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EVs Now Emit 73 percent Less Than Gasoline Cars Over Their Lifetime, Says ICCT Study

4 Mins Read

A new analysis from the International Council on Clean Transportation (ICCT) has found that battery electric vehicles (BEVs) sold in Europe today produce 73 percent fewer greenhouse gas emissions over their lifetime than comparable gasoline-powered cars

The findings are based on an updated life-cycle assessment (LCA) of all major vehicle powertrain types, including internal combustion engine vehicles (ICEVs), hybrids (HEVs), plug-in hybrids (PHEVs), battery electric vehicles (BEVs), and hydrogen fuel cell electric vehicles (FCEVs).

The report accounts for emissions from vehicle and battery manufacturing, energy production, use and maintenance, while crucially considering changes in the EU’s electricity mix over a car’s operational life.

“Battery electric cars in Europe are getting cleaner faster than we expected and outperform all other technologies, including hybrids and plug-in hybrids,” said lead researcher Dr. Marta Negri. “This progress is largely due to the fast deployment of renewable electricity across the continent and the greater energy efficiency of battery electric cars.”

Further estimates show that BEVs sold this year emit an average of 63 grams (g) of CO₂-equivalent per kilometer (e/km)—down from 83 g CO₂e/km in the ICCT’s 2021 study, and far below the 235 g CO₂e/km estimated for gasoline ICEVs.

The improvement, the ICCT said, reflects rapid decarbonization of Europe’s grid and growing efficiency gains in battery and vehicle production.

When BEVs are powered solely by renewable electricity, their life-cycle emissions fall even further—to 52 g CO₂e/km, or 78 percent lower than those of gasoline cars.

In contrast, the ICCT found that other powertrain types show only limited progress. Plug-in hybrids emit about 30 percent less than gasoline cars over their lifetime, and hybrids achieve just a 20 percent reduction. Natural gas vehicles offer only a 13 percent cut, and diesel cars show emissions similar to gasoline models.

The report also assessed hydrogen fuel cell vehicles. When powered by hydrogen derived from renewable electricity—a technology not yet widely available—FCEVs can reduce emissions by 79 percent compared to gasoline cars.

However, nearly all hydrogen currently used in Europe is produced from natural gas, limiting the actual emission savings to around 26 percent.

Decarbonizing the grid key to BEV success

The ICCT attributes the growing emissions advantage of electric cars to the rapid transition toward renewable energy across the EU.

In 2025, renewables are expected to make up 56 percent of electricity generation, up from 38 percent in 2020. This trend is projected to continue, reaching 86 percent by 2045, based on data from the EU’s Joint Research Centre.

Even with their higher production emissions—largely due to battery manufacturing—electric cars close the “emissions debt” within the first 17,000 kilometers of use, typically within the first one to two years in Europe.

Another purpose of its updated LCA, according to ICCT, was to counter widespread misinformation about electric vehicles’ environmental impacts.

“We hope this study brings clarity to the public conversation, so that policymakers and industry leaders can make informed decisions,” said Dr. Georg Bieker, co-author of the report. “We’ve recently seen auto industry leaders misrepresenting the emissions math on hybrids.”

“Life-cycle analysis is not a choose-your-own-adventure exercise. Our study accounts for the most representative use cases and is grounded in real-world data. Consumers deserve accurate, science-backed information,” he added.

A common misperception, the ICCT notes, is that electric cars are worse for the climate because of their manufacturing footprint.

However, the study concludes that failing to account for the evolving electricity mix and real-world driving patterns leads to distorted comparisons that undervalue electric cars’ advantages.

The full report can be viewed on the ICCT’s website.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

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White House accuses Powell of mismanaging Federal Reserve, citing headquarters renovation

2 Mins Read

President Donald Trump’s budget chief on Thursday said that Federal Reserve Chairman Jerome Powell “has grossly mismanaged the Fed” and suggested he had misled Congress about a pricey and “ostentatious” renovation of the central bank’s headquarters.

The broadside by Office of Management and Budget Director Russell Vought opened up a new front in Trump’s war of words against Powell.

Trump has repeatedly called on the Fed chairman to cut interest rates, without success. He reportedly has considered firing Powell and, more recently, publicly naming the chairman’s replacement months earlier than the end of Powell’s term next spring.

Vought’s letter raises the question of whether Trump will seek to remove Powell for cause, at least ostensibly.

But the Supreme Court in a recent decision strongly suggested that Federal Reserve board members have special protection from being fired by a president.

“While continuing to run a deficit since FY23 (the first time in the Fed’s history), the Fed is way over budget on the renovation of its headquarters,” Vought wrote in a post on the social media site X.

“Now up to $2.5 billion, roughly $700 million over its initial cost,” Vought wrote. “The cost per square foot is $1,923–double the cost for renovating an ordinary historic federal building. The Palace of Versailles would have cost $3 billion in today’s dollars!”

Vought’s tweet linked to a letter he sent Powell that referenced the Fed boss’s June 25 testimony before the Senate Banking Committee.

“Your testimony raises serious questions about the project’s compliance with the National Capital Planning Act, which requires that projects like the Fed headquarters renovation be approved by the National Capital Planning Commission,” Vought wrote.

“The plans for this project called for rooftop terrace gardens, VIP private dining rooms and elevators, water features, premium marble, and much more,” he wrote.

But Powell, in his testimony, said, “There’s no VIP dining room. There’s no new marble. There are no special elevators. There are no new water features. There’s no beehives and there’s no roof terrace gardens,” Vought wrote.

“Although minor deviations from approved plans may be inevitable, your testimony appears to reveal that the project is out of compliance with the approved plan with regard to major design elements,” Vought wrote.

This post appeared first on NBC NEWS

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Duffy just got an additional job in Trump’s administration, and he’s not the only one wearing multiple hats

9 Mins Read

The Trump administration repeatedly has assigned additional job roles to Cabinet members and other officials amid government shake-ups as the president solidifies his agenda for the coming years, Fox News Digital found. 

Secretary of Transportation Sean Duffy was the latest Trump official assigned an additional role Wednesday. The Transportation chief and Trump ally now also serves as the administration’s acting NASA administrator after the president pulled a former nominee’s name from consideration to lead NASA. 

Duffy, however, is not alone in taking on multiple roles within Trump’s second administration. Fox News Digital looked back on the various Trump Cabinet members and officials wearing multiple hats as the president works to realign the federal government with his ‘America First’ policies. 

Sean Duffy 

Duffy, a former Republican congressman from Wisconsin, was tapped to oversee the Department of Transportation and was confirmed by the Senate Jan. 28. Since his confirmation, Duffy has juggled a handful of crises related to tragic plane crashes, including the Potomac River midair collision Jan. 29 and air traffic control issues that plagued New Jersey’s Liberty International Airport earlier in 2025. 

Trump posted to Truth Social Wednesday evening that Duffy would also serve as interim chief of NASA. 

‘I am pleased to announce that I am directing our GREAT Secretary of Transportation, Sean Duffy, to be Interim Administrator of NASA,’ Trump wrote in his announcement. 

‘Sean is doing a TREMENDOUS job in handling our Country’s Transportation Affairs, including creating a state-of-the-art Air Traffic Control systems, while at the same time rebuilding our roads and bridges, making them efficient, and beautiful, again. He will be a fantastic leader of the ever more important Space Agency, even if only for a short period of time. Congratulations, and thank you, Sean!’

Duffy replaced Janet Petro, who has served as acting NASA administrator since Trump’s inauguration. The president had previously nominated an Elon Musk ally named Jared Isaacman to lead NASA but pulled his nomination in June as Trump’s and Musk’s relationship hit the rocks over the ‘big, beautiful bill.’

‘Honored to accept this mission. Time to take over space. Let’s launch,’ Duffy posted to X of the new role. 

Marco Rubio 

Rubio and the Trump administration came under fire from Democrats for the secretary of state holding multiple high-profile roles in the second Trump administration, including Democrats sounding off on the national security council shake-up on Sunday news shows. 

‘There’s no way he can do that and do it well, especially since there’s such incompetence over at DOD with Pete Hegseth being secretary of defense and just the hollowing out of the top leadership,’ Illinois Democratic Sen. Tammy Duckworth told CBS’ ‘Face the Nation.’ ‘There’s no way he can carry all that entire load on his own.’

‘I don’t know how anybody could do these two big jobs,’ Democratic Virginia Sen. Mark Warner said on CNN’s ‘State of the Union.’

Rubio’s roles in the administration include leading the State Department, serving as acting archivist of the United States after Trump ousted a Biden-era appointee, serving as acting administrator of the U.S. Agency for International Development as the administration who works to dissolve the independent agency by September and taking the helm as the interim national security advisor. Rubio’s role overseeing USAID concluded at the start of July when the State Department officially absorbed the agency. 

When asked about the trend of Trump officials wearing multiple work hats in May, the White House reflected in a comment to Fox News Digital on former President Joe Biden’s ‘disaster of a Cabinet.’ 

‘Democrats cheered on Joe Biden’s disaster of a Cabinet as it launched the botched Afghanistan withdrawal, opened the southern border to migrant criminals, weaponized the justice system against political opponents and more,’ White House spokesperson Anna Kelly told Fox News Digital in May. ‘President Trump has filled his administration with many qualified, talented individuals he trusts to manage many responsibilities.’ 

The Trump administration repeatedly has brushed off concerns over Rubio holding multiple roles, most notably juggling both his State Department leadership and serving as acting national security advisor. Similarly, former President Richard Nixon in 1973 named National Security Advisor Henry Kissinger to simultaneously serve as secretary of state. 

‘You need a team player who is very honest with the president and the senior team, not someone trying to build an empire or wield a knife or drive their own agenda,’ an administration official told Politico. ‘He is singularly focused on delivering the president’s agenda.’ 

Despite Democratic rhetoric that Rubio was taking on too many roles, the former Florida senator helped oversee successful U.S. strikes on Iran in June, which destroyed a trio of nuclear sites and decimated the country’s efforts to advance its nuclear program. 

Kash Patel

FBI Director Kash Patel, who railed against the ‘deep state’ and vowed to strip corruption from the federal law enforcement agency ahead of his confirmation, was briefly charged with overseeing the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in February after the Biden-era director resigned in January. 

Patel was later replaced by Secretary of the Army Daniel Driscoll as acting ATF director in a job change that was reported publicly in April. 

‘Director Kash Patel was briefly designated ATF director while awaiting Senate confirmations, a standard, short-term move. Dozens of similar re-designations have occurred across the federal government,’ the White House told Reuters in April. ‘Director Patel is now excelling in his role at the FBI and delivering outstanding results.’

Daniel Driscoll 

Driscoll was sworn in as the 26th secretary of the Army in February. The secretary of the army is a senior-level civilian official charged with overseeing the management of the Army and also acts as an advisor to the secretary of defense in matters related to the Army. 

It was reported in April that Driscoll was named acting ATF director, replacing Patel in that role. 

‘Mr. Driscoll is responsible for the oversight of the agency’s mission to protect communities from violent criminals, criminal organizations, and the illegal trafficking of firearms, explosives, and contraband,’ his ATF biography states. ‘Under his leadership, the ATF works to enforce federal laws, ensure public safety, and provide critical support in the investigation of firearms-related crimes and domestic and international criminal enterprises,’

Ahead of Trump taking office, Republican representatives Eric Burlison of Missouri and Lauren Boebert of Colorado introduced legislation to abolish the ATF, saying the agency has worked to strip Second Amendment rights from U.S. citizens. 

The ATF has been tasked with assisting the Department of Homeland Security in its deportation efforts under the Trump administration. 

Doug Collins 

Former Georgia Republican Rep. Doug Collins was sworn in as the Trump administration’s secretary of Veterans Affairs in February, a Cabinet-level position tasked with overseeing the department and its mission of providing health, education and financial benefits to military veterans. 

Days after his confirmation as VA secretary, Trump tapped Collins to temporarily lead two oversight agencies, the Office of Government Ethics and the Office of Special Counsel. 

The Office of Government Ethics is charged with overseeing the executive branch’s ethics program, including setting ethics standards for the government and monitoring ethics compliance across federal agencies and departments. 

The Office of Special Counsel is charged with overseeing and protecting the federal government’s merit system, most notably ensuring federal whistleblowers don’t face retaliation for sounding the alarm on an issue they’ve experienced. The office also has an established secure channel to allow federal employees to blow the whistle on alleged wrongdoing. 

The Office of Special Counsel also enforces the Hatch Act, which bans executive branch staffers, except the president and vice president, from engaging in certain forms of political activity. 

Jamieson Greer 

Trump’s trade representative, Jamieson Greer, has also been tapped for multiple roles within the administration, in addition to helping lead the administration’s tariff negotiations to bring parity to the chronic U.S. trade deficit with other nations. 

Greer took on Collins’ roles as acting director of the Office of Government Ethics and as acting special counsel of the Office of Special Counsel April 1. 

Trump nominated conservative attorney Paul Ingrassia to lead the Office of Special Counsel in May. 

Russell Vought 

Trump named his former director of the Office of Management and Budget under his first administration, Russell Vought, to the same role in his second administration. Vought was confirmed as the federal government’s budget chief in February. 

Days later, Vought was also named the acting director of the Consumer Financial Protection Bureau (CFPB).  

The CFPB is an independent government agency charged with protecting consumers from unfair financial practices in the private sector. It was created in 2010 under the Obama administration after the financial crash in 2008. Democratic Massachusetts Sen. Elizabeth Warren originally proposed and advocated for the creation of the agency.

The CFPB came under fierce investigation from the Department of Government Efficiency in February, with mass terminations rocking the agency before the reduction in force initiative was tied up in court. 

Ric Grenell 

President Donald Trump’s former ambassador to Germany and acting director of national intelligence under his first term, a pair of roles held at separate times in the first administration, currently serves as president of the Kennedy Center and special presidential envoy for special missions of the United States. 

The John F. Kennedy Center for the Performing Arts serves as the national cultural center of the U.S. Trump notably serves as the center’s chair of the board, and Grenell said the center will see a ‘golden age’ of the arts during Trump’s second administration through productions and concerts that Americans actually want to see after years of the performing arts center running in the red. 

Trump named Grenell as his special presidential envoy for special missions to the United States in December 2024 before his inauguration, saying Grenell will ‘work in some of the hottest spots around the world, including Venezuela and North Korea.’

In this role, Grenell helped lead the administration through its response to the wildfires that tore through Southern California in the last days of the Biden administration through the beginning days of the Trump administration. 

Fox News Digital’s Jasmine Baehr contributed to this report. 

This post appeared first on FOX NEWS

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Core Scientific deal reveals cracks in CoreWeave’s bull case

3 Mins Read

Shares of Core Scientific plunged after AI cloud provider CoreWeave announced plans to acquire the data center firm in an all-stock deal, a reaction that defies the typical market response to acquisition news.

Instead of rallying to reflect the purchase price, Core Scientific stock dropped 25%, closing at $13.43 on Wednesday—far below the deal’s implied value.

The trading pattern indicates that investors anticipate a significant drop in CoreWeave’s stock price before its acquisition of Core Scientific is finalized.

The acquisition is expected to close in the fourth quarter.

Deal value hinges on volatile CoreWeave stock

The agreement, announced Monday, would see Core Scientific shareholders receive 0.1235 shares of CoreWeave for every Core Scientific share.

At CoreWeave’s pre-deal trading price of $165.20, that implied a value of $20.40 per Core Scientific share.

However, CoreWeave shares have already fallen to $153.05, dragging the implied deal value down to $18.90.

Even that figure may be overly optimistic. Based on options market pricing, CoreWeave stock could trade closer to $115 by November.

At that price, the value of the deal to Core Scientific shareholders would be just $14.20—a level far closer to where shares are currently trading.

This uncertainty stems from a key feature of the deal: it lacks the usual protections often included in all-stock mergers.

There’s no price collar or floor to safeguard Core Scientific shareholders if CoreWeave’s stock declines before the deal closes.

That omission has left investors wary and the stock vulnerable.

Arbitrage traders stay cautious

Normally, such a large discount between the current trading price and the implied deal value would attract merger arbitrage traders hoping to profit from the spread.

But the lack of price protection and volatility in CoreWeave’s stock complicates such bets.

“Using the options market, you can currently buy or sell shares of CoreWeave in November for $115,” says Kevin Mak, a trader and director of the Real-Time Analysis and Investment Lab at Stanford Graduate School of Business, in a Barron’s report.

“This is not a judgment; this is what the market is pricing it at.”

Adding to the pressure, CoreWeave is a richly valued stock.

Since its IPO, the company has surged 283% on the back of triple-digit revenue growth and limited share liquidity.

However, it trades at 8.7 times projected 12-month sales—nearly double the Nasdaq Composite average of 4.4.

The average Wall Street price target for CoreWeave is $94.56, suggesting further downside from current levels.

Lockup expiry could trigger stock pressure

Investor concerns may intensify in August, when CoreWeave’s IPO lockup period expires.

Early backers—including Magnetar Financial, which owns more than 30% of the company—will be free to unload their shares.

Magnetar’s stake, worth around $14.7 billion, accounts for three-quarters of its portfolio.

A move to reduce exposure could flood the market with stock, driving prices lower.

Despite CoreWeave’s strategic rationale for buying Core Scientific—mainly to gain control over the data center capacity it already leases—investors are signaling doubts over the sustainability of its valuation and the fairness of the deal terms.

The post Core Scientific deal reveals cracks in CoreWeave’s bull case appeared first on Invezz

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Boeing delivers most airplanes since late 2023 after ramping up 737 Max output

2 Mins Read

Boeing delivered 60 airplanes last month, the most since December 2023, as the plane maker seeks to raise production of its bestselling 737 Max jets after a series of manufacturing and safety problems.

The tally was the highest since before a door plug from one of its new 737 Max 9 planes blew out midair in January 2024, sparking a new crisis for the company and slowing production and deliveries of aircraft. Of the monthly total, 42 were 737 Maxes, going to customers including Southwest Airlines, Alaska Airlines and United Airlines.

CEO Kelly Ortberg, who took the top job at Boeing last August, has said the company has made progress in improving production rates and quality on its factory lines.

For the three months ended June 30, Boeing handed over 150 airplanes, its best second quarter since 2018, before two crashes of Max planes five months apart grounded the jets and sparked a multiyear crisis at the top U.S. exporter. That was also the last year Boeing posted an annual profit. Its problems also gave rival Airbus a bigger lead over Boeing.

Boeing this spring had been producing about 38 Max aircraft a month and will need Federal Aviation Administration approval to go above that limit, which the agency set after the door plug accident. Ortberg said at a Bernstein investor conference in late May that he’s confident that the company could increase production to 42 of the jets a month.

The company booked 116 gross orders in June, or 70 net orders when including cancellations and accounting adjustments. Boeing often removes or adds orders to its backlog for a variety of reasons including customers’ financial health.

Boeing’s backlog stood at 5,953 as of June 30.

The manufacturer is set to report second-quarter financial results on July 29, when investors will be focused on Ortberg’s plan to increase production and aircraft deliveries.

This post appeared first on NBC NEWS

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Watchdog backs Rubio’s sanctions on UN official over ‘shameful efforts’ targeting US, Israel

3 Mins Read

The Biden-era kid gloves are off.

On Wednesday, Secretary of State Marco Rubio announced the United States is imposing sanctions on Francesca Albanese, the controversial United Nations (UN) Special Rapporteur on Palestinian rights.

‘Albanese’s campaign of political and economic warfare against the United States and Israel will no longer be tolerated,’ Rubio posted on X. ‘We will always stand by our partners in their right to self-defense.’

Albanese has pushed to haul U.S. and Israeli officials before the International Criminal Court (ICC), drawing outrage from lawmakers, diplomats, and human rights advocates alike.

In multiple reports and public comments since her 2022 appointment, Albanese has accused Israel of apartheid and dismissed Hamas violence as ‘not surprising.’ According to her July 2025 report to the UN Human Rights Council, Albanese claimed the U.S. may be ‘liable for the international crime of aggression’ for President Trump’s strikes on three Iranian nuclear sites.

Albanese has also taken aim at American-based companies supplying defense technologies to Israel, suggesting they should face legal consequences for ‘aiding and abetting’ alleged crimes. In a now‑deleted 2022 post, she questioned whether ‘the Jewish lobby’ controlled U.S. foreign policy, a comment she later retracted amid criticisms that it espoused antisemitism.

‘The State Department is to be congratulated for finally taking action against Albanese, her virulent and violent antisemitism and her constant attacks on the United States, American businesses and the very existence of the State of Israel,’ said Anne Bayefsky, President of Human Rights Voices, in an exclusive statement to Fox News Digital. 

‘Albanese poses a direct threat to the well-being and security of U.S. citizens – not to mention her utter disregard for the theoretical purposes and principles of the United Nations – and as such, the United States is not obligated to admit her. President Trump’s Executive Order requiring action on international actors bent on throwing American and Israeli soldiers into International Criminal Court dungeons in the Hague needs even more enforcement,’ Bayefsky added.

 

‘Add Navi Pillay and her diabolical UN Commission of Inquiry. There is an answer for those who would incorrectly argue that the U.S. is impotent in the face of the U.S-UN host agreement: kick the UN out of the U.S. along with Albanese and her UN partners in crime,’ the statement concluded.

Israeli leaders quickly backed Rubio’s move. ‘A clear message. Time for the UN to pay attention!’ Foreign Minister Gideon Sa’ar posted in response.

Israel’s UN Ambassador Danny Danon also weighed in to the Jerusalem Post: ‘Albanese consistently undermines the credibility of the UN by promoting false and dangerous narratives… We will not remain silent.’

Hillel Neuer, Executive Director of UN Watch, weighed in with a statement to Fox News Digital, writing: ‘This is a bold and courageous move by Secretary Rubio. No UN official — in this case, a purported official, as her reappointment was illegal — has ever been sanctioned before in history. Then again, no UN official has ever been condemned for Holocaust distortion and antisemitism by France, Germany, Canada, and both Democratic and Republican US administrations.’

‘She will never again spread her poison on American campuses or enter the country. Justice is served. Good triumphs over evil.’

This post appeared first on FOX NEWS

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Vedanta shares slide upto 8% after US-based short seller labels Group a ‘Ponzi Scheme’

3 Mins Read

Shares of Vedanta Ltd plunged as much as 8% intraday on July 9, before paring some losses, after US-based short seller Viceroy Research issued a scathing report on its parent Vedanta Resources.

The note called the group “financially unsustainable, operationally compromised, and resembling a Ponzi scheme.”

At the time of writing, Vedanta shares were trading 3.5% lower at ₹439.60 on the NSE, while Hindustan Zinc Ltd — another group company — was down 2.6% at ₹424.

Viceroy Research is known for its investigations into major corporate scandals, including Wirecard and Steinhoff.

Viceroy’s allegations on Vedanta

Viceroy’s central claim is that Vedanta Resources, the UK-based holding company controlled by Anil Agarwal, is “a parasite holding company with no significant operations of its own, propped up entirely by cash extracted from its dying host: Vedanta Ltd.”

“This creates a self-destructive feedback loop,” the report said, alleging that Vedanta Ltd’s equity — used as collateral for Vedanta Resources’ borrowings — is being compromised by the group’s financial practices.

“Vedanta Resources cannot meet its short-term financial obligations without looting Vedanta Ltd. This strategy resembles a Ponzi scheme,” it added.

Viceroy also accused the group of capitalising expenses across subsidiaries to artificially inflate profits and asset values — a practice it termed “material misrepresentation.”

The report raised concerns about rising interest expenses despite debt reduction.

Viceroy claimed Vedanta Resources’ effective interest rate has jumped from 6.4% to 15.8% since FY21, while generating no operating free cash flow.

Vedanta responds

In response, Vedanta dismissed the report as a “malicious combination of selective misinformation and baseless allegations.”

The group said Viceroy did not attempt to contact it before publishing the note.

“Viceroy Research report is a malicious combination of selective misinformation and baseless allegations to discredit the Group,” Vedanta said in a statement.

As of March 31, 2025, Vedanta Resources’ standalone net debt stood at $4.9 billion.

The company has previously announced a plan to reduce its debt by $3 billion over three years, starting June 2024.

The company added in the press release:

It only contains compilation of various information – which is already in the public domain, but the authors have tried to sensationalise the context to profiteer from market reaction.

The timing of the report is significant, coming amid Vedanta’s proposed restructuring into multiple listed entities — a move announced in 2023 following the failure of Agarwal’s 2020 attempt to privatize Vedanta Ltd.

The short seller further alleged that Hindustan Zinc Ltd (HZL) is “a legal and financial minefield” involving contract breaches, regulatory violations, and related-party deals meant to extract value at the cost of public shareholders.

“Any one of the multitude of risks we outline is sufficient to topple Vedanta’s already fragile, Ponzi-like structure,” Viceroy said, adding that the group showed “systematic governance failures” including questionable auditor appointments.

The post Vedanta shares slide upto 8% after US-based short seller labels Group a ‘Ponzi Scheme’ appeared first on Invezz

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Is a Chinese chain’s blood orange cold brew the future of coffee in America?

5 Mins Read

Chinese chain Luckin Coffee opened its first two U.S. locations this week, betting that mobile-only ordering and creative flavors can lure customers away from Starbucks.

Both new Luckin stores are based in Manhattan, and at the midtown location on Wednesday, Sam Liu took a sip of her jasmine cold brew.

“I’ve never tried anything like it,” she said.

I thought I just order at the counter, but I realized everyone was standing around looking at their phone.

Luckin Customer Sam Liu, New York City

Liu said she’d hoped for more seating — the small shop has only three tables — and was initially confused by Luckin’s in-app ordering system, which means customers can’t order directly from a barista.

“I thought I just order at the counter, but I realized everyone was standing around looking at their phone,” Liu said.

Luckin is China’s largest coffee chain, with more than twice as many locations as Starbucks there. Its two New York City stores are its first foray outside Asia, where it has over 24,000 locations across the region. By comparison, there are over 17,000 Starbucks in the United States.

Its CEO, Guo Jinyi, called the U.S. “a strategically important market” for the company’s expansion in a press release heralding the two new locations Wednesday. “We are excited to introduce a diverse and unique coffee experience to American consumers.”

The company, which didn’t respond to a request for comment, has touted its ambitions to expand globally but hasn’t publicly detailed its next moves in the U.S. or other markets.

The chain has gained success overseas through creative drinks like alcohol-infused coffees and fruit lattes, along with its smartphone-centric ordering model. The app-based approach makes it easier to track inventory, send personalized appeals to consumers and serve drinks quickly, said John Zolidis, an analyst who tracks Luckin and Starbucks at the brokerage firm he founded, Quo Vadis Capital.

“Luckin was able to develop an incredible muscle with regard to product innovation, and they have been very creative in China,” he said.

Drink orders ready for pickup or delivery inside one of the Manhattan Luckin shops on Monday.Anthony Behar / Sipa USA via AP

Zolidis said how Luckin fares on Starbucks’ home turf will depend on its ability to differentiate its menu from other major U.S. coffee chains and smaller, independent cafes. Its American lineup already includes distinctive drinks like blood orange cold brew and coconut lattes.

“These orange drinks, or one of their most successful, a coconut cloud latte — that’s how you get trial [customers] from the U.S.,” Zolidis said.

Luckin faced financial troubles during the pandemic. It was delisted from Nasdaq in 2020 after its stock plunged following an internal investigation that found an executive had falsified revenue reports. The company filed for bankruptcy in the U.S. the following year but emerged from proceedings in 2022 and its sales have soared since, reaching $4.7 billion worldwide in fiscal year 2024, a 38.4% increase from 2023.

Luckin was able to develop an incredible muscle with regard to product innovation, and they have been very creative in China.

John Zolidis, Founder, Quo Vadis Capital

Starbucks, by contrast, is struggling in both the U.S. and China. Its same-store sales in the U.S. declined 2% and its sales in China 8% in fiscal year 2024, and it reported in April that its quarterly profit was half of what it pulled in for the same period last year. The Seattle-based chain is reportedly looking to partially sell its business in China while revamping its U.S. strategy to focus on customer experience and human connection, in contrast with Luckin’s model.

“We veered away from, I think, owning the idea of the ‘third place,’ the coffeehouse experience, making sure that the customer was front and center,” Starbucks CEO Brian Niccol told NBC News in June.

A Starbucks spokesperson declined to comment.

Zolidis said that whereas Starbucks aims in both the U.S. and China to appeal to customers looking for higher-end coffee served in an inviting setting, Luckin has successfully positioned itself as the “everyman’s coffee” in China, with low prices and small, grab-and-go storefronts.

After taking the train in from Hoboken, New Jersey, to check out the new one in midtown, Samantha Coy said the trip was worth it. She had enjoyed Luckin in China previously and was eager to order one of its fruit drinks.

“I’m surprised Starbucks hasn’t tried to bring that over to the U.S.,” Coy said. “I hope they stay open.”

Zolidis said he thinks Luckin is well-positioned to gain a foothold in America.

“They’ve been able to operate and grow incredibly quickly in the Chinese market, much faster than I would have thought possible, and they’ve been able to sustain it and develop a strong financial model so they can fund their expansion in the U.S.,” Zolidis said. “They wouldn’t be coming here to try it if they didn’t think they had a shot of owning part of the market.”

This post appeared first on NBC NEWS

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