- GRIT
- Posts
- Charging Up a $5 Billion Deal
Good Morning!
Happy Wednesday! Let’s have a great day:
👉Volkswagen’s big investment
👉FedEx earnings are in
👉Airbus deliveries delayed
VOLKSWAGEN: Major Investment
Volkswagen Group plans to invest up to $5 billion in electric vehicle startup Rivian, starting with a $1 billion initial investment. This will be followed by $4 billion by 2026, aimed at developing electrical architecture and software technology in a joint venture. Rivian's shares jumped over 50% after the announcement. The initial investment will be in the form of a convertible note, potentially converting into Rivian shares in December.
Source: InsiderEV
Rivian CEO RJ Scaringe stated this capital would support the ramp-up of their smaller R2 SUVs and a midsize EV platform, with Volkswagen using Rivian’s technology for future vehicles. The partnership aims to assist Rivian in becoming cash flow-positive amid its financial challenges and cost-cutting measures, including pausing a new factory in Georgia to save over $2.25 billion.
🎯 GRIT TAKE: The Volkswagen investment is a far more …upgrade to VIP now to read the full GRIT Take!
EARNINGS: FedEx
FedEx forecasted higher-than-expected profits and announced a $2.5 billion stock buyback over the next year, boosting shares. Adjusted earnings for fiscal 2025 will be $20 to $22 per share, exceeding analysts' estimates.
Source: CNN
Revenue is expected to grow in the low-to-mid single digits. CEO Raj Subramaniam is consolidating the Express, Ground, and Services units. FedEx is also considering divesting its freight business. Operating results at FedEx Freight improved due to higher yields and cost management. FedEx aims for $2.2 billion in cost reductions this fiscal year. The company reported quarterly earnings of $5.41 per share, beating expectations, with $22.1 billion in revenue.
AIRBUS: Delayed Deliveries
Airbus has warned that aircraft deliveries scheduled for 2025 and 2026 might be delayed due to persistent supply-chain issues. These problems have already forced Airbus to reduce its 2024 delivery targets and postpone increasing production rates for its popular A320 model.
Source: NBC
This disruption is expected to negatively impact the company's earnings and cash flow this year, causing its stock to drop by up to 10%. Despite these challenges, demand for Airbus aircraft remains high due to a travel boom, making newer models like the A320, A330, and A350 increasingly difficult to obtain.
Chart of the Day
📊15 Stocks Profit Margins
Source: Carbon Finance
GRIT Meme of the Day 😂
Tag GRIT Capital on social media for a chance to be featured in our meme or Tweet of the day in our GRIT daily newsletter! 👇
Source: @wallstreetoasis
The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.
Grit is a publisher of financial information, not an investment advisor. Grit does not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient. Grit does not guarantee the accuracy or completeness of the information provided in this page. All statements and expressions herein are the sole opinion of the author or paid advertiser.
THE INFORMATION CONTAINED ON THIS WEBSITE IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME. THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION. INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS’ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN. INVESTORS SHOULD OBTAIN INDIVIDUAL INVESTMENT ADVICE BASED ON THEIR OWN CIRCUMSTANCES BEFORE MAKING AN INVESTMENT DECISION
No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.
The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.
Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable. They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur. Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and Grit undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.
Grit does not accept any liability whatsoever for any direct or consequential loss, however arising, directly or indirectly, from any use of the information contained herein.
By using the Site or any related social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.
Please read: Terms of Use, Privacy Policy, Disclosure Policy and Disclaimer Policy
If you have any questions please contact us at info@gritcap.io
Join the conversation