Get to the Pont, Already?

Pont l'Eveque, introduced by monks in the 13th century in the Pays d'Auge, is among the oldest French cheeses. Its name is thought to have originated in the 17th century, referencing the Normandy village where it was produced. Made from raw cow's milk, this soft cheese boasts a creamy, full-bodied flavor that is best enjoyed at room temperature. Today’s cheddlines, meanwhile, can be enjoyed hot, cold, or lukewarm. It’s entirely up to you.

Today's Cheddlines You Need2Know

• Nike and Skims Join Forces

• Could Musk’s 2018 Tesla Pay Package Be Reinstated?

• Tariffs Coming on Auto, Chips, and Pharmaceuticals

• Musk Unveils Grok 3 Chatbot

• The Dream Exchange for Small Cap Companies

Don’t worry, we can wait.  

—Matt Davis, Need2Know Chedditor

P.S. We’ve got the new xAI launch on our gram.

Quote of the Day

Should You Check Your 401(k) Today?

👍

(yep)

Nike and Skims Join Forces

Nike shares rose 6% on Tuesday following the announcement that the firm will launch a new women’s activewear brand in the US this spring in partnership with Kim Kardashian-owned shapewear label Skims, as Nike aims to better compete with newer brands in the athleisure space. In 2023, Skims was valued at $4 billion and today has six stores across the US The rise in Nike’s stock price on announcement of the tie-up amounts to about $6.7 billion.

The tie-up is expected to give Nike a leg up in women-centric athleisure brands. The push started in the brand’s first Super Bowl ad in nearly three decades, featuring star women athletes like Caitlin Clark and Sha’Carri Richardson. The new brand is set to debut its first collection in select retail locations this spring.

“Nike and Skims share a deep commitment to innovation, inclusivity and pushing boundaries, driven by an unwavering belief in the power of women,” said Kim Kardashian. Skims has previously collaborated with luxury brands, such as Dolce & Gabbana and Fendi, but working with Nike will enable it to garner a larger share of the market.  

Could Musk’s 2018 Tesla Pay Package Be Reinstated?

If you don’t like the law, change the law. Right?

Well, a law firm representing Tesla and Elon Musk authored a draft bill aimed at amending Delaware's General Corporation Law. Purely coincidentally, if passed, the legislation could facilitate the restoration of Elon Musk's CEO pay package at Tesla. The package initially granted in 2018 and potentially worth up to $55.8 billion but rescinded by the Delaware Court of Chancery in early 2024.

$55.8 billion is about a tenth of Musk’s net worth today.

The pay package had been criticized for being approved under misleading circumstances by Tesla's shareholder proxy materials and a board seen as under Musk's control. Critics argue that the proposed bill, introduced in the Delaware General Assembly, dilutes protections for minority investors by redefining what constitutes a "controller" of a company, thereby potentially exempting Musk from being classified as such for owning less than one-third of Tesla's voting securities.

The backlash from the 2024 court ruling against Musk's compensation plan led him to campaign against Delaware as a corporate domicile, even moving his businesses out of the state. Tesla and Musk did not comment, but I’m sure they’ll be delighted if this law changes.  

From @cheddar

cheddar

View more on Instagram

Tariffs Coming on Auto, Chips, and Pharmaceuticals

President Donald Trump has declared another imposing series of 25% tariffs on automobiles, semiconductors, and pharmaceuticals starting as early as April 2 — the day after April Fool’s Day. The president's strategy appears to be part of a broader trade war, one aimed at correcting what he perceives as longstanding imbalances in international trade.

Highlighting the severity of the move, Trump has flagged these initial rates as just the beginning. "It’ll go substantially higher over the course of a year,” Trump remarked at Mar-A-Lago, emphasizing a strategic plan to ramp up the pressure on countries and companies reliant on the US market. The administration's stated goal is to coax these entities into relocating their production facilities to the United States, thereby dodging the hefty tariffs.

In tandem with these announcements, the president ordered an investigation into the tax and tariff tactics of other nations. The investigation is set to pave the way for new, reciprocal tariffs to kick in immediately following its conclusion on April 1 (say, that literally is April Fool’s Day!) said Howard Lutnick, Trump’s nominee for Commerce Secretary.

The new tariffs could hit Asian semiconductor giants like Samsung hard, potentially accelerating their efforts to establish or expand operations within the United States to avert the financial blow. Similarly, the pharmaceutical sector is bracing for impact. As the world’s largest importer of pharmaceutical products in 2023, the US's new tariff regime could severely affect European, Indian, and Chinese firms, which constitute significant sources of the imports.

Musk Unveils Grok 3 Chatbot

Elon Musk has announced the launch of Grok 3, the latest iteration of xAI's chatbot technology. Musk, known recently for his arm gestures and moves to improve government efficiency — as well as ventures into space travel and electric vehicles — is now setting his sights on revolutionizing artificial intelligence with what he claims to be "an order of magnitude more capable than Grok 2."

Musk's unveiling of The Third Grok does more than just push the boundaries of AI; it serves as the latest volley in a bitter feud with OpenAI, punctuated by lawsuits, heated exchanges, and a stunning unsolicited takeover bid worth $97.4 billion.

During a video livestream packed with intriguing details, Musk and his xAI team shared their vision for Grok and its underlying goal: to “understand the universe.” Okay, now we’re sounding a lot like the baddies in an Indiana Jones movie!

"We're seeing the beginnings of creativity," Musk remarked, highlighting the chatbot's potential to innovate and surprise. In a series of live demos, Grok 3 was put to the test with tasks ranging from solving complex physics problems to designing a novel game blending elements of Bejeweled and Tetris. The Grok 3 API, alongside features like the reasoning model and DeepSearch, is set to launch in the coming weeks.

The Dream Exchange for Small Cap Companies

Imagine if you could revolutionize the stock exchange landscape and provide a much-needed platform for small-cap companies. We spoke with Joe Cecela, co-founder of the Dream Exchange, about his firm’s mission to do just that. The Dream Exchange could be the first minority-controlled company to operate an exchange in US history.

Cecela highlighted the difficulty small companies face in accessing capital. It’s an issue that disproportionately affects minority founders, as "private equity, venture capital, angel, and seed investing are all relationship-driven capital raising environments."

He further explained how the advent of high-speed electronic trading has unintentionally hindered small IPOs. The Dream Exchange aims to rectify this by creating "a stock exchange dedicated to the small capital markets or what we call underserved marketplaces." Cecela envisions it as "restoring the onramp to the IPO marketplace for the small capital companies."

A key aspect of the firm’s plan involves new legislation called the Main Street Growth Act introduced on Tuesday, which would allow the SEC to license "venture exchanges." These exchanges, Cecela explained, would "protect the small cap investor and protect the small cap company in a way that is not available in the national market system with high speed and high volatility." They would cater to "low volume, low trade volume, low share volume, low cap rate companies that really trade slower and need a customized exchange environment."

Cecela is optimistic about the Dream Exchange's future, aiming "to be a household name decades into the future and to really make an impact on small and mid-sized companies and middle America so that we can restore public capital in those companies and really create more jobs and stability."

Best of luck to him!