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🚁 Toyota Doubles Down on Flying Taxis

+ Tesla's Q3 Deliveries Hits a Bump

October 02, 2024

Good afternoon! 40 trillion gallons. That’s how much rain drenched the Midwest last week from Hurricane Helene and another storm before it, according to experts.

Here’s what that looks like:

  • Enough to fill the Dallas Cowboys' stadium 51,000 times.

  • Enough to fill Lake Tahoe once.

  • If focused on North Carolina, it would cover the state in 3.5 feet of water.

  • Enough to fill more than 60 million Olympic-size swimming pools.

And believe it or not, some experts say that might even be a low estimate.

MARKETS

*Stock data as of market close*

  • US stocks barely budged on Wednesday as rising tensions between Israel and Iran kept investors on edge. The S&P 500, Dow, and Nasdaq all eked out gains of less than 0.1%, with worries of a wider Middle East conflict overshadowing any market enthusiasm. Oil prices continued their climb, following Tuesday’s 5% spike—the biggest jump in almost a year.

  • Meanwhile, a glimmer of good news came from the US economy. The ADP report showed the private sector added 143,000 jobs in September, snapping a five-month slowdown. Oil prices briefly crossed $76 before settling at $73.90, but overall market movement stayed muted as investors kept a cautious eye on global unrest.

STOCKS
Winners & Losers

What’s up 📈

  • StandardAero ($SARO) surged 36.46% after its NYSE debut, with shares opening 29% above the offer price, leading to a $10.38 billion valuation.

  • Joby Aviation ($JOBY) soared 27.92% following Toyota's additional $500 million investment to advance the development and market readiness of Joby's electric air taxis.

  • Caesars Entertainment ($CZR) jumped 5.27% after announcing a $1 billion senior note offering and authorizing a $500 million share buyback.

  • Twilio ($TWLO) climbed 4.17% after announcing an integration with OpenAI's Realtime API to enhance AI-driven virtual agents for its customers.

  • Super Micro Computer ($SMCI) gained 3.58% after completing a 10-for-1 stock split, attempting to recover from last week's drop due to reports of a DOJ investigation.

  • Snap Inc. ($SNAP) ticked up 4.41%.

  • Salesforce ($CRM) increased 3.18%.

  • Interactive Brokers ($IBKR) rose 3.15%.

What’s down 📉

  • Humana ($HUM) dropped 11.79% after releasing preliminary 2025 Medicare Advantage data, showing only 25% of its members are enrolled in plans rated 4 stars and above, down from 94% in 2024.

  • Conagra Brands ($CAG) sank 8.07% following disappointing fiscal first-quarter results, with earnings per share missing estimates by 7 cents and revenue falling short of expectations.

  • Nike ($NKE) tumbled 6.77% after withdrawing its full-year guidance and postponing its investor day, citing an upcoming CEO change.

  • Tesla ($TSLA) fell 3.49% after the company missed third-quarter delivery estimates, reporting 462,890 vehicles delivered versus a FactSet estimate of 463,310.

  • Ford Motor ($F) decreased 2.51% as the automaker lost its EV sales lead to General Motors, with slower growth in EV sales during the third quarter.

  • Delta Air Lines ($DAL) dipped 3.12%.

AVIATION
Toyota Doubles Down on Flying Taxis

Toyota’s getting ready for liftoff—literally. The car giant is pumping an additional $500 million into Joby Aviation ($JOBY), the electric vertical takeoff and landing (eVTOL) company that’s turning the flying taxi dream into a reality. This latest investment brings Toyota’s total stake in Joby to a cool $894 million, and it’s all part of a plan to ramp up commercial production of these futuristic air taxis by 2025.

Joby’s stock skyrocketed as much as 21% on the news, reminding everyone that the future of commuting might just be airborne.

So, What’s the Buzz with Joby?
Joby isn’t your average startup—it’s a leader in the eVTOL space, which stands for electric vertical takeoff and landing. Translation: these are fully electric aircraft that can take off and land like a helicopter but fly more efficiently like a plane. Powered by batteries, Joby’s aircraft are designed to whisk passengers over short distances, dodging traffic and cutting down travel time.

Imagine hopping into an air taxi and flying across town, all without worrying about traffic jams. That’s the future Joby’s working on, and they’re planning to launch their first commercial service in Dubai as soon as next year. However, they still need approval from the FAA and other regulators before this tech can really take off.

A Match Made in the Sky
Toyota’s been in Joby’s corner since 2020, providing both funding and engineering expertise. The carmaker isn’t just throwing money at the problem; its engineers are working side-by-side with Joby to help streamline the aircraft’s manufacturing process. And Toyota isn’t new to tech gambles—they’ve been diving into everything from hydrogen-powered cars to autonomous driving. Now, air taxis are their next big bet.

Joby’s tech is seriously cool. Their eVTOL aircraft are nearly silent during flight and can carry four passengers at speeds of up to 200 mph. With a range of 150 miles on a single charge, they’re aiming to revolutionize urban mobility—no more bumper-to-bumper gridlock.

Flying into the Future
The investment underscores how serious Toyota is about diversifying into futuristic modes of transportation. Joby’s aircraft could one day be the go-to for zipping from city to city or quickly hopping between airports, avoiding the dreaded rush-hour gridlock. But before you can book your flying Uber, there are hurdles like certification and public acceptance to overcome. Still, Joby has raised over $2 billion and is one of the few companies in the eVTOL space that’s well-funded enough to bring its vision to life.

With this cash infusion, Joby is poised to scale up production, and Toyota’s backing will play a key role in helping the startup take off—both literally and figuratively.

NEWS
Market Movements

AUTO
Tesla's Q3 Deliveries Hits a Bump

Tesla just posted its first quarterly sales increase of 2024, but don’t pop the champagne just yet. Deliveries were up 6.4%, hitting 462,890 vehicles in Q3. Sounds good, right? Not exactly. Wall Street was hoping for more, especially after all the hype around China’s boosted EV subsidies. Analysts expected closer to 463,900. So, close but no cigar.

And Tesla’s stock? It dropped 3.5%—because investors don’t like being teased.

China to the Rescue… Sort of
China threw Tesla a bone with incentives aimed at spurring electric car demand, but even that couldn’t push deliveries over the finish line. Investors had been riding high on expectations, especially with Musk teasing an October 10th event to show off his long-promised robotaxis. Elon even called it “one for the history books” (because of course he does).

But promises can only get you so far. Tesla’s shares had rallied 35% in the last two months, but this miss reminded everyone that not all that glitters is gold—or, in this case, electric.

Tough Road Ahead
Tesla’s not just battling its delivery numbers; it’s wrestling with stiffer competition and customers’ shrinking wallets, thanks to high interest rates. Sure, vehicle sales inched up, but Tesla’s energy business? Not so much. Energy storage took a nosedive, dropping 25% from Q2. Ouch.

If Tesla wants to hit its goal of selling 1.8 million vehicles in 2024, it’s going to need a massive Q4. And we’re talking massive.

October 23rd is the next big date for Tesla’s Q3 earnings report—where everyone will be watching to see if Musk can pull off a fourth-quarter miracle.

Calendar
On The Horizon

Tomorrow

Buckle up—tomorrow’s data dump is packed.

First, we’ll get the weekly jobless claims. Last week, new unemployment claims dropped to 218,000, surprising just about everyone. Economists expect claims to creep back up to 220,000 tomorrow, but fingers crossed for another pleasant shock.

Then, there’s the S&P US Services PMI, which tells us how private sector services are doing. A score over 50 means business is booming, under 50 means the opposite. Last month, the PMI slipped slightly from 55.7 to 55.4, and economists are betting on more of the same this month.

Lastly, Factory Orders will give us a look at how manufacturers are holding up. Last time, orders jumped by 5%, but don’t get too excited—tomorrow’s forecast calls for a big ol’ zero in growth.

Before Market Open:

  • Constellation Brands ($STZ), the booze giant behind your favorite drinks, rode the pandemic wave but has been struggling to keep up since. The beer business? Still killing it. The wine side? Not so much. With Gen Z and Millennials reportedly cutting back on alcohol, concerns are bubbling up about the company's long-term outlook. Wall Street’s calling for $4.09 earnings per share and $2.9 billion in revenue—so keep an eye on that.

NEWS
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RESOURCES
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