TSLA - Wall Street Breakfast Podcast: WeWork Files For Chapter 11

2023-11-07 06:40:15 ET

Summary

• WeWork files for bankruptcy protection in a New Jersey federal court.
• Lucid Group announces that it is adopting the NACS charging standard.
• General Motors suspends production of its autonomous vehicle, Cruise Origin van, as safety concerns mount.

Listen below or on the go on Apple Podcasts and Spotify

WeWork ( WE ) files for Chapter 11 bankruptcy protection. (00:23) Lucid Group ( LCID ) is the latest electric vehicle maker to move to NACS charging standard. (01:12) GM, Cruise to hit brakes on Origin robotaxi production as safety woes mount. (02:00)

This is an abridged transcript of the podcast.

WeWork (NYSE: WE ) filed for Chapter 11 bankruptcy protection in a New Jersey federal court Monday.

The filing came after trading in the stock was halted Monday afternoon for news pending .

WeWork ( WE ) said it had entered into a restructuring support agreement with ~92% of its secured note holders.

WeWork ( WE ) has a lease rejection plan it appears ready to implement . "WeWork is requesting the ability to reject the leases of certain locations, which are largely non-operational and all affected members have received advanced notice."

"Now is the time for us to pull the future forward by aggressively addressing our legacy leases and dramatically improving our balance sheet," CEO David Tolley said.

WeWork ( WE ) locations will continue to operate during the restructuring.

Lucid Group, Inc. (NASDAQ: LCID ) announced on Monday that all of the company's vehicles built with the current Combined Charging System will be able to charge at stations in the Tesla Supercharger network by using an adapter in 2025. In addition, Lucid will integrate the North American Charging Standard into future vehicles in 2025.

CEO Peter Rawlinson called adopting Tesla's ( TSLA ) NACS standard an important next step to providing customers with expanded access to reliable and convenient charging solutions for their Lucid vehicles. "We believe that a unified charging standard, backed by the nationwide rollout of future-ready higher-voltage charging stations, will be a critical step in empowering American consumers to adopt electric vehicles," he noted.

Lucid Group ( LCID ) joins a wave of electric vehicle makers that plan to or have already adopted the NACS standard.

Lucid Group ( LCID ) fell 6.49% on Monday and are down 30% year-to-date.

General Motors (NYSE: GM ) is suspending production of the autonomous Cruise Origin van , Forbes reported, just two weeks after its subsidiary Cruise paused all operations nationwide.

Cruise CEO Kyle Vogt told employees at an all hands meeting on Monday that the company has already produced hundreds of Origin vans, saying this would be "more than enough" for the near term.

He also responded on Hacker News to claims that Cruise's vehicles aren't fully autonomous and require support from remote staff.

"Cruise autonomous vehicles are being remotely assisted 2%-4% of the time on average, in complex urban environments," he said . "This is low enough already that there isn't a huge cost benefit to optimizing much further, especially given how useful it is to have humans review things in certain situations."

Cruise had paused operations last month as California suspended its self-driving permits after a hit-and-run incident .

GM ( GM ) previously projected that Cruise could generate up to $50B revenue yearly from 2030.

Other articles to look out for on Seeking Alpha:

VMware collaborates with Intel to unlock private AI everywhere

Kinder Morgan to buy NextEra Partners' south Texas assets in ~$1.8B deal

OMV, Abu Dhabi near deal to form €30B chemical giant - Bloomberg

On our catalyst watch for the day,

• Shareholders with NextGen Healthcare ( NXGN ) will vote on the buyout offer from Thoma Bravo.

U.S. stocks on Monday ended with slight gains after fluctuating on either side of the flatline through the day, as Wall Street took a breather after posting its best week of the year.

The Nasdaq ( COMP.IND ) gained 0.30%. The S&P 500 ( SP500 ) added 0.18% while the Dow ( DJI ) rose 0.10%.

Of the 11 S&P sectors, six ended in the red, led by Real Estate and Energy. Tech and Health Care topped the gainers.

The 10-year treasury yield was up 9 basis points to 4.65%. The 2-year yield ( US2Y ) was up 11 basis points to 4.94%.

Now let’s take a look at the markets as of 6 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are in the red. The Dow is down 0.2%, the S&P 500 is down 0.2% and the Nasdaq is down 0.2%. Crude oil is down 1.8% at more than $79 per barrel.

In the world markets, the FTSE 100 is up 0.1% and the DAX is down 0.2%.

The biggest movers for the day premarket: Alteryx (NYSE: AYX ) is up 17% after the release of Q3 results and the FY2023 outlook, which both surpassed expectations . Ventyx Biosciences (NASDAQ: VTYX ) is down 75% as the company discontinued two Phase 2 studies for its psoriasis drug VTX958, due to disappointing results.

On today’s economic calendar:

• 9:15 am the Fed’s Michael Barr will speak on Financial Technology at the 7th annual D.C. fintech week.

• 10 am the Fed’s Christopher Waller will speak on Using Economic Data to Understand the Economy at an event in St. Louis.

For further details see: