The Best One Yet - 🍍 “High Class Pineapple” — The Designer Fruits trend. Tesla’s election for Elon’s paycheck. China vs America: Trade War II.

Episode Date: April 18, 2024

✅ Vote for TBOY to win “Best Business Podcast” at the Webby Awards: https://vote.webbyawards.com/PublicVoting#/2024/podcasts/shows/businessJune 13th will be Elon Musk’s most awkward day ever ��� Tesla Shareholders are voting “yes” or “no” on whether Elon should get a $56 Billion paycheck.The wildest new product in the grocery store is “Designer Fruit” — Turns out, sticking a logo on an Apple makes it worth more, because adjectives are more valuable than nouns.And President Biden just announced he’s tripling tariffs on Chinese steel — That means America and China just entered what we call Trade War II.Plus, the hot new vacation trend is… living forever — Hotels are trading saunas for Vitamin-B-oxygen-enriched IV infusions, because “life extension” is all the rage.$DOLE $SPY $TSLA $XSubscribe to the best newsletter yet: tboypod.com/newsletterWant merch, a shoutout, or got TheBestFactYet? Go to: www.tboypod.comFollow The Best One Yet on Instagram, Twitter, and Tiktok: @tboypodAnd now watch us on YouTube Hosted on Acast. See acast.com/privacy for more information.

This is Nick. This is Jack. It's Thursday, the new Friday. April 18th, and today's pod is the best one yet. It's a T-Boy. The top three pop business news stories you need to know today. Oh, but Yeties, this is the last day to vote for T-Boy to win a Webby for Best Business podcast. Nick and I have worked really hard to get as many votes as we can.

We went through our entire phone books this morning and texted hundreds of people. Anyone who's listened to the show, we asked him to vote. Honestly, we would love to win this award. It just would be really fun and we'd love to share it with our whole Yeti audience. I'm looking at the standings right now. We're down one percentage point from Pivot Pod. It is basically tied and Jack and I want to make this happen. Your vote could be our winning vote. Your vote right now could win this award. So click the link in our episode description and vote for the best one yet. And if you do, Jack and I will wear slamming salmon rompers on the next pod. And we'll stop asking for your vote starting tomorrow. In the meantime, we did whip up the best show we've ever done. We're pumped for it. Jack, three stories for today's pod. What do we got, man? For our first story, Tesla, just set up the most awkward shareholder vote yet.

Should Elon Musk get paid the biggest bonus in history? $56 billion. The biggest bonus since Alexander the great. For our second story, the new trend at the grocery store is branded proders. Or as we call it, designer fruits. Yetis, there's a logo on that pineapple. You will pay a piney premium. And our third and final story, President Biden just unveiled the biggest tariffs of his president.

So Jack and I've got to talk about Trade War II, the sequel. But Yetis, before we hit that wonderful mix. That is a mix of stories for the new Friday. Love the mix. The hot new vacation trend isn't pools, golf, or food. No, no, no, no, no. Yodies, the top new vacation trend is living forever. It's called the longevity vacation.

and it's somewhere between a spa and a doctor's appointment. Longevity, it's the hot new travel trend. Ask your travel agent, they'll try to sign you up. The Wall Street Journal went deep on this. They found that high-end resorts are now offering services focused on life-extending wellness. And it turns out that people will travel across the Pacific Ocean to get these services.

But right here in California, Canyon Ranch is offering a longevity life program that includes spiritual coaching and bone scans. Well, Jack, over the four seasons in Maui, they got nurses on staff to inject you with an IV drivet. if they nicknamed the Fountain of Use. Or tuckin ozone treatment. Or stock in stem cell therapy. Oh, sir, did you sign up for the 2 o'clock deep tissue massage?

I know. I believe I have the deep tissue colonoscopy. Because yet is the global wellness travel market has doubled in the past decade. 13% of American travelers took a wellness activity on their last year's vacation. A few years ago, you'd pop over to Panama to hang by the pool. But now you're locking yourself at some frozen cryogenic chamber down in Chile. Because there's nothing more relaxing on a sunny tropical vacation. Then trying to live forever?

Excuse me, waiter. Can you top off my vitamin B? More anything? More everything. Hey, Jack, let's go clone ourselves and then hear our three stories. Don't worry, I already made a horrocks. Fifteen years before this song, two boys from the Northeast met in the dorm. They had an idea that caused a cultural storm. It's the 50% that's a fat tip.

Tea Boy City on your at list. If you know, you know, because we're ready to go. We can't wait no more. So just start the show. Start the show. First, a quick word from our sponsor. For our first story, Tesla, just set the date for the most epic, awkward shareholder vote in our entire lifetimes. On June 13th, Tesla shareholders will vote on whether to pay Elon Musk $56 billion or not pay him anything at all.

Jack, can we get nostalgic for a second over here? Can you take us back to 2018 when we just launched this podcast? In one of our very first podcast episodes, we covered Elon Musk's crazy pay package from Tesla. 2018, Jack was wearing KroonX back then and some Lulu Lemon khakis. And Elon Musk and Tesla hadn't even unveiled their Model Y, their Model 3. Tesla was worth just $59 billion. Today, they're worth nearly 10 times as much. But back then, yet he's Elon had just unveiled his master plan to electrify automobiles.

And Tesla shareholders wanted to motivate him. So they voted to give him the ultimate. skin in the game pay package. All right, here was Elon's pay package six years ago. Here we go. Here we go. No salary, no wages, just performance-based bonuses. It was like a gamified pay package. There were 12 financial milestones. And each time one of those milestones got hit, Elon would be granted a bonus of very valuable stock options. It was kind of like Super Mario collecting coins at the end of each level. Yeah. For example, if Tesla hit a $100 billion dollar valuation, Elon would get millions of stock options worth billions of dollars.

And each successive $50 billion in market cap growth for Tesla, Elon would get another giant bucket of free Tesla stock. And cha-ching, to-ching, to-ching, if Elon achieved all 12 of those milestones, by growing Tesla stock price, he'd get $56 billion. That was the total pay package. It was up to $56 billion, but only if he achieved outcomes. But yet is, here's the wild thing about this whole. Elon pay package. He did it. It was incredible. He became the richest person in the world. He

basically won the Super Mario game. He beat Bowser. And everyone who owned Tesla stock, they also became richer too. But some Tesla shareholders decided to sue the company, arguing that that pay package Elon got was not fair. And this year, a judge down in Delaware agreed with that lawsuit. The judge found that all of Tesla's board members were buddies with Elon. They weren't independent and they didn't properly explain to the shareholders what the pay package was. And, Jack, that wasn't even the wildest part about this, was it, man. Because Elon's pay package was nullified by the judge this year, it means Elon didn't earn anything from Tesla since 2018.

All right, translation 80s, as Tesla went from tiny to trillion dollar company over six years, CEO Elon Musk didn't get paid a thing. Now, we should point out, he's still very rich. He owns tons of Tesla stock, and he became rich. without those new options. Like the other year, he sold $23 billion worth that stock. And again, he acquired Twitter. Tesla stock 10xed.

So did his net worth. But now Tesla is trying to pay him again. They want to redo that epic 2018 vote. But now with more transparency. So like the who say, we won't get sued again. So on June 13th, shareholders of Tesla will vote yes or no on whether to pay Elon Musk $56 billion. So, Jack, what's the takeaway for our buddies over at Texas? On June 13th, Elon Musk is on the ballot.

Yeties, this vote is going to be seen as a referendum on Elon Musk's CEO ship. Without question, Elon Musk has been an incredible CEO for Tesla. He has earned those bonuses because he made the company a trillion-dollar company. But on June 13th, Tesla shareholders could not pay him the $56 billion and just save the money instead. And that could look like a tempting offer. I mean, you could pay a billionaire another $56 billion or keep the money in the company. Oh, an interesting time, because Tesla is having a little bit of a rough time right now, aren't it, Jack? They just announced their first sales shrinkage in years.

They're discounting their cars and they're laying off workers. So, some may want to send a message to Elon to quit his Twitter shenanigans and just focus on making Tesla cars. They could do that by voting no. Others will show their love and may reaffirm his record-setting $56 billion pay package. By voting yes. So, Yetis, if you own Tesla stock, you get to vote on all of this. And you vote on June 13th. Elon Musk will be on the ballot.

For our second story, the new trend in the grocery store is designer fruits. Farmers have learned that you'll pay more if there's simply a logo on that pineapple. Yetis, everyone's done it. Jack, you've done it, I've done it. We've all done it. The squeeze. Every avocado at my grocery store is like, rock solid. I'm searching everywhere for one that like won't break through a window. It's two roads

to a version of wood. You go to get the avocado and it's either going to last for four years because it's that green or it's going to be mushy in 10 seconds. Fruits and vegetables, they're the ultimate commodity. The only difference between one avocado and another is whether it's ripe or it's not right. They're all the same shape. They're all the same bin and they all look the same. They are the definition of a commodity. When you buy a peach at a grocery store, you ring it up at the cashier and the sign just says one peach. It's almost insulting to the peach. I got to say, Jack. Just a peach. You get all that growing and it's just like everybody else.

But here's the news. Farmers are trying to make peaches, not just a peach. Farmers are now sticking logos on produce to charge you just a little bit more or just make a little more money. Cabbage is getting a glow up and eggplants are getting a makeover. Now, we are calling this designer produce because it's giving it a little, you know, fancy vibes. It's the same fruit we've always had, but now it's branded. It's basically your fruit, but just dressed up. Which leads to the question, will us consumers pay more for fruit now that it's dressed up?

Can literally adding a name, a logo, or a pretty little package actually sell more of those little peaches? The answer is yes. The answer apparently is overwhelmingly yes. The Wall Street Journal just reported about New York Apple Company, a 105-year-old farm in upstate New York that grows and sells apples. But last year, the old New York Apple Company put generic apples into new branded patterns. Their apples are now called Yes Apples. So Jack said, yes, because they have an exclamation point in the name now. They look nice.

It's glossy red packaging. The logo is written in pleasant cursive. It's very pretty. It looks like a direct-to-consumer venture-backed Apple. This Apple company is taking a trick from the other Apple company. They're putting the product in fancy boxes. And Jack, what was the result when this New York Apple company turned into the Yes Apple Company with fancy packaging?

Sales doubled. Apparently kids don't want Apple. these days. They're only eating yes apples. Now, yes, apples didn't tell the Wall Street Journal whether they raised the price because of this new branding. Good point. But they did tell the Wall Street Journal that consumers bought way more of them as a result. All right, pause the pod. A quick little side note here. There is one other funny reason what's going on here. It's an interior design trend. Open cabinets are resulting in people wanting apples to look nice. Because Jack, if gas can see inside our cabinets, we don't want to just have apples. We want to have

yes, boxed up apples. But now, brand- Fruits and Vegetables is a trend. Yeties, look around aisle 6 right now. We've got halo oranges. We got palm, pomegranates, wonderful pistachios, and... Yes, apples. With an exclamation point. The produce aisle is adding branding, like it once added that water misting.

Happens every eight minutes. So, Jack, what's the takeaway for all our buddies in the branding business? There's more money in adjectives than in nouns. That's actually a line from Rory Sutherland, marketing guru. And it's a great observation that actually applies to all products out there. At a restaurant, you'll buy French bread over just bread. You'll buy crispy shrimp over just shrimp. Yeah, the best buy, you'll pay more for the QLED TV than just for the TV. And at a grocery store, you will pay more for wonderful pistachios than just pistachios.

Because besties, us consumers, we assume that yes, apples somehow are higher quality because they put a brand on it. They put their reputation on the line. Yeah, we assume that over and at yes apples, they must be rejecting the bad apples. They must be saying no to some of the apples. Well, that is why consumers are willing to pay more or just buy more of a brand in nearly every single scenario in industry. We perceive branded products as higher quality than not branded products. So, ladies, when you think about branding, sometimes a brand is literally as simple as this concept. Give an adjective to a noun. Now a quick word from our sponsor. For our third and final story. President Biden just announced the biggest tariffs of his entire presidency.

Donald Trump started Trade War I. Joe Biden just declared Trade War II. Now, as Jack and I were preparing the story, is what we thought. Rarely do we see sports teams, geopolitics, and heavy metals all intersect in one story for us to cover. But get this headline. President Biden attended a re-election campaign event yesterday in Pennsylvania, home of the Pittsburgh Steelers. And the President Biden wasn't challenging. with Jerome Bettis and waving a black and yellow terrible tower. Was he, Jack? You like what I did there?

I didn't know you knew that much about football. Hold it out of left field, I mean midfield. Yeah, it's what President Biden was doing in Pennsylvania was announcing his huge new plan. President Joe Biden just instructed his trade representative to triple tariffs on Chinese made steel. Yeah, he's tripling anything is a big deal. Tripling tariffs on China's steel? that's a really big deal. And the reason he's doing it is a common belief among most Americans that our trade with China is unfair. It isn't that Chinese workers get paid a tiny fraction of

American workers, which they do. The issue is that China's government heavily subsidizes certain industries so that we can't compete. Right. Chinese government gives money to its companies to keep their prices low so that no one else in the world can compete with them. And if China decides to subsidize an industry, you better hope you're not competing in that industry because you will not be able to offer prices as low as the Chinese companies. That's why this podcast is free, baby. President She can't whip up a copycat on us. And that's what Joe Biden says China has done with steel.

Chinese steel, it's like it's been enhanced with financial stairlights. But yet he's, here's what Jack and I found fascinating about this story. There's one important thing you got to keep in mind about tariffs. China doesn't pay these tariffs that Biden just announced. We pay them. Because besties, if a U.S. construction, company wants to buy Chinese steel, that U.S. construction company would now pay a 25% tax, the tariff. But that tariff on Chinese steel makes that construction company more likely to buy American steel instead.

That's why they're doing this. And another interesting thing about tariffs, tariffs on China are going to make inflation worse. Because Americans buy clothing, toys, TVs, smartphones, lots of other things, for really low prices thanks to China. But if China gets taxed with the trade tariff, all those made in China goodies and a whole bunch of cute tops are about to get more expensive. Because we're going to have to pay a 25% tax on. Plus, you know China will then retaliate on those tariffs that we just tariff them with. Tariffs, they're like a financial virus. Once one country gets it, everyone gets infected.

So Jack, what's the takeaway for our buddies who are dropping tariffs? This is Trade War II. And when it comes to trade wars, politics beats economics. Yeah, it is. Economists would say that tariffs are bad. They hate them because they result in higher prices for consumers. But politicians don't care. Politicians' message is pro-U.S. Jobs and anti-China. That is why both Joe Biden and Donald Trump are pledging aggressive tariffs on anything with a

made-in-China sticker. Because in an election year, politics beats economics. Besties, people just prefer a headline that says, tough on China, than a dishwasher that costs 15 bucks less because it was made in China. This is Trade War II. And in trade wars, politics beat economics. Jack, can you whip up the takeaways for us for us for that? new Friday. On June 13th, Tesla shareholders vote on whether to pay Elon $56 billion. Elon Musk is on the ballot. For our second story, yes, apples is an example of designer fruits. Farmers are adding brands to their fruits and vegetables. Because an adjective is more

valuable than a noun. And our third and final story, President Biden just announced he's tripling tariffs on Chinese made steel. We're calling it Trade War II. And in trade wars, politics beats economics. But Yetis, this pod's not over yet. Here's what else we need to know today. First, Adidas's stock jumped 8% yesterday. Adidas's stock is of 20% this year. And it's all because of their old inventory of Yeezy sneakers.

Adidas sold $150 million of their old Yeezy shoes just in the first quarter. Now, they say they're donating some of those proceeds to organizations combating hate and discrimination. But Wall Street thinks they're keeping some of it for, profits. And second, Taylor Swift's new album drops tomorrow. Get this. This is her eighth album in four years. Four new records since the pandemic. Four new re-recording since the pandemic. And a world-shattering concert tour. Fascinating fact, Jack and I discovered from the New York Times. Beyonce and Taylor Swift are seen as rivals often, but actually they cooperate on their music. Bay and Tay. They never compete on their album drops. It kind of feels like they're controlling our world. And finally,

Bitcoin is about to have its biggest day in years. Actually, in four years. It's called The Havine. Every four years, the incentives to mine Bitcoin change, and things with the Bitcoin price get kind of crazy. So yet, he's tomorrow. To cover this moment, Jack and I are going to do something a little different. We're going to do an entire pod that we've whipped up just on Bitcoin.

You'll get a reminder of everything you need to know about Bitcoin. Now, time for the best fact yet. It's from Nick and Jack, because we just couldn't wait to share this with you. This weekend is the second and final weekend of Coachella. Oh, Coachella, the two-week music event where you dress like an influencer, you snag some feathers, and you go full boho, bro. Where are my leather chaps? Where are my leather chaps?

This year, it's headlined by Lana Del Rey, Doja Cat, in a reunion of Gwen Stefani and no doubt. But here is the best fact yet. For the first time ever, Coachella didn't sell out their second weekend of the event. In fact, you could still buy tickets right now to go. this weekend to Coachella. In fact, in fact, it's not just the tickets, is it Jack. Airbnb bookings in the area. We're down 26% compared to last year.

Coachella 2024. You can finally go. You can finally go to the bathroom. Yeties, you've looked fantastic all week. And Jack and I just really want to thank you for all the voting you've been doing to help win this Webby Award. If you voted for us to win Best Business Podcast, thank you. And if you haven't voted for us, you still have today the whole day to vote. And we would love you to vote.

And if you don't vote for us, we're not going to ask you again tomorrow. No, we won't ask again tomorrow. But we really have appreciated it. It's meant so much to us. It's exciting. It is neck and neck. Like, it is us in the Pivot podcast.

It is a tie right now, basically. Now, Pivots at 40% of the vote. We're at 39% of the vote. So we've got a link in today's episode description like we've had, and we'd love to get your vote. And for you to share that vote with all the other Yeties at that. The easiest way to vote is to log in through Google. It makes it just like really quick and easy.

In the meantime, you all mean a lot to us, and we can't wait to see them more. And before we go, a special show. Shout out to Yeti Tavish, the top gun fighter pilot, who's leaving for deployment tomorrow, and we want to send him off in style. Tavish is a legendary Yeti who's defending his country. Thanks for your service, Tavish. And a congratulations to Yeti's Anthony Tran and April Vung, who just got engaged down in lovely Los Angeles.

Guys, let's see some ring picks. Congratulations. And happy birthday to Matilda Kitka in San Francisco, California. And Leonardo LaHoy is turning 13 years old, now a teenager in Mission Viejo, California. And Alpha is hitting their teens. Oh, true story. And thank you, Bethany Peters, for texting your whole address book to vote for a Webby for T-Boy. Bethany Peters doing logistics with a text messaging in Chicago.

And a special thank you to legendary Yeti Kevin Wang in San Francisco, who didn't just get out the vote. He did it in this incredibly meaningful way. He sent dozens of text messages to his buddies for T-boy to win a Webby Award. Kevin, you are why we love doing this podcast. every day. Thank you for being part of the show. And to anyone else who celebrates something today, make it a T-boy. Celebrate the wins. This is Jack. Nick and I both on stock of Airbnb and Apple, and we both own one Bitcoin, whose name is Ben.