Tesla predicts muddy roads ahead for EV sales

Thursday, January 25, 2024

Good morning, and welcome to TechCrunch AM! Today on the docket we have: why startups do layoffs ahead of IPOs; how a new startup cluster is forming; notes on how to build a consumer packaged goods startup; and where VCs see the future of fintech heading. As a bonus, there’s also a cool take on what happened to Tesla’s stock!

– Alex

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Swiggy cuts staff (again) to prep for an IPO: Layoffs may just have been 2024’s most popular trend if it weren’t for LLMs and AI. Case in point: Indian food delivery startup Swiggy is cutting 400 more jobs after axing 380 last year. The company has an IPO in its sights this year, and so is making difficult tradeoffs to bolster its bottom line.
Fintech’s future isn’t as gray as you’d think: Venture capital firm GGV recently came up with a list of fintech startups that investors are most excited about today. It’s a neat list, but we felt it was more interesting to see where fintech’s next winners are being built. And boy do they have a ton of market still left to attack.
Tesla predicts slower EV sales growth: Tesla’s stock is down 8% in pre-market trading after the company said in its Q4 2023 results that its EV sales could grow notably slower in 2024 compared to last year. The company’s cars are also selling for much less than they used to, which is affecting its margins. Tesla’s energy storage business, however, is growing rapidly.

Image Credits: Indranil Aditya / NurPhoto / Getty Images

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Bluesky melds open source, content moderation: How do you balance open source software and content moderation? That’s the challenge facing Twitter-alternative Bluesky as its user base expands. Bluesky has more than 3 million users today, TechCrunch reports.

Meta tightens rules for teenagers: After launching parental supervision tools in 2022, Instagram is making it harder for teens to receive messages from accounts they don’t follow. The company previously limited adults’ ability to reach out to teens, but is now broadening the scope of the restriction.

DXwand raises $4M for conversational AI in MENA: Building AI tech is global work, but not all models and technologies in the realm of artificial intelligence work as well in every language. So DXwand wants to build conversational AI for Arabic and its dialects. The startup has attracted a $4 million Series A round, led by Shorooq Partners and Algebra Ventures, based in the UAE and Egypt, respectively.

How to build a beverage startup: Have you seen an Olipop where you shop? The beverage company’s bright cans and limited sugar content are a popular mix. TechCrunch’s Found podcast recently brought on Ben Goodwin, the co-founder and CEO of Olipop, to dig into how he built the company and fundraised in a “riskier, and very saturated, consumer category like beverage.”

The new, improved Worldcoin orb will see you now: Worldcoin’s eyeball-scanning tech is getting a makeover. The crypto startup has a big goal of creating a blockchain-based ID product for everyone in the world. It will take a little time to scan the world, however, with just over 3 million users scanned thus far, but perhaps a “more friendly” orb will help win over those unsure.

Mushroom roots are big business: Infinite Roots just raised $58 million for its mycelium-based business. The company reckons that the substance (mushroom roots) is going to shake up what and how we eat. Other startups are also digging at mycelium, including Meati, Nature’s Fynd, Myco Technology, and Sqim. Say hello to the newest and coolest startup cluster!

Alinea Invest raises $3.4M for Gen Z wealth management: This is a very cool fundraise. Alinea Invest has built a wealth management tool for Gen Z women, and has seen 225,000 downloads and reached a run-rate of $1.8 million. What makes Alinea stand out is the company is run by just six people today, and is already profitable. Surely it will hire more folks, but to see a startup actually make money in its early days while also growing fast is a rare enough achievement. How did it manage the feat? By charging $120 per year for its service.

Ask Sophie: As an immigrant, how can I work in space tech? Immigration lawyer Sophie Alcorn digs into the space industry, and how working cross-border in areas of technology that fall under regulation is possible with the right preparation.

We spent some time digging into Bilt Rewards, Kittl, and Bulk Exchange’s fundraises on Equity this week. Bilt was an interesting pick due to the space it operates in (fintech); Kittl has a unique geographic location and competition (Germany, Canva); and Bulk Exchange’s target market (construction materials) doesn’t get talked about often enough.

Also: Innovation Endeavors just closed a $630 million Fund V, and plans to invest in 30 to 35 new companies.

Image Credits: Marco Bello and Eva Marie for the Knight Foundation

Before you go

Pokemon v. Palworld: The biggest story in gaming today is Palworld, a title that shot up the global sales charts and is turning heads not only for its gameplay, but also for a potential lawsuit around IP infringement and copyright.

Dubbed “Pokemon with guns,” Palworld is now being looked into by Pokemon Company, which might have a thing or two to say about the new game’s “pals,” which are basically bootleg Pokemon. We could be looking at a test case regarding IP, and what counts as inspiration and what counts as theft.