EV breather

GM delays opening of electric truck factory, United forecasts lower profit after suspending Tel Aviv flights, and more [View this email in your browser]( [What makes a subscription to The Week so valuable now? Click the banner]( [The Week]( Daily business briefing 1. [GM delays electric-truck factory opening as EV demand slows]( General Motors said Tuesday it was pushing back the opening of a large [electric-pickup-truck]( factory in Michigan by a year. GM said the plant in suburban Detroit, where it will make the electric Chevrolet Silverado and GMC Sierra, will now start production at the end of 2025. The automaker said it would use the extra time to adjust to "evolving EV demand" and tweak engineering to make the vehicles more profitable. Weaker-than-expected EV sales and other problems have forced many automakers to recalibrate. Ford said three days ago it would temporarily lay off 700 workers making all-electric Ford F-150 Lightning pickups, partly due to supply chain constraints. [The Wall Street Journal]( [The Detroit News]( Advertisement by Enbridge [Discover how we're investing in low-carbon solutions for tomorrow.]( 2. [United forecasts lower profit after suspending Tel Aviv flights]( United Airlines said Tuesday it expected fourth-quarter profits to fall short of Wall Street estimates as the [Israel-Hamas war]( forced it to suspend flights to Tel Aviv and higher jet fuel prices increased costs. The airline said adjusted profit would come in at $1.80 per share if Tel Aviv flights were grounded only through the end of the month, but $1.50 per share if the suspension lasted through the end of the year. United said it would not resume the flights "until conditions allow." Tel Aviv flights amount to 2% of United's annual capacity, making the route more important to it than to any other U.S. carriers. [Bloomberg]( 3. [US tightens restrictions on AI chip sales to China]( The Biden administration on Tuesday tightened [restrictions on China's access to U.S. semiconductors]( placing additional limits on sales of advanced microchips to Chinese firms. The rules could stop most shipments of cutting-edge chips from U.S. companies to Chinese data centers that need them to handle artificial intelligence technology. The administration is requiring more U.S. companies to notify the government or get a special license if they want to sell China advanced chips or the equipment to produce them. The Biden administration says it's dangerous to give China access to advanced technology because it could help China's military with such tasks as hypersonic missile guidance or breaking top-secret codes, The New York Times reported. [The New York Times]( 4. [Retail sales beat expectations]( U.S. retail sales rose more than expected last month as Americans spent more on new cars and dining out, the Commerce Department reported Tuesday. Retail sales increased 0.7% in September, and the August increase was adjusted to 0.8% from an initial reading of 0.6%. Economists had forecast a September gain of 0.3%. The numbers added to signs that economic growth is accelerating, increasing odds the Federal Reserve will [raise interest rates]( one more time this year to fight inflation. Goldman Sachs raised its estimate for third-quarter growth to a 4.0% annualized rate. "The economy looks like it is getting used to the new normal of interest rates being higher for longer because shoppers are not taking a break," said Christopher Rupkey, chief economist at FWDBONDS. [Reuters]( Sponsored by BetterHelp [With BetterHelp, You Get Personalized Online Therapy For Today's World]( 5. [Stock futures struggle as earnings season picks up]( U.S. stock futures fell early Wednesday as a strong earnings season continued. Futures tied to the Dow Jones Industrial Average and the S&P 500 were down 0.3% and 0.5%, respectively, at 7 a.m. ET. Nasdaq futures were down 0.6%. The Dow and the S&P 500 were essentially flat on Tuesday. The tech-heavy Nasdaq fell 0.3% as the yield on the benchmark 10-year Treasury note rose after September retail sales came in stronger than expected. Nvidia, Advanced Micro Devices and other chip stocks fell after the U.S. announced more restrictions on AI chip sales to China. Investors also are cautious due to concerns the Israel-Hamas war could spread. But earnings this season have been robust, with 83% of companies reporting so far beating expectations. 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