Markets Kick off Roughly due to Significant Setbacks at Tesla and Apple, according to Forbes Daily.
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Markets Kick off Roughly due to Significant Setbacks at Tesla and Apple, according to Forbes Daily.
Good morning,
Greyhound is a famously American company, but it's not always for positive reasons, as evidenced by the numerous one-star reviews on TripAdvisor.
However, its new owner, a German bus startup named Flix, is hopeful that it can change its reputation for the better. Flix plans to use the same strategy that made it a dominant force in intercity bus travel in Europe: offering incredibly low prices and outsourcing driving to contractors, while providing passengers with small luxuries like leather seats, Wi-Fi, and power outlets.
As Flix's co-founder and CEO Andrew Schwämmlein told Our Daily, "The New York hedge fund manager should consider the bus. He won't choose it every time, but he should consider it."
WHAT'S UP
2025 began its first trading session of the year on a rocky note, with all three major indices declining on Thursday. Apple and Tesla suffered significant losses, even as the S&P 500 is coming off of its first back-to-back years of at least 20% gains since the 1990s.
MORE: Tesla's stock was the worst performer on the S&P 500, losing 6% after reporting fourth-quarter vehicle deliveries below analyst expectations. The sell-off wiped out around $175 billion in market value for Tesla, a loss roughly equivalent to AT&T's entire valuation.
Hindenburg Research, the short seller that has targeted the Adani Group and Roblox, turned its attention to Carvana, alleging that its nearly 50-fold increase in stock price is "a mirage." Carvana is accused of hiding its dealings with Cerberus Capital Management, a $60 billion private equity firm that counts former Vice President Dan Quayle (a Carvana board member) and new Trump administration appointee Stephen Feinberg among its leadership.
BUSINESS + FINANCE
Last year saw some major career downfalls from notable figures like Joe Biden, former Boeing CEO Dave Calhoun, and former Harvard University president Claudine Gay. But others managed to bounce back in 2024, including Donald Trump, WeWork founder Adam Neumann, and Abercrombie & Fitch CEO Fran Horowitz.
WEALTH + ENTREPRENEURSHIP
Billionaires are more powerful and wealthy than ever, but not all of them started out that way. Oprah Winfrey, former Starbucks CEO Howard Schultz, and Rihanna are some of the billionaires featured on Our Daily's list of 10 individuals who went from rags to riches.
Elon Musk's fortune grew by a record $170 billion in 2024, thanks to increased valuations for Tesla, SpaceX, and xAI. Musk ended the year $188 billion richer than Amazon's Jeff Bezos, more than doubling the previous record for the largest year-end lead between the No. 1 and No. 2 wealthiest individuals.
TECH + INNOVATION
Most people use Alexa, Google Assistant, and Siri for simple tasks like setting timers, playing music, or controlling lights. But AI "agents," the latest trend in the tech industry, could help these voice assistants finally act like personal assistants. Instead of just providing information, like Google Assistant does now, it might be able to book meetings, contact people, and schedule appointments based on your preferences.
In 2024, investors poured some $20 billion into the 25 companies that rent access to GPUs, the chips that power AI tools. The biggest winner so far is CoreWeave, a New Jersey-based startup that converted its GPU mining efforts for cryptocurrency into a rental business for AI projects after the market crash in 2018.
SPORTS + ENTERTAINMENT
Since his performance on America's Got Talent in 2015, mentalist and entertainer Oz Pearlman has become a popular speaker on the corporate circuit and a regular guest at NFL team complexes. He earned around $10 million pretax last year, thanks to successful appearances with athletes and a growing demand for his mind-reading act.
Boston Celtics superstar Jayson Tatum has ambitions beyond basketball. He has partnerships with over 10 companies, published a children's book, starred in Netflix's documentary series Starting 5, and landed the cover of NBA 2K25. Our Daily estimates that Tatum earns around $13 million annually before taxes and agent fees.
Two unfortunate New Year's Day events associated with terrorism occurred—a fatal car assault in New Orleans' French Quarter, which claimed 15 lives, and a Tesla Cybertruck explosion outside the Trump International Hotel Las Vegas, leading to the driver's demise. However, the FBI disclosed this week that they've discovered no conclusive connection between the two incidents. Both instances involved rental vehicles from the shared car service platform Turo, sparking debate online. Nevertheless, investigations are still in progress, and the agency remains open-minded, refraining from ruling anything out.
DAILY NEWS SUMMARY
The Pentagon Employs AI to Screen Staff—However, It Needs the "Mom Test" Pass
KEY FACTS The Defense Counterintelligence and Security Agency, responsible for issuing U.S. security clearances to millions of personnel, is leveraging AI to expedite its tasks.
Unlike cutting-edge AI models like ChatGPT, Bard, or Claude, the agency is focusing on analyzing and categorizing data in a manner similar to established tech industries for several years. Director David Cattler sees its most promising application in prioritizing existing threats.
The use of AI, while beneficial for collating and categorizing data, should be handled with caution. If mismanaged, these tools may pose a threat to data integrity and engender unconscious biases within government frameworks. Despite Cattler's favorable sentiment towards AI's less glamorous capabilities, he acknowledges the importance of transparency in the agency's processes.
Matthew Scherer, senior policy advisor at the Center for Democracy and Technology, emphasizes that AI can be useful for organizing already verified data, but caution is required when it comes to decision-making stages, such as highlighting warning signs during background checks or mining social media profiles.
Cattler confirms that the department has chosen to avoid utilizing AI to detect new risks. Even in prioritization, issues related to privacy and potential bias emerge. When engaging AI providers, DCSA must evaluate the private information they input into proprietary algorithms and the potential impacts of those algorithms.
WHY THIS IS IMPORTANT As reported by Our Website, the Pentagon, like many sectors, is integrating AI to manage vast volumes of personal data. While AI has its advantages, it also carries risks related to privacy and biases, as explained by Rashi Shrivastava, Our Website reporter.
ADDITIONAL RESOURCES
OpenAI is Targeting Defense Contracts
DATA AND OPINIONS
In 2024, Donald Trump saw his net worth escalate from $2.5 billion and legal obligations to becoming president-elect, once again gracing Our Website's list of America's wealthiest individuals. The growth was largely due to his dominant shareholding in Trump Media & Technology Group's parent company, Trump Media & Technology Group:
- 60%:** Trump's stake in TMTG, making up more than half of his net worth
- $5.9 billion:** Trump's net worth as of January 2
- $2.4 billion:** The income generated by Trump's enterprises between 2017 and 2020. Despite his role as president, he earned more than any previous president.
STRATEGIC PEAKS AND UPLIFTS
As you begin contemplating your 2024 tax filing, starting your tax preparation earlier this year will help you avoid last-minute scrambling. Keep up with the Tax Cuts and Jobs Act, or the "Trump 2017 tax cuts", also known as the TCJA, as some of its amendments expire at the end of 2025—but may be renewed. Pay close attention to the income thresholds for each of the seven tax brackets, and do not neglect state taxes, as 39 states will introduce modifications to their tax codes starting in 2025.
VISUAL CONTENT
QUIZ
Bitcoin failed to claim top spot as the best-performing cryptocurrency in 2024. Instead, it was a digital token named after a Web 2.0-era meme featuring a certain animal**. Which animal inspired ibation's finest cryptocurrency of 2024?
A. Frog
B. Cat
C. Bird
D. Dog
Examine your response.
Thanks for tuning in! This edition of Our Website Daily was edited by Sarah Whitmire and Caroline Howard.
- Flix, the German bus startup, is optimistic about improving Greyhound's reputation, planning to offer low prices and small luxuries to passengers, as stated by co-founder and CEO Andrew Schwämmlein.
- Tesla's stock was the worst performer on the S&P 500, losing 6% after reporting fourth-quarter vehicle deliveries below analyst expectations, causing a significant loss of market value.
- Carvana is under scrutiny by Hindenburg Research, which alleges that its substantial stock price increase is a mirage and that the company has hidden its dealings with Cerberus Capital Management.
- Former Vice President Dan Quayle, a Carvana board member, is among the leadership of Cerberus Capital Management, a private equity firm that is also involved in Carvana's dealings.
- Elon Musk's fortune grew by a record $170 billion in 2024, surpassing Amazon's Jeff Bezos and making him the wealthiest individual in the world.