Northvolt Files for Bankruptcy Protection

FINANCE
Northvolt Files for Bankruptcy Protection

Swedish electric car battery maker Northvolt has filed for bankruptcy, dealing a setback to Europe’s ambitions to compete with Asia in battery production. Founded in 2016, Northvolt struggled with mounting debt, production delays, and weak demand.

The company had sought bankruptcy protection in the U.S. last November to secure new investors, but efforts failed, leaving 5,000 employees uncertain about their future. Northvolt stated Wednesday that despite exhausting all restructuring options, it could not secure the necessary financial conditions to continue.

Northvolt owed $5.8 billion, with major shareholders including Volkswagen and Goldman Sachs. Rising capital costs, geopolitical instability, and supply chain disruptions weakened its position, leading to a lost €2 billion BMW order and mass layoffs.

Swedish officials ruled out a government bailout but expressed hope for a new buyer. The court-appointed trustee aims to maintain operations during the bankruptcy process, as Europe continues efforts to expand its battery production capacity.

TECH
Musk Vows to Double Tesla Output

Elon Musk is betting big on Tesla’s U.S. expansion, vowing to double vehicle production within two years. The move comes as markets lose faith in both Musk and President Trump, with trade wars escalating and Tesla’s cost-cutting raising concerns. Tesla’s stock has suffered, contributing to the worst first 50-day market performance for a president since 2009.

Originally planning a factory in Mexico, Musk is now shifting focus to expanding Tesla’s Austin plant. The new strategy includes ramping up production of the CyberCab, a fully autonomous vehicle, and the long-promised $25,000 Model 2. These additions could push Tesla toward its ambitious goal of doubling U.S. output.

Musk also faces scrutiny as head of DOGE, a government-efficiency initiative, applying his aggressive corporate cost-cutting to public services. Despite doubts, he remains optimistic: “2026 will be epic, and ‘27 and ‘28 will be ridiculously good.” Investors, however, remain cautious about Tesla’s long-term trajectory.

CRYPTO
MGX Invests $2B in Binance

Emirati state-owned investment firm MGX has announced a $2 billion investment in Binance, marking the cryptocurrency exchange’s first institutional backing and the largest crypto investment ever paid in stablecoins.

In a joint statement, the firms confirmed that MGX’s minority stake would be settled in stablecoins, a class of digital assets pegged to fiat currencies. MGX, launched in 2023 with a focus on AI, had yet to enter the crypto space but previously partnered with BlackRock and Microsoft to launch a $30 billion AI fund.

“MGX’s investment in Binance reflects our commitment to blockchain’s transformative potential,” said MGX CEO Ahmed Yahia.

Binance, the world’s largest crypto exchange, has expanded in the Middle East amid regulatory scrutiny elsewhere. With 1,000 employees in the UAE, Binance boasts 260 million registered users and over $100 trillion in cumulative trading volume. The firms did not disclose the stake size or the stablecoin used in the transaction.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.