Morning Brew - ☕ Tesla wins

Whey Elon Musk will emerge stronger from the auto strike...
September 18, 2023 View Online | Sign Up | Shop 10% Off

Morning Brew

LiquidPiston

Good morning. The hot trend on social media is for women to ask men how often they think about the Roman Empire. The answer, at least from our perspective, is pretty much…never. Better question: Ask us how often we think about cooking a chili (twice every day, three times on Sundays).

Neal Freyman, Dave Lozo

MARKETS: YEAR-TO-DATE

Nasdaq

13,708.34

S&P

4,450.32

Dow

34,618.24

10-Year

4.331%

Bitcoin

$26,499.33

Oil

$90.12

*Stock data as of market close, cryptocurrency data as of 12:00am ET. Here's what these numbers mean.

  • Markets: Stocks down, oil up—that’s been the market’s theme of September so far. While the Nasdaq and S&P have fallen for two straight weeks, oil prices have surged nearly 30% since June to their highest levels of the year. With Russia and Saudi Arabia extending their production cuts and China boosting demand for fuel, the $100/barrel milestone is in sight.
 

AUTO

Elon Musk watching the auto strike

Jerry Seinfeld eating popcorn Seinfeld/NBC via Giphy

While everyone is focused on who will blink first in the labor standoff between Detroit’s car manufacturers and its unionized workers, one person is already being declared a winner—Elon Musk.

Tesla’s CEO was already enjoying a major cost advantage over his competitors thanks to more streamlined production processes and lower wages for his nonunionized workforce. Now that UAW employees are on strike and likely to see increased wages no matter how this labor dispute ends, Tesla’s edge in that area will only grow.

  • Tesla’s labor costs average $45 an hour, compared to GM, Stellantis, and Ford’s estimated $66 an hour, per the WSJ.
  • And if the UAW gets the dramatic pay bumps it initially sought, labor costs for Detroit’s Big Three would swell to $136 an hour, according to Wells Fargo.

This year, Tesla has used that cost advantage to slash its car prices in a bid to maintain its commanding market share in electric vehicles. So far, that strategy has paid off: Despite the price cuts, Tesla’s Q2 profits rose 20%.

UAW President Shawn Fain has brushed off comments that his labor action would only solidify Tesla’s dominance in the EV market. “Our concern is working-class people need their share of economic justice in this world,” he told CNBC last week.

So, what could slow Tesla’s roll? It’s possible that the UAW strike, if successful at securing higher wages, could galvanize Tesla workers to unionize at Musk’s factories. But the UAW tried and failed to do this in 2017 and 2018.

In other auto strike news…

Fain rejects Stellantis offer: As the union and automakers returned to the negotiating table, the UAW president said Stellantis’s offer of a 21% pay bump was “definitely a no-go.”

Don’t expect price increases immediately. Analysts believe it will take weeks for the cost of automobiles to rise, as long as Americans don’t start panic-buying vehicles.

John Fetterman joins the march. The senator drove from Pennsylvania to Michigan to march in solidarity with workers this weekend, following the lead of Bernie Sanders, who spoke at a UAW rally on Friday. “It’s time to decide what side you’re on,” Fetterman wrote.

     

PRESENTED BY LIQUIDPISTON

This is one engine-ious family

LiquidPiston

Alexander and Nikolay Shkolnik, the MIT grad and physics dad behind LiquidPiston, are delivering the first major innovation to the internal combustion engine in over 100 years.

And they’re giving you the chance to become a shareholder.

They’ve patented a new thermodynamic cycle to power a redesigned rotary engine boasting up to 10x the power of a traditional piston engine.

Best yet, the engine is compatible with a variety of fuels, including hydrogen. This could unlock a 100% green energy solution for the combustion engine market.

No wonder this dynamic duo has secured $30m in government contracts.

This could be your last chance to lock in shares at this price and take advantage of up to 15% bonus shares. Invest in LiquidPiston before this opportunity ends.

WORLD

Tour de headlines

Russel Brand in a car James Manning/PA Images via Getty Images

Russell Brand accused of rape, sexual assault. Four women have accused British actor and comedian Russell Brand of sexual assault between 2006 and 2013, one of whom said that Brand raped her. Another claimed that Brand assaulted her when she was 16. Brand has denied the allegations, calling his relationships “always consensual.” The accusations surfaced as part of a joint investigation by the Sunday Times and Channel 4 Dispatches that began in 2019 and included hundreds of sources. The BBC, which employed Brand in the past, said it is “urgently looking into the issues.”

California sues energy giants. The State of California filed a lawsuit against Exxon Mobil, Shell, BP, ConocoPhillips, Chevron, and the American Petroleum Institute (the US oil industry’s biggest lobby), alleging that they misled the public for decades about the dangers of fossil fuels. In the past year, California has dealt with record heat, wildfires, unusual bouts of severe rain and snow, and rising sea levels that have threatened the state’s shorelines—extreme weather events that studies show were made more likely or more intense due to climate change. The suit seeks funding for recovery efforts related to California’s weather-related disasters.

Climate is a hot topic in New York, too. Tens of thousands of protesters took to the streets of Midtown Manhattan ahead of the UN General Assembly, urging President Biden to cease issuing approvals for new oil and gas drilling projects. The Biden administration is responsible for the US’ most aggressive climate law (the Inflation Reduction Act) and is working to transition the country to renewable energy, but climate advocates believe he could be doing more. This protest and similar ones around the world this weekend come as the Earth just experienced its hottest summer on record.

CRIMINAL JUSTICE

Illinois becomes the first state to abolish cash bail

Bail bonds sign Getty Images

The practice of cash bail in the United States dates back to before the country won its independence from England. Over two centuries later, Illinois will become the first state to abolish it.

The state’s Pretrial Fairness Act, which goes into effect today, will replace a cash bond with a hearing before a judge to determine if a person requires pretrial detention because they pose a flight risk or threaten public safety. Proponents say the change will result in fewer nonviolent offenders who cannot afford cash bail being detained while awaiting trial and fix a system that disproportionately harms Black people and other minority populations.

  • According to the advocacy group Prison Policy Initiative, there are 427,000 people in local jails awaiting trial, and 8 of 10 people in those jails have not been convicted of a crime.

Critics of abolishing cash bail argue it’ll lead to increased crime rates and serve as a pretext for advocates to eliminate incarceration altogether, the FT reported.

But a study by the University of Albany found that bail reform in New York, which last year enacted a law that allowed most people charged with a crime to be released without bail, had a “negligible” impact on crime rates (that NY law has since been rolled back somewhat).

Big picture: While cash bail is rare in other countries, it’s big business in the US. Reuters reported in 2021 that the for-profit bail industry brought insurers $15 billion in revenue a year.

     

TOGETHER WITH INDEED

Indeed

A future that works. Grab your free virtual ticket to Indeed FutureWorks, the premier event for talent leaders, and gain insider strategies on building a better future of work. Hear from thought leaders, enjoy interactive panel discussions, and sync up with Indeed solutions. Did we mention it’s free? Register here.

CALENDAR

The week ahead

United Nations building David Pollack/Getty Images

Some Assembly required: Ukrainian President Volodymyr Zelensky will attempt to avoid the roadblocks this week while visiting New York City for the UN General Assembly, the annual gathering of world leaders that starts today. Zelensky will try to rally more support for Ukraine in its ongoing war with Russia through speeches at the UN and later in the week on Capitol Hill. Good news for New Yorkers: The infamous traffic jams that come with the UNGA may not be as awful this year since many prominent leaders are expected to skip the event.

Instacart IPO: Instacart, the company that will go to Publix for you, is ready to go public for you. The grocery delivery service plans to IPO on Tuesday in one of the most anticipated public offerings of the year. Instacart is aiming to piggyback off the success of the chip designer Arm, which popped in its first day of trading last week.

Fed meeting: The Federal Reserve is expected to hold interest rates steady following its meeting on Wednesday, but we’ll still be paying attention to Jerome Powell’s press conference for his views on inflation. It’s a busy week for central bankers everywhere: Ten of the G20 economies will announce monetary policy decisions in a span of 36 hours.

Everything else…

  • Talk Like A Pirate Day is on Tuesday. Patchy, Jack Sparrow, and Doug Drabek are all appropriate.
  • Apple’s iPhone 15 and new line of watches will be available on Friday.
  • The next day, Saturday, is the first official day of fall.

GRAB BAG

Key performance indicators

Deion Sanders in sunglasses RJ Sangosti/MediaNews Group/The Denver Post via Getty Images

Stat: When you throw shade at Coach Prime, he sells shades. After Colorado State coach Jay Norvell knocked Colorado coach Deion Sanders for not taking off his sunglasses when talking to adults in the lead-up to their game, Sanders said he sold $1.2 million worth of his line of custom sunglasses on Friday. The next night, Colorado continued its dream season with a come-from-behind 43–35 double OT win against Colorado State in the Rocky Mountain Showdown. Such is the gravitational pull of Coach Prime that celebs including The Rock, Offset, and Kawhi Leonard were in Boulder for the game.

Quote: “I have no words to express my deepest apologies to anyone I have hurt.”

Drew Barrymore, who was roasted online for aiming to bring her talk show back during the writers strike, now says she’ll pause the show’s return until the strike ends. After Barrymore’s U-turn, other talk shows, including The Jennifer Hudson Show and The Talk, delayed their planned returns to TV.

Read: The winners of the Ig Nobel Prizes, including one doctor who invented a toilet that does fecal analysis. (Ars Technica)

NEWS

What else is brewing

  • Jann Wenner, the co-founder of Rolling Stone magazine, was removed from the board of the Rock & Roll Hall of Fame after he disparaged women and Black musicians. Wenner apologized.
  • Former President Trump declined to say whether he’d support a federal abortion ban if re-elected. “I don’t frankly care” whether states or the federal government took action, he said on Meet the Press.
  • Texas Attorney General Ken Paxton was acquitted in his state Senate impeachment trial, where he was accused of abusing his power to help a donor.
  • Chick-fil-A said it’s returning to the UK, four years after LGBTQ protesters helped close the country’s lone location.
  • The wild story of how Barbie got banned in Vietnam.

RECS

Monday to-do list image

Watch: Two TED Talks, one on how AI may let us talk to animals, and another on how to change your sleep patterns.

Dress up: It’s never too early to plan your Halloween costume.

Travel: The 10 best places to see fall foliage.

Productivity hack: Have you considered the simple to-do list?

Career tip: Our best-selling course, Difficult Conversations at Work, will help you tackle the tough convos with your boss or direct reports without a sweat. Join us on Sept. 25.

Join the jet set: Ready to hit the open skies? For a limited time, $299 buys you access to more than 5 months of unlimited travel with Frontier’s GoWild All-You-Can-Fly Pass. Start soarin’.*

*A message from our sponsor.

GAMES

The puzzle section

Turntable: Vowels abound in today’s Turntable, but there are only 30 words you can make from them. Play the puzzle here.

Geography trivia

  1. Kazakhstan
  2. Mongolia
  3. Chad
  4. Niger
  5. Mali

What is this list?

SHARE THE BREW

Share Morning Brew with your friends, acquire free Brew swag, and then acquire more friends as a result of your fresh Brew swag.

We’re saying we’ll give you free stuff and more friends if you share a link. One link.

Your referral count: 2

Click to Share

Or copy & paste your referral link to others:
morningbrew.com/daily/r/?kid=303a04a9

ANSWER

The world’s largest landlocked countries.

Word of the Day

Today’s Word of the Day is: piggyback, meaning “to carry up on the shoulders and back.” Thanks for the suggestion, Lori Victory of Houston, TX. Submit another Word of the Day here.

✢ A Note From LiquidPiston

This is a paid advertisement for LiquidPiston’s Regulation A+ Offering. Please read the offering circular at invest.liquidpiston.com.

         

Written by Neal Freyman and Dave Lozo

Was this email forwarded to you? Sign up here.

Take The Brew to work

Get smarter in just 5 minutes

Business education without the BS

Interested in podcasts?

  • Check out ours here
ADVERTISE // CAREERS // SHOP 10% OFF // FAQ

Update your email preferences or unsubscribe here.
Please Note: We've recently updated our Privacy Policy. View our privacy policy here.

Copyright © 2023 Morning Brew. All rights reserved.
22 W 19th St, 4th Floor, New York, NY 10011

Older messages

☕ Mucinexposed

Sunday, September 17, 2023

Apple finally embraces USB-C charging... September 13, 2023 View Online | Sign Up | Shop 10% Off Morning Brew PRESENTED BY Facet Good morning. As we enter the thick of the MLB playoff race, here's

☕ Lawful good

Sunday, September 17, 2023

How one gov't office moved away from paper. September 13, 2023 Tech Brew PRESENTED BY LiquidPiston It's Wednesday. Governments are not known for being early adopters when it comes to tech, but

☕ Pay attention

Sunday, September 17, 2023

Pitfalls to avoid for retailers constructing their checkout process. September 13, 2023 Retail Brew PRESENTED BY SoFi Hello, hello. The IPO market continues to heat up, with 249-year-old shoe maker

☕ Are you for real?

Sunday, September 17, 2023

Brands are still figuring out virtual influencers. September 13, 2023 Marketing Brew PRESENTED BY Vimeo It's Wednesday. We may have found a levee against the flood of shuttered newsrooms across the

☕ Astroturfed

Sunday, September 17, 2023

Why Brits are mad about the price of beer... September 14, 2023 View Online | Sign Up | Shop 10% Off Morning Brew PRESENTED BY AT&T Connected Car Good morning. If you missed out on The Suite Life

You Might Also Like

Microsoft will let Windows users uninstall new ‘Recall’ AI feature

Saturday, September 28, 2024

More OceanGate revelations | Software pioneer Charles Simonyi on the quest for galactic discoveries ADVERTISEMENT GeekWire SPONSOR MESSAGE: Get your ticket for AWS re:Invent, happening Dec. 2–6 in Las

Crypto’s Biggest Banker’s Latest Push | Bitcoin Breaks Out

Saturday, September 28, 2024

Election betting could go mainstream in the US, as Kalshi triumphs over the CFTC. ADVERTISEMENT Forbes START INVESTING • Newsletters • MyForbes Nina Bambysheva Staff Writer, Forbes Money & Markets

If readers don’t pay for journalism, it will die

Saturday, September 28, 2024

The Intercept needs to raise $400000 by September 30. This month, we're facing down a big fundraising goal: To meet our budget, The Intercept needs to raise $400000 by September 30. Now, with less

People Go Crazy for My Orthopedic-ish Mary Janes

Saturday, September 28, 2024

Plus: Tim Heidecker's favorite things. The Strategist Every product is independently selected by editors. If you buy something through our links, New York may earn an affiliate commission. People

Will Rogers' lessons for political smarts – and healthy skepticism

Saturday, September 28, 2024

+ who would benefit from 'Lithium Valley' in California? ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

The very best slippers

Saturday, September 28, 2024

A fall essential View in browser The Recommendation Cold toes, warm slippers A pair of gray Glerups Wool Slippers. Photo: Connie Park We've been testing (and puttering around, lounging, and getting

Weekend Briefing No. 555

Saturday, September 28, 2024

5 Formulas for a Good Life -- Raising Entitled Kids -- Love Isn't All You Need ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

YOU LOVE TO SEE IT: Good Regulators Come For Bad Medicine

Saturday, September 28, 2024

Antimonopolists are coming for meddling drug middlemen and lousy landlords, the tide turns on overdoses, and carbon goes under the sea. YOU LOVE TO SEE IT: Good Regulators Come For Bad Medicine By Lucy

☕ Helpers and hinderers

Saturday, September 28, 2024

The immediate future of work. September 28, 2024 Tech Brew presented by Amazon Web Services It's Saturday. Yes, Saturday! Outside of the traditional nine-to-five, M–F routine. But perhaps you'

Helene's Deadly Impact, U.S. Exits Iraq, and a Seal's 50th Birthday

Saturday, September 28, 2024

Hurricane Helene made landfall in Florida as a Category 4 storm Thursday evening, killing at least 40 people across four states and leaving 3 million without power in Florida, Georgia, and the