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| Here is your Monday Transportation briefing: - 🚀 Virgin Galactic successfully completed its flight mission.
- 🚆 Brightline lowered its 2024 projections.
- 🏢 Tesla announced plans to invest $500M in New York.
- 🚗 Hyundai Motor Company reported a record-breaking profit of $9.7B in 2023.
- 🔍 Stellantis acquired CloudMade's AI framework.
- 📦 Veho cut 19% of its workforce.
Thanks for reading! Robel
p/Robel-Kelkile | |
| 1 | | Virgin Galactic conducted its first suborbital mission of 2024 on Jan. 26, launching the VSS Unity spaceplane from Spaceport America in New Mexico with four customers and two pilots aboard. The flight, named Galactic 06, reached a peak altitude of 88.8 kilometers before landing back at the spaceport, marking the company's continued progress in commercial spaceflight. More: - The VSS Unity spaceplane, attached to the VMS Eve mothership, took off from Spaceport America at noon. Eastern and separated about 45 minutes later, igniting its hybrid rocket engine.
- The flight carried four private astronauts — Neil Kornswiet, Robie Vaughn, Lina Borozdina, and Franz Haider — along with two pilots, with identities disclosed post-mission.
- Following Galactic 06, Virgin Galactic plans to conduct Galactic 07 in the second quarter of the year with a researcher and private astronauts before retiring the VSS Unity to focus on developing the next-generation Delta-class suborbital vehicles.
- The company aims to expand flight capacity, with testing of Delta-class ships expected to start in the following year and commercial service planned for 2026.
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| 2 | | Brightline's high-speed rail system in Florida is expected to carry 5.5 million passengers in 2024, a 21% decrease from initial forecasts, with ridership crucial for profitability amid a push for debt refinancing. The rail service, seen as a blueprint for expanding rail in the U.S., offers a competitive alternative to driving or flying between Miami and Orlando, despite skepticism about disrupting South Florida's car culture. More: - Despite challenges and skepticism, Brightline remains optimistic about future ridership growth, banking on demographic trends and demand drivers in key markets like Orlando.
- Investor optimism persists, with projections for significant ridership increases over the coming years, particularly on the long-distance route between Miami and Orlando, forecasted to generate a substantial portion of Brightline's revenue.
- Challenges such as competition from existing rail services and profitability concerns underscore the complexities of running successful passenger rail operations in the U.S.
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| 3 | | Tesla plans to invest $500M to construct a "Dojo" supercomputer at its Buffalo, New York, factory, according to Gov. Kathy Hochul. The Dojo project, initially announced in 2021, aims to bolster Tesla's self-driving car ambitions by processing vast amounts of vehicle video data to train advanced AI, with Elon Musk emphasizing its high-risk, high-payoff nature despite the significant investment. More: - Hochul said the state's talented labor pool, reliable power supply, and available open space were the major factors in the decision.
- Musk said even though the $500M Hochul quoted is accurate, the company will spend far more on Nvidia hardware this year.
- The Dojo project marks a strategic shift for Tesla's Buffalo factory, which initially focused on producing Solar Roof tiles but faced challenges, leading to the transition to supporting Tesla's Autopilot software and now hosting the Dojo supercomputer initiative.
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| 4 | | Hyundai Motor Company reported a record-breaking profit of $9.7B in 2023, driven by strong sales in key markets like the U.S., Europe, India, and Brazil, particularly in SUVs and luxury vehicles. Despite aiming to maintain vehicle sales at 4.24 million in 2024 with an operating margin between 8% and 9%, the company is adopting a cautious strategy due to global economic challenges, focusing on improving profitability rather than expansion. More: - Hyundai's record profit in 2023 marked a significant 58.4% year-over-year increase.
- Despite revenue growth slowing during Q4 of 2023, the company increased electric vehicle (EV) sales in the U.S. by emphasizing leasing and fleet sales.
- Hyundai anticipates a 60% year-over-year growth in hybrid vehicle sales in 2024, considering them as profitable as internal-combustion-engine vehicles, if not more so.
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| 5 | | Stellantis announced its acquisition of CloudMade's AI framework, machine learning models, and patents to bolster its software-defined vehicle strategies, with over 40 engineers joining to enhance AI development. This move reflects a broader industry trend of automakers investing in software technologies to adapt to the evolving automotive landscape. More: - The addition of CloudMade's cloud and software development kit is expected to improve in-car user experiences by enabling the collection and analysis of automotive data.
- The automotive industry faces challenges in transitioning to a more software-defined future, with studies suggesting limited preparedness among automakers and suppliers.
- Stellantis is pursuing partnerships and acquisitions, such as the joint venture with Foxconn, to innovate its products for electric and autonomous vehicles.
- CloudMade's technology will enable Stellantis to offer features like predictive maintenance, personalized in-car experiences, voice assistance, navigation systems, and fleet management tools while empowering its software developers to create custom machine-learning models.
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| 6 | | Veho, a package delivery company, laid off 19% of its corporate/exempt employees, approximately 65 jobs, after achieving nearly 90% revenue growth in 2023. Despite recent layoffs, Veho remained optimistic about its capital position and momentum, focusing on efficiency improvements and profitability. More: - Veho, a logistics technology company founded in 2016, specializes in last-mile delivery solutions, aiming to streamline package delivery from fulfillment centers to customers' doors.
- Despite strong growth and successful fundraising efforts, including Series A and Series B rounds totaling over $300M, Veho faced challenges in 2023, including layoffs and executive departures.
- The company expanded into new markets and secured partnerships with major retailers like Kroger, Saks, and Nordstrom, aiming to scale its operations and meet the growing demand for e-commerce logistics services.
- Challenges in the logistics industry, such as increased freight rates and ongoing consolidation, continue to impact companies like Veho, necessitating strategic adjustments to maintain growth and profitability.
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- Uber submitted a legal appeal challenging transport restrictions imposed by the mayor of Paris. NOTE: Inside.com founder and CEO Jason Calacanis is an investor in Uber.
- Alaska Airlines reintroduced the Boeing 737 Max 9 aircraft into service with a flight from Seattle to San Diego.
- Volvo's fourth-quarter profit surged by 80.6% due to rises in deliveries and margins.
- Flexport is considering another round of employee layoffs.
- Royal Caribbean's groundbreaking vessel, the Icon of the Seas, set sail on its inaugural voyage amidst a surge in demand for ocean vacations within the cruise industry.
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 | Writer | | Born and raised in the Bay Area, Robel Kelkile is passionate about all things tech, venture, and financial education. He has previously served both universities and state governments in their engagement strategy and tracking legislation. | | This newsletter was edited by Aaron Crutchfield | |
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