Hey hey Flux fam!

Wanna win a $50 UberEats voucher?! Read this article...then play our 2 minute savings quiz. Whoever tops the leader board...wins! Winner announced Tuesday🏆

Here's everything you need to know today - in under 3 minutes.

Today's big stories: 

💰 Just 7% of Aussies switched from dud superannuation products

🚨 Aussie software company GetSwift is in trouble

⚡️ Electric vehicle maker Rivian just had the 2021's biggest IPO 

Oh and get this...

Netflix has increased the price of its Aussie subscriptions by up to $3 a month. It's the second price hike since October last year. At least we get a second season of Squid Game to soften the blow.

Sorry, what?! 1.1 million Aussies were in a dud super fund but just 68k switched out

Background: Earlier this year, the government introduced a new performance test for superannuation funds called the Your Future, Your Super test. It came into effect on 1 July.

What happened: The test reviews the performance of default super products each year. If the super funds don't pass, they need to tell members that they are underperforming.

What else: In August, 13 super products failed the test...and 1.1 million Aussies got a letter saying just that. But here's the punch line: just 68,000 Aussies actually changed super funds after getting the letter.

So what's the key learning?

💡This is a case of instant gratification vs delayed gratification. Instant gratification is the idea that we forego a future benefit to get a less rewarding, but more immediate, benefit.

💡 For most of us, our superannuation will be our largest financial asset...but it's locked away until retirement age. So, making changes to your super fund is the ultimate delayed gratification - we're talkin' 50 years away!

💡So, it's not surprising that only 7% of Aussies moved super funds after receiving this letter of underperformance...But Flux fam, if you happen to be in the 93% that did nothing...let this be your wake up call ⏰

GetSwift just GotHit by the Federal Court over misleading statements

Background: GetSwift are a software company that helps businesses streamline their delivery process (i.e. you can track drivers and send live tracking alerts to customers). It was founded back in 2015...and was a bit of an ASX darling.

What happened: But it turns out, nothing was what it seemed. In 2017, this crew had initial trials with clients like CBA and Amazon...but they released announcements to the ASX that made it sound like full-blown contracts.

What else: Now, the Federal Court has found GetSwift and its directors were found to have made misleading statements...all in the name of pumping up the company's share price, and raising millions of buckaroonies.

So what's the key learning?

💡Being an ASX-listed company comes with a whole range of responsibilities. A key one being: disclosure of information. 

💡Public companies have a duty to disclose any information that a reasonable person would expect to have a material effect on the share price (i.e. significant data breaches, large acquisitions, big partnerships...) - good or bad.
💡In this case, GetSwift used a different strategy - share the good news (and inflate it), don't share the bad news (just hide it). It worked...until it didn't. Now it's all unravelled for GetSwift and its directors.

Let's hear it for Rivian, who had the biggest IPO for 2021 despite making just 56 cars

Background: Rivian Automotive is a US electric vehicle maker founded back in 2009. It's backed by Amazon (which owns anywhere between a fifth and a quarter of the company).

What happened: This crew are a 'lil different from your average EV. They focus on pick-up trucks and big SUVs. And they just had their share market debut...which saw them valued at more than US$100 billion.

What else: This made Rivian's IPO the biggest for 2021. It also made the company the second-most valuable car manufacturer behind Tesla, but ahead of General Motors and Ford.

So what's the key learning?

💡If you ain't electric-first, you're electric-last (AKA, you're not valued by the market). 

💡Part of the reason Rivian generates so much share market buzz is because Tesla paved the way. Tesla raised US$226 million when it went public in 2010...and although it didn't hit profitability until this year, it's valued at US$1 trillion.

💡Similarly, Rivian only just delivered its first batch of cars...and there were only 56 of them. That's around US$1.8 billion per car! And yet, it's valued higher than Ford and GM. Rivian's only challenge now is to live up to the market hype.