🪫 Tesla’s subsidy blues

…and the S&P 500 welcomes Uber to the club   Model 3, minus $3,750 in subsidies (Lea Suzuki/Getty Images)   [Sponsored by]( Yesterday’s Market Moves   Dow Jones 36,125 (-0.22%) S&P 500 4,567 (-0.06%) Nasdaq 14,230 (+0.31%) Bitcoin $44,309 (+5.51%) Dow Jones 36,125 (-0.22%) S&P 500 4,567 (-0.06%) Nasdaq 14,230 (+0.31%) Bitcoin $44,309 (+5.51%) Hey Snackers, Rom-coms are out; rom-commerce is in. [Walmart]( [releasing]( an original 23-episode holiday series called “Add to Heart,” which advertises Walmart products (with add-to-cart buttons, natch). Who needs “Love Actually” when you have “A Walmart Commercial”? Stocks were mixed yesterday as job openings dropped to their lowest level since March 2021. Quits stayed low for the fourth straight month as US workers tried to rebuild emergency funds (FYI: 40% of Americans have depleted their pandemic-era savings). Meanwhile, [bitcoin]( climbed past $44K — its highest price since April 2022. LOWBATT The Biden admin’s new rules on EV tax credits could further cool the electric market I got new rules, I count ’em… The Biden admin went full Dua Lipa with [new rules]( that would cut subsidies for EVs with Chinese battery components. To spur electric adoption, Uncle Sam has been offering generous tax credits for EV buyers. But starting next month, cars with China-made battery parts will no longer be eligible for the full $7.5K credit. Because China is the world’s top EV battery producer, it could mean pricier electric rides for Americans: - [Tesla]( already warned buyers that the tax credit for its cheapest car (the Model 3) will be halved to $3,750 starting in January. Read: the Model 3’s battery components likely won’t meet the new sourcing rules. - Old rules: Already, of the hundred or so EV models on sale in America, only 20-ish qualify for the credit (they must be assembled in North America, and there are also restrictions on the origin of battery minerals). With the new rules, there could be even fewer rides that qualify. “Made in the USA” all the way… The new measures are part of a White House effort to bring more car manufacturing to the States. But they could interfere with another Biden-admin goal: that half of all new-vehicle sales should be electric by 2030. China accounts for about two-thirds of the world’s battery-cell production, while the US makes up just about 10%. FYI: the new rules also say that EVs can’t contain parts made in Russia, North Korea, or Iran (aka “foreign entities of concern”), but China’s inclusion will have the biggest impact. THE TAKEAWAY The bumpy road could get bumpier… EV sales growth (though strong) has cooled, despite price cuts and federal incentives to fuel demand. [GM]( [Ford]( and Tesla have said they’d delay billions in spending on electric models and factories, citing slowing sales. For many consumers, EV prices are still too high, even with gov’t incentives. Now they’ll likely be higher. Sponsored by Nasdaq Stay one step ahead of the curve with Nasdaq TotalView Future-oriented… Serious traders need to know more than what a stock’s currently doing — they need to know where it’s headed. How? With [Nasdaq TotalView]( which provides a real-time view of other traders’ open buy and sell orders (aka the order book). Trade school… [Nasdaq TotalView]( traders to make more informed decisions. TotalView’s supply and demand info helps traders identify potential areas of liquidity, support (aka price floors), and resistance (aka price ceilings) to better forecast how a security’s price might potentially move in the future. [Nasdaq TotalView is available in popular retail brokerages but also available via Nasdaq BookViewer.]( ArrivingNow Uber’s set to join the S&P 500, topping off a banner year for the everything-delivery giant Where to? The S&P 500… Investors revved up [Uber]( shares after news that it’s expected to be [added]( to the S&P 500 (ETA: December 18). Refresher: the S&P 500 tracks the performance of America’s top 500 public companies, and is often used as a benchmark for the broader market. Companies joining the S&P club may sometimes see a temporary stock boost, because their addition can drive buying from fund managers. - Swap: Roughly a third of S&P companies have been replaced since 2015, and 11 companies have been added this year, including [Airbnb]( and [Lululemon](. - Criteria: To qualify for S&P inclusion, companies need at least a $14.5B market cap and positive earnings for the past four quarters. 5-star year… Uber’s market cap broke through $100B last month for the second time ever. It’s now sitting pretty at $119B — well above the S&P’s median market cap of $31B. Uber has delivered an operating profit for two straight quarters, showing after years of doubt that its biz can make $$. In Q3, Uber notched record ridership, with strong growth in both ride-hailing and food delivery. Another win for Uber this year: California upheld Prop 22. The gig company also expanded its package delivery and advertising businesses (think: in-app promos). Uber aims to make $1B next year from ads alone. THE TAKEAWAY The “Uber for [insert service]” is Uber…. In the 2010s, Uber was in a race against [Lyft]( to be the dominant ride-hailing company. Now Uber’s in a different league than its much smaller rival as it tries to become an app for lots of services. Its food-delivery biz takes a 24% bite out of DoorDash’s market-share dominance. Up next: Uber’s testing a TaskRabbit-like service. What else we're Snackin' - [Vice]( [Take-Two Interactive]( dropped its “Grand Theft Auto VI” trailer a day early after someone leaked it on X. The hotly anticipated game is set for a 2025 release and is expected to rake in billions. - [Unspool]( Designer-rentals company [Rent the Runway]( reported a drop in subscribers and revenue. Last month, rival [Urban Outfitters]( Nuuly service beat the nearly 15-year-old fashion co to profitability. - [Taxing]( SCOTUS heard arguments for a case with potentially huge ramifications for the tax code. Experts called it a preemptive attack on wealth taxes, but most justices seemed wary of upending current principles. - [KO]( [Microsoft]( looking to launch a new mobile-gaming store. The Xbox parent hopes to use its massive catalog of games (plus Activision’s “Call of Duty” and “Candy Crush”) to boost its mobile market share. - [Poke]( Covid-vax rates are down in the US, with only 15% of adults getting the latest shots from [Pfizer]( [Moderna]( or [Novavax]( as of last month. US hospitalizations have ticked up recently. 🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up [here](. Snack Fact Of the Day Arm’s 200-page IPO prospectus cost $900K to draft and print [Read more]( Wednesday - Earnings expected from Campbell, ChargePoint, Chewy, and GameStop Authors of this Snacks own bitcoin and shares of: GM, Microsoft, Moderna, Rent the Runway, Tesla, Uber, and Walmart Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate... [See more]( [Sherwood Terms and Conditions]( • [Our Editorial Principles]( • [Contact Us](mailto:hellosnacks@sherwoodmedia.com) • [Privacy Policy]( • [Advertise with us](mailto:advertising@sherwoodmedia.com) [Unsubscribe](