Morning Brew Daily: Tesla’s Robotaxis Have Arrived & Oil Prices Jump After US Strikes Iran Release Date: June 23, 2025
Hosts: Neal Freyman and Toby Howell
1. Honoring Fred Smith, Founder of FedEx
The episode opens with a heartfelt tribute to Fred Smith, the visionary founder of FedEx, who passed away at the age of 80 on Saturday. Smith was celebrated for his unique blend of scrappiness and foresight. At just 26, the Vietnam veteran launched Federal Express, betting on the demand for overnight parcel delivery—a gamble that paid off handsomely. Under his leadership, FedEx evolved from a modest operation with a few planes in the 1970s into a global logistics giant boasting annual revenues of $90 billion and a workforce of half a million employees.
Neal Freyman highlighted Smith’s entrepreneurial spirit, stating, “Fred Smith had the potent entrepreneurial combo of scrappiness and vision. At age 26, the Vietnam veteran launched Federal Express on the bet that people would pay if a parcel absolutely had to get to a different location overnight” (00:56).
Toby Howell shared an anecdote illustrating Smith’s daring nature: “FedEx was down to its last $5,000 and couldn't pay a $24,000 fuel bill. So what did Fred Smith do? He flew to Vegas, played blackjack, and walked away with $27,000. Just enough to keep the company alive so they could secure time to get more funding” (01:37).
Smith’s legacy is not only in the robust infrastructure FedEx built but also in the bold risks he took, embodying the essence of entrepreneurial resilience.
2. US Strikes on Iranian Nuclear Sites: Economic Implications
The discussion swiftly moves to the geopolitical tension following the United States' strike on three Iranian nuclear sites. President Trump described the mission as “a spectacular military success,” involving 125 aircraft, including B2 stealth bombers (03:19). While initial intelligence suggests significant damage to Iran's nuclear infrastructure, assessments are ongoing.
Neal Freyman elaborated on the potential economic repercussions: “If oil continues its upward trajectory, it could push inflation higher around the globe and prevent central banks from cutting interest rates” (04:47). The primary concern revolves around Iran’s potential retaliation, particularly the possibility of cutting off the Strait of Hormuz—a critical chokepoint for global oil flow.
Toby Howell discussed market sentiments, noting that while oil prices have surged 11% since the initial attacks, immediate investor reactions are muted due to Iran’s strategic economic relationships, especially with China. “They don't think that there's going to be a massive supply shock because Iran doesn't want to upset China” (06:25).
The hosts emphasized the uncertainty enveloping the global economy, with Mohamed El El Iran—Allianz’s chief economic adviser—summarizing the stance: “The fate of the economy will really depend on whether the US strikes against Iran open a new, more volatile chapter into this regional conflict or hasten the end of the current one” (07:08).
3. Tesla’s Autonomous Robotaxi Service Launches in Austin
Transitioning to technology, Toby Howell announced Tesla's long-awaited launch of its autonomous Robotaxi service in Austin, Texas. Priced at a flat fee of $4.20, the service marks a significant milestone in Tesla’s ambition to revolutionize urban transportation. Despite high expectations, the initial rollout involved only 10 to 20 Model Y vehicles operating within a limited zone, avoiding adverse weather conditions and complex intersections.
Neal Freyman compared Tesla’s approach to that of its competitor, Waymo: “While Waymo makes use of lidar radar and cameras to create a fully autonomous system, Tesla uses a camera-only system to navigate. Cheaper but potentially more prone to errors in bad weather and low light conditions” (09:12). This cost-effective strategy positions Tesla ahead in vehicle cost but trails in technological reliability and operational scale.
Toby Howell highlighted the market projections, citing Cathie Wood’s bullish outlook: “By 2029 it could be a $951 billion business for Tesla, around 90% of its earnings” (10:24). However, challenges persist, including regulatory hurdles, technological limitations, and intense competition from established players like Waymo, which currently operates 250,000 rides weekly across multiple cities.
The hosts underscored that while Tesla’s Robotaxi service is a pivotal step towards autonomous urban mobility, its long-term success remains contingent on overcoming substantial operational and technological barriers.
4. Controversial Provision in Trump’s Bill: Selling Federal Lands
The conversation shifts to domestic policy, focusing on a contentious provision in President Trump’s large tax and spending bill. This provision proposes selling approximately 250 million acres of public lands in the western United States to boost housing supply and generate an estimated $5 billion in revenue (10:24).
Neal Freyman outlined the arguments from supporters: “They own more than half of Oregon, Utah, Nevada, Idaho, and Alaska, and nearly half of California, Arizona, New Mexico, and Wyoming. Selling off a small fraction, just 0.75%, could be put to better uses” (12:26). Proponents argue that much of the land designated for sale lacks ecological value and is not suitable for recreational purposes, thus making it a viable option for development.
Toby Howell addressed the public opposition, noting that a recent YouGov poll found 71% of Americans against auctioning off public lands, with support among Trump voters hovering around 16% (13:27). Critics also contend that selling federal land could exacerbate management and environmental issues rather than solve them, suggesting alternative uses such as transferring land to universities or indigenous tribes for better stewardship.
The debate reflects deep-rooted tensions in American history regarding land ownership and conservation, with legacy figures like Teddy Roosevelt advocating for public stewardship. Ryan Zinke, a Republican representative from Montana, voiced strong opposition: “Once the land is sold, we will never get it back” (15:17).
5. Winners of the Weekend: Jaws’ 50th Anniversary and Lakers’ Historic Sale
In the "Winners of the Weekend" segment, the hosts celebrated two significant events:
A. Jaws’ 50th Birthday
Debuting on June 20, 1975, Steven Spielberg’s "Jaws" marked its golden anniversary, celebrated as the progenitor of the summer blockbuster phenomenon. Originally considered a window for weak films, the release of "Jaws" transformed the summer movie season into a lucrative period for Hollywood. The film grossed over $100 million at the U.S. box office, launching Spielberg’s illustrious career and setting a template for future blockbusters with its suspenseful narrative and pioneering marketing strategies.
Neal Freyman remarked, “Jaws was the first movie to gross more than $100 million at the U.S. box office. It launched the career of Spielberg and gave Hollywood key evidence that Americans would pack theaters during the summer for the right stories with mass appeal” (17:09).
B. Los Angeles Lakers Sold for $10 Billion
The Los Angeles Lakers made headlines as they were sold for a staggering $10 billion to Mark Walter, CEO of Guggenheim Partners. This acquisition positions Walter as the owner of the most valuable sports franchise ever, surpassing the previous record held by the Boston Celtics, which sold for $6.1 billion earlier. The sale underscores the escalating valuations in the sports industry, driven by lucrative media rights deals, diversified revenue streams, and the limited supply of sports franchises.
Toby Howell pointed out the remarkable appreciation: “Jerry Buss bought the Lakers for $67 million in 1979, just exited for 149 times that at $10 billion in 2025” (23:30). However, he cautioned that this growth might still trail behind traditional investments like the S&P 500, which could have yielded $13 billion over the same period.
The hosts concluded that while sports franchise ownership remains an attractive investment due to its fixed supply and high demand, traditional investment vehicles may still offer superior returns over time.
6. Upcoming Week’s Highlights: Economic Policies, Elections, and Extreme Weather
A. Jerome Powell’s Testimony
Federal Reserve Chair Jerome Powell is scheduled to testify before Capitol Hill, where he is anticipated to defend the Fed’s cautious approach to interest rates amidst economic uncertainties. The Fed recently held rates steady, citing the need to assess the impact of the White House’s trade policies before making any sudden adjustments.
Toby Howell summarized the expected discourse: “Powell has to defend the 'go slow' policy approach every single time” (24:35).
B. New York City Mayoral Primary
The Democratic primary for New York City’s mayor is set for tomorrow, with significant implications for Wall Street and the broader financial sector. The race features Andrew Cuomo and challenger Zoran Mamdani, a 33-year-old democratic socialist. Wall Street executives express concerns over Mamdani's potential tax policies, fearing they could be hostile to business interests. Massive financial backing from figures like Michael Bloomberg and Bill Ackman supports Cuomo’s bid.
Neal Freyman noted the strategic campaigning differences: “Mamdani has collected more than 27,000 individual donations, compared to Cuomo's 6,300” (25:35). Additionally, a looming heat wave could influence voter turnout, potentially affecting the election results.
C. Extreme Heat Wave
A severe heat dome is set to impact 170 million Americans, with temperatures soaring to 100 degrees in major cities including New York, Washington D.C., and Boston (26:05). The prolonged high temperatures pose public health risks and could influence public behavior, such as voting patterns and increased indoor activities.
Neal Freyman humorously advised, “Stock of the week already. Air conditioning?” (26:32).
D. Entertainment Releases
Despite the heat, entertainment options abound with new releases slated for the week:
- Bear Season Four on Hulu
- Squid Game Season Three on Netflix
- F1, a potential summer blockbuster film, making its theatrical debut on Friday. The film features an innovative partnership with Apple, enhancing the viewing experience with haptic feedback technology (27:07).
E. Jeff Bezos and Lauren Sanchez’s Venice Wedding
In other news, Jeff Bezos and Lauren Sanchez are set to marry in an elaborate three-day ceremony across Venice’s islands. The event, attracting numerous celebrities, has sparked protests from locals opposing over-tourism and seeking to disrupt the festivities through various means (27:56).
Conclusion
The episode of Morning Brew Daily delivered a comprehensive overview of significant events shaping the business, economic, and cultural landscapes. From honoring industry legends and navigating geopolitical tensions to witnessing groundbreaking technological advancements and witnessing historic sports franchise sales, hosts Neal Freyman and Toby Howell provided insightful analysis and engaging discussions to inform and captivate their audience.
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