business news today usa

Rivian stock tanks as it announces $1.3B ‘green bond’ offering [Video]

Rivian (RIVN) shares are sliding today as the EV-maker announced plans for a “green” debt offering.

Rivian says it intends to sell $1.3 billion worth of “green” convertible senior notes due in 2029, with the option to grant an additional $200 million worth of convertible notes to the original purchasers.

In line with Rivian’s ethos as a company (it’s a Climate Pledge signatory and was the first to say it won’t use deep-sea mining for batteries), it intends to use the capital it raises for “green” or environmental purposes.

“Rivian intends to use the net proceeds from the offering to finance, refinance, make direct investments in, in whole or in part, one or more new or recently completed… current and/or future eligible green projects,” the company said in a statement. Rivian said these projects could include activities tied to clean transportation, renewable energy, circular economy (ie, recycling batteries/metals), energy efficiency, and pollution prevention.

Rivian said the green-note offering meets the eligibility requirements as determined by the International Capital Markets Association’s “Green Bond Principles” guidelines.

In its most recent earnings report, Rivian barely reached its production goal for the year but reported an adjusted EBITDA loss of $5.22 billion. With the company forecasting another adjusted EBITDA loss of $4.3 billion for 2023, it’s not surprising that it’s seeking additional sources of funding. Rivian reported it had cash on hand of $12.01 billion at the end of the fourth quarter and expects capital expenditures to reach $2 billion for the year. Rivian is also in the midst of developing its next factory in Georgia, where its next-generation R2 vehicles will be built. Rivian says production of that vehicle will start in 2026.

Indianapolis - Circa August 2022: Rivian R1T Pickup Truck display at a dealership. Rivian offers the R1T in Explore, Adventure and Launch models. — Indianapolis – Circa August 2022: Rivian R1T Pickup Truck display at a dealership. Rivian offers the R1T in Explore, Adventure and Launch models.

With a long lead time until its next vehicle, Rivian’s cash situation is a key focus for analysts and investors.

“We’re forecasting 2023 cash burn of $5.5B helped by working cap. RIVN guided to a 40% improvement in FCF in 2024 driven by their target of positive gross margins. We est. RIVN will need to raise financing by the end of 2024,” Wells Fargo analyst Colin Langan wrote in a note the day after Rivian’s latest earnings release predicting today’s announcement of a capital raise. Langan currently has an Equal Weight rating on the stock with an $18 price target.

With questions still remaining about how many vehicles the company can churn out in 2023, Rivian’s recent stock volatility may be a regular occurrence without more evidence of production gains and cash preservation initiatives.

—

Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.

Click here for the latest stock market news and in-depth analysis, including events that move stocks

Read the latest financial and business news from Yahoo Finance

Where Do Healthcare Breaches Come From?

While we have seen an increase in healthcare data breaches stemming from vendor vulnerabilities, there can be a variety of sources.

We can help you stay on top of the latest news that affects your everyday life. Subscribe to stay up to date. (To subscribe to our blog click here).

Recent breaches have demonstrated various sources of data breaches.

One source is from vendors and vendor tools.

We have seen a large uptick in vendor cyber attacks, as cybercriminals have found it easier to hack vendors than the healthcare entities directly. Many vendors have less security measures in place than healthcare entities.

A second source of breaches is employees.

Employees wrongly accessing patient charts is a large source of healthcare breaches. Employees can also be a source of vulnerability if they click on phishing links or ransomware.

A third source is analytical tools.

Analytical tools may be used to capture information and perform data analysis on behalf of healthcare entities. However, they may be used by various websites and could violate HIPAA in their collection of protected health information.

How can you protect your practice from the above risks?

First, make sure all of your security is up to date. Protect your own data as much as possible through encryption, firewalls, and more.

You then want to make sure you require adequate protection from vendors through your contracts and business associate agreements. You should also routinely audit vendors and inquire about their security measures.

Finally, you should train your employees routinely and comprehensively on their duties and on potential risks. We often recommend utilizing fake phishing emails as training devices.

We also help our clients ensure that they are protected through their agreements and we provide thorough employee training.

If you have questions or need help with your healthcare contracts, employee training, or security, contact Rickard & Associates today.

We know you’re busy. Subscribe to our blog to get updates and news sent directly to your inbox!

We publish vital information on health law topics and news every Wednesday and Friday. To get this important information delivered directly to your mailbox, subscribe today!

Do you need help updating your Business Associate Agreement or negotiating contracts with third-party vendors? We can help. To contact us about your Business Associate Agreement, your vendor contracts or your other legal needs, call us today.

3 Things You Should Know About Irrevocable Trusts

A trust is an estate planning tool that allows a person to control their assets during their lifetime and make provisions for incapacity and death.

We can help you stay on top of the latest news that affects your everyday life. Subscribe to stay up to date. (To subscribe to our blog click here).

One thing you should know about irrevocable trusts is that, unlike revocable or living trusts, irrevocable trusts cannot be changed or amended. They are set in stone.

A second thing that you should know about irrevocable trusts is that they have significant advantages, and also unique disadvantages.

Irrevocable trusts are often used as a person advances in age. Once they know that their circumstances are unlikely to change, we sometimes recommend the use of an irrevocable trust for their estate plan.

Why would someone want an estate plan that they cannot change?

Irrevocable trusts offer many advantages. These include:

Reduction of estate tax complications and reduction of taxes,
protection against creditors,
They can utilize special features to build wealth for future generations,
They can prevent loss of assets if long-term care is necessary,
and more.

However, there are many drawbacks of an irrevocable trust as well. Some of these include:

They cannot be changed, so no revisions will be allowed
They are very costly
A tax return will need to be added each year.
There is some loss of control.

The third thing that you should know about irrevocable trusts is that many of the drawbacks can be remedied by careful drafting.

We help our clients decide if an irrevocable living trust is right for them. If it is we find ways to draft around potential issues and downsides, such as putting in language allowing the grantor to replace the trustee if they are not acting appropriately.

Let us know if you have questions as to whether an irrevocable living trust is right for you or your loved ones.

Contact us today to help you get the right documents in place or to update your current estate plan. We will plan so that you don’t have to worry about your future.

We publish vital information every Wednesday and Friday. To get this important information delivered directly to your mailbox, click here to Subscribe.

How Can I Protect My Children in Estate Planning?

Many of our clients have concerns related to their children when planning estates. Concerns can range from making sure they are taken care of financially, choosing appropriate guardians, and more.

We can help you stay on top of the latest news that affects your everyday life. Subscribe to stay up to date. (To subscribe to our blog click here).

Some of our clients biggest concerns are:

I don’t want my child to blow all the money they inherit right away. We always tell clients the best way to ruin a great kid is by giving them tons of money. We work with clients to put a plan in place to help their children. One way we do this is to stagger their disbursements from a trust at certain ages. We usually allow the child to ask the trustee for money at any time for certain purposes. For example, if a child wanted money to pay for college, they would usually be able to get money from the trust for educational expenses. We work with our clients to alleviate their concerns regarding each of their children.
I want to make sure my child will be cared for if something happens to me. This is almost always the primary concern of parents of young children. It is essential to draft documents and choose who would be the guardian of minor children, should something happen to the parents. We help our clients walk through this process to make sure they are comfortable with the language and guardians. We also help clients set up documents to keep assets in trust for minor children, should something happen to parents.
I want to make sure my children will be taken care of if I die and my partner remarries. While this situation can be difficult to navigate, it is very important to consider and discuss while both parents are alive and well. Draft documents now so that you and your spouse know the plan and have documents in place to protect the children, should a parent retire after the death of a spouse.
My children are no longer minors, but I want to be able to participate in their healthcare decisions if something happens to them. This is a major concern of parents with children away at college. As soon as your children turn 18, it is important to draft healthcare powers of attorney and even financial documents so that parents can still be aware of and involved in their care, should the child become injured or incapacitated.
I want to make sure that my child is still able to do the things that are important to us, if something happens to me. For example, a client takes her child on vacation every year to the same location. If something happened to her, she wanted the appointed guardian to still take her child to their vacation spot each year. We were able to put language in her trust regarding the vacation and discuss this wish with her trustee. We also helped her draft a letter with helpful instructions.

Our clients all have unique concerns regarding their children. We help them tailor their estate plans to protect their children and protect against the concerns they have.

Estate planning requires thoughtful drafting to meet the needs of each individual.

Contact us today to help you get the right documents in place or to update your current estate plan. We will plan so that you don’t have to worry about your future.

We publish vital information every Wednesday and Friday. To get this important information delivered directly to your mailbox, click here to Subscribe.

How Can I Preserve Wealth for Future Generations?

Some of our clients are interested in preserving wealth for future generations, and in that instance, we sometimes recommend starting a family bank.

We can help you stay on top of the latest news that affects your everyday life. Subscribe to stay up to date. (To subscribe to our blog click here).

A family bank is an estate planning tactic to help preserve wealth for generations to come. They can be structured in a variety of ways to meet that family’s needs, however, they are intended to help benefit a group of family members.

If our clients give their children distributions at their death, it is usually gone quickly. Even if the child invests the money, it does not really transfer to future generations.

The family bank is an incredibly useful tool.

Our clients with family banks are able to charge less interest for loans, set different policies than a bank may have, and encourage goals that are important to that family.

The average American pays over $280,000 in interest fees during their lifetime.

With a family bank, interest helps grow wealth in multiple ways.

Borrowers will be charged less than if they go to a bank and the family bank accrues the interest.

Family banks can also provide some asset protection and possibly help reduce estate tax liability.

If you want to think about preserving wealth for future generations, instead of distributing any assets outright at your death, call us today to discuss setting up a family bank.

Contact us today to help you get the right documents in place or to update your current estate plan. We will plan so that you don’t have to worry about your future.

We publish vital information every Wednesday and Friday. To get this important information delivered directly to your mailbox, click here to Subscribe.

Saudi Arabia Keeps Betting Big on Lucid Motors (LCID) Stock

Source: rblfmr / Shutterstock.com

Saudi Arabia increased its stake in electric-vehicle maker Lucid (NASDAQ:LCDs) by 9% last quarter, an SEC filing was disclosed yesterday. The news comes amid speculation about the Middle Eastern country completely taking over the EV maker.

Saudi Arabia Bought More LCID Stock

In the fourth quarter, the country’s Public Investment Fund (PIF) bought nearly 200 million more shares of Lucid, bringing its total position in the automaker to 1.1 billion. The purchases increase the fund’s stake in the EV maker to 62%.

LCID is by far the largest holding in the PIF and the recent purchase has LCID make up close to 25% of the fund’s portfolio. The fund has also recently increased its stake in its second-largest holding Activision Blizzard (NASDAQ:ATVI). Yet ATVI stock only makes up 9% of the fund’s portfolio and it owns just 5% of the videogame maker.

Rumors of a Takeover

Last month, the business news website Betaville reported a rumor that the Saudis could seek to acquire all of the shares of LCID stock that they did not already own. There was also speculation that the country’s investment fund had already been recruited JPMorgan (NYSE:JPM) to work on such a deal.

The fund invested $1 billion in LCID in 2018, before the automaker’s shares were publicly traded. And in April 2022, the Saudi government announced it would purchase 50,000 EVs from Lucid. The country intends to buy 1,000 to 2,000 EVs annually from Lucid.

More About Lucid

As of yesterday’s market close, LCID stock has soared 51% so far this year. However, the automaker’s shares are still down 64% in the last year and had slumped 10% in the previous five trading days.

On Jan. 23, Citi resumed coverage of LCID stock with a “buy” rating. The firm is upbeat about the “company’s technology and product positioning.”

On the other hand, I’ve been bearish on the name, citing Lucid’s lack of brand strength and tremendous competition.

On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Larry Ramer has conducted research and written articles on US stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.

Is Your Practice Fraudulently Billing?

Most of our clients would obviously answer ‘no’, however, some providers are submitting bills incorrectly and could be subjecting themselves to hefty fines.

We can help you stay on top of the latest news that affects your everyday life. Subscribe to stay up to date. (To subscribe to our blog click here).

Recently, a Florida Cardiology group and 10 of its physicians agreed to pay $2 million to settle False Claims Act allegations.

According to the settlement, the group submitted inflated claims to Medicare and Medicaid and billed for services while they were outside of the United States.

Whistleblowers were involved in bringing this scheme to light.

While your healthcare practice might not be as brazen in violations, this serves as a good reminder to perform regular internal audits and review your billing.

Many of our practices think that their billing is perfect, however, there are often issues when we perform an audit of their billing.

Obviously, it is essential to make sure that you are not upcoding. It is also important to make sure you are not underbilling or misrepresenting services.

It is always important to remember, if it’s not in the chart, it didn’t happen – as far as billing is concerned.

Make sure that your policies and procedures are up to date and your compliance plan is active.

Your employees need to be trained regularly and know what to do to report their concerns internally.

If employees do not feel that their concerns are taken seriously, this is when they become whistleblowers.

It is important to routinely reassess your Electronic Medical Record template, to make sure that it is not causing any issues with your patient records.

We help our clients to update their compliance plan, audit and mitigate potential issues and train staff to make sure that they are not in violation of any federal law.

If you have questions or need help with your healthcare practice, employee training, or security, contact Rickard & Associates today.

We know you’re busy. Subscribe to our blog to get updates and news sent directly to your inbox!

We publish vital information on health law topics and news every Wednesday and Friday. To get this important information delivered directly to your mailbox, subscribe today!

FedEx Freight announces additional furloughs

FedEx Freight will furlough additional workers, the company confirmed Friday, a continuation of several months of cost-cutting measures by the logistics giant.

“In response to business conditions continuing to impact volumes, FedEx Freight is enacting another temporary furlough in some US markets to align our workforce with operational requirements,” the company said.

Some employees will be offered the opportunity to transfer to other markets and the furloughed employees will maintain health benefits and be provided other financial incentives, the company said. While the company did not say how many will be furloughed, it said the furlough period was “just under 90 days.”

A FedEx Freight Direct employee unloads a large package onto a driveway in a residential neighborhood.

“The company will continue to evaluate the environment and bring back furloughed employees as business circumstances allow,” the company said in a statement.

Memphis business news:FedEx, Ford and First Horizon: Memphis business stories to watch in 2023

FedEx news:How did FedEx perform during the 2022 holiday season compared to UPS and USPS?

The move comes on the heels of a Wednesday announcement the company will be cutting its officer and director team by more than 10%.

FedEx Freight had announced an initial round of furloughs in November due to slowing demand. The company also did not specify the number of workers impacted by that wave of furloughs.

Following a disappointing start to Fiscal Year 2023, FedEx in September announced plans to cut more than $2 billion across all divisions. In a second quarter earnings call, executives said the company was looking to cut an additional $1 billion.

All of the cuts have come amid a sustained drop in demand, which has been coupled with high operating costs.

“The FedEx team moved with urgency to make rapid progress on our ongoing transformation while navigating a weaker demand environment,” said FedEx President and CEO Raj Subramaniam on the second-quarter earnings call.

This article originally appeared on Memphis Commercial Appeal: FedEx Freight announced additional furloughs amid demand drop