One thing you might not know about Detroit is how big it is. At 142.9 square miles, it’s not as vast as Houston, (599.6 miles), but you can spend hours motoring around the Motor City.
The auto industry still dominates here, including GM (GM), which has its headquarters downtown and assembly plants in the area. In addition, there’s GM’s Technical Center, the cradle of GM’s engineering efforts for almost 70 years. It is a campus befitting of an auto giant. Designed by Eero Saarinen, the grounds cover 710 acres, with 11 miles of roads, over a mile of tunnels, and a pair of lakes (one is some 22 acres) that are used as emergency fire reservoirs.
The campus also houses 38 buildings, including the famed GM Design Center with its distinctive Design Dome, “a secret, enclosed room where the company’s leaders evaluate designs and decide which vehicles to build,” as the Detroit Free Press put it back in 2015. It’s also where I sat down with GM CEO Mary Barra (pronounced BAR-ah) on Wednesday.
Barra, who’s been CEO for eight and a half years, has a tough job. GM, once the biggest company in America and the world, is now the 25th biggest by sales in the U.S., according to Fortune. It’s No. 64 on Fortune’s global list. It’s the eighth-biggest automaker by sales in the world behind VW, Toyota, Stellantis (the old Fiat Chrysler plus Peugeot), Mercedes-Benz, Ford, BMW, and Honda.
GM is still large enough to be a massive global puzzle to manage, which keeps Barra plenty busy. I last checked in with Barra in May at the Milken Conference, where she was focused on coming out of COVID and mitigating the global semiconductor shortage. Those challenges remain, but now Barra is even more intent on moving past all that and transforming GM into an EV company.
I started off by asking Barra about the company’s new GM Energy business, but we also delved into GM’s EV product line-up, its stock price (roughly $33 a share, as of this week) and the overall economy.
Serwer: GM Energy, can you tell us what that’s all about?
Barra: Well, sure. One of the things we want people to understand is not only is an electric vehicle your mode of transportation—how you get from point A to point B—but it can also be a power source. And I think that’s going to be very important as we strengthen the grid in whatever country we’re doing work in. And in addition, we can leverage the technology. We have the battery technology to provide clean energy, energy storage, and can also supplement the grid. So we’re really excited about the business opportunity.
Serwer: How big is that business opportunity?
Barra: You know, we haven’t put those numbers out yet, but we see it being significant. Not only are we moving into electric vehicles that we think in the near to medium term will be growth areas, we have an opportunity to perform better on the coasts because that’s where EV adoption is happening more quickly. Getting into the electric commercial vehicle business is also a growth area for us.
Serwer: What GM vehicles on the road right now are EVs and which ones are coming out next year?
Barra: Well, right now we have the Bolt EV and the Bolt EUV, which I’m driving. We also have the GMC Hummer EV and we have the Cadillac LYRIQ that is just starting production. So that’s all out right now. We’ve had such strong demand for the Hummer and the LYRIQ that we’re into next year from an order perspective, in some cases beyond. But then in the first quarter we’ll launch the Silverado EV, and then if you go a little bit longer into the second and third quarter, we’ll have both the Chevrolet Blazer EV as well as the Chevrolet Equinox EV. So when we get to this point next year, we have a lot of models in the heart of the market, the largest segments in the market.
Serwer: Mary, GM stock has lagged a bit over the past year or so, and I’m wondering what you would say to shareholders. Why should someone buy the stock, or own the stock going forward?
Barra: I think there was so much attention earlier this year to how many EVs are you selling today? And we were in a difficult situation because we did the right thing for the consumer and for safety. When we found there was a manufacturing defect in the Bolt [battery] cell, we stopped producing so we could do the replacement cells for our customers. As we’ve moved through the year, we were able to, to start building the Bolt again. And we’ve actually had two record months in a row of sales of the Bolt, but I think that impacted the early view.
What I would say to shareholders is, take a little bit longer view, because this is not a one-year race. We are at the very early stages of driving EV adoption. And when you look at the vehicles that we have coming out next year with the Silverado EV, the Equinox and the Blazer, I think it is going to allow us to grow. And that’s why we’re confident that we’re going to produce a million units and see strong demand for our vehicles by the time we’re at 2025.
Serwer: Switching gears, where is the economy right now Mary, based on where you sit, and what do you see going forward?
Barra: It’s very hard to know exactly what’s happening in the market because we have been supply constrained for so long. So we know there’s pent-up demand, but also there’s challenges in logistics and moving vehicles once they’re built. We’re still dealing with semiconductor shortages, but getting vehicles moved to get to the dealers has been challenging, as well. We still see strong demand for many of our products, especially our full-size trucks that are mid-size crossovers. So it’s an interesting time.
We’re preparing next year for a year that will actually have more demand, but a little less demand than what we would think. We’re going to be conservative. Make sure we set our cost structure up that way, so then if things turn out better, we’re well positioned. But most importantly, because we have so many important EV launches next year, we want to make sure that we can fund our future regardless of where the economy is—downturn, recession, all those words that are being used. We want to be prepared regardless of the environment.
Serwer: You mentioned the chip shortage and supply chain. Is that improving? And then what about some other supply chain issues you might have with batteries and the inputs there?
Barra: We do see semiconductor supply improving quarter by quarter, but we still see more volatility than we’re used to. I think one of the reasons for that is the supply chain has been stretched so thin, so we’re looking for improvement as we go forward. But it’s still an issue. One of the things that’s going to be key to unlocking more Hummers, more LYRIQs and all of our vehicles, is battery plants. And we’re actually running the battery plant in Ohio now. And as that is able to ramp up, more cells will provide us with more ability to provide more electric vehicles. We actually have signed agreements for the production that we need between now and 2025 to get to our million units in 2025 in the United States and more than that in China.
Serwer: You are an engineer and my understanding is you really get down in the details when it comes to the specs and making sure that the car’s features are something that you think consumers will like. Right?
Barra: Well, absolutely. We have a very talented team at General Motors and we do the right amount of research, but yes, I’m also a consumer. So our leadership team comes into this room or at the plant. And we’re looking at the vehicles to make sure that they’re going to be what the customer is looking for, and that we’re going to win the segment.
The market is currently in a news-driven environment where the prices of cryptocurrencies have been determined by news agenda rather than fundamentals.
Bitfinex analysts have warned crypto investors to be cautious as bitcoin’s (BTC) recovery over the weekend is not a sign that its correction is over; the asset could witness more bloodshed in the near term.
In the latest Bitfinex Alpha report, experts deemed the market’s reaction this week critical, especially as supply alleviated over the weekend could return when traditional markets open.
“No Man’s Land”
Since Saturday, bitcoin has risen almost 10% from $57,600 to $63,000, closing last week in the green. The asset has surged above the 125-day range low of $60,200, which it broke through earlier this month after news of the German government’s massive BTC selling hit the market.
Market sentiment began to improve after reports that wallets linked to the German government were almost empty. However, the positive sentiment may not be sustained for long as the BTC the German authorities moved to trading desks and exchanges are yet to be sold.
While the supply from Germany appears to have been factored into bitcoin’s market price, Bitfinex analysts believe the end of selling pressure depends on how the involved trading desks execute their trades in the coming days.
Although the shift in sentiment underscores the market’s capacity to integrate new information and adjust expectations quickly, analysts think the market’s reaction over the first two trading days of the week cannot be overlooked for two reasons.
First, the low support level in the $60,200 range has now become a potential resistance line. Second, trading patterns over the past three months suggest that weekends are usually favorable for markets, especially on Saturdays when supply pressure seems to subside.
“We are now in no man’s land until we get clear resolution above or below this level,” the analysts said.
A News-Driven Environment
Besides the potential resistance level and three-month weekend trading pattern, the market is currently in a news-driven environment, where the prices of cryptocurrencies have been determined by news agendas rather than fundamentals.
Since selling pressure concerns are not yet completely obsolete due to upcoming Mt Gox creditor distributions, Bitfinex analysts expect such headlines to continue to have some impact on price movements. As such, the analysts urged investors to exercise caution in their trading strategies.
BlackRock’s IBIT led with $117.25 million in inflows on July 15, also being the most traded Bitcoin ETF.
The US spot Bitcoin ETFs recorded a daily net inflow of $301 million on July 15th. This extended their winning streak to seven consecutive days amidst a broader market recovery.
None of the ETFs recorded outflows for the day.
Bitcoin ETFs Rake in $16.11B in Net Inflows Since Jan
According to the data compiled by SoSoValue, BlackRock’s IBIT, the top spot Bitcoin ETF by net asset value, recorded the largest net inflows of the day at $117.25 million. IBIT was also the most actively traded Bitcoin ETF on Monday, with a volume of $1.24 billion. Ark Invest and 21Shares’ ARKB came in close behind with net inflows of $117.19 million.
Fidelity’s FBTC experienced net inflows of $36.15 million on Monday, while Bitwise’s BITB saw $15.24 million in inflows. VanEck’s HODL, Invesco and Galaxy Digital’s BTCO, and Franklin Templeton’s EZBC funds also recorded net inflows. Meanwhile, Grayscale’s GBTC and other ETFs, such as Valkyrie’s BRRR, WisdomTree’s BTCW, and Hashdex’s DEFI, registered no flows for the day.
A total of $2.26 billion was traded on Monday. The trading volume for these ETFs was less than in March when it exceeded $8 billion on some days. Meanwhile, these funds have collectively attracted $16.11 billion in net inflow since their January launch.
What’s Next For Bitcoin?
Earlier this month, bitcoin’s price decline was mainly due to fears of massive selling pressure from Mt. Gox and the German government’s BTC sales.
But the assassination attempt on pro-crypto former US President and presumptive Republican candidate Donald Trump at Saturday’s rally seemed to spark a recovery in the world’s largest digital asset, and experts are bullish on the asset’s price trajectory going forward. Bitcoin surged more than 9% over the past week and was currently trading slightly below $64,000.
Veteran trader Peter Brandt discussed bitcoin’s price outlook, suggesting a potential major rally. He referred to a pattern he terms “Hump->Slump->Bump->Dump->Pump” and highlighted that the July 5 double top attempt was a bear trap, confirmed by the July 13 close. He sees a likely continued upward trend but warned that a close below $56,000 would negate this bullish view.
“Bitcoin $BTC could be unfolding its often-repeated Hump…Slump…Bump…Dump…Pump chart construction. Jul 5 attempt at the double top was a bear trap, confirmed by Jul 13 close. Most likely scenario now is that bears are trapped. Close below $56k negates this interpretation”
PeckShield alert reveals LI.FI’s protocol vulnerability is similar to a March 2022 attack, with the same bug recurring.
The decentralized finance (DeFi) platform LI.FI protocol has suffered an exploit amounting to over $8 million.
Cyvers Alerts reported detecting suspicious transactions within the LI.FI cross-chain transaction aggregator.
LI.FI Issues Warning After $8 Million Exploit
LI.FI confirmed the breach in a statement on July 16 via X: “Please do not interact with any http://LI.FI powered applications for now! We’re investigating a potential exploit.” The team clarified that users who did not set infinite approval are not at risk, emphasizing that only those who manually set infinite approvals seem to be affected.
According to Cyvers Alerts, more than $8 million in user funds have been stolen, with the majority being stablecoins. According to on-chain data, the hacker’s wallet holds 1,715 Ether (ETH) valued at $5.8 million and USDC, USDT, and DAI stablecoins.
Cyvers Alerts advised users to revoke relevant authorizations immediately, noting that the attacker is actively converting USDC and USDT into ETH.
Crypto security firm Decurity provided insights into the exploit, stating that it involves the LI.FI bridge. “The root cause is a possibility of an arbitrary call with user-controlled data via depositToGasZipERC20() in GasZipFacet, which was deployed 5 days ago,” Decurity explained on X.
“In general, the risks behind routers, cross-chain swaps, etc. are about token approvals. Raw native assets like (unwrapped) ETH are safe from these kinds of hacks b/c they don’t have approvals as an option. Most users & wallets also no longer do “infinite approvals” which gives a smart contract total control on removing any amount of their tokens. It’s important to understand which tokens you’re approving to which contracts.
This dashboard looks for all transactions of a user that intersects Lifi. Not all of these transactions indicate risk- but you can see how, broadly, integrations & layers of tech (like how Metamask bridge uses Lifi on BSC) can complicate how users do or don’t put their assets at risk. Revoke Cash is the most well known approval manager app.
But it’s also good security practice to simply rotate your address. New addresses start with 0 approvals, so starting fresh by moving your tokens to a fresh address is another good security practice.” – commented Carlos Mercado, Data Scientist at Flipside Crypto.
Recent Exploit Mirrors March 2022 Attack
Further analysis by PeckShield alert revealed that the vulnerability is similar to a previous attack on LI.FI’s protocol that occurred on March 20, 2022. That incident saw a bad actor exploit LI.FI’s smart contract, specifically the swapping feature, before bridging.
The attacker manipulated the system to call token contracts directly within their contract’s context, making users who had given infinite approval vulnerable. This exploit resulted in the theft of approximately 205 ETH from 29 wallets, affecting tokens such as USDC, MATIC, RPL, GNO, USDT, MVI, AUDIO, AAVE, JRT, and DAI.
“The bug is basically the same. Are we learning anything from the past lesson(s)?” PeckShield Alert said in a July 16 X post.
Following the 2022 incident, LI.FI disabled all swap methods in its smart contract and worked on developing a fix to prevent future vulnerabilities. However, the recurrence of a similar exploit raises concerns about the platform’s security measures and whether adequate steps were taken to address the vulnerabilities identified in the previous breach.
LI.FI is a liquidity aggregation protocol that allows users to trade across various blockchains, venues, and bridges.