Author: The New Economy

Neo Lithium posts positive PFS results for its 3Q Project in Argentina

Posted on by The New Economy

Neo Lithium, a growing name in the lithium brine market, has unveiled impressive results for its pre-feasibility study (PFS) into an exploration project in Argentina. The work, known as the 3Q Project, was carried out in the Catamarca Province, the largest lithium producing area in the country.

In recent months, Neo Lithium has rapidly advanced its 3Q Project, a unique high-grade lithium brine lake and salar complex located in what is known as Latin America’s ‘lithium triangle’. The project’s technical team characterises this unique salar complex as one of the largest lithium brine resources in the world.

“With the discovery of a high-grade core, we optimised the 3Q Project development plan with respect to our preliminary economic assessment,” said Waldo Perez, President and CEO of Neo Lithium. “The new [capital expenditures] and [operating expenses], together with the long life of [the] mine and high-grade brine, allow us to present a superior [internal rate of return] of 50 percent.

“Furthermore, we are currently continuing to drill the high-grade core and we are now able to validate that the 3Q Project still has further significant high-grade resource upside potential.”

The PFS represents a comprehensive study of the technical and economic viability of the 3Q Project. It has now advanced to a stage where a preferred processing method has been established and an effective method of mineral processing has been determined.

Project highlights
“We are delighted with the results of the PFS,” said Carlos Vicens, CFO of Neo Lithium. “We have improved the [post economic assessment] results on all fronts, requiring a smaller capital investment for a similar net present value. The 3Q Project is now easier to build, easier to finance, and its larger size allows us to think in terms of potential phased expansions. The final value of this project will be realised over time.”

The strategy to maximise the value of the 3Q Project was achieved by first extracting the high-grade core brine via five wells strategically located in the middle of the high-grade component of the measured and indicated resource. Early extraction of high-grade brine allows minimal sizing of early stage ponds. The grade, meanwhile, is expected to decrease over time, as progressively lower grade brine is extracted. Consequently, the total pond area is set to increase in the coming years.

In recent months, Neo Lithium has rapidly advanced its 3Q Project, a unique high-grade lithium brine lake and salar complex located in Argentina

A numerical groundwater model was developed to support the reserve estimate and the development of Neo Lithium’s 35-year mining plan. The model predicts the brine grade will decrease over time, and simulates additional brine recovery to maintain production at around 20,000 tonnes of lithium carbonate equivalent (LCE) over the lifetime of the mine. The model also projects long-term brine recovery, based on the rigorous assembly of groundwater flow and solute transport parameters.

In the initial 10 years of the plan, five wells will each produce high-grade brine at a rate of 51 litres per second (l/s). During the following 10 years, the same wells will produce 64l/s. From 20 years onwards, a total of 11 wells will be in operation, with individual production rates between 23 and 49l/s. These variable brine recovery rates are designed to maintain a relatively constant production rate of approximately 20,000 tonnes of LCE.

The required yields are reasonable within the known parameters of the brine aquifer. However, ample space exists for additional production wells, if required. The company has already installed one production well capable of a sustained production of 84l/s from the high-grade zone.

Proposed operation and processing
The PFS identifies the preferred development option as being a conventional evaporation pond operation, followed by the purification and precipitation of lithium carbonate.

“We have been working towards a mining plan and a process facility that maximises the competitive advantages of the 3Q Project, which is [of a] high grade, with low impurities and a large size of resource,” said Gabriel Pindar, Director and COO of Neo Lithium. “The PFS has been tailor made to the 3Q Project, [and uses] proven technologies that have been utilised by major companies in the region to minimise operational and construction risks.”

The process begins by extracting brine from the pumping wells and transferring it into solar evaporation pre-concentration ponds. After a period of around 120 days, approximately 90 percent of the sodium chloride and other salts will have crystallised from the brine. The potash is harvested in a subsequent pond, with no requirement for reagents. Later, the brine is transferred to calcium chloride precipitation ponds and thickeners are used to extract most of the calcium, which precipitates as antarcticite.

Minor amounts of hydrochloric acid are then required for pH control, as well as to crystallise boric acid out of the brine. Residence time in the calcium chloride ponds is approximately 105 days. When the brine achieves a lithium concentration of 3.5 percent, it is transported to the brine processing plant. The total time taken to get to this stage is approximately 225 days, while the rate of lithium recovery in the ponds is approximately 60 percent.

With the pre-feasibility study defining the major economic parameters of the 3Q Project, Neo Lithium now has a strong foundation to discuss various financial options to move the project forward

The influent lithium brine grade is predicted to change over the lifespan of the mine, shrinking from 1,177 milligram litres in year one to 670 milligram litres in year 35. Consequently, pre-concentration ponds must be expanded over time to keep production constant. In the initial phase, 406 hectares of pre-concentration ponds will be utilised. This will be followed by two expansions of 102 hectares in year 10 and year 20. Fortunately, calcium chloride ponds and thickeners remain constant throughout. The average production of LCE has been estimated at 20,000 tonnes per year, but the need for capital at the beginning of the project is minimised by mining the high-grade material first.

Processing the concentrated brine is achieved through four stages, which take place at plants in Fiambalá and Recreo. In Fiambalá, solvent extraction is used to remove the remaining boron. Sulphatation, which removes the remaining calcium by adding a saturated solution of sodium sulphate, follows shortly after. In Recreo, the solvent extraction is then mixed with mother liquor and minor soda ash in order to remove traces of calcium and magnesium. The addition of soda ash and heat to precipitate the lithium carbonate also takes place in Recreo, followed by drying and packaging.

Recovery in the sulphatation plant is 92 percent, while recovery in the carbonation plant is 85 percent. The company is now operating a 1:500 scale pilot plant in Fiambalá to fine-tune this standard method. The general approach has proven effective when attaining battery-grade lithium carbonate in the past.

Initial capital costs are estimated at approximately $319m. The life-of-mine deferred and sustaining capital costs are estimated at approximately $207m, while closure costs are estimated at $26m.

Future developments
Neo Lithium intends to complete a full feasibility study to further validate and detail the elements outlined in the PFS. At reserve level, it has recommended to extend drilling to a depth below the already drilled 100 metres. The definition of additional high-grade resources could have a significant impact on pond requirements, presenting the possibility of increasing production with fewer ponds. This programme is already underway and the first drilling results are expected soon.

Additional long-term pumping tests in the high-grade zone are also recommended to test the aquifer in production scale pumping scenarios. Currently, the company is carrying out a 20-day pumping test that is almost complete. The pilot plant operation, which is currently in the commissioning and testing phase, is critical to completing the feasibility study and proof of concept relating to the plant’s ability to yield battery-grade lithium carbonate. Further, the final feasibility study must consider the economics of by-products including potash, calcium chloride and boric acid, which are all readily available with minor additional investment. The recommended feasibility study is expected to be completed in the first half of 2020.

With the PFS defining the major economic parameters of the 3Q Project, the company now has a strong foundation to discuss various financial options to move the project forward. “The robust project economics generated from the PFS further validates our view that the 3Q Project is an exceptional project, particularly when our industry faces unprecedented growth and it needs predictable, long-term, low-cost producers,” said Constantine Karayannopoulos, Chairman of Neo Lithium. “We are not short of options, and the next step is a careful analysis of how to maximise value for our shareholders.”

Google unveils video game streaming platform Stadia

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On March 19, Google showcased Stadia, a gaming platform that will bypass the need for a dedicated console, at the 2019 Game Developers Conference in San Francisco. The service will allow users to stream games directly to their computers, televisions and mobile devices from Google’s servers. Google also unveiled the accompanying Stadia controller at the event.

Google, which already has a significant indirect impact on the gaming industry through its video-sharing platform, YouTube, has determined that cloud-based services will represent the future of the market, which is worth approximately $135bn a year.

Previous video game streaming services have failed to catch on – largely due to issues with latency, an exasperating problem for gamers who rely on super-fast reactions to gain an edge on their competitors. Google, however, believes it can overcome this issue: by connecting directly to the internet and communicating with Google’s servers independently, the service should avoid problems with lag.

By connecting directly to the internet and communicating with Google’s servers independently, Stadia should avoid problems with lag

“We learned that we could bring a AAA game to any device with a Chrome browser and an internet connection,” said Google CEO Sundar Pichai. Pichai confirmed that Google will release Stadia later this year in the US, Canada, the UK and most of Europe.

The threat posed to traditional gaming manufacturers is already being recognised: shares in Japanese console makers Sony and Nintendo fell by three percent as Google unveiled Stadia. Analysts, however, have suggested this drop was a knee-jerk reaction.

At present, the lack of games means there is still some way for Stadia to go before its formal launch on the market. Google also failed to disclose a price during the launch event, leaving question marks over its mass-market appeal.

As Google makes its debut in the gaming market, two other companies are likely to follow suit: Amazon and Tencent. The two tech firms also provide cloud-computing solutions, while their existing investments in the gaming industry should provide them with a platform to challenge Google’s offering. Cloud computing has already made its impact felt within a variety of sectors; now, it looks set to shake up the gaming market as well.

Lyft seeks $23bn IPO valuation

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On March 18, ride-hailing app Lyft put its initial public offering (IPO) in motion, signalling its intention to raise up to $2.1bn – a figure that would value the company at almost $23bn. The IPO looks set to be one of the largest listings from a US technology firm in recent years and is expected to rival that of Snap, which went public in 2017.

The benchmark has now been set for other tech companies preparing to go public this year. Pinterest, Postmates and Slack are all pushing for IPOs in 2019, providing a timely reminder of the strength of Silicon Valley’s start-up ecosystem, which has recently begun to stall in the face of increased competition from other tech hubs in Toronto and Tel Aviv, among others.

Lyft’s IPO looks set to be one of the largest listings from a US technology firm in recent years and is expected to rival that of Snap

Lyft’s competition with main rival Uber, however, is likely to be of the most interest to the ride-hailing firm. Uber is expected to draft its own IPO disclosure next month, with analysts predicting that its listing will be significantly bigger than Lyft’s, potentially reaching as high as $120bn.

Lyft’s stock, which will be listed on the Nasdaq Stock Market, has a proposed share price of between $62 and $68. If the latter is achieved, it would see the stakes of Lyft’s two co-founders, Logan Green and John Zimmer, surge to around $569m and $393m respectively, despite the business making a net loss of $911.3m since its founding in 2012.

But just as Lyft officially revealed its IPO, the business experienced a setback in a New York court, as a judge denied the company’s motion for an injunction that would have blocked the city’s recently approved minimum wage pay floor for app-based drivers.

Since their founding, both Lyft and Uber have been blighted by legal disputes with drivers who are unhappy with their wages and employment rights. Recently, Uber was forced to settle a $20m lawsuit with drivers in California and Massachusetts, and further litigation is expected to follow. The judge overseeing Lyft’s New York City dispute is expected to deliver a written statement within the next 30 days; an unfavourable ruling could potentially harm Lyft’s ambitious stock price.

FIS set to acquire Worldpay in $43bn deal

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On March 18, US-based fintech firm Fidelity National Information Services (FIS) revealed plans to acquire payment processing company Worldpay. The $43bn deal is set to create one of the world’s largest providers of electronic payment infrastructure in the finance industry.

The figure of $43bn encapsulates a combination of cash and stock to be paid by FIS, which will also assume Worldpay’s debt. Shareholders of FIS will control roughly 53 percent of the integrated unit, while Worldpay investors will receive $11 a share in cash, as well as 0.9287 of an FIS share. As news of the acquisition emerged, the value of FIS shares rose by 10.4 percent.

As fintech businesses surge in value, firms like Worldpay are taking the fight to banks in a battle to dominate the digital payments market

The combined business, which will have a total revenue of around $12bn, will target the high-growth e-commerce industry. As consumers have changed the way they pay for products, the growth of contactless and mobile payments has seen companies scramble to adjust.

“At Worldpay, our focus has always been on delivering more value to our clients and partners, and making decisions that achieve our growth and performance objectives,” said Worldpay CEO Charles Drucker. “Combining with FIS helps us accelerate the achievement of that, now benefitting from new scale and capabilities that will truly differentiate the company globally.”

Ohio-based Worldpay was previously owned by the Royal Bank of Scotland, but the bank was forced to sell the company as part of its financial crisis bailout. Although Worldpay has been processing payments since the late 1980s, the company has experienced a number of significant changes in the last few years. In 2017, Worldpay merged with Vantiv, another payment processing company, in a deal valued in excess of $10bn.

Neil Wilson, Chief Market Analyst at Markets.com, told the BBC that he expects more deals to follow in the sector. A report from Boston Consulting Group and Swift, meanwhile, predicts revenue in the payments industry will reach $2.4trn by 2027. As fintech businesses surge in value, firms like Worldpay are taking the fight to banks in a battle to dominate the digital payments market – the competition is set to be fierce.

Facebook under criminal investigation over data-sharing deals

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Federal prosecutors in New York are investigating Facebook’s data-sharing partnerships with other major technology firms, according to an investigation by The New York Times. Citing two anonymous sources, The New York Times revealed that a grand jury had subpoenaed records from “at least two prominent makers of smartphones and other devices”.

The companies are among an estimated 150 that allegedly signed deals with Facebook to give them wide-ranging access to the personal information of hundreds of millions of users. These agreements, which were first revealed by The New York Times last year, allowed partners to access users’ data without their explicit consent. Some were even reportedly able to access personal information from users’ friends who believed they had shut down any sharing function.

Facebook has defended these deals, claiming that its partners were not able to access personal information without permission. It has since phased out the majority of these partnerships.

According to The New York Times, prosecutors from the US Attorney’s Office for the Eastern District of New York are overseeing the grand jury investigation. The office has so far declined to comment or provide further information on the inquiry.

Facebook has found itself under intense scrutiny over its data-sharing practices since the Cambridge Analytica revelations broke in early 2018

Facebook has found itself under intense scrutiny over its data-sharing practices since the Cambridge Analytica revelations broke in early 2018. It is currently under investigation by the US Department of Justice for its role in the scandal, which saw the political-consulting firm harvest data from as many as 87 million Facebook users and utilise it to build tools to influence both the 2016 US presidential election and EU referendum campaigns.

The tech giant was also sued by Washington DC in December 2018 for allowing Cambridge Analytica to obtain personal information without consent. It remains under scrutiny from both the Federal Trade Commission and the Securities and Exchange Commission.

In response to the latest reports, a Facebook spokesperson told The New Economy: “We are cooperating with investigators and take probes seriously. We’ve provided public testimony, answered questions and pledged that we will continue to do so.”

Among a plethora of investigations, this grand jury inquiry is simply the latest and is unlikely to be the last. It is also an indicator that US lawmakers intend to hold Facebook accountable for its actions through every possible legal and regulatory avenue, sending a powerful message to companies across the globe that may be tempted to mishandle data.

Although Facebook claims it has taken steps in the last year to tackle data misuse, even announcing that it would be pivoting to a privacy-based model, it is sorely mistaken if it believes these will be enough to pacify federal investigators. Rather, it must buckle up, take responsibility for its misgivings and accept the consequences, which are likely to be as damaging to its business model as its data exploits were for its users.

Top 5 spying scandals in the tech sector

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The issue of data privacy and security has been cast into the international spotlight in recent years. In fact, since the Cambridge Analytica scandal lifted the lid on the extent of data misuse within the technology sector, numerous investigations have exposed further instances of hacking and impropriety.

Despite these prevalent issues, digital forces – from social media to the Internet of Things – continue to play an increasingly significant role in our lives. Indeed, it is nearly impossible to get through the day without using a form of technology that is at risk of being hacked for surveillance purposes.

As the threat of illegal spying looms over businesses and consumers alike, The New Economy lists the five top surveillance scandals to have surfaced in recent years.

Huawei smartphones
Chinese telecoms giant Huawei has been the focal point of a serious debate around national security this year, with a number of countries – including the US, Australia and New Zealand – having voiced concerns that the Chinese Government could use the smartphone manufacturer to spy on foreign nations.

Although the UK’s National Cyber Security Centre has described the risk posed by working with Huawei as ‘manageable’, others remain wary. According to a report in the South China Morning Post, the firm’s products have been banned from government systems in Taiwan due to spying concerns. The Wall Street Journal has also reported that the US is investigating Huawei for allegedly stealing trade secrets from a number of US business partners, including T-Mobile.

Huawei, the second-largest smartphone maker in the world, is now suing the US Government for banning its products from federal agencies. The company has pushed back on allegations that the Chinese Government could influence it, with founder Ren Zhengfei telling the BBC: “Our company will never undertake any spying activities. If we have any such actions, then I’ll shut the company down.”

While internet-enabled gadgets have become a permanent fixture in many of our homes, they can be susceptible to hackers or spies

Smart home devices
Fears have long been growing around the security of smart home devices. While these internet-enabled gadgets have become a permanent fixture in many of our homes, they can be susceptible to hackers or spies if the proper precautions are not taken when installing them.

In 2018, Wired reported that a group of Chinese hackers had developed a new technique to take control of Amazon Echo’s voice assistant and turn it into a surveillance tool. Although Amazon responded quickly with security fixes – the hackers had presented their findings openly at a security conference – big tech companies are continually making missteps around security and privacy.

In February, for example, reports emerged that Nest Guard, a part of Google’s Nest Secure home security and alarm range, had been equipped with a microphone without informing customers. A Google spokesperson told Business Insider that failing to mention the microphone in the product specifications was “an error” and that it “was never intended to be a secret”.

“The microphone has never been on and is only activated when users specifically enable the option,” the spokesperson said. Despite this, the original omission will have done nothing to reassure users who already had trust issues with big tech firms.

Employee complaints at Tesla
Since 2018, two former employees of electric carmaker Tesla have accused the company of illegally spying on workers.

According to The Verge, Karl Hansen, a former member of Tesla’s security team, filed a whistleblower tip with the US Securities and Exchange Commission (SEC) claiming that Tesla had installed “specialised router equipment… designed to capture employee cell phone communications and/or retrieve employee cell phone data”, among other things.

In March 2019, Business Insider reported that Sean Gouthro, Tesla’s ex-global security lead, had filed a separate complaint with the SEC that corroborated Hansen’s tip.

A Tesla spokesperson told The Verge that Gouthro’s claims – and those of other ex-Tesla employees represented by the law firm Meissner Associates, including Hansen – were “untrue and sensationalised, [and] only intended to seek the attention of the media”.

Prior to TechCrunch’s investigation into the Facebook Research app, Facebook had been accused of using a similar app, Onavo, to gather information on its rivals

The Facebook Research app
In January, an investigation by TechCrunch found that Facebook had paid volunteers as young as 13 years old to install the Facebook Research app, giving the tech giant wide-ranging access to the data on their phones. Since the news emerged, Apple has banned the app for violating its developer guidelines, while Facebook has said it will terminate the market research programme.

In a statement given to TechCrunch, Facebook said there was nothing secret about its intentions: “[The Facebook Research app] wasn’t ‘spying’ as all of the people who signed up to participate went through a clear on-boarding process asking for their permission and were paid to participate.”

However, Facebook had previously been accused of using a similar app, Onavo, to gather information on its rivals. The company later removed Onavo from the App Store after Apple said it violated data-sharing guidelines.

US Senator Richard Blumenthal told TechCrunch: “[The Facebook Research app showed the company’s] complete disregard for data privacy and eagerness to engage in anti-competitive behaviour. Instead of learning its lesson when it was caught spying on consumers using the supposedly ‘private’ Onavo [virtual private network] app, Facebook rebranded the intrusive app and circumvented Apple’s attempts to protect iPhone users.”

US-China power struggle
A report by Nikkei Asian Review recently brought to light US tech firms’ fears that the Chinese Government could use server power cords and plugs to access sensitive data. In the report, cybersecurity experts confirmed the concerns were reasonable, with the complexity of the power supply systems making them vulnerable to hackers.

According to unnamed executives at Lite-On Technology – a Taiwanese electronics manufacturing services company that provides power supply systems to HP, IBM and Dell, among others – these concerns have further harmed the Chinese tech sector, prompting several US firms to ask for the production of some components to be moved out of mainland China.

Despite these moves, Tien Chin-wei, a deputy director at the Cybersecurity Technology Institute and one of the experts quoted in the Nikkei Asian Review report, believes there is still a threat of surveillance: “Every interface between components, or between motherboards and power supply systems, could be a loophole for malicious implants. You can only reduce or manage the risks, but it is not possible to entirely eliminate the threats.”

Uber finally settles six-year lawsuit with $20m out-of-court payment

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Uber finally brought a long-running legal dispute to a close on March 12, after it agreed to pay $20m to drivers in California and Massachusetts. The class-action lawsuit was originally brought against the ride-hailing firm in 2013, arguing that Uber treated its drivers as freelancers rather than employees in order to avoid paying the minimum wage and circumvent the need to provide other benefits. Those eligible for a payout include anyone who drove for Uber within the two states in question between August 16, 2009, and February 28, 2019.

The settlement, which is subject to approval from a judge, will allow Uber to continue classifying its drivers as ‘independent contractors’, but may not mean the end of the company’s legal troubles. In addition, Uber will make the process of removing drivers more transparent and add an appeals process. Drivers will also be offered classes to ensure ride quality can be improved where necessary.

The settlement allows Uber to continue classifying its drivers as ‘independent contractors’, but may not mean the end of the company’s legal troubles

“Uber has changed a lot since 2013,” a company spokesperson told TechCrunch. “We have made the driver experience even better through improvements like in-app tipping, a redesigned driver app and new rewards programmes like Uber Pro. We’re pleased to reach a settlement on this matter, and we’ll continue working hard to improve the quality, security and dignity of independent work.”

However, Shannon Liss-Riordan, the lawyer representing the drivers in the case, has stated that the payout does not mark the end of the dispute: “While we were able to pick up the pieces and achieve this substantial settlement for the drivers not covered by arbitration clauses, other drivers would need to pursue their claims in individual arbitration if they wanted to attempt to recover anything on their claims.”

Uber will be hopeful that any other legal disputes can be cleared up ahead of its planned initial public offering later this year. Reports indicate that Uber could be valued at around $120bn, a significant increase on its current estimated valuation of $70bn. And, in what is surely another tactic to appease its contractors, Uber is set to offer incentives to drivers who purchase company shares.

Uber’s decision to settle its 2013 lawsuit out of court signals that the gig economy is coming under increasing scrutiny. Once the ride-hailing firm makes its debut on the stock market, it is only likely to face more questions over its company practices and the rights of its workers.

Former Google executive awarded $45m payout amid sexual harassment accusations

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Amit Singhal, a former senior vice president at Google, was awarded an exit package worth as much as $45m after being forced to resign from the company amid sexual harassment allegations, according to court documents released on March 11.

Singhal, who headed up Google’s search operations, left the company in 2016 after a female employee claimed he had groped her at an off-site event, according to a report by The New York Times. An internal investigation found that Singhal had been inebriated at the time, concluding that the employee’s account was credible, the court documents stated. Singhal has not yet responded to The New Economy’s request for comment.

At the time of his departure, Singhal said he wanted to focus on his philanthropy, a claim that was substantiated by Google’s Leadership Development and Compensation Committee. In a statement to the Associated Press in 2017, Singhal further claimed he had not been accused of harassment and had left Google on his own terms.

Details of Singhal’s exit package were revealed as part of a shareholder lawsuit filed against Google’s parent company, Alphabet, in early January. Previously released documents had been redacted, but full versions that include quotes from Alphabet board committee meetings have now been made public.

Google is reported to have approved severance packages worth $135m to two executives accused of sexual misconduct

The documents reveal that Singhal received two $15m payments and another payment of between $5m and $15m as part of his separation agreement, meaning his total payout could have reached $45m. Singhal reportedly did not receive the full amount, however, as it was contingent on him not working for a competitor, a clause he violated when taking a role at Uber. According to the court documents, Singhal was fired by Uber in February 2017 for failing to disclose the allegations of sexual harassment against him.

The shareholders brought the legal action against Alphabet’s board members for their “active and direct participation in a multi-year scheme to cover up sexual harassment and discrimination at Alphabet”. Plaintiffs said that, by concealing and agreeing pay packages for those accused of misconduct, the board had caused significant financial and reputational damage to both Google and its parent company.

Singhal is the second executive to receive a substantial payout after departing Google amid sexual harassment allegations. The first, Andy Rubin, was awarded a $90m severance package after he was accused of sexual misconduct dating back to 2013.

According to an investigation by The New York Times, Rubin was accused of coercing a fellow Google employee into performing sexual acts on him in a hotel room in 2013. Google carried out an internal investigation and found the allegations to be credible.

Court documents also allege that Rubin engaged in human sex trafficking while at Google, notably by “paying hundreds of thousands of dollars to women to be, in Rubin’s own words, ‘owned’ by him”. Rubin has maintained that these claims are part of a smear campaign by his ex-wife to sully his name amid a divorce and custody battle.

In total, Google is reported to have approved severance packages worth $135m to the two executives accused of sexual misconduct. A Google spokesperson told The New Economy: “There are serious consequences for anyone who behaves inappropriately at Google. In recent years, we’ve made many changes to our workplace and taken an increasingly hard line on inappropriate conduct by people in positions of authority.”

Reports of how the tech giant had handled accusations of sexual harassment by Rubin and other senior executives sparked a mass walkout by Google employees in November 2018. In a tweet on March 12, the Google Walkout for Real Change organisers launched a new campaign in response to the latest allegations, calling on its Twitter followers to “use the hashtag #GooglePayoutsForAll to join us in highlighting the other ways [the $135m] could have been used”.

Tesla reverses decision to cut store numbers

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Tesla has reneged on its decision to close its physical stores, as the company looks for new ways to keep the price of its Model 3 vehicle down. On March 11, 10 days after the firm’s initial announcement, Tesla confirmed that it would only close half as many stores as initially planned. Meanwhile, car prices across the fleet will rise by three percent, though Tesla has vowed the increase will not apply to its ‘affordable’ Model 3, which is currently priced at $35,000.

On March 1, the California-based business announced it would close a number of its brick-and-mortar stores and transition to online sales in order to offset the lower price it was offering for its Model 3.

While it is unknown which stores will shut, Tesla has said certain showrooms in high-visibility locations will now reopen, albeit with fewer staff

Now, the Model S, Model X and the more expensive variants of the Model 3 will all increase in price as of March 18, contrary to the six percent reduction the company pledged last month. Tesla CEO Elon Musk has previously declared that his firm’s cars are “too expensive for most people”.

While it is unknown which stores will shut, Tesla has said certain showrooms in high-visibility locations will now reopen, albeit with fewer staff. Currently, the firm has 378 stores worldwide.

“Over the past two weeks we have been closely evaluating every single Tesla retail location, and we have decided to keep significantly more stores open than previously announced as we continue to evaluate them over the course of several months,” read a Tesla statement.

“As a result of keeping significantly more stores open, Tesla will need to raise vehicle prices by about three percent on average worldwide. There will be no price increase to the $35,000 Model 3.”

Musk is currently facing a lawsuit from Tesla shareholders for tweeting what they allege to be “repeated misstatements”. In February, he claimed that Tesla would manufacture 500,000 cars in 2019, despite official figures signalling a significantly lower production rate – a statement that “hurt” investors.

Tesla faced a challenging 2018, forcing the company to cut its 45,000-strong workforce by 3,000. Musk himself has faced questions over his erratic behaviour, having recently been forced to step down as Tesla chairman to settle fraud charges. The latest U-turn by Musk is unlikely to inspire confidence in his ability to take the company forward.

Sam Altman steps down as president of Y Combinator to focus on OpenAI

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In a blog post on March 8, Y Combinator (YC) announced that Sam Altman had left his position as president of the famed start-up incubator. Altman will transition into the role of chairman, a move that will allow him to dedicate more time to his non-profit foundation, OpenAI.

According to the post, Altman will remain responsible “for the long-term social and economic success of YC”. The company also claimed that Altman’s move would not have any significant operational impact, as YC is run as a partnership.

Altman joined YC in 2011 as a part-time partner, before succeeding YC founder Paul Graham as president in 2014. He has first-hand experience as a start-up entrepreneur, having founded location-based social network Loopt in 2005. Prepaid card issuer Green Dot bought Loopt for $43.4m in 2012, at which point the app was closed down and its features incorporated into other products.

Under Altman’s watch, YC has grown to become one of the most influential incubators in Silicon Valley, nurturing the likes of Airbnb, Dropbox, Reddit, Stripe and Coinbase. When he joined the company on a full-time basis in 2014, YC had graduated just 67 start-ups; today, that number has risen to 1,900, boasting a combined valuation of around $150bn.

Altman’s transition to Y Combinator chairman will afford him more time to develop OpenAI, the non-profit he set up with Elon Musk in 2015

In October 2015, Altman announced that the YC family would be expanding to include YC Continuity, a $700m growth-stage equity fund, and YC Research, a not-for-profit research lab that has completed investigative projects into universal basic income, healthcare and city infrastructure.

In the past two years, YC has also launched Startup School, a free 10-week online course for budding founders, and YC China, a standalone incubator programme based in Beijing and headed up by former Microsoft and Baidu executive Qi Lu.

In a brief interview with The Wall Street Journal, Altman said he would still play a role in shaping the strategic direction of YC, adding: “I’ll still have a voice at that table.”

Altman’s transition will afford him more time to develop OpenAI, the non-profit he set up with Elon Musk in 2015. According to its website, the company seeks to research and develop AI technology that will have a beneficial impact on humanity and is free from financial concerns. Tesla CEO Musk no longer has any involvement in OpenAI, having left in February 2018 to avoid any conflict of interest between its AI research and Tesla’s own machine learning efforts.

Alongside his work at YC and OpenAI, Altman is a significant angel investor, having offered funding to Asana, Pinterest, Teespring, Stripe and Change.org, among others.

YC has not yet indicated whether it will be replacing Altman.

Airbnb agrees purchase of last-minute booking app HotelTonight

Posted on by The New Economy

On March 7, home-sharing company Airbnb announced it had purchased last-minute hotel booking service HotelTonight for an undisclosed fee. The acquisition will help broaden the San-Francisco-based tech giant’s travel offering ahead of plans to go public later this year.

The acquisition is part of a wider branding overhaul taking place at Airbnb. The firm recently revealed plans to introduce tours and immersive trips led by local experts in 12 cities across the world, including Havana, Detroit and London. Within a year, Airbnb hopes to extend its new services to 50 cities.

HotelTonight – also based in San Francisco – was valued at $463m during its most recent funding round in 2017. Its backers include Accel, Battery Ventures, First Round Capital, Coatue Management and GGV Capital. HotelTonight has raised $131m in its nine years of operation.

The acquisition of HotelTonight is part of a wider branding overhaul currently taking place at Airbnb

By partnering with establishments in the Americas, Europe and Australia, HotelTonight offers unsold rooms and catering to travellers looking to make last-minute arrangements. The company will maintain its own brand and website following the purchase, but some of its listings will also appear on Airbnb’s platform.

In a statement announcing the acquisition, Airbnb said: “We are making it easier for people who use Airbnb to find last-minute places to stay when Home hosts are often already booked. The availability of boutique hotels – in addition to private rooms and entire homes that are instantly bookable – helps ensure authentic, high-quality stays are available on demand, especially at the last minute.”

Airbnb, which launched in 2008, expects to have surpassed 500 million guest arrivals by the end of Q1 2019. The firm’s rapid expansion has often put it at odds with regulators and lawmakers at both a local and national level, with concerns often centring on the inflationary affect listings can have on the rent being paid by local residents.

A number of unicorn tech start-ups are seeking to go public in 2019. Lyft recently unveiled its S-1, while Uber, Slack and Pinterest are set to follow. It is thought that Airbnb has also targeted a public listing by June 2019 – expanded services should make it a more attractive option to investors.

German carmakers pledge to invest €60bn in electric and self-driving technology

Posted on by The New Economy

On March 2, ahead of the Geneva International Motor Show, the head of the German Association of the Automotive Industry (VDA) promised German carmakers would invest €60m ($68.03m) in electric cars and automation technology over the next three years. It’s a signal that electric vehicles are to dominate the prestigious Swiss auto show this month.

“We will invest over €40bn [$45.4bn] in electric mobility during the next three years, and another €18bn [$20.4bn] will be invested in digitisation and connected and automated driving,” read a statement from VDA President Bernhard Mattes.

As mounting evidence points towards the damaging environmental impact of the carbon emissions produced by petrol and diesel-fuelled vehicles, manufacturers are set to face stricter guidelines. “The ramp-up of electric mobility is coming in Europe; without it, the EU’s [carbon dioxide] targets cannot be achieved by 2030,” Mattes said.

New European regulations are set to be phased in next year, compelling car manufacturers  to significantly reduce their carbon emissions

New European regulations are set to be phased in next year, compelling firms to significantly reduce their carbon emissions – those infringing on the rules are likely to face hefty fines. The regulations will be applied as an average measure across a company’s whole fleet, meaning the law is unlikely to significantly impact carmakers possessing lines of low or zero-emissions cars.

German auto firms have led the way in the transition to a more sustainable model, with the number of electric models produced by Volkswagen, Daimler and BMW set to reach around 100 in the next three years. Daimler and BMW have also agreed to cooperate on self-driving vehicles, while Volkswagen has teamed up with American manufacturer Ford.

As worldwide sales have slumped, various automobile manufacturers have struggled to turn a profit. Consequently, with tighter margins and companies spending less, the influence of car shows has begun to subside. However, this year’s Geneva International Motor Show provides a platform for the most forward-thinking firms to showcase their new technology.