Morning Brew Daily: Bezos-Backed $20K EV Truck Unveiled & Shein and Temu Raising Prices?
Release Date: April 28, 2025
Hosts: Neal Freyman and Kyle Hagee
Description: Morning Brew Daily is a witty and informative talk show covering the latest in business, the economy, and more, perfect for starting your day.
1. Retail Investors vs. Hedge Funds: Rethinking "Dumb Money"
[02:38 – 05:59]
Neal Freyman opens the discussion by challenging the notion that retail investors are "dumb money." He highlights recent market behavior where individual investors remained steadfast during turbulent times, contrasting sharply with hedge funds that faced significant sell-offs.
- Key Insights:
- Retail Investor Resilience: Despite market volatility caused by tariffs, retail investors stayed the course. Vanguard data shows over 97% of investors in its 401k plans refrained from making trades through mid-April, indicating a lack of panic selling.
- Record-Breaking Purchases: On April 3, when markets plummeted nearly 5%, individual investors bought over $4.5 billion in stocks and ETFs—the strongest buying day on record per J.P. Morgan.
- Hedge Fund Struggles: In contrast, hedge funds clients of Goldman Sachs sold more stocks on April 3rd and 4th than any two-day period in the past 15 years.
Kyle Hagee underscores this shift, noting that retail investors are adopting strategies akin to Warren Buffett's long-term, disciplined investment philosophy.
- Notable Quotes:
- Neal Freyman [02:38]: "We've been frequently mocked as dumb money for letting emotions get the best of us and making ill-advised decisions when markets get bumpy. Well, maybe we're not so dumb after all."
- Kyle Hagee [03:49]: "These retail investors sound exactly like Warren Buffett... When stocks are low, view them as on sale, buy a ton of great companies."
2. Slate Unveils Bezos-Backed $20K EV Truck: A Disruptive Approach
[07:35 – 12:03]
The hosts introduce Slate, a new electric vehicle (EV) company backed by Jeff Bezos, aiming to disrupt the EV market with its affordable Blank Slate truck.
- Key Features of the Blank Slate Truck:
- Affordability: Priced at approximately $20,000 post-federal EV incentives, significantly lower than competitors like Tesla's offerings.
- Customization: The base model is minimalist—no paint, stereo, or touchscreen. However, customers can purchase a variety of accessories to tailor the truck to their preferences, such as converting it into an SUV or adding electric-powered windows.
- Manufacturing Efficiency: Designed and engineered in California and Michigan, the truck is assembled in the Midwest without a paint shop, saving between $350 and $500 million annually by eliminating costly paint processes.
- Battery Options: Two battery packs are available—one offering a 150-mile range and another providing a 240-mile range, catering to different user needs.
Neal compares Slate's approach to a "frozen yogurt of cars," where customers pay a base price and then add desired features à la carte.
- Notable Quotes:
- Kyle Hagee [07:35]: "Slate made a splashy entrance last week by being admittedly not splashy. The new default model, an EV truck called the Blank Slate, has no paint, no stereo, no touchscreen."
- Neal Freyman [08:44]: "They just made the froyo of cars... if you don't go to the fixings bar and skip and go straight to checkout, then you are getting the most affordable EV on the market by far, under $20,000."
3. Shein and Temu React to Tariff Changes: Price Hikes on the Horizon
[12:03 – 15:45]
The conversation shifts to the impact of the removal of the de minimis exemption on major e-commerce players Shein and Temu. This policy change means that small packages from China and Hong Kong will now incur a 120% tariff or a flat $100 fee per postal item.
- Implications:
- Price Increases: Shein and Temu have announced imminent price hikes, though specifics remain vague. Shein, for instance, increased average prices in the beauty and health category by 51%, with some items more than doubling.
- Sales Impact: Despite impressive sales figures in 2024—Shein reported $38 billion, and Temu is on track for $50 billion—the removal of tariffs threatens their competitive pricing model.
- Consumer Behavior: There has been a surge in orders on platforms like TikTok before the tariff changes took effect. However, with price increases, consumer interest is waning, as evidenced by Temu dropping to 85th place on the App Store from its previous ranking.
Neal points out that while American retailers like Walmart and Amazon might view this as a relief from competitive pressure, the fundamental value proposition of Shein and Temu—affordability—has been undermined.
- Notable Quotes:
- Neal Freyman [13:42]: "The success of these companies inspired other low-priced ecom-powered businesses like Amazon Hall and TikTok Shop. Neil feels like the core value proposition was that it was cheap. And if it isn't cheap anymore, are people still going to buy from this company?"
- Kyle Hagee [14:24]: "Amazon's got to get some TikTok influencers to do like Amazon Prime Hauls. And that they did, that will skyrocket it."
4. Winners of the Weekend: Wrexham's Historic Promotion
[17:56 – 19:45]
In the "Winners of the Weekend" segment, Neal and Kyle celebrate the remarkable success of Wrexham, a Welsh soccer club co-owned by Ryan Reynolds and Rob McElhenney. Achieving promotion to the championship for the third consecutive year, Wrexham stands out as a unique success story in modern sports.
- Achievements:
- Financial Growth: Purchased for $2.5 million in 2021, Wrexham's value has surged to over $100 million.
- Brand Expansion: Secured deals with global sponsors like United Airlines, launched a popular docu-series on Disney+, and transformed into a globally recognized sports brand.
- Revenue Increase: Annual revenue jumped from $1.5 million to $35.5 million, a 155% increase last year alone.
- Future Prospects: With promotion to the championship next year, Wrexham is poised for even greater visibility and revenue opportunities.
Kyle enthusiastically relates the story to popular culture, referencing "It's Always Sunny in Philadelphia," where the characters dream of owning a sports team—highlighting the real-life fulfillment of such aspirations by Reynolds and McElhenney.
- Notable Quotes:
- Neal Freyman [19:45]: "Everything Ryan Reynolds touches turns to gold."
- Kyle Hagee [19:45]: "Rob and Ryan are literally living my dream where you were like, I was in sixth grade in a basement with my friend saying, if we ever get super rich, we would buy a sports team randomly and go all in on it."
5. Upcoming Week: Key Events to Watch
[23:38 – 26:25]
As the episode wraps up, Neal outlines the significant events slated for the upcoming week:
-
Canadian Election: Canada's Conservative Party, initially leading by 25 points, faces a potential upset due to President Trump's tariffs and attempts to annex Canada as the 51st U.S. state. Mark Carney, the former Bank of England governor now leading the Liberals, is gaining momentum for a possible victory.
-
Market Movers: High-stakes earnings reports from major tech giants like Apple, Meta, Amazon, and Microsoft are expected. Additionally, key economic indicators such as first-quarter GDP, March inflation data, and the Friday jobs report (with an estimated 135,000 jobs added) will be released.
-
Sports Highlights:
- Kentucky Derby: Triple Crown season kicks off with the Kentucky Derby.
- NBA and NHL Playoffs: Exciting playoff games continue to captivate fans, with Neal rooting for the Timberwolves.
Neal and Kyle encourage listeners to stay engaged with their Robinhood accounts as market movements are anticipated to be dynamic.
- Notable Quotes:
- Neal Freyman [23:38]: "Kyle, you mentioned Carney's the central banker. He's also the only non-Brit to lead the Bank of England, which is wildly interesting. So the Canadian election will be fun to see how that shakes out."
- Kyle Hagee [25:26]: "No, I spent all my money on this Slate preorder, so I got to go find some dough and get a Kentucky Derby hat."
Conclusion:
Neal Freyman and Kyle Hagee deliver a comprehensive and engaging overview of significant market trends, innovative automotive developments, and the shifting dynamics in the e-commerce landscape. Their insightful analysis of retail investors' resilience, Slate's disruptive EV strategy, and the challenges faced by Shein and Temu provides listeners with a deep understanding of current economic and business environments. Additionally, celebrating Wrexham's unprecedented success adds a delightful sports narrative, rounding off the episode with a balanced mix of information and entertainment.
Notable Quotes Summary:
- Neal Freyman [02:38]: Challenging the "dumb money" label for retail investors.
- Kyle Hagee [03:49]: Comparing retail investor strategies to Warren Buffett.
- Kyle Hagee [07:35]: Describing Slate's Blank Slate truck as "not splashy."
- Neal Freyman [08:44]: Comparing Slate's customization model to frozen yogurt.
- Neal Freyman [13:42]: Questioning the sustainability of Shein and Temu's value proposition.
- Neal Freyman [19:45]: Praising Ryan Reynolds' influence on Wrexham.
- Kyle Hagee [25:26]: Sharing personal excitement about the Kentucky Derby.
For More Information:
To listen to the full episode and explore additional insights, tune in to Morning Brew Daily on your preferred podcasting platform or watch on YouTube.