Monday Market Open

Dear Winner,

Let me be the first to congratulate you on a successful weekend 🤝and another strong week coming.🎯

You are hungry for Alpha, I know. Before we sit down and feast, I must say, you have come to the right place - Monday Market Open.

So, with that said, let’s get after it…

Market Indices & Commodities

News
The Recap

In case you missed it, forgot, overslept, drank too much, were traveling, or whatever the case may be…

• September strikes again as stocks off to poor start 📉

• AI stocks got cooked last week, it the hype train over 🚄

• Verizon buys Frontier for $20B 💰

• Nvidia Denies It Was Subpoenaed In DOJ Antitrust Probe ⚖

• Biden to block Nippon's acquisition of U.S. Steel, reports say ❌

Graph of the Day
Rotting Apple 🍎 ?

News
This week

Another big week of news, economic data, events, the whole 9 yards. Get the scoop on what is important to know for this week.🎯

• Monday - Consumer Credit, Wholesale Inventories. Earnings, Oracle Corp. (ORCL), Rubrik Inc. (RBRK).

• Tuesday - UK unemployment rate (July): forecast to rise to 4.5%.

• Wednesday - Consumer Price Index. (CPI), Core CPI, EIA Crude Oil Inventories, MBA Mortgage Applications Index.

• Thursday - Producer Price Index (PPI), Core PPI, Continuing Claims, EIA Natural Gas Inventories, Initial Claims, Treasury Budget

• Friday - Export Prices, Import Prices, University of Michigan Consumer Sentiment - Preliminary

⭐ This week’s events take place in the shadow of the previous week’s payrolls report and next week’s Federal Reserve bank (Fed) rate decision. US consumer price index (CPI) provides a useful interlude between the two, though it can be argued that inflation isn’t really the main event now that the Fed has signaled a focus on the jobs market.

Now You Know 
🤖 🚕 The Robotaxi Revolution

The idea of ride-hailing networks operating autonomous vehicles - aka robataxis - has always been less about if and more about when . The first robotaxis were already being tested in Singapore in 2016, and Elon Musk famously promised that by 2020 Tesla would have a fleet of a million robotaxis , competing with the likes of Uber.

Progress has been slower than many anticipated, but the concept is starting to look a lot more real. A couple of recent developments suggest confidence is growing:

• Pilot fleets that initially consisted of a handful of vehicles now typically number in the hundreds.

• Waymo was recently authorized to do all-day, curbside pickups and drop-offs at Phoenix Sky Harbor International Airport.

• And lastly, Tesla is finally ready to unveil its robotaxi.

For investors, the opportunity is a lot more tangible than many prior innovations. The unit economics are also fairly straightforward:

Uber charges $2 to $4 per mile in the US. Elsewhere, the cost is lower but generally above $1 a mile. Robotaxis should be able to charge $1 per mile and be competitive. If a vehicle completes 50,000 miles a year in paid trips (136 miles per day), it would generate $50,000.

Operating costs, including charging, cleaning, maintenance and insurance, are estimated to be less than $0.5 per mile. If that’s the case, one vehicle could generate $25,000 per year to be split between the vehicle owner and the network operator. The first robotaxis that were tested cost over $150,000 to build - but that figure is now getting closer to $30,000.

✨ However you slice and dice those numbers, the ROE looks incredible. Over time, fares would come down due to competition, but lower fares would presumably result in more mileage.

However, Both Tesla and its rivals could face quite a few hurdles, both in the short term, and as their services scale. Some of these including Regulatory challenges, Costs, Electricity consumption and the effect of Adverse weather.

However, in my opinion whatever way you look at this. The robotaxi will be apart of the future. Watch this space. 

^{_{Thank You}}
That’s all Folks

Hey, thank you for checking out Monday Market Open. I hope you enjoyed it, learned something new, and are feeling ready to attack the week. Keep an eye on your inbox for more Alpha coming your way this week.

Cheers,