Bird, the electric scooter company, has been delisted from the New York Stock Exchange (NYSE) due to its failure to maintain a market cap of over $15 million for 30 consecutive days. The company’s stock price has also been struggling to stay above $1. Although Bird will continue to trade over-the-counter, it plans to appeal the decision. The timing of the delisting is particularly concerning as Bird recently acquired Spin, another electric scooter company. The acquisition raised questions about whether it would be enough to save Bird from further troubles.
Key Takeaway
Bird has been delisted from the NYSE due to its failure to maintain a market cap of over
5 million for 30 consecutive days. The company’s future is uncertain as it appeals the decision and struggles to regain investor confidence. Meanwhile, the micromobility sector is facing concerns about the safety of lithium-ion batteries used in electric scooters. In other news, electric boat startups are attracting investor interest, and several notable deals have taken place in the transportation industry. There have also been updates in the EV space and notable developments in the gig economy. Tesla is facing a lawsuit over racial harassment, while Volkswagen’s software unit Cariad is making key hires to advance its software architecture.
Challenges ahead for Bird
With its delisting from NYSE and uncertain financials, Bird faces a tough road ahead to regain investor confidence. While Spin’s reported revenue is only about a fifth of Bird’s, it is unclear how much runway Bird has without access to Spin’s balance sheets. The company’s operating expenses, debts, and available cash, along with its turbulent history, further add to the challenges it will have to overcome.
One pressing concern in the micromobility sector is the safety of lithium-ion batteries used in electric scooters. In light of increasing incidents of battery fires, Rep. Ritchie Torres has introduced legislation that would establish a national safety standard for these batteries. The bill comes as online retailers like Amazon continue to sell unsafe batteries, posing a risk to users.
Investment in electric boat startups
Investors are showing interest in electric boat startups, as demonstrated by the recent $70 million Series B funding round raised by Los Angeles-based startup Arc. The funding, which brings Arc’s total investment to over $100 million, will be used to scale up with a new electric boat designed for watersports such as wakeboarding and wakesurfing. This focus sets Arc apart from other EV boat startups that primarily produce hydrofoil-styled boats that are not suitable for watersports.
Other notable deals
In addition to Arc’s successful funding round, there were several other notable deals in the transportation industry. Swiss electric propulsion developer H55 raised around $49 million in Series C funding, while AI chip developer Kneron raised $49 million in an extension to its Series B round. On-demand delivery app Line Man Wongnai is also preparing for an initial public offering in Bangkok that could raise approximately $300 million. Furthermore, Sierra Space secured $290 million in a Series B round to support its Dream Chaser spaceplane and commercial space station projects, valuing the company at $5.3 billion.
Updates in the world of electric vehicles
There have been several developments in the electric vehicle (EV) space. Ford has halted work on its planned EV battery plant in Michigan, which was expected to produce cheaper lithium iron phosphate batteries. The decision has raised questions, with some speculating that it may be related to the ongoing United Autoworkers strike or regulatory uncertainties surrounding incentives. Meanwhile, Honda is aiming to leverage its extensive EV partner network in the U.S. to start selling EVs in the country. Lucid Group has opened its first international factory in Saudi Arabia, where it will assemble pre-manufactured vehicle kits. On the other hand, Volkswagen has abandoned its plans to launch a dedicated EV factory in Germany and will instead modify existing plants.
Developments in the gig economy
In the gig economy, several significant developments have taken place. Ride-hailing companies Uber, DoorDash, and Grubhub faced a setback in New York City as a judge ruled in favor of implementing a minimum pay rate for food delivery workers. In an unexpected twist, Uber has also struck a multiyear partnership with Los Angeles Yellow Cab and its partner taxi fleets, allowing taxi drivers to access Uber trip referrals. This collaboration highlights the evolving dynamics between ride-hailing and traditional taxi companies.
Legal actions against Tesla
Tesla is facing a lawsuit from the U.S. Equal Employment Opportunity Commission (EEOC) accusing the automaker of racial harassment and retaliation against its Black employees. This is not the first time Tesla has faced legal action over allegations of racial bias and harassment. The lawsuit adds to the mounting pressure on the company to address and rectify these issues. In a separate incident, Volkswagen’s software unit Cariad has hired Sanjay Lal, who previously worked at Rivian and Google, to lead the development of its software architecture across VW Group brands.
