The Best One Yet - ✅ “Master Plan (done)” — Tesla’s new competition. Dick’s House of Sports. Chief Woke Officer 2.0.

Episode Date: April 6, 2021

Tesla just delivered more cars in the last quarter than it ever has — but it produced 0 of its most expensive ones. Georgia’s voting law situation reveals that the non-partisan CEO is out of a job. And Dick’s is launching a new store that’s the Restoration Hardware of sports.$TSLA $DKSGot a SnackFact? Tweet it @RobinhoodSnacks @JackKramer @NickOfNewYorkWant a shoutout on the pod? Fill out this form:https://forms.gle/KhUAo31xmkSdeynD9Got a SnackFact for the pod? We got a form for that too:https://docs.google.com/forms/d/e/1FAIpQLSe64VKtvMNDPGSncHDRF07W34cPMDO3N8Y4DpmNP_kweC58tw/viewformLearn more about your ad choices. Visit podcastchoices.com/adchoices Hosted on Acast. See acast.com/privacy for more information.

This is Nick. This is Jack. And this is Snacks Daily. It is Tuesday. Tea Boy, Tuesday, April 6th, Jack. I'm still not a dad. Okay. And this is still the best one.

Yeah, it is. Bangs a route. The bubble ponytail is in. And Jack, what's our first story for today? Tesla is a car company, not a rocket company. No, but it's quarter one sales. They looked very rockettish, Jack. For our second story, Dick's Sporting Good's last corporate treat,

we think it must have been Chuckie Cheeses or something. America's biggest retailer for sports is going full on. experiential. For our third and final story, Delta's CEO just proved down in Georgia that the non-partisan CEO is no more. Yeah, 2020 was about speaking. 2021 is about acting. But Snackers, before we hit those three fantastic stories. Wonderful mix. Last week, we mentioned the travel booking website, Kayak. I remember well, Jack, Kayak used to be publicly traded. It wasn't just publicly traded. No. It was a publicly traded palindrome. That's right, Snackers, not a simile, not an automata, Pia, not a hyperbole, not a metaphor. It was a publicly traded palindrome. It spilled the same forward as

backwards. K-A-Y-A-K. And Jack, let me get you on this next part. K-A-Y-A-K. Now, Snacker Jason Warner pointed out, there are a few other corporations with legendary palindrome names. I mean, Jack, how about L-Magaz magazine, E-L-L-E? Cover to cover, same front is back. Jack, how about the Honda Civics out there, C-I-V-I-C? It's very palindromic, C-I-V-I-C. Forward as reverse, same front is back. I mean, honestly, Jack Ruffa everyone, though, M&Ms. If you have just one, it's technically the ultimate palindrome product. The singularity is crucial with M&Ms. And how about this one? Yeah. Eureka Bakery. Think about it. Eureka bakery. Spelled with a Y, R-E-K-A. It's one of those things you have to write down like

a man, a plan, a canal Panama. But the big T-boy Tuesday question, Jack and I have whipped up for you Snackers. Here we go. What is the one publicly traded company whose name is an ambigram? Yes, an ambigram, a word that is the same forwards as it is backwards, but also the same upside down as right side up. So basically, an ambigram is a palindrome in every single direction? I'm thinking, is there a company that's just the letter O? It's confusing Oprah technically, but we wanted to get a little more creative with this. Snackers, fantastic trivia question. Now, the answer to this trivia question, what is the only publicly traded ambigram is going to be announced at the end of this podcast.

Let's hit our three stories. You're tuned in the snacks daily. We spoke to the lawyers and we got to get something legal out the way. The snacks about to hear ain't food. It's air candy. They don't reflect the views of the Robberhood family. It's all informational just so. We're not recommending any securities.

It's not a research report or investment advice. Not an offer or sale of a security. Snacks is digestible. Business news for you. Robahood Financial, LLC, member FINRA slash SIPC. For our first story, Tesla just set a car delivery record last quarter, Jack. And that means Elon just achieved his 15-year-old master plan. Okay, first of all, of course.

Of course, Tesla would be the first car company to refer to its sales as deliveries. It's like, hey, can I get a Model S salami sandwich, hold the mail? Yeah, because they're not into car dealerships. You order online, you get the car delivered like you're door-dashing this thing. Yeah, you basically door-dash at Tesla. Now, Friday, this past Friday, it was good. Hold it. Great Friday for Tesla. They said that they delivered 185,000 cars from January to March. Now, that's important because, like, the first quarter for car companies, it's usually

the toughest quarter. It's not a lot of fun. Instead, for Tesla, it was their best quarter ever. That's right. We repeat, Tesla just did more than double the car deliveries they did during the same quarter last year. They even beat their recent holiday quarter when, like, the popular Christmas gift was a Model S. Must be nice. I would love to be in that kind of a relationship. Now, this was just a delivery report. We don't have their earnings until May 5th. That's true. But Wall Street expects profits when they announce on May 5th. Now, Snackers, in the meantime, Jack and I saw these big wild Tesla numbers, but we noticed one really interesting issue. Zero. I repeat, zero of the most expensive Tesla models were produced last quarter, which has us asking, did Tesla cannibalize itself? Because back in October, we noticed another shocking number. 90%. percent of Tesla's summer sales were for their newer, cheaper, Model 3 and Model Y cars. Nobody, well, not nobody, but pretty much nobody was buying the older, higher-end, more expensive model X or Model S, which is nearly double the price of the three and the Y. Okay, we thought

it couldn't get worse. It seemed like it couldn't get worse. Guess what? It got worse. 98.9% of deliveries last quarter were Model 3 or Model Y. Just 2,000 people bought the price your X or S in the whole world. Not like 2000, you know, in San Francisco. We're talking all of planet Earth here. So it looks like the one cheaper Tesla product ate up all the potential sales of the higher end Tesla product, aka cannibalization. So that's what Jack and I thought, but then it turned out that was wrong.

Actually, Tesla's getting the factory ready for a new and improved version of the Model S and Model X, which apparently are resonating well with customers. Yeah, because they are aware of cannibalization. being a threat at Tesla. And to avoid cannibalization, you got to have new models that are good enough to justify a $50,000 higher price tag. Now, new features to justify 50 grand. I'm thinking like self-grilling pizza in the trunk for the tailgate. I mean, Jack, we need like a pod studio in the back that does self-hosting. So Jack, what's the takeaway for our buddies over a Tesla? Tesla accomplished its master plan, but it's not the only electric car company anymore. Yeah, Tesla's secret master plan.

that was a real thing, Snackers, and it was ridden all the way back in 2006. Google it's secret master plan. It's on the web. Great read. Step one, build a sports car. Step two, use that money to build an affordable car. Step three, use that money to build an even more affordable car. And of course, these are all electric. Well, Jack, we got 15 years later. Tesla looks like it's accomplished that entire plan. No big deal.

Snackers, Nick and I have been covering Tesla for like 10 years, and they were always one bad quarter away from bankruptcy. About to run out of cash, no joke. Yeah. Well, this magnificent quarter of sales is a boost to get away from bankruptcy. And after 15 years, Snackers have just surviving their own balance sheet. Now they have to battle the rest of the car industry. For the first time in 2021, you got legacy car companies offering mainstream electric SUVs. Nick, you just saw it in San Francisco, the Ford Electric Mustang SUV mock E.

I was staring at it. That the person actually stared at me as if it was concerned. Volkswagen's got new ESUV. Volvo's got the XC 40. Ford's got a new one like the F-150. GM just like unveiled the new Hummer Electric at a casual $110,000. The electric F-150 is a big deal. And that competition snackers is why Tesla's market share for electric cars fell from 79% last year to 69% this past February. That's right. Tesla's stock's been going up.

Its market share has been going down. Tesla accomplished its master plan, but it's not the only electric car company anymore. For our second story, Dix. Hold up. Hold on, Nick, Nick, Nick. Yeah, yeah. I'm thinking about this ambigram thing. I actually don't know the answer to this trivia question. I know, I know.

Can you give me a hint? I want to know the answer by the time the end of the potter. Here's the hint. Snaggers, here's the hint. The publicly traded ambigram company, when we speak the name of this company at the end of this podcast, they may help you hear it. What?

Dix is launching a whole new sports store. That's like you're in the game. That's our second story. Their new corporate goal might as well be. Turn the store into a date spot. Dix is a 73-year-old company, the biggest U.S. sports retailer. It's basically Walmart sports aisle, but with huge calves. It's like Walmart Sports section, but multiplied by the whole store.

Jack, I haven't been to a Dix in like a decade, two decades, something like that. I feel like I remember everyone walking around had eye block on. I think that's what you had to do. Well, I did pick up the official NFL football last spring, and it was a great purchase. It's called the Duke. Well, Dix apparently is like the last man standing in sports retail these days. Sports authority out of business. Models went bankrupt this past year.

And that's why Dix was able to do $10 billion of sales last year. Now, in this past year, it was the pandemic. So naturally, they pivoted like everyone else to online sales. Yes, they did. And doubled their percentage of total sales that were online for 15% to 30%. Okay, so 30% of their sales are online. But the latest news suggests they're pulling a 180, they're going back to physical. They're pulling a Michael.

They're going back to basketball. Dix just unveiled the House of Sport. House of Sport. This is a new store concept with the tagline the place athletes have been dreaming of. But here's the best part. They're so excited about this new store over Dix. They have a second tagline. A destination devoted to your game.

Yeah, that's right. They have two taglines. Now, a house of sport, it mixes sports retail, which is what Dix has always done, with actual playing of sports. That's right. They've got a whole indoor, outdoor sports situation going on here. This is like the facilities that the University of Alabama gives to the sports they actually care about. That's true.

They have a batting cage in the store. They have a golf simulator in the store. Yeah. They have a full track with like turf in the middle. You can go outside, use the football to practice with like Todd from apparel. He'll help you out. You can test it out. Todd, go deep.

You're open. Todd's open. Even if you have no intent to buy Dick Sporting good stuff, none. You still might want to go to the house of sport because you can take a yoga. class in their multi-purpose room. Yes, you can or you can do the 40-foot rock climbing wall because you can go to House of Sport and never actually purchase anything. Then they got these rando sections. They have a zone just for guys like Nick to break in their lacrosse stick. I don't even know what that means. Jack, 90% of playing lacrosse in my experience has been just taking the pocket

and punching the mesh repeatedly before class. And then, so that Nick can feel even more comfortable, they have a house of cleats where football players and lacrosse players can just go Oh, at it trying on their shoes. House of Cleat. I mean, it sounds like a torture chamber, but that's a whole different thing. Turns out you can book this House of Sport for a birthday party. For a sports club. Why not?

For a soccer camp. That's right. But here's the funny thing. Jack and I noticed that Dix kind of stole like an artist on this thing. They have the same concept here, clearly, as Restoration's galleries. Yes. Restoration Hardware is flagship stores that are palaces for home goods. Instead of restoration hardware or like a Versailles.

House of Sport is restoration hardware, but kettlebells instead of couches. That's right. And guess what? House of Sport, they're about 17,000 square feet big. Guess what? Restoration Hardware's flagship store, the gallery? 17,000 feet. Now, the first House of Sport opens this weekend in Victor, New York. Yep, second one's coming to Knoxville, Tennessee. So, Jack, what's the takeaway for our buddies over at Dick's sporting goods? Retail's not dead, bad retail's dead. Snackers, e-commerce is surging right now for two reasons. First, convenience of online shopping. Second, bad retail. Head over

to your local Macy's. You're going to feel a lot of fluorescent lighting. Yes, you are. You're going to see a lot of clearance cell, sine, kind of situation. I mean, it feels like Macy's was in a car accident. Some retailers recognize they can't totally beat the convenience advantage of e-commerce, but they

can control the bad retail part of it. That's right, they can spend strategically to make shopping and experience worth leaving your house for. Restoration hardware pioneered this, with their store in New York City and the meatpacking district, which they spent $50 million on to make a destination. And then their CEO dropped this gem of a quote on us last quarter.

We are physical and social creatures. It's why we still go to concerts and ballparks. He went on. Future bucket lists, they're not going to get crossed out with lonely activities done online. All right. So Jack and I are thinking, yeah, tennis racket may be the opposite of like an Ottoman, but Dix sees the opportunity too. Retail's not dead. Bad retail's dead. Rock climbing smoothie birthdays with Todd from apparel. That sounds pretty good. Todd, you're open. Go deep. For our third and final story, the new voting law in Georgia has one big takeaway for business. The nonpartisan CEO in America?

They're gone. Now, Snacker, some context here. Since voting is handled by the states, last month, Republicans in Georgia, they passed a new voting law. We'll summarize it for you. It increased voting access to rural communities, but it reduced voting access to urban communities in Georgia. Oh, and guess what got banned? Serving water to voters waiting in long lines to vote. And Georgia's hot.

Georgia's hot in November. I'd appreciate some H2O on a hot day in Georgia. Now, civil rights experts, they say this is targeted to reduce black and Hispanic voter turnout because that would be in these kinds of areas. The GOP claims, no way. This law is just intended to reduce voter fraud, which is the same voter fraud that President Trump had alleged hundreds of times over the last few months. But which hundreds of experts and hundreds of studies have said does not exist. Now here's the think, Snackers. Chicago does logistics. Atlanta does headquarters. You ready for this? Corporate Multinationals based in Atlanta.

Please, Jack. Delta. Okay. Home Depot. Yes. Coca-Cola ever heard of it. Jack, when we're going through the Delta terminal in Atlanta, which, you know, is like four miles and takes about six hours to get through, you're seeing all those Spanx ads everywhere. Spanx headquartered Atlanta. Now, all of these companies that are based in Atlanta, they're under huge public pressure to speak out against these laws that limit voting. Yeah, and it's coming from a bunch of places.

First, you got 70 black executives demanding public opposition. to these laws. And then you have Democratic groups threatening to boycott these products unless they say something in opposition to these laws. All right, so then Jack and I are waiting to see what would end up happening. And Delta CEO finally said something, bold statement from Delta CEO. The entire rationale for this bill was based on a lie. There was no widespread voter fraud in Georgia in the 2020 elections. It's simply not true. So after that big statement, then you got Coca-Cola's CEO jumping in with a less intense version of that statement. Yeah, and UPS and Home Depot, they said things too, but not quite as powerful.

But here's the thing, Snackers. What's happening in Georgia, that's just the beginning, because you got a similar law being proposed in Texas and 43 other states. Now, Major League Baseball responded to what's happening in Atlanta by pulling the All-Star game out of Atlanta, choosing a different ballpark. Meanwhile, corporations, they don't have like the same kind of leverage, Jack, not the same situation. Well, they could threaten to move from Atlanta to another city. That'd be big. But that would be quite a slap. Yeah, and you can't just just like schlep that skyscraper out of Atlanta. So, Jack, what's the takeaway for our buddies over in the C-suite?

2020 demanded a position. 2021 is demanding action. CEOs who think they can stay out of politics, good luck with that. Good luck. In December Snackers, we summarized on this pod the 2020 business trends. One of them was the CWO, the chief woke officer. The chief woke officer, no longer is it acceptable for companies to ignore cultural or political issues that just pop up pretty frequently these days. CEOs must have a position, especially on

issues like racial justice, civil rights, democracy, and probably throw climate change in there. So here's the thing. Corporations took positions in 2020. They were speaking up. They were changing policies, things to support Black Lives Matter. They were doing those positions. But it seems this year a tweet or an Instagram shout out, that's not going to be sufficient. Expectations have been raised once again. That's why you saw Delta, Coca-Cola, Home Depot. all faced threats of boycotts because they didn't act. They'd only said things. And that's why this past weekend you had American Airlines and Dell computers trying to get ahead of things in Texas by proactively lobbying against the proposed voting restriction law.

In 2020, reactive words were enough. In 2021, they're not. Jack, can you whip up the takeaways for us over there? Tesla just set a record for a number of cars delivered in a quarter. Honestly, they achieved their 15-year master plan. Now, now comes the competition. Forgot to mention Dick's sporting good stock jump 2% on Wall Street because Wall Street has lots of ex-athletes. Yeah, it does. By the way, retail's not dead. Bad retail's dead.

For our third and final story, voting laws. Put that in the bucket of subject, CEOs must take action on. The nonpartisan CEO out of a job right now. Now, time for our snack fact of the day, which is the answer to today's Tea Boy Tuesday, which came from Jason Warner from lovely Portland, Oregon. The only publicly traded company with a name that is all. also an ambigram. That's right. A word that's the same forward as it is backwards. And if you flip it upside down, it's still the same word. It's a company that you're going to hear in a second when we say its name. And what is it? I still don't know what it is. I feel like we're leading up like a Game of Thrones character. The name of the company is Sonos. So no. So no. So no. Wait, the N? Yeah.

Works. It works. Oh, capital A. Capital N. Baby. Okay, you're trying to find an asterisk there. I know what you're doing. That is incredible. It's incredible. I am very impressed. Jason, thank you. Snackers, you look fantastic this Tea Boy Tuesday.

Let's do this tomorrow, Jack. Should we do it? Ask your buddies, H-Y-H-Y-S-D. Have you had your snacks daily? That's how we grow. It's because you ask them. Nick and I'll see you tomorrow. Can't wait.

If you know, you know. And before we go, happy birthday to Scott Samrick, his girlfriend, Amanda Jones, and his mom, Judy Semrock, who all have the same birthday in Madison, Wisconsin. Happy birthday to Daniel from Taipei, Taiwan. Giano. Sabrina Molinar, happy birthday in Tempe, Arizona.

And Brooke Wade in Kansas City. And Tiger Stanley in Lebanon, New Hampshire. And Sam Sherman in Mesa, Arizona. And Annie Jacobs over in Vermont. Anna, I'm waving out the window. Wave back. He's waving. And Renata in Atlanta and her twin sister, Roberto, in Sao Paulo, Brazil.

Happy anniversary to Mike and Karen Martinez in Wichita Falls. And Jack, we got a one-year anniversary for Charlotte and Jake in Falmouth, Maine. And congrats on the new. baby girl from Ari and Julie Sassett in Coconut Grove, Florida. Great name, Coconut Grove. And to anyone else celebrating anything, anything, make it a tea boy. Celebrate the wins. This is Jack. I own stock of Amazon and restoration hardware. The Robin Hood Snacks podcast you just heard reflects the opinions of only the hosts who are associated persons of Robin Hood Financial LLC and does not reflect the views of Robin Hood Markets, Inc, or any of its subsidiaries or affiliates.

The podcast is for informational purposes only and is not. intended to serve as a recommendation to buy or sell any security and is not an offer or sale of a security. The podcast is also not a research report and is not intended to serve as the basis of any investment decision. Robin Hood Financial LLC, member FINRA SIPC.