TikTok, WeChat Ban from U.S. App Stores Set for Sunday

Tami Abdollah

Tami Abdollah was dot.LA's senior technology reporter. She was previously a national security and cybersecurity reporter for The Associated Press in Washington, D.C. She's been a reporter for the AP in Los Angeles, the Los Angeles Times and for L.A.'s NPR affiliate KPCC. Abdollah spent nearly a year in Iraq as a U.S. government contractor. A native Angeleno, she's traveled the world on $5 a day, taught trad climbing safety classes and is an avid mountaineer. Follow her on Twitter.

TikTok, WeChat Ban from U.S. App Stores Set for Sunday

The Trump administration is ordering TikTok and WeChat be banned from all U.S. mobile app stores as of Sunday, effectively pulling one of the hottest apps in America from the reach of interested new users.

The yanking of the two apps from U.S. mobile stores come after the U.S. Department of Commerce detailed on Friday exactly what President Donald Trump's Aug. 6 executive order banning "transactions" with TikTok means. Trump's ban prohibits "any provision of service to distribute or maintain" the apps in U.S. mobile app stores, the department said.


Trump issued the order over national security concerns that TikTok is sharing user data with the Chinese Communist Party and has pushed for the company's sale to a U.S.-based company.

He is set to decide on whether a deal that would make Oracle ByteDance's "trusted technology provider" is good enough to allay his security concerns. CNBC reported that the deal involved Oracle having a minority stake of less than 20% in the new global TikTok, and that ByteDance hopes to do an initial public offering on the U.S. stock exchange to address ownership concerns.

A TikTok spokesperson said Friday the company disagrees with the Commerce Department decision and is "disappointed" that it will be blocking new app downloads starting Sunday and then banning the use of the app in the U.S. starting November 12.


"Our community of 100 million U.S. users love TikTok because it's a home for entertainment, self-expression and connection, and we're committed to protecting their privacy," the spokesperson said. "We will continue to challenge the unjust executive order, which was enacted without due process and threatens to deprive the American people and small businesses across the U.S. of a significant platform for both a voice and livelihoods."

Vanessa Pappas, the interim head of TikTok, said on Twitter Friday that this type of ban would be bad for the industry and invited Facebook and Instagram to publicly join its challenge and support their litigation against the Trump administration.

"This is a moment to put aside our competition and focus on core principles like freedom of expression and due process of law," she wrote.

TikTok said that in its proposal to the U.S. it's committed to "unprecedented levels of additional transparency and accountability well beyond what other apps are willing to do, including third-party audits, verification of code security, and U.S. government oversight of U.S. data security. Plus, an American technology provider would be responsible for maintaining and operating the TikTok network in the U.S., which would include all services and data serving U.S. consumers.

TikTok's disappearance from Apple's U.S. app store and Google Play would mean that users would lose out on any security updates, general updates or maintenance for the app. That's benign enough, except that users can be targeted by bad actors through any unpatched security vulnerabilities in the future.

"An abandoned app that is no longer available from the respective app store is an app that can no longer be updated to address bugs or vulnerabilities," cloud security company Wandera wrote in a recent report. "This means they are now in a prime position to be exploited by hackers, offering fake updates, or targeting known vulnerabilities that were never patched."

TikTok ranks fourth among free apps offered in Apple's U.S. app store. Data analytics firm Sensor Tower said it sees no evidence the news has caused a rush on installs, though there's plenty of anecdotal data showing increased interest.

Sensor Tower reported that the threat of Tiktok's ban resulted in a spike of downloads for its competitors in July. TikTok's monthly active users have grown across the U.S. app store and in Google Play by 51% from January to August, and increased slightly since June despite the threat of the ban.


___

Reporter Sam Blake contributed to this report.


Do you have a story that needs to be told? My DMs are open on Twitter @latams. You can also email me at tami(at)dot.la, or ask for my contact on Signal, for more secure and private communications.

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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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