Look Out Tesla! Volvo Plans to Disrupt Electric Car Industry; Plus Tesla’s Major Q2 Miss; Losing My Religion: Denim Company Goes Bust

Tesla disrupt…

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With all the attention Tesla has been getting – and seeking – lately, a major company just threw down the automotive gauntlet in the electric car arena. Enter Volvo, the perennial boxy but safe, Swedish import, which just announced that come 2019, it will only sell hybrid or electric vehicles. That’s right. The ultra-reliable, ever dependable Volvo will likely be giving Tesla a serious run for its money. The fact that its got a solid, dependable reputation to back it up only sweetens the pot. Lucky for Volvo, its parent company Geely Automobile Holdings of China has already sold tons of electric vehicles and now Volvo gets to tap into all those tech resources. And it’s not just Tesla that should be worried. Toyota, Honda and BMW, to name a few, should also look to up their game now that Volvo has entered the field. This announcement is epic since it means that Volvo becomes the very first major automobile manufacture to make the decision to completely kick internal combustion engines to the curb. Interestingly enough, hybrids accounted for only about 2% of auto sales in the U.S. last year, in part because gas prices have fallen so much, that people don’t mind getting cars with traditional gas-guzzling engines.

Speaking of which…

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Shares of Tesla took a nasty little drop today after the company reported that its second quarter sales were flat as a pancake. To add insult to fiscal injury, the company also reported that it delivered just 22,000 vehicles. That seems like a good thing except for the fact that Tesla had built over 25,000 cars. Demand is good. Oversupply is not so good. At all. And the fact that consumers have stopped demanding the Model S sedans and the Model X utility cars leaves Wall Street feeling less than stoked about Tesla. Especially Goldman Sachs, which just released a report documenting its concern over Tesla’s slow growth. It’s never good when Goldman Sachs is concerned about you. Naturally, Tesla pointed its finger at the ever-reliable and handy excuse of “production issues” to explain the shortfall of deliveries. Too bad Wall Street didn’t seem to care what excuse Tesla used.

Another one bites the dust…

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Image courtesy of Tuomas_Lehtinen/FreeDigitalPhotos.net

Today’s Chapter 11 bankruptcy filing is brought to us by True Religion, purveyor of super-pricey denim. True Religion brass is pointing the finger at e-commerce and the shift in consumer spending habits, since customers are choosing to purchase their goods from their devices instead of heading into actual stores where True Religion merchandise is typically sold. Fortunately, the company was able to come up with a restructuring agreement with several of its lenders that should get rid of approximately $350 million of its debt, while its creditors would get paid in full, at least the ones critical to the company’s operations. In the meantime, with 140 stores still under its belt, the company is going to explore ways to “reinvigorate the brand.” In other words, it is going to try to figure out how to get people to spend hundred of dollars on True Religion’s pricy merchandise once again.

GM is Looking to Outclass Tesla: Über is Finally Making Friends Again; Job Market is Looking Even Better Than Our Wildest Dreams – Sort of

Tesla? Tesla who?

Image courtesy of Danilo Rizzuti/FreeDigitalPhotos.net

Image courtesy of Danilo Rizzuti/FreeDigitalPhotos.net

The US auto industry sold some 16.5 million vehicles this year. Yet only 120,000 of those were of the electric and hybrid ilk even though it seems like everyone and their mother drives one. Interestingly enough (or not), some 20 electric/hybrid models have made their presence felt in the automobile market. With oil prices dropping, the appeal of these anti-gas guzzlers are dropping too. So what better time than for GM to announce that Tesla needs to uh…step aside and make way for not one, but two electric/ hybrid vehicles it plans to officially churn out by 2017. But Tesla’s are so cool, what’s to worry? Well, for one, GM’s Chevy Bolt (such an adorable name I can’t stand it and it even rhymes with the Chevy Bolt) boasts a range of 200 miles on a single charge. If that’s not electrifying then I don’t what is. Oh wait, yes I do. The price tag will be $30,000, $5,000 less than Tesla’s Model 3 also due out in 2017. To be fair, no word on how options will affect those digits. By the way, if you find yourself cruising the streets of Palo Alto, you might just notice quite a bit more Chevy Volts tooling around than…dare I say it, Teslas. Just saying.

Wanna borrow my notes?

Image courtesy of renjith krishnan/FreeDigitalPhotos.net

Image courtesy of renjith krishnan/FreeDigitalPhotos.net

Über is finally making headlines for not getting shut down. Well, almost. The ride-sharing app made a deal with Boston officials to share its “smart data” all in the name of goodwill. And maybe some good press, too. While protecting the privacy of its riders and drivers, Über and Boston officials hope to solve some of the city’s problems like easing traffic congestion and improving local infrastructure. Fills you with warm fuzzies, doesn’t it? It was seen as a particularly surprising move for two reasons: one, last month saw the arrest of a Boston area Über driver on assault charges. Two, Über didn’t hand over its “smart data” to officials in New York City even though they asked for it too. In fact, New York’s mighty and powerful Taxi & Limousine Commission managed to shut down all but one of Über’s operations for not coughing up the data. However, Über continues to operate pending the results of an appeal. Rumor has it that Über is in talks with New York City officials, much to the discontent of the TLC, who denies “talks” are even taking place with the competition. By the way, Über announced lower fares in 48 cities. New York City isn’t one of them. As a matter of fact, nor is Boston. Go figure.

Labor Market High…

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Job openings in the US hit a 14 year high in November. When the job market posts such impressive digits, you know what that means, dontcha? It means that great numbers are expected for 2015. No seriously. It really does. November saw job openings increase by 2.9% to 4.97 million jobs. That’s a lot of benefits. Not since January 2001 has the job market been such a pleasant topic of conversation. All this hiring gets employers thinking that they’re going to need even more peeps to help churn out all those goods and services which we apparently need and cannot go without. So, provided that all this fabulous job hiring continues we might just be able to look forward to…dare I say it…wage increases. But that’s experts talking. Not me. Just saying. Then there are all those quitters. A good job market loves quitters. For real. Because when quitters quit it means they have moved onto better jobs/careers/life changes. So there.