Greetings !

This week’s world famous News Haiku^TM competition theme is that the U.S. government shutdown has left traders “flying blind” on jobs data. Email me your brilliant News Haiku^TM on the subject by Thursday at noon ET for a chance to be voted winner.

Now let’s talk about today’s news you Need2Know, shall we?

—Matt Davis, Need2Know Chedditor

News You Need2Know

• Tesla’s teasers spark rumors of a new car

• Illinois sues to block National Guard deployment

• AI chipmaker Cerebras backtracks on IPO

• Verizon has a new CEO, and his name is Dan

• Government shutdown causes air traffic issues

What’s the stock market up to, eh?

$SPX ( ▼ 0.38% ) $DJI ( ▼ 0.2% ) $NDX ( ▼ 0.67% )

Companies mentioned in today’s newsletter

$TSLA ( ▼ 4.45% ) Cerebras $VZ ( ▼ 0.1% )  $PYPL ( ▲ 4.66% )  $T ( ▲ 1.12% )  $TMUS ( ▲ 1.21% )  

Tesla’s teasers spark rumors of a new car

Tesla $TSLA ( ▼ 4.45% ) has revealed more affordable versions of its popular Model Y and Model 3 cars, marking the firm’s first product update in years. The updates come hot on the heels of recent changes to federal tax incentives for EVs, and follow video teasers earlier in the week.

Elon Musk, Tesla’s CEO, emphasized the company’s commitment to making EVs more accessible. "We believe affordability shouldn’t be a barrier to sustainable transportation," Musk said. The new models are aimed at bridging the gap for buyers who were relying on tax credits to make these vehicles more budget-friendly.

Analysts are already weighing in on the impact, saying this is clearly Tesla’s way of staying competitive in a maturing market. However, there’s still backlash personally against Musk, which has hurt U.S. and European sales all year.

Song of the day: Blue Lake & Jason Dungan, ‘Strand’

Fancy some wonderful, uplifting instrumentalism? I know I do…

Illinois sues to block National Guard deployment

The state of Illinois has filed a lawsuit against the Trump administration to block the deployment of National Guard troops in Chicago. The lawsuit argues that the administration’s actions are unconstitutional and an infringement on Illinois’ sovereignty.

“The American people, regardless of where they reside, should not live under the threat of occupation by the United States military, particularly not simply because their city or state leadership has fallen out of a president’s favor,” the Illinois attorney general’s office said. The lawsuit alleges that the deployment would harm community relations, increase mistrust of law enforcement, and negatively impact local economies.

The White House defended the decision, citing unrest in Chicago. “Amidst ongoing violent riots and lawlessness…President Trump has exercised his lawful authority to protect federal officers and assets,” White House spokeswoman Abigail Jackson responded.

Illinois Governor JB Pritzker pushed back, telling CNN, “Federal authorities are the ones that are making it a war zone.”

The suit cites declining crime rates in Chicago as evidence that the deployment is unnecessary.

Today on the ‘gram: I’ll have what she’s having

Post of the day: LeBron’s second decision is a Hennessy ad

Quote of the Day

AI chipmaker Cerebras backtracks on IPO

Well, this is awkward. AI chipmaker Cerebras as withdrawn its plans for an initial public offering (IPO), just days after raising $1.1 billion in a private funding round at a valuation of $8.1 billion. While the withdrawal sparked speculation, the company clarified that it still hopes to go public "as soon as possible.”

Cerebras CEO Andrew “no relation to Corey” Feldman addressed the decision, explaining that developments in AI had rendered the original IPO prospectus outdated. "I don’t think this is an indication of a preference for one or the other," Feldman told CNBC, referring to his choice to pursue an IPO versus going after venture capital money. “We have tremendous opportunities in front of us, and I think it’s good practice, when you have enormous opportunities, not to let them fall by the wayside for lack of capital.”

In other words, they can make more money by going to private investors. Initially geared toward selling AI systems, Cerebras has increasingly pivoted toward providing a cloud service where queries to AI models are powered by its chips.

Should you check your 401(k) today?

👎️ 

No.

Verizon has a new CEO, and his name is Dan

Verizon has announced former PayPal $PYPL ( ▲ 4.66% ) CEO Dan Schulman as its new Chief Executive Officer, marking a pivotal moment for the telecommunications giant. Schulman, who has served on Verizon’s board since 2018, assumes the role effective immediately and aims to lead the company toward renewed growth and innovation.

“The Board is thrilled to have Dan as Verizon’s next CEO, and embark on a new chapter of growth and sector leadership,” said Verizon board chair Mark Bertolini. Highlighting Schulman’s track record of transformative leadership, Bertolini described him as "a seasoned and decisive leader" with extensive operational expertise.

There’s a subtext here, which is that the last CEO was not necessarily doing great.

Verizon faces mounting challenges, including fierce competition, slowing subscriber growth, and high churn rates. During the second quarter, the company added 300,000 subscribers, significantly trailing competitors AT&T $T ( ▲ 1.12% ) and T-Mobile $TMUS ( ▲ 1.21% ) , which added 401,000 and 1.7 million, respectively. Schulman acknowledges these hurdles but remains optimistic. “Verizon is at a critical juncture,” he said. “We have a clear opportunity to redefine our trajectory by growing our market share…while delivering meaningful growth in our key financial metrics.”

Schulman’s leadership at PayPal saw revenue soar from $8 billion to $30 billion over nine years, and what do you think that came from? Luck?

Government shutdown causes air traffic issues

The ongoing government shutdown is wreaking havoc on air travel as staffing shortages among air traffic controllers cause delays, closures, and heightened risks. At Hollywood Burbank Airport in California, pilots were shocked when the control tower completely shut down on Monday afternoon due to a lack of staff.

“Clearance is closed, ground is closed, local is closed. The tower is closed due to staffing,” an automated response informed pilots, leaving them to manage takeoffs and landings using small-airport procedures.

Transportation Secretary Sean Duffy acknowledged the toll the shutdown is taking on air traffic controllers, who remain unpaid. “So now what they think about as they’re controlling our airspace, is, ‘How am I going to pay my mortgage? How do I make my car payment?’” Duffy said. The ripple effect has been significant, with major hubs like Denver International and Newark Liberty International reporting delays.

The National Air Traffic Controllers Association warned that the shutdown exposes long-standing issues. “This is the latest example of how fragile our aviation system is in the midst of a national shortage…Many [controllers] are working 10-hour shifts… all without getting paid,” the union said.

Duffy said: “Our airspace is still safe — but it’s under immense strain.”

So, you gonna take a gamble and get on a plane?

Poll of the day: Hokey cokey

Poll of the day: You would (mostly) love to try Dubai chocolate

We asked: Where are you with Dubai chocolate? You answered:

🟨⬜️⬜️⬜️⬜️⬜️ I've tried it and yum (76)

🟨⬜️⬜️⬜️⬜️⬜️ I've tried it and meh (60)

⬜️⬜️⬜️⬜️⬜️⬜️ I've tried it and blech (8)

🟩🟩🟩🟩🟩🟩 I've not tried it but I'd love to try it (252)

🟨🟨🟨🟨🟨⬜️ I've not tried it but I could care less, mate (217)

🟨⬜️⬜️⬜️⬜️⬜️ I've not tried it and I definitely do not want to (48)

🟨⬜️⬜️⬜️⬜️⬜️ Some of the above, but I don't know which (59) 720 Votes

via @beehiiv polls

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