đźš— Tesla goes FSD
![_The TikTok algo comes for real estate [JDC/ Stone via GettyImages]_](https://cdn.robinhood.com/static_content/mwphzyq69oso/en-US/assets/files/4t5A0nUldIou33lmqfnZvV_1_GettyImages-532686390__1_.jpg)
Hey Snackers,
Talk about beginner’s luck: A Danish man picked up a metal detector for the first time ever and found a 1,500-year-old buried treasure from the Iron Age.
Stocks ticked down yesterday, as the growing threat of a US government shutdown weighed on markets. Meanwhile, some crypto exchanges are curbing trading from China, after China declared all crypto-related transactions illegal.
As Tesla puts its self-driving tech in the fast lane, regulators push back on safety
Almost autonomous… But already famous. Tesla finally launched its “full self-driving” (FSD) update, allowing some owners to activate a beta version of its controversial autonomous tech. Tesla fans applauded the unfinished feature, and shares of the EV icon jumped nearly 3% yesterday. The deets:
- Not-quite-self-driving: The update enables “autosteering” around urban obstacles like bikers or pedestrians. Teslas are “Level 2 autonomous,” like models from GM, Volvo, and Toyota, which means drivers must still constantly supervise. Honda sells the most autonomous car yet, a Level 3 that asks drivers to engage only if something goes wrong.
- No hard braking: FSD Beta will be available to Tesla owners who request access and earn high “safety scores” after a week of car-veillance, which measures factors such as aggressive turning.
- Partial functionality, full price tag: FSD costs $10K up front, or $199/month — and an estimated 360K people have already bought it.
Pump the brakes… Yesterday, the head of the National Transportation Safety Board slammed the update, saying Tesla shouldn’t roll out features without addressing existing safety issues. Last month, regulators launched an investigation into Tesla’s self-driving tech, considering 11 separate accidents and one fatality. Tesla’s getting heat over accusations it’s misleading buyers about its self-driving abilities.
Tesla is used to moving fast... As an EV pioneer, Tesla has often built technology before regulators can even regulate it — think EV charging networks. Tesla claims to make the “safest cars in the world,” and all its models have received perfect crash-test ratings. CEO Elon Musk has acknowledged that FSD is still dangerously far from full autonomy, but he seems to have no plans to slow the release to wait for regulators.
TikTok’s rising influence: A viral post targets the online real-estate market
Broke the #ForYouPage… Earlier this month, a real-estate agent posted a TikTok accusing an unnamed company of manipulating housing prices. Tokers thought he was shading Zillow, and the video went viral — nearly 3M views and 450K likes. His allegation: The company uses users’ search data to mass-buy 30 homes at one price, then purchases a 31st home at a higher price to drive up the value of the others.
- Real estate experts say the Tok claims are unlikely, and Zillow denied them. A more probable explanation: Zillow sometimes overpays for homes in the hot market.
- Home prices are soaring, while supply is extra-thin. It's getting harder for regular Americans to buy or rent, so the idea of being intentionally priced-out hit a viral nerve.
Late night Zillow scroll… A pandemic pastime. Like competitors Redfin and Opendoor, Zillow isn't just a listing site à la Airbnb: it's also a buyer — an iBuyer. While advertising others' listings is Zillow's main moneymaker, its iBuying segment is growing. It's on pace to buy 5K homes/month by 2024.
- iBuying: Zillow uses its huge trove of price data to make nearly instant cash offers on homes based on "Zestimates." That cuts out the agent middleman.
- iEarning: Zillow charges sellers commission-like fees, and can profit on flipping homes it owns, though margins are generally thin.
The power of the Tok hits different... iBuyers accounted for just 0.2% of all US home purchases in the third quarter of last year. But thanks to one TikTok, iBuying is getting unprecedented attention, and Zillow woke up with a PR mess. TikTok's secret algorithm makes it easier for people without large followings to go viral overnight — harder to do on Insta, Snap, and Twitter. We could see more controversies like this, with companies being pushed to react in the speed of a Tok.
What else we’re Snackin’
- PG-13: Facebook announced it's "pausing" development of Instagram for kids after weeks of criticism from activists, journalists, and the Twittersphere.
- Stuck: Senate Republicans plan to block a Democrat-led bill to raise the debt ceiling, which could cause a costly government shutdown in the next few weeks.
- Rebuttal: Google is appealing the record-breaking $5B App Store antitrust fine it received from the EU, arguing that it competes with Apple.
- Block: Several large crypto exchanges, including Binance and Huobi, began blocking new users in China to comply with the Chinese government's ban on crypto trading.
- #AD: Spotify launched its first global ad campaign in a push to attract more advertisers to its newly redesigned ad platform, which can now target users more precisely.
- Retire: The presidents of Federal Reserve branches in Boston and Dallas announced plans to retire after reports that they had made ethically questionable stock trades.
Tuesday
- Earnings expected from Concentrix, Micron, IHS Markit, and FactSet
Authors of this Snacks own shares of: Apple, Google, Spotify, Snap, GM, and Tesla
ID: 1853020