1. BYD Becomes World’s Most Popular EV Maker;
2. NBA Approves Mark Cuban’s Team Sale;
3. SPAC Investors Lose $46 Billion;
4. New York Times Sues Microsoft and OpenAI;
5. Americans Overmedicate Due to Cough Stigma;
6. Billionaire Defaults on $9M in Rent;
7. Samsung Delays US Factory Production.
1. BYD Becomes World’s Most Popular EV Maker
This quarter, China’s BYD is expected to surpass Tesla in pure electric vehicle (EV) sales, becoming the world’s number one EV maker.
Traditionally dominated by Volkswagen, General Motors, and Toyota, the EV market has rapidly shifted in recent years, with Chinese EV makers outpacing those in the US, South Korea, and Germany. China is now vying with Japan for global leadership in passenger car exports.
Bridget McCarthy, head of China operations at Shenzhen-based hedge fund Snow Bull Capital, said the competitive landscape of the auto industry has shifted again. BYD prepared for the future early on, proving that size doesn’t guarantee dominance. The company has become a market leader through fast innovation and adaptability.
Elon Musk warned that high interest rates have made Teslas unaffordable for many, whereas BYD’s models are significantly cheaper and come in a wider range.
As of October this year, 1.3 million of China’s 3.6 million vehicle exports were EVs.
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2. NBA Approves Mark Cuban’s Team Sale
Today, the NBA Board of Governors officially approved Mark Cuban’s $3.5 billion sale of the Dallas Mavericks’ majority stake to the family of Miriam Adelson.
The Adelson family is the controlling shareholder of Las Vegas Sands, which develops large-scale resorts, hotels, casinos, convention centers, and entertainment venues.
Miriam stated that Texas has always treated her family well, and this acquisition is a way to give back. She is excited to support the team and meet passionate fans.
Cuban bought the Mavericks in 2000 for $285 million. Earlier this month, sports media outlet Sportico valued the team at $2.77 billion.
The Adelson family will sell $2 billion worth of Las Vegas Sands shares to finance the purchase.
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3. SPAC Investors Lose $46 Billion
SPACs (special purpose acquisition companies) boomed during the COVID era. However, according to Bloomberg, at least 21 SPAC-backed companies filed for bankruptcy this year, including unprofitable EV startups and agri-tech firms.
These companies have lost a combined $46 billion in market value compared to their peak valuations.
Gary Broadbent, a former executive at SPAC AppHarvest, said SPACs enabled companies with weak financials to go public—many of which were not ready for IPOs.
Some of the largest SPAC-related bankruptcies include WeWork, Proterra, and Lordstown Motors.
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4. New York Times Sues Microsoft and OpenAI
The New York Times has filed a lawsuit against Microsoft and OpenAI, alleging unauthorized use of its content to train AI systems.
According to the suit, both tech companies used millions of copyrighted articles without permission to train chatbots and other AI tools, causing billions in actual and potential damages to the Times.
Since the debut of ChatGPT a year ago, AI models have come under scrutiny for scraping online content to boost functionality. The Times is the first major media company to take legal action.
So far, no specific financial damages have been requested.
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5. Americans Overmedicate Due to Cough Stigma
During the pandemic, Meg McNamara was sent home by her employer due to symptoms resembling COVID—but her cough and red eyes were simply from allergies.
To avoid similar incidents and the stigma from others, Meg began taking over-the-counter meds like Benadryl daily to mask symptoms. She said the experience was miserable, as the meds caused drowsiness and fatigue.
Though the pandemic has eased, many Americans still suffer similar experiences. Even a small cough can lead to judgment or social exclusion.
In the year through early December, US sales of upper respiratory OTC meds rose 23% from 2019 to $11.8 billion. Cold and flu remedies led with a 30% increase, while allergy and cough medicines like Zyrtec and Benadryl rose 10% to $4.9 billion.
Many Americans are overusing OTC drugs just to avoid being “sick-shamed.”
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6. Billionaire Defaults on $9M in Rent
Earlier this year, billionaire Charles Cohen’s firm, Cohen Brothers Realty, defaulted on the land lease for Tower 57 on East 57th Street.
Landowner William Wallace filed a lawsuit seeking to evict the building’s tenants and recover $9 million in unpaid rent, plus $4.2 million in overdue property taxes.
In a July letter, Cohen said high vacancy rates were hurting the building, as office demand had dropped. He proposed converting the building into condo units but Wallace refused. Cohen blamed Wallace for the missed rent payments.
That summer, Cohen stated he wished to terminate the lease due to Wallace’s unwillingness to support the redevelopment.
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7. Samsung Delays US Factory Production
According to Seoul Economic Daily, Samsung Electronics is postponing mass production at its new chip plant in Taylor, Texas from the second half of 2024 to 2025—a blow to President Biden’s plans to boost domestic chip manufacturing.
Recently, TSMC also delayed its Arizona factory plans to 2025, citing labor shortages among construction workers and equipment specialists.
Slow permitting processes and federal grant delays have repeatedly held back US semiconductor projects.
Now that both major chipmakers are delaying until after the 2024 presidential election, the issue could negatively impact Biden’s re-election campaign.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.