The struggles of Tesla’s Chinese rival

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Hello readers,

Have you ever experienced an extended period of good luck and positive vibes – work’s going great, things are really clicking with the guy or girl you met on Tinder, you just lost some inches off your waistline – only for it all to come to a screeching halt?

Covid-19 has given many of us this sensation, and it appears to have happened to Chinese multi-billion dollar electric vehicle firm Byton as well. From announcing that it was “close” to securing a US$500 million series C round in August 2019, the firm has since had to suspend its China operations for six months and furlough thousands of employees.

Find out the reasons behind its struggles or scroll down for a quick summary.

But first, your quick bytes for today:

1️⃣ Huawei’s loss, Samsung’s gain

Samsung Electronics won a US$6.6 billion order to provide 5G wireless solutions to Verizon Communications in the US, becoming one of its biggest 5G contracts. The move should lift Samsung’s market share in the wireless industry at a time when leader Huawei Technologies is grappling with sanctions in the US and fending off the country’s efforts to get allies around the world to shut it out.

2️⃣ The removal of TikTok’s AI recommendation engine could affect its sale

Updated export controls from Beijing last week – which cover two key technologies used by the short-video app – may mean that a quick deal to sell TikTok’s US operations by September 15 is unlikely to take place. Some users, and in turn investors, may not be prepared to wait for the app to build a new algorithm.

That said, it’s estimated that the firm still managed to generate more than US$88.1 million in revenue last month, 6.3x higher than its earnings for the same period last year. The year-on-year growth is attributed to the strong performance of TikTok’s Chinese version, Douyin.

3️⃣ Mixed reality headsets enter workplaces in Japan

Mixed reality goggles are being introduced into the country’s workplaces in order to give long-distance technical guidance and hold remote conferences amid the coronavirus pandemic. Railway maintenance and engineering, automobile component manufacturing, and furniture manufacturing are some of the industries that have seen the adoption of this technology into their processes.

There are still challenges, however, such as increasing the variety of headsets and cutting costs.

Why is Byton’s engine stalling?

End of the buffet line?

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