🍧 Tesla's drive-in restaurants

Friday, June 4, 2021 by Robinhood Snacks | Disclosures
_Meanwhile at a Tesla "Charge Club" [Flashpop/DigitalVision via GettyImages]_

Meanwhile at a Tesla "Charge Club" [Flashpop/DigitalVision via GettyImages]

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Hey Snackers,

Guess it's going to be an Animal Style summer: In-N-Out released a pool float shaped like its french fry boats. Perfect for those who like their tans extra crispy.

Stocks dipped yesterday, dragged down by tech. Meanwhile, AMC stock plunged 21% after the company sold millions of shares for the second time this week — and warned people to only buy its stock if they’re prepared to risk losing their entire investment.

Mayo
1. Tesla’s drive-in restaurant moment couldn’t have been served at a better time

I’ll have the Musk Burger... with a side of Ludicrous Mode Mayo. That could soon be a reality for Tesla owners: Tesla just filed trademarks for restaurant services, including take-out, self-service, and pop-up restaurants. Think: fries and pressed juice while you juice up your Model S — instant "range anxiety" killer.

Pull up the Elon tweet... Since 2017, Tesla execs have been flirting with restaurant concepts. Picture: Tesla-only charging stations with convenience stores and upscale burger joints. In 2018, Elon tweeted that he was “Gonna put an old school drive-in, roller skates & rock restaurant" at a Tesla Supercharger station in LA. That hasn't happened yet, but Tesla has been developing a "Charge Club" model.

  • Tesla opened a lounge at its Kettleman City, CA Supercharger station. Think: free cappuccinos while your car charges — like an airline lounge, but for EV trips.
  • Owner-only perks reinforce the "lifestyle brand" strategy. That's why Chinese EV maker Nio created "Nio Houses," sleek showroom-clubhouses to give Nio owners a place to chill.
THE TAKEAWAY

Exclusivity breeds brand loyalty... exactly what Tesla needs right now. Tesla’s global EV market share fell to 11% in April, from 29% in March. Ford and others are dropping sleek EVs at attractive prices, and the Biden admin is pushing for wider EV adoption. Competition is hotter than ever, and Tesla needs differentiators to justify its higher prices. With "Charge Clubs," Tesla can offer an ecosystem that others haven't built yet. Just like some people pay extra for loyalty flights with lounges, some might buy a Tesla over a Mach-E thanks to "Charge Clubs."

Sub

I'm Blue, da ba dee da ba di... Had to. Yesterday, Twitter started rolling out its first subscription service in Australia and Canada: "Twitter Blue." For ~$3/month, Blue offers access to exclusive features and perks. Like:

  • Undo Tweet: A 30-second timer to undo your tweet before it posts. Better than a delete button, worse than an edit button.
  • Bookmark Folders: To better organize your saved tweets. Side note: you can save tweets?
  • Reader Mode: Provides a "beautiful" reading experience for those long threads we all hate.
  • Not included: The power to exceed the 280 character limit. Guess we're sticking with haikus.

I see you diverisifying... Twitter confirmed that "free Twitter" is never going away (greeeeat). Subscriptions are just part of its goal to double annual revenue by 2023. Ad revenue makes up ~90% of Twitter's sales, so subs could add some #diversification — which is currently top of mind for social media companies.

  • Apple rolled out iOS changes that could hurt social apps' precious ad-targeting abilities.
  • Social giants have been taking heat from lawmakers and regulators about privacy and engagement-driven targeting algorithms.
THE TAKEAWAY

Social media subscriptions are an untested concept... Facebook, Insta, Twitter, and Snap are free because they sell eyeballs to advertisers. We don't know how many people will actually pay for Twitter Blue, which still shows ads. But if a social giant offered an ad-free subscription, that could have wide appeal. Social apps reward engagement because they want users to spend more time scrolling ads. An ad-free sub could change their business incentives.

What else we’re Snackin’
  • Flated: Global food prices posted the biggest jump in a decade, the latest sign of rising food inflation.
  • Lulu: Lululemon's quarterly sales soared 88% from last year as stores reopened — and ecomm no longer makes up most of its sales.
  • Budget: President Biden offered to keep Trump's tax cuts in his infrastructure counteroffer to Republicans. Still TBD if the Senate will ship it.
  • IP: The EU is pushing back against Biden-backed calls to waive patents for Covid-19 vaccines, prepping a rival plan to better protect vax-makers' IP.
  • SPACy: Universal Music is reportedly close to being acquired by a SPAC at a $40B valuation, which would be the biggest SPAC deal ever.
  • Work: Job growth in May is expected to be strong, which could add to the Fed's debate on tapering bond buying.
Snacks Daily Podcast

"New thing: GaaS, or Gifting-as-a-service."

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Friday
  • Unemployment rate released

Authors of this Snacks own shares of: Tesla

ID: 1

Correction: Yesterday, we said that Colonial paid $4.4B worth of Bitcoin in ransom — we meant $4.4M 😑