Coronavirus Updates: Disneyland Closes, MLS Games and Spring Training Suspended

Joe Bel Bruno
Joe Bel Bruno is dot.LA's editor in chief, overseeing newsroom operations and the organization's editorial team. He joins after serving as managing editor of Variety magazine and as senior leadership in spots at the Los Angeles Times, Wall Street Journal and Associated Press. He's a veteran journalist that loves breaking big stories, living back in L.A., a good burrito and his dog Gladys — not necessarily in that order.
Coronavirus Updates: Disneyland Closes, MLS Games and Spring Training Suspended

The coronavirus pandemic's emergence has changed the world around us. Conferences have been cancelled, travel has been severely restricted, and working from home has become the norm. But less clear is the scale of the economic impact and how companies should be reacting. Here are the latest headlines regarding how the novel coronavirus is impacting the Los Angeles startup and tech communities. Sign up for our newsletter and follow dot.LA on Twitter for the latest updates.


1:39 p.m: Disneyland Will Close Due to Covid-19

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Disneyland will close its doors indefinitely, according to a statement from the park:

"While there have been no reported cases of COVID-19 at Disneyland Resort, after carefully reviewing the guidelines of the Governor of California's executive order and in the best interest of our guests and employees, we are proceeding with the closure of Disneyland Park and Disney California Adventure, beginning the morning of March 14 through the end of the month. The Hotels of Disneyland Resort will remain open until Monday, March 16 to give guests the ability to make necessary travel arrangements; Downtown Disney will remain open. We will monitor the ongoing situation and follow the advice and guidance of federal and state officials and health agencies. Disney will continue to pay cast members during this time."

The closure comes as California Governor Gavin Newsom has called for all nonessential events of more than 250 people to be cancelled and issued a health directive aimed at getting Californians to be vigilant about contracting the virus.

Startup Aims to Produce 10,000 COVID-19 Testing Kits a Day at L.A. Lab

"We thought the big testing labs would have it under control, but it became apparent to us that there wasn't enough testing."

With that thought, Fred Turner, the head of a Bay Area startup known as Curative Inc., headed to Los Angeles to launch a production facility to produce coronavirus testing kits. "We can now do 50 a day, by Monday 150, and the end of the week 1,000 a day." The goal: 10,000 coronavirus testing kits to be deployed to drive-thru testing centers across the United States.

Check out reporter Rachel Uranga's story here.

10:51a.m.: Major League Baseball Suspends Spring Training, Delays Season

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Major League Baseball suspended all spring training in Arizona and Florida to confront the coronavirus pandemic, and delayed the start of the regular season by at least two weeks. The NCAA Tournament set for March also called off games.

10:37 a.m.: Major League Soccer Suspends Play

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Major League Soccer is following in the footsteps of the NBA and suspending its season for 30 days due to the coronavirus COVID-19, the league announced Thursday. The Los Angeles Galaxy, which are currently ranked fifth in the western conference, tweeted "at the appropriate time, the league and clubs will communicate plans for the continuation of the 2020 season."

9:47 a.m.: eSports Takes a Hit

William D'Urso

Plans for the Overwatch League to grow attendance in 2020 have stalled as organizers have shut it down amid growing coronavirus fears. The blockbuster title had big plans this year for its dedicated eSports league, rolling out a home game schedule aimed to foment regional enthusiasm. Read More >>

1:00 a.m.: UCLA Anderson Revises Its Economic Outlook for 2020

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University of California, Los Angeles economists tore up their quarterly March 2020 economic outlook as COVID-19 anxiety took hold of the American public and the novel virus spread through dozens of states.

The updated 104-page UCLA Anderson Forecast, released early Thursday, revised their earlier forecast of 2% for real GDP growth to a low 1.5% on a fourth-quarter-to-fourth-quarter basis, as they took a "midpoint between coronavirus having a very minimal effect to it causing a full-blown recession." Read more >>

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Cadence

The Good, the Bad and the Ugly from LA’s EV Scene

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.

The Good, the Bad and the Ugly from LA’s EV Scene

I’ve been on vacation this past week, so of course there’s been a ton of news in the Southern California EV world that I missed. I’m not even supposed to be back online until Tuesday, when I’ll be covering SXSW in Austin, Texas. But so great was the deluge of news that I’ve holed up in a Starbucks off of I-70 to whip up this little recap for you. Here we go.

Rivian

I covered Rivian’s Q4 earnings in last week’s newsletter. The results weren’t particularly pretty, with the company suggesting production guidance of just 50,000 units for 2023, which was below what many analysts had forecasted. But then, on Friday, Rivian employees told Bloomberg, that internally the company was saying it might be able to hit 62,000 units in the fiscal year. Shortly after that, however, Rivian announced that 50,000 vehicles was still the official target and that the larger figure had been taken out of context by employees. The company’s share price has fallen 24% since the earnings call.

But wait there’s more: Rivian had previously announced that it intended to lay off 6% of its workforce, and last week we got some more details about where those cuts will come from. The Palo Alto office is slated to lose 240 workers, and 204 look like they’ll be cut from the Irvine HQ, according to reporting from Carscoops.

But wait there’s even more: Rivian also announced today that it would recall 13,000 of its vehicles for issues related to an issue with the seatbelt that could prevent the passenger airbag from functioning as intended. This won’t be Rivian’s first recall, and it surely won’t be its last. Recalls are common and necessary in the automotive industry, but the news comes at an inopportune time for the EV maker.

Lastly, Rivian announced yesterday that it intends to raise $1.3 billion in cash to help it through the coming scale up phase. As I pointed out in the Q4 earnings article, the company’s current cash burn rate looked a bit too aggressive to bring Rivian into 2026, when the R2 platform is expected to launch and provide a pathway to profitability for the EV hopeful. An additional $1.3 billion helps to narrow that gap.

Vinfast

Some good news from Vinfast, actually. The company has delivered its first cars to US customers. Since its 999 SUVs arrived in the United States back in mid December 2022, the delivery process has been delayed by software issues with the vehicles. Last week, however, Vinfast announced that it had delivered 45 VF8s to customers. When the rest of the shipment will be ready for delivery is still unknown, but hey, it’s something. The news comes just a week after Vinfast cut its advertised lease price for the vehicle by a whopping 50%, which if you’ve been following dot.la’s coverage, brings its price much more in line with its value compared to competitors. Whether it’s enough to sway US consumers to take a risk on a new technology produced by a mostly unknown foreign brand, remains to be seen.

Mullen

On March 1st, Mullen’s top financier, Terren Peizer, was charged with insider trading by the Securities and Exchange Commission. Peizer and Mullen have a long history and Peizer has served as CEO of both Ontrak and Acuitas Holding Group. Back in April 2022, Hindenburg Research highlighted Peizer’s large stake in Mullen (29%), and his numerous ties to finance guys who’d found themselves in prison for various sorts of fraud. Now it seems the SEC is taking a look into Peizer himself. According to reporting by InvestorPlace, the agency has charged Peizer with selling $20 million in Ontrak stock while in possession of “material, nonpublic information (MNPI) concerning the company’s largest customer.” Whoops.

Meanwhile, Mullen announced today that it would showcase two new electric delivery vehicles at the NTEA Work Truck Show that’s ongoing this week. The press release contains images of the same class 1 cargo van that Mullen acquired when it purchased Electric Last Mile Solutions last fall, as well as a Class 3 low-cab forward delivery truck. How or where Mullen plans to make these vehicles at scale, remains unknown. But CEO David Michery said that both vehicles are coming to market later this year. Mullen would likely need to raise huge amounts of capital to bring manufacturing capacity online to deliver any meaningful volume of product, but the company does have multiple factory assets.

LA Venture: Toba Capital’s Patrick Mathieson on How VCs Can Better Support Founders

Minnie Ingersoll
Minnie Ingersoll is a partner at TenOneTen and host of the LA Venture podcast. Prior to TenOneTen, Minnie was the COO and co-founder of $100M+ Shift.com, an online marketplace for used cars. Minnie started her career as an early product manager at Google. Minnie studied Computer Science at Stanford and has an MBA from HBS. She recently moved back to L.A. after 20+ years in the Bay Area and is excited to be a part of the growing tech ecosystem of Southern California. In her space time, Minnie surfs baby waves and raises baby people.
LA Venture: Toba Capital’s Patrick Mathieson on How VCs Can Better Support Founders
Patrick Mathieson

On this episode of the LA Venture podcast, Toba Capital Partner Patrick Mathieson discusses his thoughts on investing in SMB platforms, gross revenue retention, and other things he looks for when investing.


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