Cheddar has been covering the biggest news of the week with some of the biggest names in the biz. In case you missed it, we've pulled together some of the highlights that will keep you informed as we get ready for the week ahead.
Hertz Goes Public…Again
Just days after announcing a massive order from Tesla to purchase 100,00 electric vehicles, rental car company Hertz went public again. Shares started trading on the Nasdaq Tuesday, more than a year after it declared Chapter 11 bankruptcy and was delisted from the New York Stock Exchange. Hertz's interim CEO Mark Fields and Tom Wagner, vice chair, talked to Cheddar about the revival of the rental car brand. "Our move to electrification is really a customer-in move. We're looking at customers. They want to experience EVs, so literally now, with our relationship with Tesla, we've become the first and best choice for them to experience EVs. And, as I say, we're ready to partner across the industry on this," Fields said.
Rivian's Record IPO Rattles Auto Industry
In what was the biggest IPO debut since Facebook in 2011, electric vehicle startup Rivian shot to a near $90 billion valuation on the first day of trading after going public on the Nasdaq. Shares were priced at $78 and shot up as high as $130 by the end of the week. Auto industry insiders say the historic IPO signals that the auto sector is truly ready to graduate to the next phase of mobility. "There's this story being recognized by the market that we're at the early innings of a multi-decade transformation in mobility as transportation becomes increasingly connected, autonomous, and electric, and I think Rivian is going to play an important role in that," Asad Hussain, lead mobility analyst at Pitchbook, told Cheddar.
International Travel to U.S. Resumes
Monday marked the end of pandemic-related travel restrictions to the U.S. as vaccinated international visitors were admitted into the country. Now, all eyes are on the travel industry as it looks to rebound from losses taken over the last 20 months. John Geller, president of Marriott Vacations Worldwide, told Cheddar, "Obviously here in the U.S., in certain markets, we dealt with the COVID variant here in the third quarter, specifically down in Florida, and we still delivered very strong results. The reality is people want to get back to normalcy, they want to get back on vacation, and we're 100 percent focused on the leisure traveler."
Cannabis Industry Slowed by Q3 Headwinds
Despite a number of new states legalizing marijuana this year, for Massachusetts-based cannabis company Curaleaf, Q3 proved to be somewhat of a challenge on the earnings front. The company did have a record beat on revenue with $317 million over the quarter but reported widening losses of $59.3 million over the three-month period, compared to just $8.9 million a year ago. CEO Joe Bayern said a slowdown in consumer spending and slower-than-expected regulation in newly legalized states contributed to the Q3 losses. But, still, there's hope, he told Cheddar. "Obviously there are a lot of strong catalysts on the horizon when it comes to the cannabis industry with the legalization of cannabis in N.J., with N.Y. now approving whole flower for the first time as part of its medical program, and of course Conn. also transitioning to an adult-use state."
Supply Chain Bottlenecks Ahead of Holidays
Ahead of the holiday shopping season, supply chain constraints continue to be a thorn in the side of businesses as demand for goods shows no signs of slowing. With businesses ramping up efforts to get more products out the door, parcel delivery companies are crafting plans to meet the demand. "I think the reality is, we can't handle demand that just grows ad infinitum. So, what we've done is carefully plan and work with our customers to give them additional volume — 15 to 20 percent more, say, during peak — so we can keep their product moving," Greg Hewitt, U.S. CEO at DHL Express, told Cheddar. Hewitt also suggested that commercial airliners return as an option for carrying cargo as other freight options continue to struggle.