TheBRRR’s GM

Last week was the best week of the year for the Nasdaq and S&P500.

We now have a fairly quiet economic week to look forward to, with the bulk of the quarter’s earnings season and data behind us.

Given the diminished opportunity for negative surprises, I expect risk assets to continue climbing higher.

In today’s newsletter, let’s dig into the AI wars.

We’ll start by acknowledging that Elon Musk’s month is off to a great start.

• Good press for the Cybertruck following his appearance on the Joe Rogan Experience

• A €25,000 entry-level Tesla has been confirmed in the works

• His chatbot Grok wowed with functionality and anti-woke, truth-seeking tone

Not to be outdone by Elon’s Grok announcement, OpenAI is hosting its first-ever developer conference later today.

It’s widely expected the company will announce a “build your own shareable chatbot” feature natively into the experience, as well as lower API pricing and more advanced developer tooling.

Tech News

Tesla’s Berlin Blueprint: From Luxury to Layman

What's New:

Tesla gears up to produce a new, more accessible electric vehicle at its Berlin factory, designed to undercut the European market's average EV price.

Why It Matters:

• Aggressive Pricing Strategy: With a 25,000-euro price tag, Tesla's upcoming EV model is set to challenge the European market, where average EV prices exceed 65,000 euros.

• Investor Confidence: Tesla's shares experienced a 3% rise in pre-market trading post-announcement, reflecting confidence despite no clear production timeline.

• Manufacturing Breakthrough: Tesla is on the brink of a manufacturing leap that could see EV underbodies die-cast in one piece, potentially revolutionizing production efficiency.

• Capacity and Compensation: Tesla's Berlin plant is on track to double its output to 1 million vehicles annually, and staff are slated for a pay rise, with production workers getting an 18% increase over the next 1.5 years.

  Read more

Grok Debuts: A Chatbot with a License to Quip

What's New:

Elon Musk's xAI lab unveils a new AI chatbot, Grok, designed to compete with giants like ChatGPT, featuring a unique blend of sarcasm and direct access to the X platform's live feed.

Grok has been rapidly trained over two months using Oracle hardware and will be initially available to a select group of U.S. testers, with plans to expand access to X Premium+ subscribers.

Why It Matters:

• Cultural Fit: Grok's sarcastic responses could signal a new direction for AI chatbots, aligning more closely with internet culture and user expectations for authenticity and entertainment in digital interactions.

• Data Dynamics: The use of live data from the X platform for Grok's responses might result in more organic and timely interactions, potentially setting a new trend for how conversational AI can utilize current events and social discourse.

  Read more

Crypto News

Bitcoin's New Arena: Hong Kong's ETF Stir

What's New:

Hong Kong is reportedly on the brink of launching a spot cryptocurrency ETF, a move that's generating buzz in the crypto sphere as it contrasts with the U.S.'s hesitant stance on similar products.

Why It Matters:

• Competition Fuels Innovation: BitMEX's Arthur Hayes sees this as a pivotal moment where the competitive dynamic between the U.S. and China could spur broader adoption and innovation in the crypto market.

• Regulatory Ripple Effect: The Coin Bureau suggests that Hong Kong's move could apply pressure on the U.S. SEC to adapt and embrace crypto market innovations or risk falling behind.

• Inclusive Market Growth: Crypto influencer Lark Davis views Hong Kong's potential ETF as a sign of China's intent to capture crypto market opportunities, signaling a wider acceptance and integration of cryptocurrencies into mainstream finance.

  Read more

Today’s Reader Poll

Are you a crypto investor?

Friday’s poll results show a diversified response group:

AI Art of The Day

Drama in the Bored Ape Yacht Club as many concertgoers end up in emergency room following a light show at annual event for NFT holders.
The Block has more.

Got feedback? Follow the writer on Twitter @frank_locascio and send a message.

The BRRR is meant for informational purposes only. It is not investment advice. Please consult with your investment, tax, or legal advisor before making any investment decisions.