Morning Brew Daily – Episode Summary

Episode Title: Tesla Scraps High-End Car Models & Starbucks is Heating Up
Air Date: January 29, 2026
Hosts: Neal Freyman and Toby Howell

Overview

This episode spotlights two major business stories: Tesla's shift away from its high-end car models towards robotics, and Starbucks’ surprising turnaround in sales under new management. Along the way, the Morning Brew Daily hosts deliver quick takes on the Federal Reserve's steady rate decision, major corporate earnings (Meta, Microsoft, Amazon), and an entertaining dose of “Neil’s Numbers,” featuring quirky business trivia and trends. The banter is witty and breezy, aiming to both inform and amuse listeners heading into their day.

Key Discussion Points & Insights

1. Pro Football Hall of Fame Snubs Bill Belichick

[00:18 – 01:37]

• Bill Belichick, legendary NFL coach with more Super Bowl rings than anyone in history, failed to be inducted into the Hall of Fame on his first try.
• Theories for the snub include a protest over his involvement in previous scandals (e.g., Spygate, Deflategate) and voters prioritizing other eligible candidates.
• Quote:
  • Toby, on the cultural reaction: “This is like a scandal of all levels story for dudes who still have their TVs on the ground.” [01:00]

2. Federal Reserve Holds Interest Rates Steady

[02:15 – 06:04]

• Fed Chair Jerome Powell leads a “boring” meeting, holding rates steady amid conflicting economic signals (slightly hot inflation vs. slowing job growth).
• Powell repeatedly declined to comment on a DOJ investigation into his conduct.
• The S&P 500 briefly hit a record before dipping.
• Powell will soon step down; Trump is reportedly considering four finalists to replace him.
• Quote:
  • John Authors (via hosts): “In the midst of the greatest turmoil for the institution in decades, Jerome Powell and his colleagues ... conjured a truly uninteresting announcement on monetary policy. So mission accomplished.” [03:50]
  • Toby: “People are almost eulogizing a Fed chair … Personally, it’s going to be weird to say another name when talking about rates other than Jerome Powell.” [06:04]

3. Tesla Abandons Luxury Cars to Focus on Robots

[06:04 – 08:37]

• Elon Musk announced Tesla would sunset its high-end Model S and X vehicles. The Fremont factory pivots to making Optimus humanoid robots.
• Tesla’s profits slid 46% year-over-year, though this beat Wall Street expectations.
• The company now generates less profit margin than Toyota and has shifted focus to future-facing ventures like robo-taxis and robotics.
• Investors remain optimistic about Tesla’s ambition, despite car margins and sales woes.
• Quote:
  • Neal: “Tesla was one of the most profitable car companies ever in history. In 2024 it had $7.1 billion in profits. Last year that cratered to $3.8 billion.” [07:54]
  • Toby: “This is a $1.3 trillion car company that has no interest in making cars.” [07:54]

4. Meta and Microsoft Earnings Reveal Diverging Fates

[08:37 – 13:33]

• Meta
  • Shares jumped up to 10% as advertising revenue surged ($60 billion last quarter, a 24% YoY increase).
  • Massive investments in AI and VR continue, but investors are more tolerant as “core business is sick... never ending money pit, but you got a lot of money to blow.” [10:36]
• Microsoft
  • Reported strong profits (+60%), revenue up 17%, thanks in part to OpenAI partnership.
  • CapEx surges cause investor nerves, and key cloud growth cooled slightly, prompting a 6% drop in share price.
  • Concerns raised about heavy reliance on OpenAI for future contracts.
• Quote:
  • Toby, on Wall Street’s reactions: “It was so funny because Metta and Microsoft reported very similar quarters. But the market just absolutely jumped on Microsoft’s throat for missing its cloud growth revenue target.” [13:09]

5. Amazon, Corporate Layoffs, and AI Anxiety

[13:33 – 16:02]

• Amazon announced layoffs, cutting around 16,000 corporate jobs (10% of white-collar workforce), following a previous round of cuts.
• CEO Andy Jassy emphasizes reducing bureaucracy; sets up a “no bureaucracy” email alias for employee input.
• Speculation that AI adoption is an unspoken driver of layoffs, as seen with similar moves from Pinterest and other companies.
• Broader job market remains sluggish, with average unemployment spells lengthening.
• Quote:
  • Neal: “Last year was the worst year for hiring outside of recessions and since 2003. And if you get laid off, it’s really hard to find a job.” [15:30]

6. Starbucks’ Surprise Turnaround Under New CEO Brian Nichols

[18:20 – 21:22]

• Starbucks posts its best US same-store sales quarter since 2023 (+4%).
• Nichols’ “turnaround plan” attributed to:
  • Store remodeling
  • Menu improvements (notably, new protein cold foam drinks)
  • “Green apron” service model (baristas engage more personally with customers)
  • Viral holiday merchandise (Bearista cups) boosted foot traffic.
• Investors skeptical until now, as previous quarters saw little stock movement; this is first tangible sign of improvement.
• Quote:
  • Neal (on retail turnarounds): “Retail is detail, Toby, I’ve always said it.” [19:25]
  • Toby, on store experience: “Every single person in there goes good morning. It almost feels a little eerie at times—but at least they’re making the effort... I’ve tried this protein cold foam and it does look like wellness is going to be a key theme going forward.” [20:10]

Neil’s Numbers – Quirky Stats and Business Trends

[21:22 – 26:59]

1. Vermont Ski Resorts Hit by Canadian Boycott [21:22 – 23:11]
   • Bookings from Canadians to US ski resorts down 41%.
   • Anti-US sentiment linked to political tensions under the Trump administration as a contributing factor.
   • Quote: “Many had tears and were choking up over the fact that they just couldn’t in good conscience come to the States.” [22:39]
2. London as a Startup Powerhouse [23:11 – 25:00]
   • London beats Berlin, Paris, and Tokyo combined in unicorn startup output, ranking #4 globally in VC funding.
   • Attributed to talent, culture, and abundant capital.
   • Quote: “This is about as surprising as seeing Arsenal at the top of the table.” [24:15]
3. WD-40’s Legendary Secret Formula [25:00 – 26:59]
   • The formula is locked in a vault, known only to a few.
   • Even company execs find it underwhelming without scientific training.
   • Quote: “I do find it odd that the head of R and D at WD40 hasn't seen the formula. What are you researching and developing if you don't know what's in the very product you are working on?” [26:06]

Fun Moment: SpaceX’s Astrological IPO Timing

[26:59 – 28:22]

• Elon Musk is reportedly timing SpaceX’s IPO with a planetary conjunction in June, his birthday month.
• Hosts poke fun at Musk being an “astrology girly,” tying it back to his history with symbolic numbers in business.
• Quote:
  • Neal: “Virtually all Companies time their IPOs based on things like market conditions and investor appetite, but not those owned by Elon Musk.” [26:59]
  • Toby: “He’s an astrology girly. How did we not see this coming?” [27:54]

Notable Quotes (with Timestamps)

• “Tesla was one of the most profitable car companies ever ... In 2024 it had $7.1 billion in profits. Last year that cratered to $3.8 billion.” – Neal [07:54]
• “This is a $1.3 trillion car company that has no interest in making cars.” – Toby [07:54]
• “Retail is detail, Toby, I’ve always said it.” – Neal [19:25]
• “Every single person in there goes good morning... I’ve tried this protein cold foam and it does look like wellness is going to be a key theme going forward.” – Toby [20:10]
• “Virtually all Companies time their IPOs based on things like market conditions and investor appetite, but not those owned by Elon Musk.” – Neal [26:59]
• “He’s an astrology girly. How did we not see this coming?” – Toby [27:54]

Timestamps for Major Segments

• Intro & Hall of Fame Snub: 00:00 – 01:37
• Fed Interest Rate Decision: 02:15 – 06:04
• Tesla Scrapping S/X Models: 06:04 – 08:37
• Meta & Microsoft Earnings: 08:37 – 13:33
• Amazon Layoffs & AI: 13:33 – 16:02
• Starbucks Turnaround: 18:20 – 21:22
• Neil’s Numbers: 21:22 – 26:59
• SpaceX IPO/Astrology: 26:59 – 28:22

Tone & Takeaways

The episode stays true to Morning Brew Daily’s brand: fast-paced, dryly humorous, and relatable for anyone wanting a digest of business news with cultural color. The witty asides (“astrology girly” Elon Musk, “scandal of all levels... for dudes with their TVs on the ground”) keep the conversation lively. Real stories of economic uncertainty and technological disruption are made approachable, engaging, and even fun.

Listeners walk away with:

• Solid understanding of key business headlines (Tesla, Starbucks, Fed),
• Insight into broader trends (corporate layoffs, VC ecosystems, trade tensions),
• Entertaining, memorable moments that bring the day’s business news to life.