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Freight Startup Taps New CEO; Tesla Takes Charge of Supply Chain

By Liz Young

 

Trucks fuel up at a truck stop in Georgia. PHOTO: ROBIN RAYNE/ZUMA WIRE

Digital freight startup Transfix has a new CEO. Jonathan Salama, the company’s 36-year-old co-founder, is taking over after Lily Shen resigned effective Thursday. The WSJ Logistics Report’s Paul Berger writes that Transfix, like many freight brokers, has struggled over the past year as freight volumes and rates have fallen alongside waning demand. Transfix and its partner G Squared Ascend I in October terminated a planned merger via a special purpose acquisition company, citing “current public market conditions.” That same month, Transfix laid off an undisclosed number of its roughly 300-person workforce. The SPAC had been expected to raise up to $375 million for Transfix to expand its business. Company officials say they raised some money in a private funding round with G Squared and another backer, New Enterprise Associates, but they won’t disclose the amount. Mr. Salama says Transfix is well positioned to grow absent a major investment by being more efficient.

  • Truckload carrier Big G Express acquired Tennessee-based RTR Transportation. (Commercial Carrier Journal)
 
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Transportation

Cars on the assembly line at a Tesla manufacturing facility in Texas. PHOTO: SUZANNE CORDEIRO/AFP VIA GETTY IMAGES

Tesla is trying to dominate the supply chain for electric vehicles. The auto maker spent around $28 billion to cement itself as the world’s most valuable car company. The WSJ’s Rebecca Elliott reports it is now preparing to invest roughly five times as much as it strives to meet its next objective of becoming the world’s largest car maker by volume. The company’s chief financial officer says Tesla might need to spend nearly $150 billion more to achieve its long-term goals, which includes selling 20 million vehicles a year. The company delivered about 1.3 million vehicles to customers globally last year. Tesla is taking control of its supply chain as it ramps up production. It is planning to build a new factory in Mexico and to expand its existing plants. Tesla is also building a lithium refinery and a battery materials facility in Texas to make what it needs to produce the battery cells that power its electric vehicles.

  • Hydrogen producer Plug Power increased revenue 40% last year but fell short of projections. (Business Journals)
  • Ford Motor plans to resume production of its F-150 Lightning electric pickup truck in mid-March. (WSJ)
  • Volkswagen’s China chief said he saw no human-rights violations on a visit to the auto maker’s plant in Xinjiang that has been a source of criticism for the company. (WSJ)
 

Quotable

“The hard part is building the cars and the entire supply chain that goes with the cars.”

— Tesla CEO Elon Musk
 
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Number of the Day

4%

Decline in air cargo volumes in February compared with a year earlier, as capacity rose above pre-pandemic levels for the first time in four years, according to Clive Data Services.

 

In Other News

U.S. jobless claims edged lower last week. (WSJ)

Eurozone inflation eased in February for the fourth straight month but the bloc's core measure of inflation rose to a fresh record. (WSJ)

Cities across Europe are keeping the lights on and heating homes with natural gas fracked from wells in Texas and Louisiana, as U.S. exports of liquefied natural gas to the continent reach record levels. (WSJ)

North Koreans are experiencing widespread hunger and dying of starvation as the country suffers one of the worst food crises in decades. (WSJ)

The entire managing board of Greece’s rail network OSE and of a subsidiary resigned following a train crash that killed at least 57 people. (WSJ)

Norfolk Southern and other railroads will join a federal system that lets employees confidentially report close calls. (WSJ)

Many global companies who said they would exit Russia after Moscow’s invasion of Ukraine are still there a year later. (WSJ)

Retailers Macy’s and Best Buy say sales declined in the fourth quarter as consumers pulled back on purchases of apparel and electronics. (WSJ)

Brewer Anheuser-Busch InBev reported a fall in sales volume at the end of the year as steep price increases prompted a drop in demand. (WSJ)

Target will allow customers to make curbside returns starting this spring. (Chain Store Age)

Klaus-Michael Kuehne, Germany’s richest person, stands to pocket $4.5 billion in dividends this year from his growing transport empire. (Bloomberg)

The International Federation of Freight Forwarders Associations is calling for ocean carriers to restore free time to pre-pandemic levels. (The Maritime Executive)

Japanese shipping group NYK Line’s forwarding arm has acquired Taylored Services, a U.S. third-party logistics provider. (The Loadstar)

 

About Us

Paul Page is editor of WSJ Logistics Report. Write to him at paul.page@wsj.com.

Follow the WSJ Logistics Report team: @PaulPage, @ByLizYoung and @PDBerger. Follow the WSJ Logistics Report on Twitter at @WSJLogistics.

 
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