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What’s going on here?

JPMorgan found that the global supply of publicly listed stocks is shrinking at its fastest pace in at least 25 years.

What does this mean?

The “supply” of public stocks, in this case, means the dollar value of new shares issued, minus the dollar value of any shares bought back. So when public companies sell more shares, or when private companies sell shares for the first time, supply goes up. And when companies buy back their own shares, supply goes down. Well this year, the supply has already shrunk by $120 billion – much bigger than the $40 billion decline over the course of last year as a whole. That puts the metric on track to get worse for the third year in a row, a run that hasn’t happened since the bank started the logs in 1999.

Why should I care?

Zooming in: JPMorgan’s analysts are scratching their heads.

Stock markets are rising, which should encourage companies to sell shares while they’re fetching higher prices, rather than splashing out to buy them back. The fact that the opposite is happening might reflect the current climate, then. Uncertainty over potential interest rate cuts and the upcoming presidential election seem to have businesses erring on the side of caution, putting them off from selling new shares. Plus, companies are struggling to push up their sales now that customers are cutting back, so they might be buying back their own stocks to lift their earnings-per-share ratios.

The bigger picture: The private eye.

There were more than 7,000 publicly listed companies in the US before the turn of the millennium, but according to index provider Wilshire, that number has now fallen below 4,000. That has a lot to do with the increasing bank balances of private equity and venture capital firms: they give smaller companies the opportunity to raise funds without dealing with the financial and regulatory burdens that come with going public.

What’s going on here?

Elon Musk teased the launch of robotaxis, a bid to get Tesla’s stock price from A to B autonomously.

What does this mean?

Tesla’s preparing to get robotaxis closer to the tarmac from this August, seemingly determined to make headway while its sales in China are being nabbed by rival electric vehicle (EV) manufacturers. That’s long overdue: Elon Musk promised investors the fully self-driving vehicles back in 2019, and the hype is believed to have puffed up the carmaker’s valuation. Tesla has started by pushing out the latest update of its driver-assistance technology to customers, while dropping hints about both the robotaxi and an affordable, next-generation car – the latter of which comes with a steering wheel, just in case.

Why should I care?

Zooming out: Hype doesn’t pay the bills.

Musk’s penchant for dramatic product reveals has allowed Tesla to drum up excitement without shelling out for traditional ads. That said, Tesla’s signature newsworthiness hasn’t always shown up in its bottom line – the Cybertruck is a prime example of that. Tesla’s stock price might be hanging in the balance, then: research from DataTrek suggests that 76% of Tesla’s value hinges on what the company can make down the line. So without crystal-clear earnings prospects or a robust plan for profit, the EV maker needs robotaxis to boast a launch smooth enough to convince investors of their potential.

The bigger picture: The price needs to be right.

Stateside shoppers have filled their driveways with cheaper hybrid models instead of EVs lately, making it clear that price beats any gadget or green accolade. That’s probably why Tesla is still working on a budget-friendly EV – although at around $25,000, even the most affordable model is twice as expensive as Chinese rival BYD’s cheapest offering. Not everyone is plodding away, though. Apple and Ford have pulled back from EVs, daunted by the fierce competition outside of the US.