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Hello, my most awestruck subscribers!

[Rubs hands] Let’s get into it, shall we?

News You Need2Know

• Mom and dad are fighting

• Tesla stock plunges as investors are spooked

• Trump reinstates and expands ‘travel ban’

• Supreme Court makes it easier to claim ‘reverse di …

• Nintendo fans on Switch 2: OMGGGGGGGGGG

I hear some loud voices coming from the living room…

—Matt Davis, Need2Know Chedditor

Companies mentioned in today’s newsletter

 $TSLA ( ▲ 3.92% )  $NTDOF ( ▲ 1.35% )  $TGT ( ▲ 4.1% )  

Mom and dad are fighting

How did you find out? I found out because yesterday everyone I know texted me at 3:30 p.m. to say “check the Internet.” At the time, I was stranded on the hard shoulder of route 113 going south through Delaware, in a rented Audi A6 with a blown-out tire. Not my fault, officer. I was just testing the engine. I “requested roadside assistance.”

It turns out my “lug nuts” (which are apparently a real thing) had “rusted” (how many times have I heard that lately?), and the first set of roadside assisters couldn’t get the tire off. So I had to wait three hours to get it towed to another location. At about the moment that news dropped, our 4-year-old woke up in the back seat and started crying in the kind of way you know you’ll remember years later with a far-off stare and the words, “the horror, the horror.” Later an officer from the City of Eastville, Virginia put the cherry on my afternoon by stopping me for going 77 miles per hour in a 50 zone on the Eastern Shore.

“I’ve not written you up for reckless driving,” he said, making it clear that he was doing so only because he was being nice. The fine is only $208, or less than half a Nintendo Switch 2.

Still my afternoon, it turned out, was a walk in the park compared to Elon Musk and Donald Trump’s, whose argument cost Musk’s company Tesla $150 billion in market value at the stroke of a tweet (see below 👇🏻). And God knows how much it’s going to cost the rest of us before it’s all over.

Their relationship unraveled swiftly and dramatically when Trump threatened to terminate Musk’s government contracts, a pointed retaliation in response to Musk’s criticisms of Trump's policies.

As President Trump sat in the Oval Office on Thursday with Germany’s leader, he lamented his soured relationship with Musk, saying he was “very disappointed” after the billionaire former backer lambasted the president’s signature bill, calling it a “disgusting abomination” and warning of its potential to increase the federal deficit.

“Whatever,” Musk wrote on his social media platform while responding to Trump in real time.

Queens shouldn’t swing, if you know what I mean. But I’m about to take my earrings off, get me some Vaseline. With thanks to Jill Scott whose 2000 song “Gettin’ in the Way” retains my favorite “oh, no, it’s on….” pre-fight line—which you just read.

Speaking of gettin’ in the way: “The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts,” Trump wrote on his social media network. “I was always surprised that Biden didn’t do it!”

Their split is particularly notable due to Musk’s instrumental role in Trump’s rise. Musk supported Trump fervently, contributing over $250 million to his campaign and actively participating in Trump’s administration. He was often seen by Trump’s side, donned in MAGA hats, and attended private stays at Mar-a-Lago. Reflecting on Musk’s departure from his team, Trump noted, “I’ll be honest, I think he missed the place. He got out there, and all of a sudden he wasn’t in this beautiful Oval Office.”

Further tensions arose from Musk’s promotion of Jared Isaacman to run NASA, an appointment Trump quickly rescinded, alleging Isaacman’s unsuitable political affiliations. “I didn’t think it was appropriate,” said Trump, calling Isaacman “totally a Democrat.”

Which is probably what Elon Musk will try to become at the stroke of midnight, when his Teslas turn into pumpkins. Although I wonder if they’ll have him and his billions back, now?

Tesla stock plunges as investors are spooked

Tesla's stock took a staggering hit on Thursday, plunging over 14% and wiping out nearly $150 billion in market value $TSLA ( ▲ 3.92% ) . The threat to cancel government contracts rattled the confidence of Tesla investors, especially as Musk's business ventures, including Tesla and SpaceX, rely—let’s say—heavily on government contracts and regulatory approvals.

Dan Ives, an analyst at Wedbush Securities, highlighted the growing apprehension: “There is a fear that Trump is not going to play Mr. Nice Guy when it comes to autonomous [vehicles].” He explained that Tesla’s ambitious rollout of its driverless "robotaxi" service in 20 to 25 cities next year could face significant delays if regulatory pressures intensify.

The turbulence doesn’t stop with Tesla. Musk’s other ventures, like SpaceX and its satellite subsidiary Starlink, are also in the crosshairs. SpaceX, which has received billions from NASA to transport astronauts and cargo, is currently developing a mega rocket for a moon mission planned for next year. Meanwhile, Starlink recently expanded its reach into aviation and maritime industries, buoyed by deals in key markets like Saudi Arabia, Bangladesh, and India.

Today on the ‘gram: Guess who’s disappointed?

Post of the day: This is 🔥

Quote of the Day

Trump reinstates and expands ‘travel ban’

Trump announced the reinstatement and expansion of the travel ban from his first term on Wednesday. The new presidential proclamation, which goes into effect on June 9, will restrict entry to the United States for travelers from more than a dozen countries. The sweeping measure, which Trump frames as necessary for national security, is likely to ignite significant legal challenges and public outrage — assuming we can all forget the meltdown he’s having with Elon Musk for at least 15 minutes.

The updated travel ban fully restricts entry for individuals from Afghanistan, Myanmar, Chad, Republic of Congo, Equatorial Guinea, Eritrea, Haiti, Iran, Libya, Somalia, Sudan, and Yemen. Additionally, the proclamation partially restricts entry for travelers from Burundi, Cuba, Laos, Sierra Leone, Togo, Turkmenistan, and Venezuela. Oh, also: Sokovia.

Trump said the countries subject to the most severe restrictions were determined to harbor a "large-scale presence of terrorists," fail to cooperate on visa security, have an inability to verify travelers' identities, inadequate record-keeping of criminal histories and high rates of visa overstays in the United States.

"We cannot have open migration from any country where we cannot safely and reliably vet and screen those who seek to enter the United States," Trump said.

He cited Sunday's incident in Boulder, Colorado, in which a man tossed a gasoline bomb into a crowd of pro-Israel demonstrators as an example of why the new curbs are needed. An Egyptian national, Mohamed Sabry Soliman, has been charged in the attack. Federal officials said Soliman had overstayed his tourist visa and had an expired work permit — Egypt, however, is not on the list of countries facing travel limits.

The ban represents one of the most expansive travel bans issued by the Trump administration, drawing sharp parallels to the controversial restrictions implemented during his first term. Critics argue that the measure disproportionately targets predominantly Muslim-majority nations and developing countries, calling it discriminatory and detrimental to diplomatic relations. Legal experts anticipate swift challenges to the proclamation, similar to the fierce opposition the original ban faced in U.S. courts.

Should you check your 401(k) today?

👎️ 

Let’s call that a negative.

Supreme Court makes it easier to claim ‘reverse discrimination’

In a unanimous decision on Thursday, the Supreme Court made it significantly easier for majority-group members to bring claims of reverse discrimination under federal law. The landmark ruling stems from the case of Marlean Ames, an Ohio woman who contends she was passed over for a promotion and subsequently demoted because she is straight.

Writing for the court, Justice Ketanji Brown Jackson clarified that Title VII of the Civil Rights Act of 1964 establishes protections for every individual, regardless of their majority or minority status. Jackson emphasized, “By establishing the same protections for every ‘individual’ — without regard to that individual’s membership in a minority or majority group — Congress left no room for courts to impose special requirements on majority-group plaintiffs alone.”

Prior to this ruling, courts in 20 states and the District of Columbia imposed stricter requirements on lawsuits brought by members of majority groups — such as white or heterosexual individuals — forcing plaintiffs to provide “background circumstances” to justify their claims. Thursday’s decision removes these added hurdles, bringing claims from majority-group plaintiffs in line with those of minority-group plaintiffs.

Justice Clarence Thomas, in a separate opinion joined by Justice Neil Gorsuch, underscored concerns about workplace diversity programs. He cited data submitted in a brief from America First Legal, claiming that “American employers have long been ‘obsessed’ with ‘diversity, equity, and inclusion’ initiatives and affirmative action plans.”

The ruling follows broader legal trends limiting race and diversity initiatives, including the Supreme Court’s 2021 decision banning affirmative action in college admissions and President Donald Trump’s recent federal ban on DEI programs.

While Ames’ case centered on allegations of discrimination, the decision signals a rethinking of workplace equity policies and raises questions about the balance between diversity initiatives and protections against reverse discrimination.

Nintendo fans on Switch 2: OMGGGGGGGGGG

Fans lined up around blocks all over the world yesterday for the new release, which marks an upgrade from the original Nintendo Switch, which debuted eight years ago. This launch is critical for Nintendo $NTDOF ( ▲ 1.35% ) as it aims to invigorate declining sales by introducing new social features that encourage online gaming.

In the United States, the pre-order process in April was chaotic, with consoles quickly selling out, leaving many fans frustrated. On launch day, eager customers lined up early in hopes of purchasing a console directly from stores. Edgar Huo, one of the hopefuls outside a Target $TGT ( ▲ 4.1% ) in Manhattan, expressed his willingness to take a chance, even though most people in line had already pre-ordered online.

“I’m just rolling the dice here,” he said.

In Japan, where the demand was equally high, Nintendo used a lottery system to manage console sales. Astonishingly, the lottery saw about 2.2 million applications. In addition to the official draw, some retailers offered their own lotteries for pre-orders.

Nintendo of America President Doug “Not a Nepo Baby” Bowser acknowledged the high demand and assured customers in a CBS Morning Plus interview that Nintendo is addressing supply issues. The company plans to maintain a steady flow of manufacturing to meet the demand throughout the summer and into the holiday season.

The Nintendo Switch 2 features a larger, high-resolution screen with enhanced processing power for improved graphics. One of the main updates is the new "C" button on its controller, which launches a “GameChat” feature. This feature, requiring a subscription to Nintendo's online service, enables players to communicate and share game screens with friends and family.

Despite new U.S. tariffs imposed by President Donald Trump, Nintendo is optimistic about sales, setting a target of 15 million units sold for the fiscal year ending in March 2026. The new console is priced at $449.99 in the United States, significantly higher than the original Switch's $299.

Poll of the Day: Which of America’s daddies should get custody?

Poll Results:

We asked: Do you think Warner Bros.' shareholders should have OK'd the CEO's $51 million pay package?

You answered:

⬜️⬜️⬜️⬜️⬜️⬜️ Yes. What is this, Russia in 1917? (12 votes)

 🟩🟩🟩🟩🟩🟩 No. This is America in 2025 and his company failed to meet its goals last year. (834 votes)

Although I do really want to meet the 12 people who voted ‘yes,’ honestly. You inspire me!

846 Votes via @beehiiv polls