Dockworkers strike at the Bayport Container Terminal in Seabrook, Texas, on October 1, 2024.
Mark Felix | Afp | Getty Images
This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
Widespread effect of port strike Members of the International Longshoremen’s Association started striking Tuesday, halting activity at U.S. East Coast and Gulf Coast ports, which stretch from Maine to Texas. If the strike drags on, global supply chains and the economy could take a beating. That runs the risk of causing inflation to flare up again.
Risk-off on crypto Amid this cautious atmosphere, investors pulled back from cryptocurrency. Bitcoin is currently trading at $61,407.21, down from nearly $66,000 on Sunday. Crypto-related companies also struggled on Tuesday. Coinbase tumbled 7.4% and fell around 1% in extended trading.
[PRO] Fund manager’s worst-performing stock Ranmore Global Equity Fund managed to beat the S&P the past two years. But there have been slip-ups as well. Its fund manager shares with CNBC the worst-performing stock he’s picked: why he bought it, what went wrong and the lessons he learned.
The bottom line
Just when the coast appeared clear, geopolitical tensions and potential supply chain snarl-ups threaten to turn the soft-landing trajectory into a bumpy one.
Port workers along the U.S. East Coast and Gulf Coast started striking Tuesday. At a port in the New York-New Jersey area, around 100,000 shipping containers “are literally in limbo in the port,” said New York Governor Kathy Hochul.
“A disruption of a week or two will create some backlogs but the broader consequences will be minimal,” said Adam Kamins, economist at Moody’s Analytics.
Should the work stoppage go on for longer, however, “you’re running into businesses that have real shortages and, yeah, they’ll absolutely have to raise those prices,” said Christopher Ball, economics professor at Quinnipiac University.
(Fans of Rao’s pasta sauce need not fear, for now. Piper Sandler wrote that Campbell Soup, which bought Rao’s earlier this year, “has healthy levels of inventory on hand.”)
Meanwhile, oil prices spiked as markets feared Iran, a member of OPEC, would be dragged into a larger conflict in the Middle East. Higher oil prices pose a risk to inflation resurging, or at least slowing less than everyone is hoping for.
With those fears and uncertainties swirling, the Cboe Volatility Index, known as Wall Street’s fear gauge, climbed to 19.3 on Tuesday. It closed at 15.4 a week ago. Major U.S. indexes fell, with the tech-heavy Nasdaq suffering the most as megacaps like Tesla, Nvidia and Apple dropped.
It’s just the first days of the port strike and flare-up in Middle East tensions, however. The classic safe-haven trades, like bonds, gold and the U.S. dollar, aren’t showing up in the prices of those assets yet, noted CNBC’s Steve Liesman.
The best-case scenario would be that recent events are just minor turbulence on the way to a soft landing.
– CNBC’s Jeff Cox, Fred Imbert, Lori Ann LaRocco, Sean Conlon, Alex Harring and Brian Evans contributed to this story.
Now, a new group of investors from Singapore has stepped in to take over.
The news was shared on Energica’s YouTube channel, and the company confirmed on LinkedIn that “The judicial process undergoing the sale of Energica has received an offer with a significant deposit from investors based in Singapore.” Energica says that the investors, who so far remain unnamed, “are enthusiasts that believe in, and share the common values of Energica.”
While it’s not certain how the buyout and revival will unfold, it appears that Energica is planning on getting the band back together. “If the process comes through successfully,” the company explained, “the same team behind Energica will be entrusted to run the operations, and we will continue creating cutting-edge technologies for our customers.”
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With many of Energica’s impressive electric motorcycles already in circulation from years of sales leading up to the 2024 bankruptcy, the company seems focused on starting by supporting those riders. ” Our first order of business is to support the customers and community. The judicial process will be completed in 60 days, and we will continue to share updates during the time.”
Energica rose to fame by building high-performance electric motorcycles in Modena, Italy, and was one of the early pioneers in the premium electric two-wheeler space. Its lineup includes models like the Experia electric touring bike and the Ego sportbike. The company previously supplied race bikes for the MotoE World Cup until Ducati took over the role in 2023.
After being acquired by US-based Ideanomics in 2021, Energica initially benefited from an injection of capital that helped expand production and dealer networks. But Ideanomics itself has faced serious financial trouble, becoming unable to invest in the future of Energica.
Energica’s future prospects seemed dim at the time of its insolvency in 2024, but the uncertainty appears to be clearing with the hope that new owners can breathe fresh life into the company.
Even so, Energica’s core competency is building the fastest, most powerful, and longest range production electric motorcycles the world has ever seen, and that’s not exactly an inexpensive enterprise. Combined with current market trends that favor smaller, lighter, and less expensive commuter-spec electric motorcycles, it begs the question of whether or not a newly revived Energica will find a receptive market, or whether the company will be forced to expand the scope of its products to match better the type of electric motorcycles that are selling today.
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Chinese carmaker XPeng is getting perilously close to bringing its AeroHT consumer eVTOL concept to market, thanks to a $250 million Series B round that’s set to accelerate the company’s modular “flying car” production plans.
XPeng subsidiary AeroHT had its first successful proof of concept test flight ahead of the brand’s annual 1024 back in 2023, where the company unveiled a pair of flying car designs. The X3 is an actual flying “car” that can drive, park, and take off on its own, and a second, modular eVTOL that folds up into the back of an electric van called the Land Aircraft Carrier.
That vehicle pair, shown at CES in January, was set to begin production this year, with the eVTOL component set to begin production in 2026 – and that’s looking a lot more likely thanks to the new infusion of capital!
AeroHT at CES 2025
Xpeng Aeroht raised $150 million in Series B1 funding last August, before launching its Series B2 funding round. The most recent announcement that the company has secured an additional $100 million in its Series B2 funding round brings the total amount raised to more than $750 million, with a $1B pre-revenue valuation.
Scooter Doll said it best, writing, “this footage (of the AeroHT test flight) is as scary and concerning as it is exciting and awe-inspiring.” Which is to say that these things are real, they seem like they’re getting built, and they seem like they’ll sell well enough to convince at least one or two remaining boomers that the flying car they’ve been promised their whole lives is – finally! – coming to market.
Here’s hoping.
SOURCE: Xpeng, via CNEVPost; gallery photos by the author.
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Flooring manufacturer Beauflor USA just turned on the biggest rooftop solar system by capacity in metro Atlanta — and it’s now powering part of its Georgia factory.
The new 1,040 kW system in Cartersville officially beats metro Atlanta’s previous rooftop solar record of 1,034 kW. The new array produces enough energy to power more than 100 homes. The system is expected to cover about 10% of Beauflor’s electricity needs and cut its carbon emissions by about 920 metric tons annually.
“This solar installation represents our commitment to sustainable manufacturing practices while making sound business decisions,” said Emile Coopman, continuous improvement manager at Beauflor. He added that the system is designed with room to grow: “This is the first step toward more renewable energy.”
The company partnered with Cherry Street Energy to install the nearly 2,000-panel system, which was completed in less than four months. Cherry Street invested $1.8 million into the project and is covering all construction and maintenance costs through a 30-year energy procurement agreement. Beauflor will buy solar power directly from Cherry Street, allowing it to avoid upfront capital costs while still lowering its energy bills.
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“As Georgia’s manufacturers ramp up production amid rising costs for grid energy, sophisticated operators seek ways to quickly and sustainably address their energy needs,” said Cherry Street CEO Michael Chanin. “On-site solar with no capital expense delivers just that: reliable, affordable electricity.”
Chanin added that the system’s power output is especially impressive: “The previous record-holder for metro Atlanta’s largest rooftop solar required over 4,000 panels. We’re using less than 2,000 to reliably generate even more power.”
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Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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