Two coming 2027 models – the first of the “Neue Klasse” cars coming to the U.S. early next year – have been revealed.
2 min
The current BMW i5 electric sedan has an official range of 278 to 310 miles, and it might be closer to 250 to 270 in the real world.
That is why the coming 2027 BMW i3 50 xDrive—the first of the “Neue Klasse” cars coming to the U.S. early next year and just revealed to the world—is such a game changer.
The range is estimated at 440 miles, beating most EVs on the road now, and it is coupled with exciting performance, including zero-to-60 estimated at 3.8 seconds and an impressive 463 horsepower (with 476 pound-feet of torque) from a pair of electric motors, delivering xDrive to all four wheels.
A single-motor version is down the road. The price isn’t out yet, but it is likely to begin between US$55,000 and $65,000.
If sedans aren’t your thing, the electric 3-Series will also be offered as an approximately $60,000 iX3 crossover SUV, which has a similar powertrain and performance.
The twin-motor iX3 50 xDrive has a slightly lower 400 miles of range, due in part to its less-aerodynamic shape compared with the i3. It is also not quite as speedy, getting to 60 mph in 4.7 seconds.
BMW design has been iffy lately, and virtually no one loves the cars with the huge kidney grilles, but the “Neue Klasse” turns the page, and the i3 and iX3 are both strikingly handsome.
The i3 isn’t a particularly lightweight vehicle, at approximately 4,850 pounds, which is why both the i3 and iX3 need a huge 108-kilowatt-hour battery pack.
The drawback could be longer charge times, but up to 400-kilowatt plug ins are available here.
At a DC fast charger, a charge from 10% to 80% should take only 21 minutes.
A 19.2-kilowatt home charger is available. The pack supports standard bidirectional charging, which means it could theoretically provide power to your home during an outage.
A bonus is that the big battery can also supply 3,700 watts for whatever you have in mind, from tailgating to camping.
The cars share basic suspension, but on the sedan an adaptive M-branded suspension is available.
Both BMWs introduce the new Panoramic iDrive, which features an 18-inch touch screen angled at the driver.
Early users say it is incredibly responsive. Inside, the standard trim features Econeer upholstery that is 100% fabricated from recycled PET bottles.
M Design cars upgrade to black Veganza (aka vegan leather). The top trim is BMW Individual with black Merino leather.
It is standard for automakers to introduce their fully loaded models out of the gate, with the more bread-and-butter versions appearing later.
BMW is certainly doing that here, but i3s and iX3s priced below $50,000 are expected fairly soon.
The momentum for electrics has certainly slowed, but cars like these—offering performance, dynamics and features superior to the conventional alternatives—should help EVs get back on track.
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The Australian leather house has opened an immersive four-day pop-up in Manhattan, unveiling its Bloom Collection and redefining what a product launch can look like.
Following the successful launch of its Palais Collection, MAISON de SABRÉ has unveiled a new modular handbag system offering more than 720 styling combinations.
SHEIN’s Hong Kong IPO wiped a $4.4 billion obligation from its books, but the fast-fashion giant still faces a payout of up to $3.5 billion to early investors.
3 min
Companies typically go public to raise money to supercharge growth. Fast-fashion giant Shein has another motivation.
The company’s initial public offering in Hong Kong this week is allowing it to avoid paying out billions to early investors.
If Shein hadn’t sold shares by the end of the year, the company would have been required to fork out nearly $4.4 billion in cash to holders of its convertible redeemable preferred shares. With the IPO, the $17.3 billion in preferred shares was converted to ordinary equity, and that obligation was wiped off the books.
But Shein was still on the hook for another payment. Holders of those preferred shares were entitled to a payout of billions more, in part because the company’s valuation has fallen from its peak. That payout came to nearly $3.5 billion in cash, according to regulatory filings.
The retailer on Monday priced its shares at 48.56 Hong Kong dollars each, equivalent to about $6.20 and near the middle of the range of HK$47.60 and HK$49.50 it provided last week.
The company pressed ahead with its IPO despite slowing growth and regulatory headwinds in the U.S. and European Union. Shein priced its IPO at a valuation of around $26 billion, roughly a quarter of the $98.2 billion valuation it achieved in a funding round in 2022.
Shein started selling its wares in the U.S. around 2012 and shot to popularity during the pandemic when more people shopped online. Its supply-chain prowess and vast range of styles at affordable prices made the brand a favorite among many U.S. consumers. It showed other retailers, including Amazon.com, that consumers were willing to wait more than a week for their online purchases to be delivered—if the price was right. But rivals soon emerged, such as Temu, which sells more products apart from apparel.
Shein’s business model of selling massive amounts of cheap goods lost some of its shine as more countries started imposing tariffs on small packages. The U.S. removed a trade exemption that allowed packages valued at or below $800 to enter the country duty-free, and the EU has introduced a €3 (about $3.50) customs duty on imports of low-value parcels.
Shein has worked toward its IPO for years, and the looming $4.4 billion obligation wasn’t the only reason it went public. But the threat of the big payout on Dec. 31 was certainly a part of its reason to press ahead, said Jianggan Li, founder and chief executive of Momentum Works, a research advisory firm based in Singapore.
“Complete the listing before then,” said Li, “and a very large liability comes off the balance sheet.”
While that liability will now be off its books with a successful IPO, Shein said it was saddled with another bill: the roughly $3.5 billion it owed its early investors upon going public.
That amount includes $1.3 billion that Shein had to pay several late-stage pre-IPO investors who had been guaranteed a cash payout at an 8% or 12% annual return, and up to $2.2 billion in compensation for the fall in the company’s valuation in the period after they made their investments. The $2.2 billion was a projection based on the lower end of the offer price range, or HK$47.60 per share, so the total bill will likely be smaller than $3.5 billion. The exact amount has yet to be disclosed by the company.
Notably, the amount it owes investors is more than the roughly $1.7 billion the company raised in the IPO. The company said it was paying the funds to its investors out of cash it has on hand.
The investors entitled to the payments include entities linked to HSG, formerly known as Sequoia China, Boyu Capital, Tiger Global, General Atlantic, Thrive Capital and others.
“What the IPO really does here is resolve the capital-structure overhang,” Li said. “It gives investors liquidity, terminates those preferred-share rights and cleans up obligations created when Shein raised money at much higher valuations.”
Shein could have kicked the can down the road by renegotiating terms with its investors, he said: “Shein is not taking the cheapest way out of its old financing obligations. It is taking the cleaner way out.”
