1. Tesla Recalls 2 Million EVs;
2. Pfizer Lowers Forecast, Stock Plunges;
3. Citi Offers Bonuses to Voluntary Leavers;
4. Virginia to Develop $2 Billion Sports District;
5. OpenAI Strikes Major Deal With Publishing Giant;
6. Netflix Releases Viewing Data for the First Time;
7. Salesforce Founder Sells $475 Million in Stock
1. Tesla Recalls 2 Million EVs
The National Highway Traffic Safety Administration (NHTSA) announced today that Tesla’s Autopilot system is not mature or safe enough, lacking sufficient features to ensure that drivers stay fully attentive.
As a result, Tesla will recall over 2 million affected EVs.
In its statement, NHTSA noted that while driver assistance tech is designed to improve road safety, it must be used correctly and safely to fulfill that goal.
Tesla said in its recall notice that it will soon roll out an over-the-air software update to enhance alert systems and control features.
Tesla’s shares fell as much as 1.6% in pre-market trading.
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2. Pfizer Lowers Forecast, Stock Plunges
Pfizer delivered a disappointing 2024 revenue forecast today. The company expects COVID-related vaccine and treatment revenue to hit $6 billion—far below analysts’ $13.8 billion estimate.
As a result, Pfizer shares fell 6.4% in pre-market trading, and competitor Moderna also dropped 4.5%.
Pfizer stated that total 2024 revenue may land between $58.5 billion and $61.5 billion, missing Wall Street’s $62.9 billion consensus.
The company also raised its cost-saving goal to $4 billion, up from $3.5 billion previously.
This Thursday, Pfizer is expected to close its $43 billion acquisition of Seagen.
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3. Citi Offers Bonuses to Voluntary Leavers
Sources say Citigroup will offer partial early bonus payments to employees who voluntarily resign, with amounts varying by individual.
In addition, all voluntary leavers will be eligible to receive their full deferred stock awards. For employees worried about being laid off next year, quitting now with benefits may be an attractive option.
In September, CEO Jane Fraser announced a major restructuring effort to cut layers of management and boost efficiency. The company expects to incur $200 million in restructuring charges in Q4.
Under policy rules, voluntarily resigning employees are not allowed to immediately take new jobs.
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4. Virginia to Develop $2 Billion Sports District
Today, Virginia Governor Glenn Youngkin and the owner of the NBA’s Washington Wizards and NHL’s Washington Capitals announced that both teams will relocate to a new $2 billion sports and entertainment district in Virginia.
According to development plans, the new district will also include a concert venue, convention center, sports media hub, hotel, and retail and residential space. Developer JBF Smith will lead the project.
Governor Youngkin stated that once the plan is approved, construction could begin in 2025, and the teams may move into the new arena as early as 2028.
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5. OpenAI Strikes Major Deal With Publishing Giant
Today, European publishing giant Axel Springer reached a deal with AI firm OpenAI, granting the latter access to content from publications like Bild, Politico, and Business Insider to train its AI models.
Axel Springer will receive tens of millions of euros annually, while OpenAI gains access to premium content and data to improve its models’ text, image, and code generation.
The publisher will also grant OpenAI real-time content access, making AI responses more up-to-date.
ChatGPT users will now be able to access current news, boosting the model’s real-time awareness.
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6. Netflix Releases Viewing Data for the First Time
On Tuesday, Netflix released viewing data across its entire catalog—over 18,000 titles—with a combined watch time of over 100 billion hours.
The most-watched show in the first half of 2023 was political thriller The Night Agent, with 812 million hours streamed.
Co-CEO Ted Sarandos admitted that a lack of data transparency had eroded trust among Hollywood actors and staff.
This year’s Hollywood strikes were partly driven by calls for more transparent viewership data, as creators want higher compensation for top-performing content.
Ad industry experts said the released data holds little value for targeted advertising purposes.
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7. Salesforce Founder Sells $475 Million in Stock
Since July, Salesforce co-founder Marc Benioff has been selling about $3 million worth of shares almost every day. In total, he has sold $475 million across 170 transactions this year.
Benioff used a similar selling pattern after Salesforce went public in 2004.
Cambridge University professor Alan Jagolinzer said that when CEOs dump billions in one go, it often sends negative signals and causes volatility. Benioff’s slow and steady approach is one of the safest.
By selling in small amounts, Benioff avoids causing major stock swings.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.