% year-over-year and store sales dropped 3%. Online sales, which represent 41% of total net sales, plummeted 10% compared to last year, the company said.
The apparel retailer — which includes its namesake brand, Old Navy, Banana Republic and Athleta — has had a rough year as it grappled with numerous net losses, bloated inventory levels and a search for a permanent CEO. During an earnings call with investors, Gap interim CEO Bob Martin said the board has narrowed its search and the next chief executive will be an external candidate.
As the company has struggled to get back to profitability, it announced it is eliminating its chief growth officer role, which has been held by Asheesh Saksena, effective Thursday. Athleta’s CEO, Mary Beth Laughton, also left the company Thursday.

“We believe Athleta has incredible potential, but it has suffered from product acceptance challengesover the past several quarters,” Martin said in a release. “As we look to capitalize on this potential and remain competitive amidst a dynamic landscape, we believe now is the right time to bring in a new leader who can position Athleta for long-term success.”
Chief People Officer Sheila Peters is also leaving, albeit at the end of the year.
Gap issued a muted outlook for fiscal 2023. It plans to close 50 to 55 Gap and Banana Republic stores and open 30 to 35 Athleta and Old Navy stores. It also expects first quarter net sales to decrease in the mid-single digit range compared to the prior fiscal year and expects fiscal 2023 net sales to decrease in the low to mid-single digit range. It does, however, expect gross margins to expand in the first quarter and during the year.
The outlook was based on “the continued uncertain consumer and macro environment,” the company said.
This time last year, Gap struggled to get products on the shelves amid worldwide supply chain constraints and ended up flying in apparel to keep up with demand. Still, backlogs and delays kept inventories in transit so by the time it finally arrived, it was out of season or out of style, forcing the company to offer steep discounts, which has cut into profits.
In a bright spot for Gap on Thursday, though, the company reported that inventory declined 21% year-over-year.
Overall, net sales for the year dropped to $15.62 billion compared to $16.67 billion in the prior fiscal year. Net losses for the year came in at $202 million, compared to a net income of $256 million in the prior fiscal year.
Here’s how each brand fared in the quarter:

Old Navy, which accounts for the majority of Gap’s revenue, posted $2.2 billion in sales, down 6% versus a year earlier. The retailer saw a pullback from lower-income consumers amid high inflation and softness in kids and baby categories, which was partially offset by strength in women’s wear. 

Gap’s sales were down 9% year-over-year at $1.1 billion. Comparable sales in North America were down 5%. Similar to Old Navy, the brand saw softness in the kids and baby category, which was offset by strength in the women’s category. 

Banana Republic posted $578 million in sales, a 6% drop compared to last year. The drop was driven by a pullback in outerwear and sweaters along with its holiday gifting assortment. Dresses and suiting drove comparable growth as consumers continue to venture back into the world and refresh their wardrobes for going out and heading to work. 

Athleta, the athleisure unit that was a big pandemic winner, saw a 1% drop in sales to $436 million. Comparable sales were down 5% because of what the company called “continued product acceptance challenges” – or issues consumers have with the brand’s assortment.

Gap had originally forecast adjusted per share earnings of $1.85 to $2.05, with sales growing at a low single digit percentage rate for the fiscal year. It slashed that guidance and then withdrew it altogether halfway through the year amid plunging sales.
The company said it withdrew the outlook because of the uncertain macroeconomic environment and its ongoing efforts to make changes and find a new CEO.
In July, Sonia Syngal abruptly stepped down as chief executive. The company has yet to find a permanent replacement. Martin, the retailer’s executive chairman, has been serving as interim CEO in the meantime.
In the previous quarter, Gap sustained $53 million in impairment charges after Ye, the rapper formerly known as Kanye West, terminated his contract with the retailer citing apparent contract breaches and a lack of creative control. In late October, Gap removed all Yeezy products from its stores after Ye made anti-Semitic remarks.
Read the full earnings release here.

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