??Lucid to cut US workforce by 6%, Nvidia's market value nears Apple's amid AI boom and more.

Hello, dear readers! ??We hope you had a great week.? Here's your weekly update on the latest news from finance and markets.

Lucid Group announced on Friday that it will cut its U.S. workforce by 6%, or around 400 employees, in response to slower growth in the electric vehicle industry. Starbucks faces tough competition in China from fast-growing, low-cost rivals, forcing it into a price war despite its intentions to avoid one. Nvidia's shares jumped about 6% on Tuesday to reach a record high, bringing the AI chipmaker's market value to within $100 billion of Apple's. Palantir has secured a $480 million contract from the U.S. Department of Defense for the Maven Smart System prototype, the department announced on Wednesday. The U.S government is close to an agreement to fund a late-stage trial of Moderna's bird flu vaccine.

Stay tuned for more updates in the dynamic world of finance and markets! ??

Lucid to cut US workforce by 6% due to slowing EV demand

Lucid Group announced on Friday that it will cut its U.S. workforce by 6%, or around 400 employees, in response to slower growth in the electric vehicle industry. Automakers are trying to control costs as high inflation and interest rates lead consumers to choose cheaper, hybrid alternatives over more expensive EVs. The layoffs at Lucid will affect employees at all levels, including leadership and mid-level management, but will not impact hourly manufacturing and logistics workers, according to CEO Peter Rawlinson. As of December last year, Lucid had approximately 6,500 full-time employees worldwide. Lucid expects to incur charges of about $21 million to $25 million related to the workforce reduction and aims to complete the plan by the end of the third quarter of 2024.

Starbucks in China faces pressure to join price war

Starbucks faces tough competition in China from fast-growing, low-cost rivals, forcing it into a price war despite its intentions to avoid one. The coffee chain is under pressure from investors due to weaker sales in both the U.S. and China. In 2023, competitor Luckin Coffee surpassed Starbucks in annual sales in China. Despite this, Starbucks' China CEO, Belinda Wong, and founder Howard Schultz have emphasized their focus on sustainable growth over price cuts. However, analysts and social media users have noted an increase in Starbucks' discount coupons and promotions, making it easier for Chinese consumers to get discounted coffee, suggesting the company is being pulled into the price war.

Nvidia's market value nears Apple's amid AI boom

Nvidia's shares jumped about 6% on Tuesday to reach a record high, bringing the AI chipmaker's market value to within $100 billion of Apple's. Nvidia's stock closed at $1,128, giving it a market capitalization of $2.8 trillion, compared to Apple's $2.9 trillion, which is second only to Microsoft's. During the session, Nvidia's stock hit an intra-day high of $1,149.39, an 8% increase, while Apple's stock dipped 0.2%. Nvidia's shares have soared nearly 13% since it forecast Q2 revenue above expectations and announced a stock split last week, exciting investors. Nvidia's shares have more than doubled this year after tripling last year. The company, a major beneficiary of the AI boom, reported a five-fold increase in revenue from its data center segment last week, driven by demand for its high-performance chips.

Pentagon grants Palantir $480 million contract for "Maven" prototype

Palantir has secured a $480 million contract from the U.S. Department of Defense for the Maven Smart System prototype, the department announced on Wednesday. This contract, expected to be completed by May 2029, enhances Palantir's collaboration with the Pentagon. The Defense Department solicited a sole bid for this project. The Maven system integrates data from various sources to identify military targets and accelerate intelligence analysis. AI-assisted target identification has been controversial in the tech sector, with some workers opposing the development of war-related systems and critics fearing minimal human oversight in lethal strike decisions. Palantir has not yet commented on the contract.

US close to funding Moderna's bird flu vaccine trial

The U.S government is close to an agreement to fund a late-stage trial of Moderna's bird flu vaccine, the Financial Times reported on Thursday, as the outbreak spreads in dairy cows. Moderna confirmed discussions with the government about advancing its vaccine candidate but did not confirm the funding. Federal funding from the Biomedical Advanced Research and Development Authority (BARDA) could come as early as next month and might include a commitment to purchase doses if the trials succeed. Moderna is testing its experimental vaccine, mRNA-1018, against several virus strains, including the H5N1 variant. Early-stage dosing is complete, and data is expected soon. The U.S. government is also producing 4.8 million doses of CSL Seqirus' bird flu vaccine and is in talks with Pfizer and Moderna about a potential mRNA vaccine. Last week, U.S. officials confirmed another human infection since the virus was first detected in dairy cattle in late March.

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