🚗 Tesla's self-driving problem

Autopilot in the hotseat... 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.

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.

• 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.

• 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