CHECKOUT COUNTER: Elon Musk drops private pursuit
Heeding shareholder concerns, Tesla boss Elon Musk says he will no longer pursue a deal to take the electric-car maker private
1. Musk drops private pursuit
Heeding shareholder concerns, Tesla boss Elon Musk said last week that he will no longer pursue a deal to take the electric-car maker private. The idea, which was touted two weeks ago, stunned investors and drew regulatory scrutiny. Musk’s August 7 tweet that he wanted to take Tesla private at $420 a share sent the shares soaring before it became apparent he didn’t actually have any financing lined up.
2. Gap sales slow
Gap Inc shares tumbled more than 8% last week after the apparel retailer’s namesake brand posted another bigger-than-expected drop in comparable sales for the second quarter, raising concerns about the unit’s turnaround plan. Comparable-store sales at the Gap brand fell 2.3%.
3. Nestlé in good health
Demand is increasing for a Nestlé nutrition subscription programme in Japan. The programme, which can cost about $600 a year for capsules and other products, has consumers send in photos of their plates of food via a smartphone chat application. An artificial intelligence application then pushes them to round out their meals with Nestlé’s nutrient-boosted green teas and milk products. The company expects the fledgling business to grow into a nearly $1bn enterprise within a decade.
4. Mac attack
More than 500 diners in 16 states across the US became sick with an intestinal illness caused by a parasite that officials believe was contracted from contaminated McDonald’s salads. The Food & Drug Administration said it’s investigating the supplier of romaine lettuce and carrots.