🚗 Tesla's self-driving problem

...and Walmart's back-to-life quarter
 

Nothing like the smell of freshly shaved pencils [GoodLifeStudio/E+ via GettyImages]

 
Yesterday's Market Moves
 
Dow Jones
35,343 (-0.79%)		S&P 500
4,448 (-0.71%)		Nasdaq
14,656 (-0.93%)		Bitcoin
$44,950 (-2.76%)
Dow Jones
35,343 (-0.79%)		S&P 500
4,448 (-0.71%)
Nasdaq
14,656 (-0.93%)		Bitcoin
$44,950 (-2.76%)

Hey Snackers,

Tinder and Hinge owner Match Group wants to end ghosting: it's testing a feature that pushes you to either reply or unmatch. Because being ghosted and unmatched is sooo much better.

Stocks dropped from their records yesterday after news that retail sales fell sharply in July from June. Still, they're well above pre-pandemic levels.

Auto

A new investigation into Tesla's Autopilot could stop Elon Musk from "rounding up"

Don't backseat drive... When there's no one in the front seat. Earlier this week, the National Highway Traffic Safety Administration (NHTSA) launched an investigation into __Tesla__'s Autopilot feature. The NHTSA has the power to mandate car recalls — so all 765K Teslas sold since 2014 are now under scrutiny. Tesla shares skidded 4% Monday. The deets:

  • 11 separate accidents will be considered in the investigation, including one fatality. All cases involve Teslas that crashed into parked vehicles while on Autopilot.

Don't backseat drive... When there's no one in the front seat. Tesla's been stuck in a traffic jam of at least 30 investigations since 2016. Earlier this year, Tesla recalled 285K+ cars in China due to a cruise control glitch — and 135K+ cars in the US due to touchscreen failures. But this is the first investigation focused on Tesla's overall Autopilot system.

  • The reality: Teslas operate at Level 2 of 5 on the driving automation scale — aka: partial self-driving. Ditto for competitors GM, Daimler, and Volvo.
  • The marketing: It suggests otherwise. Tesla says its cars have "full self-driving capabilities." But it also says they still require "a fully attentive driver, who has their hands on the wheel."
  • The customers: They sometimes treat Teslas like they're totally autonomous. Owners have been caught sleeping and even sitting in the back seat sans-driver. See: this viral video.
THE TAKEAWAY

Marketers sometimes "round up"... Earlier this year, Tesla walked back Elon Musk's exaggerated self-driving claims. In 2020, German courts ruled that Tesla's use of the word "Autopilot" and other marketing claims were misleading. Now, the NHTSA's investigation could force Tesla to stop "rounding up" in its US marketing — or face a major recall.

Pencils

Walmart's "back-to-life" quarter: Why America's #1 retailer is a proxy for the consumer economy

To the window... to the Walmart. The retail giant topped earnings estimates last quarter as people flocked to its stores for back-to-school supplies and groceries — Walmart's literal bread and butter. US sales jumped 5% from last year to a casual $141B.

  • Back-to-school: Kids who haven't seen their fifth-grade classmate IRL since third-grade stocked up on Frozen backpacks, Pokémon planners, and sparkly erasers.
  • Back-to-life: Walmart says customers snagged items like luggage, party supplies, and clothes as they were "coming out of hibernation."
  • Ads to match: Walmart's advertising revenue in the US nearly doubled (it sells ads on its website and app).

Splurging on mechanical pencils... In the same period last year, bulky stimulus checks lifted sales despite Covid concerns — still, Walmart managed to beat those sales this year. That could partly be thanks to a "secret stimulus" that dropped before Walmart's latest quarter ended.

  • Kid allowance: On July 15, the US government started sending US parents $300 per month for each child they have as part of a boosted child tax credit.
  • Like stimulus checks, these child tax checks will likely continue to boost spending — especially at fam-faves like Walmart, Costco, and Target.
THE TAKEAWAY

Walmart is a proxy for US consumers... and their mood. Walmart is America's largest retailer — and 90% of Americans live within 10 miles of one of its stores (wild). In March of last year, Walmart shoppers were stocking up on TP and canned foods. Now, they're splurging on suitcases, backpacks, and skirts. And despite surging Delta cases, Walmart says it hasn't seen a change in shopping patterns — or a return to hoarding. We'll see if that changes as the Delta variant surges.

What else we're Snackin'
  • Ungas: BHP Group, the world's largest mining company, will sell its oil-and-gas unit in a major bet on a lower-carbon future.
  • Covered: TSA is extending its federal mask mandate for flights, buses, and trains through January 18 — it was supposed to end next month.
  • DIY: Home Depot rang up fewer customers last quarter than a year ago, suggesting that the DIY "House Hype" is finally waning.
  • Crackdown: China's biggest tech companies lost $50B+ in market value on Tuesday, after regulators announced strict new antitrust rules.
  • Boost: Pfizer submitted data from its booster shot trials for approval. The Biden admin is expected to recommend Covid boosters soon.
  • Perks: To attract workers mid-labor shortage, Uber is partnering with a startup to offer its drivers discounts and cashback at gas stations and stores.

🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up here.

Wednesday
  • Earnings expected from Nvidia, Cisco, Lowe's, Target, and Bath & Body Works

Authors of this Snacks own shares of: Walmart, Amazon, Match, GM, Uber, and Tesla

ID: 1763599

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