In a series of significant developments, Tesla settled a wrongful death lawsuit, President Joe Biden announced a new plan to forgive student debt, and Spirit Airlines made strategic moves to boost liquidity.
Tesla reached a settlement in a lawsuit brought by the family of Walter Huang, an Apple engineer who tragically died in a crash involving his Model X SUV with Autopilot features engaged. The National Transportation Safety Board (NTSB) had previously investigated the incident and attributed partial blame to Tesla’s driver assistance systems. The terms of the settlement were sealed from public view as jury selection for the trial was underway.
President Biden unveiled a plan to forgive student debt, with provisions to forgive up to $20,000 in unpaid interest on federal student loans for all borrowers. Low and middle-income borrowers could see their entire interest canceled under the proposed rule. Additionally, debt forgiveness would be extended to borrowers who have been in repayment for 20 years or longer on undergraduate loans or attended questionable value schools.
Meanwhile, Binance’s new CEO Richard Teng addressed the cryptocurrency exchange’s past cultural issues, stating that the company has moved past those challenges after paying a hefty fine to settle charges from the Justice Department. Former CEO Changpeng Zhao had pleaded guilty to charges and stepped down from his position. Teng emphasized the company’s shift towards regulatory maturity and sustainability.
In a bid to enhance liquidity, Spirit Airlines announced plans to defer deliveries of new aircraft and furlough approximately 260 pilots. The deferral of Airbus aircraft deliveries is expected to boost the budget carrier’s liquidity by $340 million over the next two years. The pilot furloughs are scheduled for September as the airline navigates challenges stemming from the grounding of Airbus planes due to a Pratt & Whitney engine recall.
These developments underscore the dynamic landscape in the automotive, government, and aviation sectors, impacting investors and stakeholders alike. Stay tuned for further updates on these evolving stories.
