GM’s Billion-Dollar Disaster ๐Ÿ’ธ ๐Ÿ’ธ

General Motors is expanding a recall of one of its first EVs over concerns that the car could catch on fire. The risk supposedly stems from “defective battery modules in the vehicles.”

The expanded recall involves a total of 73,000 Chevrolet Bolt EVs and EUVs from the 2019-2022 model years. GM claims it will replace the defective battery modules. Unfortunately, the whole ordeal will cost over $1.8 billion. According to InsideEVs, that comes out to about $11,000 per vehicle. Oof.

The company was quick to assign blame to its battery provider, LG Energy Solutions, for manufacturing defects. GM expects to pursue “reimbursement commitments” from LG. In other words, GM wants its money back and wants LG to fix the problem. LG Energy Solutions, which is owned by LG Chem, also provides batteries to for EVs built by Tesla and Renault.ย 

$GM stock fell over 10% this week. LG Chem rose 1.8%.

Peloton’s New Partnership

With Peloton’s turnaround strategy not yet bearing the fruit it had anticipated, the company continues to lean on partnerships to grow market share. For example, in September, the company entered a 5-year strategic partnership with Lulemon to bring its content to the athleisure brand’s exercise app. It also made Lululemon Peloton’s primary athletic apparel partner. ๐Ÿ‘Ÿ

It’s still too early to tell whether or not that cooperative effort is working, but management seems to think further initiatives like it will help boost revenues. As a result, it’s partnering with TikTok to bring short-form fitness videos and other content to the social media platform.

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Apple Drains EV Resources For AI

After ten years of research and development, Tim Apple is finally pulling the plug on Apple’s electric vehicle (EV) project. Because as we all know, EVs have lost their luster and given way to the business world’s new savior…artificial intelligence (AI). ๐Ÿ˜‡

Bloomberg broke the news today, saying the tech giant disclosed the strategy shift internally and surprised the nearly 2,000 employees working on the project. Executives told staffers the project would begin winding down and that many of the car team’s employees would be shifted to its artificial intelligence division, focused on generative AI.ย 

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AT&T Suffers Major Outage

Those who work at AT&T today did not have a great day, but those who use their services had a pretty good excuse to chill out at work today. That’s because the telecom giant experienced a nationwide cellphone outage that impacted tens of thousands of its customers today. ๐Ÿ“ต

While the nation’s largest carrier said it restored wireless service to all impacted customers by midday, no reason has been given for the outages. With T-Mobile and Verizon’s networks unaffected, regulators quickly questioned whether AT&T experienced a hack or other cyberattack. ๐Ÿ“ก

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Investors Are Losing Trust

It’s been a rough eighteen months or so for real estate investment trusts (REITs), with higher interest rates giving investors alternative sources of yield and pressuring commercial real estate’s asset values. Unfortunately for Medical Properties Trust (MPT), that pain continuesย today, with its shares falling back to their Great-Financial-Crisis lows. ๐Ÿ˜ฌ

The medical-related real estate property operator revealed to investors that one of its tenants, Steward Health Care System, is roughly $50 million behind in rent payments. As a result, MPT will take a $225 million noncash charge to write off rent receivables and other items.ย 

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