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⚡️ Tesla Debuts New Model Y

+ Meta's $65 Billion AI Bet

January 24, 2025

Good afternoon! Nanopasta might not replace your favorite fettuccine, but it could heal your wounds. Researchers at University College London have created the world’s thinnest spaghetti—372 nanometers wide—using a technique called electrospinning. This ultra-thin “pasta” could have big applications in medicine, from drug delivery to tissue regeneration.

Made from flour and formic acid, nanopasta is biodegradable, renewable, and highly porous, making it ideal for wound dressings and bone scaffolds. While it’s still in the experimental phase, the next step is testing how it interacts with cells and whether it can be mass-produced. Who knew carbs could double as healthcare tech?

MARKETS

*Stock data as of market close*

  • Stocks cooled off on Friday, with the S&P 500 slipping 0.3%, the Dow dropping 0.3%, and the Nasdaq losing 0.5%. The pullback snapped a four-day winning streak and came just a day after the S&P notched its first record close of 2025.

  • Despite the dip, all three major indexes ended the week higher, buoyed by optimism surrounding President Trump’s return to the White House and his softer stance on China tariffs. Global markets also rallied, with benchmarks in the U.K. and Germany trading near record highs.

STOCKS
Winners & Losers

What’s up 📈

  • Twilio soared 20.13% after projecting a 22% operating margin by 2027 at its investor event, coupled with an upgrade to "outperform" from Baird. ($TWLO)

  • Burberry rose 10.95% on a strong quarter with smaller-than-expected losses for the luxury brand. ($BRBY)

  • Novo Nordisk climbed 8.47% after positive early-stage trial results for its obesity drug. ($NVO)

  • Grindr gained 8.07% following fresh guidance predicting a 32%-33% revenue increase in 2024. ($GRND)

  • NextEra Energy advanced 5.20% after meeting Q4 earnings expectations and providing full-year guidance in line with estimates. ($NEE)

What’s down 📉

  • Ericsson dropped 14.38% after a Q4 earnings miss, with weakness in cloud and enterprise businesses. ($ERIC)

  • Texas Instruments slipped 7.52% after issuing underwhelming earnings guidance for the next quarter. ($TXN)

  • Intuitive Surgical fell 4.04% as the company forecasted lower gross profit margins for 2025 despite beating analyst expectations for Q4. ($ISRG)

  • GE Vernova shed 3.93% after Guggenheim downgraded the stock to "neutral" due to slowing upward revisions. ($GEV)

  • American Express eased 1.39% as slower revenue growth projections for 2025 overshadowed a strong Q4 performance. ($AXP)

AUTO
Tesla Debuts New Model Y in US, Europe in Bid to Revive Sales

Tesla is hitting the reset button on its best-selling Model Y, debuting a revamped version in the U.S. and Europe with hopes of reversing its first annual sales drop in over a decade. The refresh brings updates like Cybertruck-inspired light bars, soundproofed interiors, and a range of 320 miles. But at $59,990, it's a premium gamble—one that Elon Musk seems confident will pay off, even in a turbulent EV market.

What’s New Under the Hood?

The "Juniper" Model Y comes with fresh aesthetics, tech upgrades like rear-seat touchscreens, and faster Wi-Fi, but it’s not just a facelift. The refreshed SUV now touts a zippier 0-60 mph time of 4.1 seconds, giving it a slight edge in performance. While the base model remains, the “Launch Series” version—packed with features like Full Self-Driving—is Tesla’s bold bet to woo customers willing to shell out extra for cutting-edge convenience.

A Pricey Predicament

The updated price tag, roughly $4,000 more than its predecessor, might be a tough sell. With EV demand cooling and higher interest rates pinching consumer wallets, Tesla’s bet on premium features will test whether its loyal fanbase will dig deeper into their pockets. Add in the looming repeal of federal EV tax credits under Trump’s new administration, and the stakes for the Model Y refresh couldn’t be higher.

Tesla’s upcoming earnings report will reveal whether this redesign can jumpstart sales. Investors will also be on the lookout for updates on the long-rumored “Model 2,” Tesla’s anticipated budget-friendly EV. With Musk targeting sales growth of 20–30% in 2025, all roads seem to lead to more affordable options for expanding the EV giant's reach.

The Bigger Picture: Tesla’s refresh is as much about optics as it is about specs. The EV pioneer faces mounting competition from Chinese manufacturers and traditional automakers leaning into the EV space. Whether the new Model Y can fend off rivals and keep Tesla’s dominance alive will hinge on its ability to balance innovation with affordability—a feat easier said than done.

For now, the Model Y refresh signals that Tesla isn’t just coasting; it’s steering into the future, albeit at a premium price.

NEWS
Market Movements

  • 📈 Alphabet Shares Close Above $200 for First Time on Split-Adjusted Basis: Alphabet shares closed at $200.21 on Friday, marking the first time the stock surpassed $200 post its 20-for-1 stock split in 2022. Analysts remain optimistic about Alphabet’s AI advancements, including Project Astra and Gemini 2.0, despite rising competition from OpenAI and regulatory hurdles. ($GOOGL)

  • 💰 MicroStrategy Faces Multi-Billion-Dollar Tax Bill on Bitcoin Gains: MicroStrategy may owe billions under the corporate alternative minimum tax (CAMT), which could tax $18 billion in unrealized Bitcoin gains at 15%. The company is lobbying the IRS for exemptions. ($MSTR)

  • 📉 Target Rolls Back DEI Programs Amid Political Pressure: Target announced it will end its three-year DEI goals and initiatives like carrying products from Black-owned businesses, joining companies like Walmart and Meta in scaling back diversity commitments. The decision follows criticism and changing external pressures. ($TGT)

  • 📉 Nikola Reports of Potential Sale: EV maker Nikola's stock tanked to $0.85 after reports suggested a possible sale of part or all of the business due to cash shortages. With $198 million in cash, the company previously warned it could only operate through Q1 2025 without additional funding. ($NKLA)

  • 📱 eBay Listings for Phones With TikTok Skyrocket: After TikTok was banned from U.S. app stores, eBay saw listings for phones with TikTok pre-installed surge, with some devices priced in the thousands of dollars. The app remains unavailable for download despite a temporary delay of the ban. ($EBAY)

  • 💳 AmEx Reports 12% Rise in Q4 Profit on Strong Holiday Spending: American Express reported a 12% YoY rise in Q4 profit to $2.17 billion ($3.04 per share), with revenue up 9% to $17.18 billion. Credit loss provisions fell to $1.3 billion, and the company forecasts 2025 EPS of $15–$15.50, exceeding analysts’ estimates. ($AXP)

  • 🏪 Store Closures to Hit 15,000 in 2025 Amid Retail Bankruptcies: U.S. store closures surged to 7,325 in 2024 and are projected to reach 15,000 in 2025, driven by bankruptcies and shrinking legacy retailers like Macy’s and Party City. Meanwhile, store openings, led by Dollar General and Five Below, rose to 5,970 last year. ($M, $DG, $FIVE)

AI
Meta's $65 Billion AI Bet: Zuckerberg Goes All-In

Mark Zuckerberg is putting Meta’s chips—actually, 1.3 million GPUs worth—on artificial intelligence, with plans to invest up to $65 billion in 2025. This spending spree includes a Manhattan-sized data center, a hiring boost for AI teams, and enough computing power to make the sci-fi nerds blush. The tech giant isn’t just flexing; it’s making a play to dominate the next era of innovation.

A Data Center the Size of Ambition

Meta’s new Louisiana data center is so massive it could "cover a significant part of Manhattan," according to Zuckerberg. With a gigawatt of computing power set to come online next year, Meta is preparing to turbocharge its AI capabilities. The timing aligns with a broader arms race among tech titans, with Amazon, Microsoft, and Alphabet also throwing billions at AI infrastructure.

Can AI Investments Keep Investors Happy?

While Wall Street had expected Meta to spend around $51 billion on capex in 2025, the additional $14 billion caught some off guard. Yet, analysts see the move as bold but potentially brilliant, arguing it positions Meta to lead in AI innovation. Shares initially dipped but recovered, with the stock closing at an all-time high of $647.49 on Friday.

The Bigger Picture

Zuckerberg isn’t shy about the risks. He’s acknowledged the possibility of overbuilding but believes missing out on AI would be a bigger blunder. "The downside of being behind is that you’re out of position for the next 10–15 years," he said. With a track record of making high-stakes bets that pay off (hello, Instagram acquisition), the gamble could redefine how Meta operates—and how we interact with technology.

What’s Next? As Meta gears up for its Q4 earnings on Jan. 29, investors will be looking for more details on these grandiose AI plans. If Zuckerberg’s bets pay off, Meta might not just own the metaverse—it could be the backbone of tomorrow’s AI-driven economy.

Calendar
On The Horizon

Next Week

Buckle up—next week is shaping up to be a whirlwind for the economy and markets.

We’re starting with a data deluge: new home sales on Monday, the consumer confidence index and Case-Shiller home price index on Tuesday, plus durable goods orders for good measure. Tuesday also kicks off the Fed’s two-day meeting, with Wednesday bringing the big question: Will they hold, hike, or cut rates? Thursday keeps the momentum going with jobless claims, pending home sales, and a Q1 GDP update, capped off by Friday’s PCE inflation report.

As if that weren’t enough, earnings season hits its peak with nearly half the S&P 500 set to report results. Expect a rollercoaster of headlines and market reactions—this week is one to watch closely.

Earnings:

  • Monday: AT&T ($T), SoFi Technologies ($SOFI), and NuCor ($NUE)

  • Tuesday: Boeing ($BA), Lockheed Martin ($LMT), Starbucks ($SBUX), General Motors ($GM), Royal Caribbean ($RCL), JetBlue Airways ($JBLU), Kimberly-Clark ($KMB), and Chubb ($CB)

  • Wednesday: Tesla ($TSLA), Microsoft ($MSFT), Meta Platforms ($META), IBM ($IBM), ASML ($ASML), Western Digital ($WDC), Las Vegas Sands ($LVS), Progressive ($PGR), Corning ($GLW), General Dynamics ($GD), and Norfolk Southern ($NSC)

  • Thursday: Apple ($AAPL), Visa ($V), Mastercard ($MA), Caterpillar ($CAT), UPS ($UPS), Intel ($INTC), Shell ($SHEL), Altria Group ($MO), Thermo Fisher Scientific ($TMO), Blackstone ($BX), Cigna ($CI), Southwest Airlines ($LUV), and Nokia ($NOK)

  • Friday: Exxon Mobil ($XOM), Chevron ($CVX), Colgate-Palmolive ($CL), Church & Dwight ($CHD), AbbVie ($ABBV), Eaton Corporation ($ETN), and Phillips 66 ($PSX)

NEWS
The Daily Rundown

  • 🤖 China’s AI Models Rival US Tech: DeepSeek, a top Chinese AI lab, launched a reasoning-focused model outperforming or matching OpenAI’s offerings in math and coding tasks. Unlike subscription-based US models, DeepSeek’s open-source approach could attract global users. Experts highlight its humanlike learning capabilities, suggesting a shift in AI innovation dominance toward China.

  • 🚫 Reddit Communities Ban X Links Over Musk Controversy: Following Elon Musk’s alleged controversial gesture at Trump’s inauguration, over 100 Reddit communities banned links to X (formerly Twitter). The move represents 40 million members accusing Musk of promoting alt-right content. Musk denied the accusations, but his subsequent posts faced widespread condemnation.

  • 🌸 Corpse Flower Putricia Draws Crowds in Sydney: The Titan Arum, nicknamed Putricia, bloomed at Sydney’s Royal Botanic Garden, attracting 20,000 visitors and nearly 1 million livestream views. Known for its foul odor, the bloom is a rare event occurring every 2–5 years. Putricia’s bloom marked the first in 15 years for the garden, captivating visitors and pollinators alike.

  • 🛑 Trump’s Anti-DEI Orders Cause Private Sector Chaos: President Trump issued executive orders shutting down DEI programs in federal agencies and targeting private companies with compliance investigations. Federal diversity offices were closed, with employees put on administrative leave, while public companies and nonprofits with DEI policies were ordered to undergo scrutiny. Corporate reactions varied: JPMorgan reaffirmed its DEI commitment, while companies like Meta and Walmart rolled back initiatives. Legal challenges are expected as businesses navigate the fallout.

  • 🛠 ChatGPT Outage Highlights AI Reliance: ChatGPT experienced a brief outage, disrupting access for thousands of users, including students relying on the platform for assignments. While services were restored, the incident underscores the growing dependence on AI tools and the challenges of their temporary unavailability.

  • 💼 Walmart Boosts Pay for Market Managers: Walmart announced pay increases for regional store managers, with some earning over $600,000 annually, including bonuses and stock awards. The move aims to improve retention as other companies cut midlevel management roles. Walmart hopes to attract top talent by emphasizing managerial roles over remote perks.

  • 📉 Trump Demands Lower Interest Rates in Davos Address: Speaking virtually to the World Economic Forum, President Trump urged the Federal Reserve to slash interest rates and called on global leaders to follow suit. He also pressured Saudi Arabia to lower oil prices, setting up potential conflicts with Fed Chair Jerome Powell. Trump’s comments reflect his ongoing push to influence monetary policy despite the Fed's independence.

  • 🎥 Netflix’s Emilia Pérez Dominates Oscar Nominations: Netflix’s Emilia Pérez, a Spanish-language French musical crime film, led the 2025 Academy Awards with 13 nominations, including Best Picture. Despite mixed reviews, the film sparked debates over its artistic merits and trans representation. Wicked and The Brutalist followed with 10 nominations each, while The Apprentice saw Sebastian Stan and Jeremy Strong nominated for their portrayals of Donald Trump and Roy Cohn.

  • 👥 Thailand Legalizes Same-Sex Marriage: Thailand became the first Southeast Asian country to legalize same-sex marriage with the Marriage Equality Act. The law grants LGBTQ+ couples full legal, financial, and medical rights. Celebrations included hundreds of weddings nationwide, marking a historic moment for the region.

RESOURCES
The Federal Reserve Resource

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