Business
Royal Mail CEO accused of ‘incompetence or cluelessness’ by MPs

The Royal Mail chief executive has been accused of “incompetence or ignorance” by MPs, who are urging regulator Ofcom to investigate whether the company breached legal service requirements.
Parliament’s bipartisan Business, Energy and Industrial Strategy (BEIS) Committee has asked the watchdog to investigate an alleged breach of the Universal Service Obligation (USO), which obliges the postal operator to deliver letters nationwide six days a week.
MPs have accused Royal Mail of prioritizing parcels over letters, claiming the company has “systematically undelivered” parts of its commitments.
Royal Mail chief executive Simon Thompson testified before the committee in January but was recalled last month in an unusual move after he was accused of making an inaccurate testimony.
Thompson then admitted that digital tracking devices worn by postal workers were used to pressure them to work faster and accused unscrupulous managers of using the information in violation of company policy.
Committee chair Darren Jones said he received nearly 1,500 communications after the first hearing, with evidence showing tracking information from Postal Digital Assistants (PDA) worn by workers was “100% were used to discipline and performance management personnel. Thompson has argued that the devices are used to “balance the workload evenly across the team.”
Jones said: “I find it hard to believe that such widespread breaches of company policy and legal obligations can be traced back to a national network of rogue workers conspiring against Royal Mail management.”
The Labor MP said the committee had been “inundated” with evidence “calling into question the accuracy of the answers” Thompson had given. “Frankly, the failures in company policy that Mr Thompson has admitted can only be due to an unacceptable level of incompetence or an unacceptable level of ignorance of what is happening at Royal Mail,” he said.
In a report by the committee, MPs noted that Royal Mail had failed to meet first class delivery targets every year since 2017. The “company’s USO performance was definitely not good enough,” Thompson told lawmakers.
Relations between Royal Mail executives and their workforce have been strained during a month-long dispute over wages and working conditions that has led to strikes. Talks continue with the Communication Workers Union, which represents some 115,000 postal workers.
Royal Mail has threatened to separate its domestic and international business if “significant operational changes” cannot be agreed with unions.
The company also suffered a ransomware attack that crippled its shipments from the UK to other countries. It refused to pay an $80 million (£67 million) ransom, which was subsequently demanded by hackers with ties to Russia.
A company spokesman said: “Royal Mail prides itself on providing universal service and our policy is clear that parcels and letters should be treated with equal importance. We have informed the committee that we will review the consistent application of our letter and parcel delivery policies across the business.”
The company said it would share the findings of the review with Ofcom and dismissed the suggestion that MPs were misled.
An Ofcom spokesman said: “Royal Mail’s recent performance is clearly a long way from what it should be. We are very concerned about this and have asked the company to explain what they are doing to urgently raise the level of service again.”
Ofcom said each April it assessed Royal Mail’s performance over the previous 12 months, adding that the regulator “would not hesitate to take enforcement action where necessary”.
Business
Rocket Lab targets Neutron launch price to challenge SpaceX

rocket lab is building a larger, reusable launch vehicle called the Neutron and is targeting a price near $50 million per launch to challenge it Elon Musk’s SpaceX.
“We are positioning Neutron to compete head-to-head with the Falcon 9,” Rocket Lab’s chief financial officer Adam Spice said earlier this week while speaking at a Bank of America event in London on Tuesday.
The company announced Neutron when it went public in 2021, with Spice saying the rocket remains on track to debut in 2024 its fourth quarterly report last month, Rocket Lab said it has begun production of Neutron’s first armor structures, as well as construction of the launch pad for the rocket. The company plans to conduct the first “hot-fire test” of an Archimedes engine that will power Neutron “by the end of the year,” Spice said.
SpaceX is touting a $67 million Falcon 9 launch, and Spice says Rocket Lab is aiming to match that on a cost-per-kilogram basis for satellite customers. That means Neutron is “targeting a launch service cost of $50 million to $55 million,” Spice said.
Spice also noted that Rocket Lab expects to fly the reusable Neutron boosters “10 to 20 times” each, within range of the current reusable performance of a Falcon 9 booster.
“We ultimately expect margins on Neutron launches to be in the range of about 50%,” added Spice. He estimated the commodity cost of each neutron at $20–$25 million, with “nearly half of that” coming from the rocket’s upper, non-reusable second stage.
Additionally, with SpaceX pushing hard to develop its massive Starship rocket, Spice alluded to the potential for the company to veer away from flying Falcon 9 missions.
“We don’t have any hard data on that, but if that were to happen, that would certainly be an incredibly optimistic thing for Neutron,” Spice said.
In the meantime, Spice said Rocket Lab aims to maintain its position as the “dominant player” in the small satellite launch market sub-sector with its Electron vehicles. The company expects to launch three Electron missions in the second quarter, two of which have already been completed, and is “on track” to launch 15 missions this year, Spice said.
More than rockets
Spice also stressed to the Bank of America audience that Rocket Lab is “much more than” just a rocket company. In fact, the company’s acquisitions and expansion into building satellite components and spacecraft have become the majority of its quarterly revenue.
“All of this leads to the biggest opportunity in space that’s really on the application side,” Spice said.
As CEO Peter Beck has previously notedRocket Lab’s goal is to create an “end-to-end platform for customers” who need space-based services. Spice said the company wants to operate satellites and “deliver data to our customers and develop a recurring revenue stream from it,” essentially eliminating the need for other companies to build and operate their own satellites.
“A lot of the companies that we are [launching to orbit on Electron] are very unnatural space facility owners,” Spice said, adding that “the best space facility owner is someone who can launch.”

Business
Rivian Automotive wants more engineers working at its manufacturing plant

News from Spencer Platt/Getty Images
Rivian Automotive (NASDAQ:RIVN) is reportedly planning to move more of its manufacturing engineering team to its Normal, Illinois manufacturing facility to accelerate production of electric trucks and SUVs
Sources indicate a will to reorganize May be announced Soon, a “significant portion” of the engineering team working on manufacturing issues will relocate to either the Illinois site or Rivian’s headquarters in Irvine, California. That would be a departure from the pandemic years, when engineers could work from different parts of the US. Rivian is just one of many companies trying to improve efficiency by having employees work remotely and geographically.
Rivian Automotive (RIVN) currently has around 14,000 employees.
Shares of Rivian (RIVN) closed 0.66% on Friday but still managed a gain of more than 7% for the week.
Observation of the automotive industry: Buy or sell? Auto stocks face supply, demand and inflation stalls
Business
Tesla Stock: Cathie Wood Sells $27 Million Of TSLA To Buy The Dip On Coinbase, Block

Fund manager Cathie Wood and her firm ARK Invest Management sold millions of Tesla shares on Thursday, inviting shares of Tesla coin base (COIN) as the crypto exchange stock fell after receiving a Securities and Exchange Commission warning.
X
Tesla Stock Sale
Wood unloaded a total of 139,642 Tesla (TSLA) shares on Thursday were valued at $26.84 million based on the closing price of 192.22, according to an investor update on Thursday night. The company sold 119,630 shares of its ARK Innovation ETF (ARKK) and 20,012 shares from the ARK Next Generation Internet ETF (ARKW).
Coinbase stock crashes as SEC turns aggressive
The sale ended a Tesla buying streak for Wood. Added ARC Tesla shares valued at $12.6 million on March 8th after buying 1.3 million shares in December and January, according to Barron’s data. Tesla shares closed Thursday 5.5% higher than their March 8 close and 1% below their Dec. 1 close. Tesla stock is up 76% so far this year.
TSLA shares tumbled 0.9% on Friday.
Buy the Coinbase Dip
Meanwhile, ARK Invest added 268,928 shares of Coinbase worth $17.83 million based on Thursday’s close of 66.30. ARK added 230,599 shares to ARKK and 38,329 shares to ARKW, respectively.
COIN shares fell 14% on Thursday after the company announced it received a Wells Notice from the SEC late Wednesday, warning that the regulator intends to recommend enforcement action for potential securities violations. Coinbase and its executives remain firm in their belief that their products are compliant.
On March 21, Wood sold 160,887 shares of Coinbase from the ARK Fintech Innovation ETF (ARKF) to mark ARK’s first COIN stock sale of the year.
COIN stock rose 2.3% on Friday. Coinbase shares have rocketed 101% year-to-date. Still, shaken by crypto panics, Coinbase stock remains well below its all-time high of 368.90 set on Nov. 9, 2021.
Wood and ARK also bought 320,557 shares of the payment processor block (Q), valued at $19.84 million based on Thursday’s close of 61.88. SQ stock slipped 2% on Friday.
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Follow Harrison Miller on Twitter for more stock news and updates @IBD_Harrison
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