Two of Europe’s biggest internet satellite companies are merging to take on Starlink

Internet satellite operators OneWeb and Eutelsat are planning to merge in the hopes of becoming a stronger rival to SpaceX’s Starlink. The merger, which is subject to approval from regulators and Eutelsat shareholders, is expected to close by mid-2023 and it values OneWeb at $3.4 billion. Shareholders of OneWeb and Eutelsat will each own half of the combined company.

Eutelsat has a fleet of 36 geostationary orbit satellites. These will be combined with OneWeb’s cluster of low-earth orbit satellites, which can provide internet access from the skies. OneWeb currently has 428 satellites in orbit of a planned 648 in its first-generation network.

OneWeb and Eutelsat expect to have combined revenues of €1.2 billion ($1.56 billion) in the 2022-23 fiscal year. Eutelsat chair Dominique D’Hinnin and CEO Eva Berneke will remain in those positions in the merged entity. OneWeb investor Sunil Bharti Mittal will become co-chairman.

The merger comes after OneWeb stumbled in its bid to become a viable competitor to Starlink and Amazon’s Project Kuiper. OneWeb filed for Chapter 11 bankruptcy in March 2020 as it sought a buyer. The UK government and Mittal’s Bharti Global each paid $500 million for a 45 percent stake in OneWeb. The company secured additional funding in early 2021 to launch hundreds of satellites.

More recently, OneWeb was caught in the crossfire between Russia and the West following the former’s invasion of Ukraine. UK sanctions prompted Russia to block launches of OneWeb satellites — it demanded that the UK sell its stake in OneWeb and wanted assurances the satellites wouldn’t be used for military purposes. OneWeb ended up turning to its rival SpaceX to launch the remainder of its first-gen satellites.

After the expected merger, the UK will retain a “special share” in OneWeb as well as exclusive rights over the company. These grant the government a significant say in national security controls over the network and veto rights over certain decisions, such as the location of OneWeb’s headquarters.

Faraday Future delays the launch of its first electric vehicle yet again

Back in February, Faraday Future presented the production version of its FF91 electric SUV at its California plant and said it would start manufacturing its long-delayed vehicle in the third quarter of 2022. Now, according to Bloomberg, the embattled company has revealed in a filing for investors that it has to push back the EV’s production yet again and that it needs more cash for its commercial launch. 

Apparently, the company said it has to delay FF91’s deliveries to the “third or fourth quarter of 2022.” Seeing as the third quarter has already started, it’s now likely aiming for late Q3 — that said, the fourth quarter seems more likely, and that is if Faraday Future’s plans finally go as intended. Especially since it also has to find the money needed to keep running: The company also told investors that it needs additional cash to launch the FF91 and that it’s looking to raise around $325 million to fund its operations until December 31st, 2022. 

Faraday Future was founded in 2014 and planned to launch its first electric vehicle way back in 2018. It’s had to postpone launching its EV several times over the past years as it grappled with a litany of financial issues. The company almost ran out of cash in 2017 until a company called Season Smart, which was later acquired by Chinese company Evergrande, agreed to invest $2 billion in it. Faraday Future quickly burned through Season Smart’s $800 million initial cash injection, though, and it spent 2018 feuding with its main investor. 

While it reached a restructuring deal with Evergrande by the end of 2018, it wasn’t able to secure enough money to bring back the employees it put on unpaid leave. The company also had to give up on its plans to build a factory in Las Vegas and put up the 900-acre plot for sale for $40 million. Faraday went public in a merger with a blank-check company back in 2021, but it looks like that wasn’t enough to solve its financial woes.

As Bloomberg notes, the delay comes in the midst of an issue between the company and its founder, Jia Yueting, who stepped down as CEO in 2019 as part of the company’ restructuring deal. Apparently, a shareholder group associated with Yueting offering Faraday Future “at least $100 million” to remove an unnamed director from the startup’s board. The company reportedly pushed back, and the group accused it of not treating the offer “with the gravity, urgency and fairness it deserves” considering Faraday’s financial condition. 

VW chairman Herbert Diess will leave the company in August

Volkswagen is shaking up its leadership. The automaker has announced that group chairman Herbert Diess will leave at the end of August. Porsche chairman Oliver Blume will take over the role (while preserving his existing position) as of September 1st. The company didn’t explain Diess’ exit, but said the move was the result of a “mutual agreement.”

Diess has a somewhat mixed track record. He replaced former chief Martin Winterkorn as the Dieselgate emissions cheating scandal unfolded in 2015, and was meant to help VW move past a dark chapter in its history. In 2019, though, German prosecutors charged Diess with stock manipulation for allegedly delaying reports on the cheating to minimize the impact on company shares. Diess’ attorney contended that the executive joined VW too late to understand the ramifications of the scandal, but the allegations still tarnished the leader’s reputation.

At the same time, there’s little doubt that Diess oversaw an important moment in VW’s history. He helped the company start its transition to EVs and self-driving cars. He also prepared for declining car ownership by fostering mobility services. Much of VW’s business still depends on conventional combustion engine vehicles, but it now expects EVs to represent half of its sales by 2030. If the Dieselgate-era VW was clinging to the past, Diess’ company was bracing itself for the future.

Don’t expect a radical change under Blume. The new chairman will “press ahead” with the transformation that largely began under Diess, according to VW. Blume may serve as a custodian in that regard, but that won’t necessarily be a problem if the company continues to expand and improve its EV lineup.

Meta commits another $150 million to its Oversight Board

Meta has committed to keeping its Oversight Board running by providing ongoing financial support. The company has pledged to fund the board’s operations with a contribution of an additional $150 million. Meta previously earmarked $130 million for the board’s trust when it was set up in 2019.

The Oversight Board says the money, which is irrevocable under the terms of the trust, can only be used to fund, manage and oversee its operations. “By making this ongoing financial commitment, Meta has issued a vote of confidence in the work of the board and its efforts to apply Facebook and Instagram content standards in a manner that protects freedom of expression and pertinent human rights standards,” Oversight Board Trust chairperson Stephen Neal said.

The Oversight Board reviews certain content moderation decisions made by Facebook and Instagram and provides recommendations to Meta. Through the lens of human rights standards, it also assesses Meta’s policies and how it enforces them. The board says it has received more than a million appeals from users against moderation decisions. To date, it has issued 25 binding decisions on cases and made 118 policy suggestions, while asking many questions of Meta’s practices.

The board started making decisions on cases in January 2021 and it wasn’t long before a major case dropped into its lap: Meta’s decision to suspend Donald Trump indefinitely from its platforms after the events of January 6th, 2021. The board ultimately determined that Meta was “justified” in blocking Trump, but argued that its reasoning for an indefinite ban meant that suspending Trump for an indeterminate period of time was not within the company’s remit. As such, Meta limited the suspension to two years.

The Oversight Board has had an impact on other Meta moderation decisions and policies to the point where the company said it could not keep up with all the recommendations. Among other things, Meta has added an exception for satire to its community standards, clarified its rules on hate speech and beefed up its anti-doxxing policies. Meanwhile, the board has been critical of Meta on other fronts, such as its lack of transparency over VIP moderation rules.

250,000 car deliveries in one quarter can’t save Tesla from dwindling revenue

The supply chain issues that have wracked the rest of the automotive industry for more than a year appear to have finally caught up with Tesla. The EV automaker announced on Wednesday’s Q2 investors report that its automotive revenue has declined by more than 13 percent following last quarter’s record-breaking mark despite ending the quarter with “the highest vehicle production month” in company history. 

Per the company, Tesla produced 258,580 vehicles last quarter and delivered 201,304 of them. During last quarter’s investor call, CEO Elon Musk estimated that the company could increase its annual deliveries by 60 percent in 2022. To date, the company has delivered 564,743 vehicles and would need to sell another 935,257 of them by year’s end to meet that goal. 

This could prove challenging given that the company produced nearly 18 percent fewer vehicles this quarter than last (though still up 27 percent year over year). COVID-related lockdowns shuttered the Shanghai Gigafactory for most of Q2, though ramping production at the newer Austin and Berlin-Brandenburg plants have helped offset the closure. Austin has begun producing vehicles with the company’s new 4680 battery cells and the Berlin Gigafactory notched a production rate of more than a thousand vehicles in a single week during the last three months. 

“It is worth emphasizing that we have enough 2170 cells to satisfy all vehicle production or the remainder of the year,” Musk said. Tesla had generally managed to avoid the supply chain woes that have hamstrung the automotive industry since the start of the pandemic — until now. The MSRP of a Model Y long-range currently sits just under $66,000, that’s 30 percent higher than it cost in 2021. Tesla is continuing to focus on “production readiness” for its long delayed Cybertruck, Musk noted during the call, with production starting by “middle of next year.”

The company was sure to point out that its total revenue grew 42 percent year over year to $16.9 billion, operating income had improved year over year to $2.5 billion (with an impressive 14.6 percent operating margin) and is currently sitting atop a $18.9 billion pile of cash.

This is thanks in large part to Tesla’s liquidating 75 percent of its Bitcoin holdings (worth $936 million) over the past three months. The company invested $1.5 billion in the digital pseudo-currency in February 2021 and sold off a 10 percent stake a couple months later. Tesla’s backing of Bitcoin, much as with Musk’s pet Dogecoin currency, helped to further mainstream the crypto schemes. Musk reportedly had “a super bad feeling about the economy” in June. “We have not sold any of our Dogecoin,” Musk said.