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Rivian Shares Plummet After Ford Dumps 8 Million Shares
David Shultz
David Shultz reports on clean technology and electric vehicles, among other industries, for dot.LA. His writing has appeared in The Atlantic, Outside, Nautilus and many other publications.
Rivian shares continued their downward slide Monday after stockholder Ford Motor Company announced that it is dumping 8 million shares in the Irvine-based electric truckmaker.
Over the weekend, it emerged that the Detroit auto giant plans to reduce its position in Rivian, which totaled 102 million shares, after it was released from a six-month lockup period in the wake of Rivian’s November initial public offering.
In turn, Rivian’s stock started the week’s trading by continuing its months-long decline, shedding another 21% on Monday and retreating ever further from the autumn highs that briefly made it one of the world’s most valuable automakers. The company’s shares closed at $22.78, on a day when the tech-heavy Nasdaq exchange it trades on fell 4.3% amid an ongoing stock market selloff.
To be clear, Ford’s retreat doesn’t mean it is bailing on its Rivian investment entirely; the Detroit automaker still owns 94 million shares in Rivian and, alongside Amazon, remains one of the largest investors in the electric truck and SUV manufacturer. But it does see a major Rivian backer limiting its exposure to the stock in the face of production setbacks and vehicle price hikes brought about by rising costs and supply chain woes.
Despite those setbacks, Rivian announced last week that it had secured $1.5 million in tax incentives to begin construction on a new auto plant in Georgia that is expected to add 400,000 vehicles to its annual production capacity. If the company can achieve anywhere close to that level of production in the next five years, Rivian could finally prove a real rival to Tesla and other EV competitors.
Rivian is set to release its first-quarter earnings report on Wednesday. Should the company’s performance meet or exceed expectations, it could help stem its stock’s downward momentum and calm the nerves of jittery investors; if not, Ford’s decision could be a harbinger of things to come.
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David Shultz
David Shultz reports on clean technology and electric vehicles, among other industries, for dot.LA. His writing has appeared in The Atlantic, Outside, Nautilus and many other publications.
Proptech Startup AvantSay Raises $160M as Short-Term Rental Recovery Outpaces Hotels
05:04 PM | December 15, 2021
As the world emerged from the pandemic earlier this year, the well-off didn’t hold back on bookings at AvantStay Inc.’s high-end homes for family retreats or celebrating with friends.
While traditional hotel chains were decimated by a precipitous drop off in overnight stays, the West Hollywood-based staycation business is seeing booming times in many of its far-flung, short-term rental spots that are short drives from big metropolitan areas or in hidden Shangri-Las.
For instance, it offers luxury-living everywhere from California’s Paso Robles wine country, where a seven-bedroom home with four bathrooms and an Olympic-sized swimming pool rents for $2,765 a night, to $659 a night for a two-bedroom ocean view bungalow on Hawaii’s Oahu island.
These aren’t shacks, either.
The homes have everything from hot tubs and pools to fire pits and keyless entry for security. The average daily rate that travelers are willing to pay to stay at one of these mansions is $880, with groups of seven as the average number of guests – equating to $120 per person.
It’s comparable to staying in a four- or five-star hotel at a fraction of the price, said Sean Breuner, the company’s chief executive officer and co-founder. “It’s a much cheaper and affordable experience.”
Investor appetite in the niche is intense.
Swimply, a New York-based online marketplace for renting a private swimming pool as a form of staycation, raised $40 million in funding this week.
AvantStay CEO Sean Breuner
Some short-term rental firms also have gone public in recent months – including Sonder Corp., which runs a San Francisco-based boutique apartment-hotel hospitality company, and Vicasa, a Portland, Ore.-based international vacation rental management services business that went public on Dec. 7.
There’s a good chance that AvantStay will go the same route.
“Absolutely. I think going public is an option for us,” said Breuner in an interview.
This week, AvantStay raised $160 million in a Series B round of funding to help the platform decorate – called “kitting out” in industry parlance -- its palatial homes and list the properties owned by others to rent out for vacations or other short-term stays. It partnered with the 800-pound gorilla in the space, AirBnb Inc., as the short-term rental giant tries to diversify into other lines of business.
Tarsadia Investments and 3L Capital co-led the latest round, with participation also from previous backers Plus Capital, Bullpen Capital and Convivialite.
AvantStay’s rentals include a Who’s Who list of destination hotspots for globetrotters: ski-town Park City, Utah; luxurious skiing towns Breckenridge and Vail in Colorado’s Rocky Mountains; music night hotspot Austin, Texas; and coastal California beach cities for the rich and famous in Malibu and Newport Beach.
The company employs roughly 400, but expects to double or triple the size of the workforce over the next 18 months, and double the number of cities its homes are located from 100 to 200, according to Breuner.
“It’s a move in the direction where people want these large private spaces versus crowded hotels, and where they’re looking for a seamless travel experience,” Breuner said.
Jamie Lane, vice president of research with AirDNA, a Denver-based short-term rental data and analytics company, observed that travelers want to escape the crowds and not worry about catching the COVID-19 virus or wearing masks, he said.
“Most of these destination resorts are still getting their peak season revenue, which has been better than ever. We’re seeing them extend their seasonality so that they’re getting revenue over a much wider period, which makes these types of homes and rentals much more profitable,” Lane said.
“What we’ve seen is demand for short-term rentals has done better than anyone could ever have imagined,” he said.
“Overall, traditional hotels are still talking about getting back to 2019 levels,” added Lane, who noted that short-term rentals last month were 15% above levels seen two years ago.
The average daily rates for short-term rentals is roughly $248 a night, which is about 30.1% higher than November 2019’s average, he said.
“AvantStay’s markets are doing fine. They got lucky because they weren’t going after the urban markets,” said Lane, noting that the company is one of the few that has a national footprint.
He cited some in three short-term rental space that haven’t been so fortunate.
Lyric, a San Francisco-based short-term rental startup that raised $180 million from Airbnb and other investors, shut its doors in July 2020.
Washington-based Stay Alfred shut its doors in May 2020 and New York-based Domio, an apartment-hotel rental service catering to group travelers, closed down in November 2020.
Correction: An earlier version of this post misspelled CEO Sean Breuner's name.
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Pat Maio
Pat Maio has held various reporting and editorial management positions over the past 25 years, having specialized in business and government reporting. He has held reporting jobs with the San Diego Union-Tribune, Orange County Register, Dow Jones News and other newspapers in Ohio, West Virginia, Maryland and Washington, D.C.
Viral Fame Pays Off — Coachella Has Become A Gold Mine for Influencers
05:01 AM | April 20, 2023
Evan Xie
If someone attends Coachella and doesn’t make a TikTok about it, did they even go? Scrolling through any social media feed over the past few days, it seems like the answer is a firm “no.” Instead, people document everything from the food they ate to the cowboy boots they wore. The is even a genre of video dedicated to complaining about Coachella.
On TikTok, videos tagged #Coachella2023 have already amassed over 1.6 billion views—already up from #Coachella2022, which had 1.5 billion views and the second weekend has yet to begin. On Instagram, the hashtag has almost 37,000 posts. Sure, some of the content is posted by people attending the festival for fun. But a quick scroll through either platform shows that influencers have created the vast majority of the posts.
Content isn’t even limited to the two festival weekends. In the months leading up to Coachella, people share survival tips and outfit inspiration. And, afterward, the outfits reviews judge who captured the current trends and who fell flat.
This flood of content has led many to deride the influencers swarming Coachella. Critics say that the focus on fashion has ruined the festival and that influencers ushered in this change. A recent video by the singer Loren Grey, who rose to fame through TikTok, only confirmed these issues. Grey dubs Coachella “the influencer Olmpyics” despite the fact that many don’t even attend the festival. Instead, she says they film outfit and lifestyle content from the desert to make it look like they were in the thick of things.
So how did Coachella transform from a music-centric event to a TikTok content farm?
The influencers aren’t entirely to blame. Instead, people should point fingers at the brands Coachella works with to sponsor the festival. Brands like Neutrogena, H&M and Casetify—three of this year’s sponsors—all work with influencers to produce content from the festival and promote their products.
But the biggest player in Coachella’s influencers world is Revolve. Since 2015, the fashion company has produced the Revolve Festival concurrently with the first festival weekend, where they invite social media influencers and celebrities to network while watching trending artists perform. And, though influencers made Coachella content prior to Revolve Festival, the new event was a clear turning point in how brands could benefit from social media stars.
Revolve also works with influencer marketing agencies to gift clothes to attendees prior to Coachella. Evidently, the strategy works—back in 2018, the company said sales from the Monday before the festival were higher than Cyber Monday. The music festival has only become more crucial for the brand’s sales since then, with Revolve likening the festival to a retail Superbowl.
But it’s hardly just Revolve that’s capitalizing on the festival. Last year, one influencer said she earned $2,000 per Instagram post featuring Coachella content. Another influencer was paid $2,500 for three Instagram stories and a Reel in addition to a free ticket compliments of one of the brands she partnered with.
The reliance on influencer marketing during the festival is just a reflection of a wider focus on social media marketing. In recent years, brands are leaning even further into the presumed authenticity of micro-influencers who attend the festival. Which of course, means more content from more people.
So as annoying as some people find the unending stream of content, it’s time to accept that Coachella has long been a networking event for those whose livelihood depends on creating a glut of “get ready with me” videos.
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Kristin Snyder
Kristin Snyder is dot.LA's 2022/23 Editorial Fellow. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.
https://twitter.com/ksnyder_db
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