Current conditions: Several wildfires are burning near parts of North Carolina that were devastated by Hurricane Helene • Public transportation in Bangkok is free this week as authorities try to reduce toxic smog • There is ice on the surface of the Potomac River near Reagan National Airport, where recovery operations are underway following a tragic plane crash last night.
THE TOP FIVE
1. Musk tries to reassure investors after disappointing Tesla earnings
Tesla reported disappointing Q4 results for 2024 yesterday, with revenue and earnings per share both missing analysts expectations. Revenue came in at $25.71 billion, down 8% compared to the same period in 2023. Earnings per share were $0.73, compared to projections of $0.77. Gross profit margin fell to 13.6% year-over-year, less than the 16.2% forecast. Tesla’s stock dipped on the news, but rebounded after CEO Elon Musk tried to make some reassurances during the earnings call. He said Tesla planned to launch a driverless ride-hailing service in Austin, Texas, in June, and expects to begin producing the Cybercab robotaxi fleet in 2026. He talked up the Optimus humanoid robot and the company’s AI and robotics investments. And he said the company plans to start producing “more affordable models” of its EVs in the first half of 2025. (Worth noting that the Cybertruck was not mentioned once on the call.)
If Musk was at all concerned about the fact that his company saw annual sales drop last year for the first time in more than a decade, he didn’t show it, predicting that the next few years will be “epic” for the company. “I see a path for Tesla being the most valuable company in the world, by far, not even close,” he said. “There is a path where Tesla is worth more than the next top five companies combined.”
The pep talk helped boost shares in pre-market trading. Some analysts were raving. “Tesla investors are fuelled by optimism around Full Self-Driving and the upcoming affordable model, two key catalysts that could drive Tesla’s next leg of growth,” said Hargreaves Lansdown’s Matt Britzman. Others were less optimistic. “While the long-term narrative remains, the fourth-quarter was a ‘back to earth’ moment for Tesla stock, which has increasingly been disconnected from fundamentals,” cautioned Barclays analyst Dan Levy.
2. Lee Zeldin takes the helm of the EPA
Lee Zeldin was confirmed yesterday as the new administrator of the Environmental Protection Agency. He has promised to “restore U.S. energy dominance” and “increase productivity of the EPA.” One of his first jobs, though, will be reviewing the 2009 endangerment finding, a landmark ruling that confirmed greenhouse gases are a danger to public health and gave the EPA authority to regulate those gases. President Trump signed an executive order on January 20 giving the EPA 30 days to examine the “legality and continuing applicability” of this finding. Zeldin has also been told to review the social cost of carbon, which is “the cost of the damages created by one extra ton of carbon dioxide emissions.” Trump’s executive order recommended the metric be eliminated altogether.
3. Commerce nominee opposes getting rid of NOAA
Meanwhile, Trump’s Commerce secretary nominee Howard Lutnick had his confirmation hearings yesterday. The questioning from senators touched on the future of the National Oceanic and Atmospheric Administration, the agency that provides national weather forecasting and climate monitoring. Lutnick said he was not in favor of dismantling NOAA, nor would he want to see it moved from the Commerce Department into the Interior Department. The Project 2025 roadmap from the Heritage Foundation proposed dismantling NOAA.
4. Scottish court strikes down approvals for two major fossil fuel projects
The futures of two large proposed fossil fuel projects in the North Sea have been cast into doubt after a Scottish court ruled that they should never have been approved in the first place. Equinor’s Rosebank project would harness oil from the UK’s largest untapped oilfield. Shell’s Jackdaw project would extract natural gas, which Shell claims would heat 1.4 million homes. Activists from Greenpeace and other groups challenged the projects’ approvals after an earlier ruling from the Supreme Court said that such projects must assess and disclose the downstream (Scope 3) emissions impact of burning the fossil fuels they produce, which neither Rosebank’s nor Jackdaw’s developers did. If they want to go ahead with the projects, Shell and Equinor will have to try to get them approved by the government again, this time with all the environmental impacts taken into consideration.
5. Study links climate change to bird deaths in ‘pristine rainforest’
Researchers think they’ve solved a mystery about what’s causing bird populations in untouched areas of the rainforest to decline. Any guesses? Surprise! It’s climate change. In a new study published in the journal Science Advances, the team analyzed bird populations over nearly 30 years and found that more intense dry seasons in the Amazon “significantly” reduced the survival rates for almost all bird species they studied. In fact, they think just 1 degree Celsius of warming reduces the average survival of the tropical birds by 63%. “These findings are especially alarming because they reflect demographic patterns of tropical birds within pristine rainforest, a biome thought to be resilient to the adverse effects of climate change,” the researchers wrote.
THE KICKER
Nearly two-thirds of Americans (64%) want to see the government increase fuel-economy standards so that vehicles continue to get more fuel-efficient.
