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A general view of the BP logo and petrol station forecourt sign on January 22, 2024 in Southend, United Kingdom.

John Keeble | Getty Images News | Getty Images

The husband of a former BP merger and acquisitions manager pleaded guilty to securities fraud related to insider trading by eavesdropping on his wife’s work calls while she was handling a potential acquisition of TravelCenters of America, a fuel and truck stop operator.

Tyler Loudon, a Houston resident, earned $1.76 million with the illicit trades based on nonpublic knowledge of the possible acquisition at his wife’s company, according to U.S. Attorney Alamdar Hamdani in the Southern District of Texas. Loudon, due to be sentenced May 17, faces a maximum possible sentence of five years in prison and a $250,000 fine. As part of his plea, he agreed to forfeit the $1.76 million of illegal profits.

Separately, the Securities and Exchange Commission filed a civil complaint against Loudon related to the same conduct, which he did not contest.

“Mr. Loudon made a terrible mistake in judgment for which he has taken full responsibility,” Loudon’s lawyer, Peter Zeidenberg, told CNBC.

Authorities said that Loudon in 2022 learned of BP’s confidential plans to acquire TravelCenters in 2022 while working remotely in earshot of his wife, as many couples were due to pandemic-era work-from-home policies.

In December 2022, Loudon secretly listened to his wife’s private work calls discussing BP’s acquisition of TravelCenters while they were working remotely in a small Airbnb during a trip to Rome, according to the SEC’s civil complaint filed in Houston federal court.

After Rome, the couple continued to remotely work “in close quarters,” according to the SEC, noting that their home offices were within “20 feet of each other.”

The SEC said that Loudon’s wife acknowledged occasionally discussing the acquisition with her husband in “normal” married-couple types of conversations.

But over the next few months, Loudon, without telling his wife, accumulated 46,450 shares of TravelCenters, according to the U.S. attorney’s office.

To buy the TravelCenters shares, the SEC noted, Loudon sold all the positions in his brokerage account and Roth IRA, along with other equities, all amounting to over $2 million.

On Feb. 16, 2023, when TravelCenters announced the BP acquisition, triggering its 71% stock jump, Loudon sold all of his shares of the company, profiting $1.76 million, according to the U.S. attorney’s office.

But in March, the Financial Industry Regulatory Authority requested from BP a list of people who were “in the know” about the TravelCenters acquisition before it happened. A former BP employee who had worked on the acquisition then contacted Loudon’s wife, complaining about having to disclose her address and other personal details to comply with FINRA.

When Loudon’s wife told him about this conversation with the former employee, he asked her “if current employees would receive the same scrutiny,” the SEC complaint detailed. “Loudon’s wife responded that they would.”

A week later, Loudon admitted to his wife that he had illegally traded the TravelCenter shares “to make enough money so that she did not have to work long hours anymore,” according to the SEC.

Loudon’s wife reported her husband’s insider trading to her BP supervisor but she was later fired from the company. She filed to divorce Loudon in June, according to the SEC complaint.

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Toyota to launch a Prius-like bZ3C electric crossover, but you can’t have it

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Toyota to launch a Prius-like bZ3C electric crossover, but you can't have it

To keep up with surging BYD, Tesla, and other EV makers, Toyota is launching a new all-electric crossover. The Toyota bZ3C looks like the new Prius, but the electric SUV crossover won’t be available in the US.

Toyota to launch bZ3C in China as new BYD rival

“What kind of BEV would bring smiles to the faces of our Chinese Customers?” Executive Vice President and CTO Hiroki Nakakima asked during a press conference last month.

Toyota debuted its new bZ3C at the 2024 Beijing Auto Show in April as part of its “multi-pathway approach” to reduce emissions.

The bZ3C is designed as a fun, spacious EV around the concept of “reboot.” Toyota says the distinctive styled EV focuses on features to create a fun personal space for younger Gen Z buyers.

Toyota jointly developed the bZ3C with BYD Toyota EV Tech, FAW Toyota Motor, and Intelligent Electromobility R&D Center by Toyota.

BYD Toyota EV Tech, a joint venture between BYD and Toyota, has already launched the co-developed bZ3 electric sedan in China. However, the bZ3C appears to be a slightly bigger crossover SUV.

Toyota-bZ3C-EV
Toyota bZ3C electric crossover SUV (Source: Toyota)

The bZ3C was unveiled alongside the bZ3X, an all-electric “family-oriented” SUV. According to Toyota, the concept’s interior is based on a mobile “Cozy Home.”

Toyota-bZ3C-EV
Toyota bZ3C interior (Source: Toyota)

Both models will feature Toyota’s latest driver-assist systems and smart cockpits. Toyota is expected to begin selling both new EVs in China within the next year.

Prices and final specs will be revealed closer to launch. Check back soon for more info.

Electrek’s Take

After losing market share to BYD and other Chinese EV makers, Toyota is targeting younger buyers to compete in the region.

Toyota’s sales fell 3.1% in China in March due as “market competition continues intensifying.” Sales are down 1.6% through the first quarter as Toyota looks to rebound in the second half of 2024.

Although Toyota’s new bZ3C is designed for China, US customers also have something to look forward to.

Toyota is preparing another large electric SUV (in addition to the already announced three-row EV) as part of its recent $1.4 billion investment in its Princeton, Kentucky plant. It could be the electric Highlander we’ve been waiting for.

David Christ, GM of Toyota’s US division, told CarBuzz last month, “You’re going to see more BEVs from us in the future.” According to Christ, this will include an electric three-row Toyota Highlander.

Toyota is also considering electric Tacoma and Tundra models, but don’t get too excited. The company is monitoring the demand for rivals like the F-150 Lightning and Rivian R1T.

The company could use new electric models in the US, with its sole bZ4X accounting for less than 0.5% of sales through March. With the Lexus RZ included, total Toyota EV sales are still under 0.62%.

What do you think? Should Toyota launch its smaller electric crossover in the US? Let us know your thoughts below.

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XPeng rolls out AI-powered OS with 2K pure vision ADAS, CEO promises L4 autonomous driving by 2025

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XPeng rolls out AI-powered OS with 2K pure vision ADAS, CEO promises L4 autonomous driving by 2025

XPeng Motors is rolling out cutting-edge AI technology that it hopes will transform the automotive industry from “electrification to smartification.” The Chinese EV automaker held an AI Day event earlier today, detailing the impressive capabilities of XOS 5.1.0, “AI Tianji,” which it hailed as “the industry’s first AI-powered in-car OS.”

It’s been about a month since XPeng Motors ($XPEV) began touting its latest operating system’s (OS) capabilities during the Beijing Auto Show. XOS 5.1.0 focuses on artificial intelligence (AI) driven technologies to power smart vehicles and accelerate their evolution.

During the auto show, XPeng showcased a number of AI-centric technologies in the works that will offer its drivers an EV that can deliver more human-like decision-making and safer driving experiences via neural network learning and end-to-end data iteration from both vehicle and cloud processing.

XPeng also introduced plans to integrate and deploy what it calls the “industry’s first mass-produced 2K pure visual neural network large model in vehicles.” That news confirmed previous rumors that XPeng was abandoning LiDAR sensors in favor of pure vision, similar to Tesla FSD.

That being said, XPeng says its new system enables autonomous driving with capabilities comparable to LiDAR but uses pure vision to create a granular 3D naked-eye experience. We learned more about this technology and then some following XPeng’s AI Day event. Here’s a rundown.

  • XPeng AI
  • XPeng AI

XPeng rolls out exciting advanced tech during AI Day

There is much to unpack from XPeng’s AI Day in Beijing, China, earlier today when company founder, chairman, and CEO He Xiaopeng spoke to a live audience.

To begin, Xiaopeng outlined three core characteristics of this new breed of smart EV, led by AI large models in its OS: Active learning, rapid growth, and personalized experiences. The core of this technology involves the “feeding and training” of AI large models with unlimited rules to develop and grow their understanding, perception, and decision-making abilities in complex driving scenarios.

XPeng says it has already developed the necessary core algorithms for perception, positioning, planning, and decision-making while establishing vehicle-end and cloud-end data processing capabilities. As such, XPeng’s new AI-powered OS will enable rapid algorithm iteration based on actual data and offer future EV drivers enhanced autonomous driving capabilities that are continuously improving via over-the-air OTA updates.

A considerable part of XPeng’s OS and ADAS technology rolling out is enabled by “XNet,” the automaker’s new neural network. XNet is supported by XPeng’s planning and control large model, “XPlanner,” and a large language model called “XBrain.” Combined, XPeng says the integrated system enhances intelligent driving capabilities by 2x.

The XNet deep visual neural network used the industry’s first mass-produced pure vision 2K occupancy network to safely operate a given XPeng EV’s autonomous driving system with capabilities comparable to LiDAR. This new 2K pure vision network reconstructs the world with over 2 million grids to create 3D representations of drivable spaces and recognize every detail of static obstacles along a vehicle’s path.

XPeng shared that the perception range of pure vision 2K twice as long, covering an area equivalent to 1.8 football fields. Furthermore, the ADAS system can identify over 50 types of objects. With the autonomous driving system in place using AI and neural networks, XPeng has empowered the OS to learn and improve on its own using “XPlanner” and “XBrain.” Per the automaker:

XPlanner, like a human cerebellum, continually trains with vast amounts of data, making driving strategies increasingly human-like. This reduces driving jerks by 50%, improper stops by 40%, and passive human takeovers by 60%, providing an ‘experienced driver’-like smart driving experience that significantly enhances user comfort and safety.

With the introduction of the AI large language model architecture, XBrain, XPENG’s autonomous driving system gains human-like learning and comprehension capabilities, significantly improving its handling of complex and even unknown scenarios as well as its reasoning and understanding of real-world logics.

For example, with the support of XBrain, the autonomous driving system can recognize turn zones, tidal lanes, special lanes, and road sign text, as well as various behavioral commands such as stop and go, fast and slow. This enables it to make human-like driving decisions that balance safety and performance.

With the help of these new AI technologies, XPeng’s CEO told the crowd in China that the automaker will achieve Level 4 autonomous driving in the country by 2025. The automaker is also testing the end-to-end capabilities of its XNGP driver assistance technology globally.

Once we get the full English translation of XPeng’s AI Day event, we will be sure to add the video below. There’s much more to unpack, including the automaker’s AI assistant, Xiao P, Smart Cockpit capabilities, and safety features like AI Valet Driver, AI Parking, and AI Bodyguard. XOS 5.1.0, AI Tianji, is available to all eligible XPeng EV drivers beginning today.

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Exxon faces opposition from CalPERS after ‘devastating’ anti-ESG activist suit

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Exxon faces opposition from CalPERS after 'devastating' anti-ESG activist suit

ExxonMobil CEO Darren Woods speaks during the APEC CEO Summit at Moscone West on November 15, 2023 in San Francisco, California. 

Justin Sullivan | Getty Images

Exxon Mobil‘s months-long battle with two environmentally focused activist investors has cost the company the support of the California Public Employees Retirement System.

CalPERS, the $484 billion pension fund manager, said in a letter on Monday it would vote in opposition to all of Exxon’s 12 director nominees and its CEO Darren Woods at the shareholder meeting next week as a result of the company’s potentially “devastating” effort to quash the two activists, Arjuna Capital and Follow This. CalPERS has a $1 billion stake in Exxon.

The two activists submitted a shareholder proposal that would have forced the company to reduce direct emissions and set a target for lowering emissions at suppliers and customers. Exxon sued the investors in Texas federal court in January, prompting them to withdraw the proposal.

Even with the activists backing off, Exxon has continued its lawsuit to prevent the activists from ever again submitting such a proposal.

CalPERS said in its letter that Exxon’s “reckless” lawsuit threatened shareholder activism efforts on any issue.

“If ExxonMobil succeeds in silencing voices and upending the rules of shareholder democracy, what other subjects will the leaders of any company make off limits?” CalPERS CEO Marcie Frost and board president Theresa Taylor said in the letter. “Worker safety? Excessive executive compensation?”

CalPERS said it’s urging other shareholders to follow its lead “to send a message that our voices will not be silenced.”

Exxon could have potentially prevented the shareholder proposal from going public without a lawsuit by asking the SEC for an exclusion, which is a common practice. But Exxon went ahead with litigation, and said it’s seeking “clarity on a process that has become ripe for abuse.”

“We believe activists with minimal or even no shares should not be permitted to re-submit proposals that do not grow long-term shareholder value,” the company said in a post on its website.

Exxon has faced down activist investors in the past.

In 2021, Engine No.1 ran a campaign that landed the firm three board seats. Engine No. 1 had a 0.02% stake, compared to CalPERS’ current ownership of about 0.2%.

That campaign garnered support from a number of institutional investors, including CalPERS, in its effort to overhaul Exxon’s disclosure standards and reconsider the company’s place in a zero-carbon world.

CalPERS is now opposing those same three directors, Greg Goff, Kaisa Hietala and Andy Karsner, that it helped elect. Another activist investor, Inclusive Capital founder Jeff Ubben, is also on Exxon’s board.

“We hope ExxonMobil’s directors will reconsider the lawsuit, an effort that seems more suited to schoolyard bullying than corporate leadership,” CalPERS wrote in its letter.

WATCH: Activist Battle one year later

Activist Battle 1 Year Later

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