Los Angeles Times - 26.11.2019

C2 TUESDAY, NOVEMBER 26, 2019 WSCE LATIMES.COM/BUSINESS

BUSINESS BEAT

An economically devas-
tating citrus disease has
been detected for the first
time in San Bernardino
County, expanding an al-
ready large quarantine area
aimed at keeping the mala-
dy from hitting the commer-
cial groves centered in the
southern San Joaquin Val-
ley, according to California
agricultural authorities.
Just one tree near the city
of Montclair was stricken
with citrus greening disease,
or Huanglongbing, a bacter-
ial infection spread by a tiny
insect, the Asian citrus psyl-
lid, according to the state
Department of Food and
Agriculture.
An existing quarantine
sparked by previous detec-
tions in Los Angeles and Or-
ange counties has been ex-
panded by 93 square miles,
creating a contiguous 1,015-
square-mile area. Another
quarantine is in effect in Riv-
erside County.
The measure imposes
strict prohibitions on trans-
porting citrus trees and
fruit. No fruit that is not
commercially cleaned and
packed, including residen-
tial citrus, can be moved
from the property on which
it is grown, although it may
be processed or consumed
on the premises.

Officials plan to inspect,

remove and spray citrus

trees within 400 meters of

the infected tree in San Ber-

nardino County.

The HLB bacteria attack

the citrus tree’s vascular sys-

tem, resulting in fruit that is

hard, bitter and misshapen.

They do not pose a health

threat to humans.

Authorities confirmed

the first California case of

HLB in Hacienda Heights in

2012, and again in 2015 in San

Gabriel, about 20 miles

away. Both were residential

areas.

California’s nearly $4-bil-

lion citrus industry has been

concerned about the spread

of the disease since it first

was detected in Florida, in

2005, about seven years after

the psyllid was first found

there. Federal, state and pri-

vate efforts to combat it in-

clude releasing an exotic

wasp that preys on the psyl-

lid, as well as genetic engi-

neering of trees to add dis-

ease-fighting capabilities.

The first psyllids in Cali-

fornia were found in the U.S.-

Mexico border region of San

Diego and Imperial counties

in 2008 and have crept north-

ward, largely aided by peo-

ple transporting infested

trees and fruit, according to

the U.S. Department of Ag-

riculture.

California Department of

Food and Agriculture offi-

cials are urging anyone who

suspects insect or bacterial

infestation to call the agen-

cy’s toll-free pest hot line at

(800) 491-1899 or visit its

website.

A CITRUStree stricken by Huanglongbing, a bacter-
ial disease spread by the tiny Asian citrus psyllid.

F1K

Citrus disease

detected in tree

near Montclair

Discovery of bacterial

infection expands a

large quarantine area.

By Geoffrey Mohan

PARIS — French luxury

giant LVMH Moet Hennessy

Louis Vuitton said Monday

that it had reached a deal to

buy U.S.-based jewelry leg-

end Tiffany & Co. for

$16.2 billion.

LVMH said in a state-

ment that the deal valued

the 180-year-old Tiffany and

its 300 boutiques worldwide

at $135 a share. The agreed-

upon deal is higher than the

$14.5-billion cash offer

LVMH made last month.

The conglomerate said

both companies’ boards ap-

proved the deal and hoped

to finalize the takeover in

2020 subject to the approval

of regulators and Tiffany

shareholders.

LVMH says the deal will

strengthen its position in

high-end jewelry and in the

U.S. market.

LVMH already owns 75

brands including Christian

Dior, Fendi and Givenchy as

well as watchmaker Tag

Heuer. The purchase would

also give LVMH a much

broader foothold in the

United States and broaden

its offerings in jewelry.

Tiffany says the deal will

ensure the company’s long-

term sustainability. Tiffany,

which is trying to transform

its brand to appeal to young-

er shoppers, can use a com-

pany with deep pockets to

help expand its business.

The offer comes as luxury

goods companies have been

wrestling with changing

habits of shoppers who are

increasingly buying online.

They’re also purchasing

secondhand luxury items

from such places as the Re-

alReal.

In addition, luxury com-

panies are facing fears of an

economic slowdown in

China, a key area of busi-

ness, while they’re already

dealing with a slowdown in

international tourism in the

U.S.

Under Chief Executive

Alessandro Bogliolo, Tiffany

is trying to appeal to young-

er shoppers with more mod-

ern takes on jewelry. Earlier

this year, it launched a men’s

jewelry collection, and it’s in-

creasing its marketing to a

more diverse customer base

that includes same-sex cou-

ples. It’s also been reno-

vating its flagship store in

Manhattan.

Still, Tiffany’s U.S. sales

have been stagnating as Chi-

na’s slowing economy has

weighed on spending by Chi-

nese tourists, who make up a

substantial portion of luxu-

ry spending.

The strong dollar has

also made Tiffany products

more expensive for consum-

ers outside the U.S.

TIFFANY & CO.,which is trying to appeal to younger shoppers, says the sale will ensure the brand’s long-

term sustainability. Both companies’ boards have approved the deal and hope to finalize it in 2020.

Stephane de SakutinAFP via Getty Images

LVMH is poised to make

a $16.2-billion luxury buy

The deal for Tiffany

& Co. strengthens the

French giant’s position

in the U.S. and comes

as high-end sales flag.

associated press

Tesla Inc. Chief Execu-

tive Elon Musk revived the

practice of reporting reser-

vation counts, telling his

Twitter followers that orders

for the carmaker’s Cy-

bertruck have climbed to

200,000 despite a rocky

reveal.

The tally, which Musk

tweeted Sunday, restores

another source of intrigue

for investors, analysts, jour-

nalists, and fans and skep-

tics of the company, as the

figures are used as a proxy

for demand. Musk’s tweets

broke with recent practice at

Tesla, which had stopped

giving reservation figures on

quarterly earnings calls, say-

ing the metric wasn’t rele-

vant.

When asked about the

Model Y during Tesla’s first-

quarter earnings call in

April, Musk responded: “We

don’t want to comment on

the granularity of deposits

— again, people just read too

much into those.”

Tesla shares rose 1% to

$336.34 on Monday. The

stock slumped 6.1% on Fri-

day after the company’s

chief designer shattered two

windows during a demon-

stration intended to show off

the strength of the truck’s

panes of glass.

Tesla has a history of un-

veiling future products to

throngs of excited custom-

ers, then taking deposits

and delivering the vehicles

years later. Two years ago,

Tesla showed off a Semi

truck and a next-generation

Roadster sports car, but nei-

ther vehicle is in production

yet. This spring, Musk un-

veiled the Model Y crossover,

which is slated to begin pro-

duction next summer.

Tesla’s website allows

customers to order the truck

for a fully refundable $

and says they can complete

their configuration as pro-

duction approaches in late

2 0 21.

Musk said in a tweet Sat-

urday that 42% had ordered

the dual-motor option,

which starts at $49,900, while

41% have ordered the $69,

triple-motor option, produc-

tion of which is expected to

begin in late 2022. Just 17%

ordered the single-motor

version, which begins at

$39,900.

The $100 deposit for the

Cybertruck is far cheaper

than the $1,000 that was re-

quired to reserve a Model 3

sedan starting in early 2016.

Tesla never released an

order or reservation figure

for the Model Y. It had $

million in customer deposits

as of Sept. 30, according to a

regulatory filing.

“Reservations are not

relevant for us,” then-Chief

Financial Officer Deepak

Ahuja said in January dur-

ing the company’s 2018

fourth-quarter earnings

call. “Now we do have a large

reservations backlog still,

which tells us that a lot of

customers are still waiting

for those cars. But I don’t

think it’s appropriate to

share the reservations num-

ber.”

In an attempt to demon-

strate the Cybertruck’s

toughness Thursday, long-

time Tesla lead designer

Franz von Holzhausen

whacked its stainless-steel

door several times with a

sledgehammer, failing to

leave a dent. But when he

threw a metallic ball at the

driver’s-side front window, it

shattered.

The crowd gasped. “Oh

my ... God,” Musk said.

“Maybe that was a little too

hard.”

Von Holzhausen tried a

second, softer throw — this

time targeting the truck’s

rear window — only to see

that shatter as well.

It wasn’t immediately

clear who supplied the glass

or if Tesla made what it

called Armor Glass com-

pletely in-house. Tesla en-

tered the glass technology

business in 2016.

Musk said his team threw

the same steel ball at the

window several times before

the event and didn’t scratch

it. Late Friday, he tweeted

out a short video of Von

Holzhausen that has been

viewed 6.8 million times.

Musk tweeted Sunday

that when Von Holzhausen

smacked the truck with the

sledgehammer, it cracked

the base of the glass. The

CEO said Tesla should have

thrown the steel ball at the

window and then done the

sledgehammer test.

He wrote separately that

although the Cybertruck

would be Tesla’s last prod-

uct unveil for a while, the

company will make some un-

expected technology an-

nouncements next year.

Hull writes for Bloomberg.

Musk touts demand for Cybertruck

Tesla’s chief tweets

that 200,000 people

have placed orders

and explains why two

windows shattered.

By Dana Hull

AFTER RECENTLYdismissing reservation figures as irrelevant, Tesla CEO

Elon Musk boasted about orders for the Cybertruck, unveiled above on Thursday.

Ringo H.W. ChiuAssociated Press

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