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Electric Truck Manufacturer Nikola Downsizes Workforce by 23%

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American manufacturer of heavy-duty commercial battery-electric vehicles, fuel-cell electric vehicles, and energy solutions, Nikola, has downsized its workforce by 23%, which is about 270 employees as it proactively cut costs and reduced expenses.

The company on Friday stated that it will lay off 150 workers who were supporting the company’s European programs. Also, it will lay off another 120 employees based at the company’s Phoenix and Coolidge, Ariz sites.

Speaking on the downsizing of part of its workforce, Nikola CEO Michael Lohscheller said,

“Nikola has initiated a more focused business plan this quarter, concentrating on North America, zero-emission truck production, and our HYLA hydrogen business. Our battery-electric truck is in the marketplace and performing well for our customers, and the hydrogen fuel cell electric truck will go into production in a matter of weeks. We are proactively managing costs and reducing expenses. We are streamlining operations, including our organizational structure to efficiently execute our objectives”.

Nikola revealed that the cuts are expected to decrease personnel-related cash spend by more than $50 million annually. As a result of the cuts, the company’s annual cash spend is expected to decrease to $400 million by 2024.

Founded in 2015, Nikola set out to make zero-emission big rigs using hydrogen fuel cell technology. On June 4, 2020, it went public on NASDAQ under the symbol NKLA.

In July 2021, a United States federal grand jury indicted Nikola founder and former CEO Trevor Miltonbut did not indict the company. The indictment charged Milton with three counts of criminal fraud for lying about nearly all aspects of the business and two counts of securities fraud.

In February 2022, the company then installed Michael Lohscheller as the new CEO. In a statement, Nikola chairman Steven Girsky said in his six months since joining the company Lohscheller has brought “an increased sense of urgency” and “accelerated decision-making.

The new CEO Is reported to have already made several notable achievements, including having a major impact in moving the Tre battery-electric vehicle (BEV) into series production and achieving development milestones for the Tre fuel cell electric vehicle, the company says.

In February 2022, the company projected deliveries of between 300 and 500 of its first battery-electric semi trucks known as the Nikola Tre to customers.

In February 2023, the pioneering manufacturer of hydrogen electric vehicles, announced that it has selected PlusDrive to be offered on Nikola Tre vehicles coming to market in 2024. PlusDrive, developed by automated truck developer Plus, is designed to enhance safety, fuel efficiency, and driver comfort. It will be available on Nikola’s battery-electric and hydrogen-electric vehicles sold in the U.S.

However, last month, the electric truck manufacturer Nikola Motor was threatened with exclusion from the US stock exchange Nasdaq, because the share price was below $1 per share for 30 consecutive days.

The company has been granted a grace period until 20 November 2023 to comply with the regulations. Nasdaq has a minimum share price rule that requires the share price to be above $1 for 10 consecutive business days.

Electric truck company Nikola has laid off 270 people in an attempt to reduce costs and focus on the North American market. Only 900 employees will remain as 150 workers were cut from its European programs and another 120 in Phoenix and Coolidge, Arizona were also impacted. The staff reduction will save the company $50 million annually, with the overall effort reducing spend by almost $400 million by 2024. The cuts come amid a challenging time for Nikola between leadership shakeups and overall cash issues currently affecting several EV startups. (LinkedIn News)

US SEC and Binance-US have Reached a ‘Settlement Deal’

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The US Security and Exchange Commission – SEC and Binance.US have reached a settlement agreement that will end the lawsuit filed by the regulator against the crypto exchange and its founder Changpeng Zhao. The settlement, which was announced on June 16, 2023, will require Binance.US to pay a $200 million civil penalty and to implement various remedial measures to ensure compliance with the federal securities laws.

The lawsuit, which was filed on June 5, 2023, accused Binance.US and Zhao of operating unregistered securities exchanges, broker-dealers, and clearing agencies; misrepresenting trading controls and oversight on the Binance.US platform; and the unregistered offer and sale of securities, including Binance’s own crypto assets. The SEC also alleged that Zhao and Binance secretly allowed U.S. customers to trade on the Binance.com platform, which was not registered with the SEC, and that they commingled and diverted customer assets to entities owned by Zhao.

The settlement agreement will resolve all the charges brought by the SEC against Binance.US and Zhao, without admitting or denying the allegations. As part of the settlement, Binance.US will cease offering certain crypto products and services to U.S. customers, such as BNB, BUSD, crypto-lending products, and staking-as-a-service programs. Binance.US will also register as a national securities exchange, broker-dealer, and clearing agency with the SEC, and will submit to regular audits and inspections by the regulator. Binance.US will also establish an independent board of directors and a compliance committee to oversee its operations and ensure adherence to the securities laws.

Zhao, who is also known as CZ, will step down as the CEO of Binance.US and will divest his ownership stake in the company. He will also cooperate with the SEC in any ongoing or future investigations or enforcement actions related to Binance.com or other entities he controls. Zhao will also refrain from participating in any activities involving securities offerings or trading in the U.S.

Binance has struck a deal with the Securities and Exchange Commission that will allow it to continue operating in the U.S. and protect customer assets amid an ongoing lawsuit between the two over Binance’s alleged misuse of customer funds, The New York Times reports. The agreement, which needs approval from a federal judge, will only give U.S. employees access to customers’ private wallet keys and not any international officials, including founder Changpeng Zhao. The news comes a week after Binance.US told customers to withdraw their U.S. dollars after the SEC was pushing for an asset freeze. (LinkedIn News)

The SEC’s Chair Gary Gensler praised the settlement as a “significant achievement” for the protection of investors and the integrity of the crypto markets. He said that the SEC will continue to pursue enforcement actions against entities that violate the securities laws and put investors at risk. He also urged other crypto platforms to register with the SEC and comply with the regulatory framework.

Binance.US’s new CEO Brian Brooks said that the settlement marks a “new chapter” for the company and its customers. He said that Binance.US is committed to providing a safe and compliant platform for crypto trading and innovation in the U.S. He also thanked Zhao for his leadership and vision in creating Binance.US. The settlement agreement is subject to court approval.

The settlement deal is a major blow to Binance, which is the largest cryptocurrency exchange in the world by trading volume. Binance has been under intense scrutiny from regulators around the world, who have accused it of facilitating money laundering, tax evasion, and other illicit activities. Binance has also faced lawsuits from investors who claim they lost money due to Binance’s negligence or fraud.

However, the settlement deal is also not investor friendly. It leaves many questions unanswered about the legal status of Binance’s tokens and services, and the rights and remedies of its customers. For example, what will happen to the funds and assets of US customers who have accounts on Binance? Will they be able to withdraw them or transfer them to another platform?

How will they be compensated for any losses or damages caused by Binance’s actions or inactions?

From IDEA to REVENUE – The Playbooks of Business

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There are two major stable states in business: the IDEA and REVENUE states. Everything we do in business is to cause a Transduction, from Idea to Revenue states. Yes, as a lovable Physics student in secondary school, I like to use natural philosophy to explain things. Here, the word is “transduction”, moving from one energy state to another. 

The “idea state” has to move to the “revenue state” for you to find success in the market, and for that to happen, you must exert energy in the system. The energy in this case comprises many things organized around processes, tools, and people. Oh yes, you work on the factors of production. Amazing indeed.

All those components provide the Grand Playbook of Business. And from Oriendu Market Ovim (Abia State) to Goldman Sachs trading desk in New York, the DNA of all thriving businesses is the same: fix your customer frictions by deploying capabilities, building products and services, via efficient organization of the factors of production.

Are you attending Tekedia Mini-MBA? We have the largest business students co-studying in Africa. Why not come and co-learn with me? We’re the #best and our members learn real stuff here!

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Godwin Emefiele, Nigeria’s Suspended Central Bank Governor, is Still in Custody

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Exactly one week after the suspended governor of the central bank of Nigeria, Mr Godwin Emefiele was arrested and detained by the State Security Services (SSS). Since then, nothing has been heard of him, nobody can tell in what condition he is under their detention. He has spent seven whole days in the secret police’s detention prison without him having access to his lawyers, family members or medical care.

If an elite of the elites like a Central Bank of Nigeria governor can be treated like this then it should cast fear in the mind of average Nigerians of what will become of the common man who finds himself in the sprawling hands of DSS. 

Everyone is quiet and pretending as if the way Mr Godwin Emefiele is being treated by the DSS is right because he is deemed to be a public enemy but an injustice to one is an injustice to all despite whomever the one person is. Today it is Mr. Emefiele’s right that is being abused by the SSS tomorrow it might be you. 

Statutorily speaking; according to the constitution of the federal republic of Nigeria and the Administration of criminal justice act and other applicable laws in Nigeria, nobody should spend more than 48 hours (maximum of two days) in a law enforcement detention without being charged to court, anything other than that is in breach of the fundamental human rights of the detained no matter whatever offence the suspect is alleged to have committed but Mr Emefiele has not only spent 48 hours but a whole 7 days without access to his legal representatives, his family member or his doctors. He has been grilled and interrogated without his lawyers present. If you see this as the right thing because of who is involved then you should be scared of your own rights. 

His legal representative had to file a motion ex parte in court yesterday, the 16th of June praying the court to order the state security services to grant Mr. Emefiele access to his lawyers. The motion court gracefully granted and ordered the SSS to allow Mr Emefiele access to his lawyers pending when the substantive suit comes up in court on 20th June 2020. 

It is appalling that it will require a court order before a detained person in SSS custody will get to see and confer with his lawyers. We hope that Mr Emefiele will have his day in court soon. The court is the determinant of whether he is a criminal or not and not the law enforcement agencies.

By the way, as a way of clarifying the confusion, the name “Department of State Services (DSS)” although regularly used to refer to the Nigerian secret police is not known to our law, what our law knows and what the right name for them is State Security Services (SSS). 

Mercedes is Incorporating ChatGPT to Enhance Voice Commands in Vehicles

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Mercedes-Benz will incorporate ChatGPT into its cars in the US to create AI-powered hand-free commands, following an agreement between the two companies.

The automaker follows General Motors in adopting generative artificial intelligence in the wake of its explosion. ChatGPT has humanlike interaction capabilities that automobile companies intend to use.

Mercedes vehicles are equipped with voice-command capabilities that enable drivers to use the phrase “Hey, Mercedes” followed by a brief command. This functionality allows users to perform various tasks such as adjusting the temperature, finding a navigation destination, or making a phone call within the vehicle. Microsoft said ChatGPT would make these voice commands more fluid and natural and could enable additional functions.

Starting June 16, owners of MBUX-enabled models in the United States will have the opportunity to participate in a beta program that activates ChatGPT functionality. By opting into this program, the versatile language model will enhance the car’s conversational capabilities. To join the beta program, simply instruct your car by saying, “Hey Mercedes, I want to join the beta program.”

While Mercedes has an existing voice command, the integration of ChatGPT will expand the scope of the conversation. Instead of solely responding to basic commands, the Mercedes system will now have the ability to engage in more natural and conversational interactions.

With the integration of ChatGPT, the system can retain the context of previous discussions and participate in back-and-forth dialogues with the driver and passengers. This enhanced functionality enables the system to respond to a wider range of requests, even those unrelated to the car or driver. For example, drivers can inquire about a quick recipe or the ideal time to visit Colorado.

“Users will experience a voice assistant that not only accepts natural voice commands but can also conduct conversations. Soon, participants who ask the Voice Assistant for details about their destination, to suggest a new dinner recipe, or to answer a complex question, will receive a more comprehensive answer – while keeping their hands on the wheel and eyes on the road,” Microsoft said.

Additionally, Microsoft explained that the ChatGPT system can collaborate with other applications, allowing it to handle tasks such as making restaurant reservations or purchasing movie tickets. This integration expands the capabilities of the system beyond the vehicle itself.

ChatGPT is seeing gradual adoption outside the internet, where millions of people are already using it due to its ability to fulfill tasks such as writing essays, picking stocks, and writing codes with humanlike context.

Voice commands in automobiles have been touted as safer for drivers to use than buttons or touchscreens, as it limits the distraction that comes from looking away from the road. The increasing number of automakers creating voice commands in vehicles over the past decade indicates a shift from the use of buttons.

With the growing adoption of AI-based tools such as ChatGPT, voice command is likely going to significantly replace buttons and touchscreens in vehicles soon.