Tesla Robotaxi Launches in Texas

Welcome back! I hope you had a great weekend.

Here’s your must-read news for this morning:

• Strait of Hormuz closure threat

• Tesla robotaxi debut

• DEI’s quiet rebrand 

I’ve got all the details for you, so let’s dive in.

— Josh

MARKETS

🛢️ Iran’s Threat to Close Strait of Hormuz Sparks Oil Supply Fears

The Scoop: Iran’s parliament on Sunday approved a potential closure of the Strait of Hormuz following U.S. strikes on three Iranian nuclear facilities, prompting Secretary of State Marco Rubio to demand China to dissuade Iran from shutting the critical oil corridor.

The Details:

• The decision awaits Iran’s national security council approval, risking strained ties with neighbors and trade partners like China, which imports 1.5 million barrels daily of Iranian oil through the strait.

• Energy expert Vandana Hari said that closure is “absolutely minimalistic” in likelihood, as it could alienate Gulf oil producers and devastate Iran’s Asian markets, inflicting severe economic self-harm.

• Two supertankers, Coswisdom Lake and South Loyalty, each carrying 2 million barrels of crude, abruptly U-turned in the Strait of Hormuz on Sunday.

• Rubio told Fox News that a closure is “economic suicide” for Iran, urging Beijing to act, saying it would hit other nations harder than the U.S.

What’s Next: A closure could spike U.S. gas prices to $3.35-$3.50 per gallon, according to GasBuddy’s Patrick De Haan. Goldman Sachs warns that halving strait flows for a month could push Brent crude to $110 per barrel. S&P Global warns that a closure could halt Qatar’s LNG exports, which account for 20% of the global supply.

Markets Roundup

🏦 Economy & Stocks

• ⭐ Editor’s Pick: Global markets remained largely unfazed by U.S. airstrikes on Iran’s nuclear facilities, with investors focusing on upcoming U.S. economic data and Federal Reserve signals rather than escalating Middle East tensions. (CNBC)

• Stock futures rose slightly Monday with the Dow up 0.1%, S&P 500 up 0.3%, Nasdaq-100 up 0.4%, despite oil price surges and Middle East tensions after Trump ordered U.S. strikes on three Iranian nuclear sites. (CNBC)

• U.S. Treasury yields ticked up Monday, with the 10-year at 4.387%, 30-year at 4.903%, and 2-year at 3.918%—each rising over 1 basis point. (CNBC)

• San Francisco Federal Reserve President Mary Daly suggested that an interest rate cut may be suitable in the fall. (INV)

• Trump reiterated his suggestion to dismiss Federal Reserve Chair Jerome Powell, intensifying his ongoing criticism of Powell’s handling of interest rates, which the president has repeatedly urged be cut. (RTS)

• Wyoming is capitalizing on its low-tax environment and business-friendly policies to attract affluent homebuyers, positioning the state as a competitive destination in the luxury real estate market. (FNB)

• Several states and cities, including West Virginia and Baltimore, are offering financial incentives up to $12,000 to attract new residents. (CNBC)

• Trump expressed confidence that the U.S. will soon secure trade deals with India and Pakistan. (RTS)

🏢 Industry

• ⭐ Editor’s Pick: Frederick W. Smith, the founder and former executive chairman of FedEx, died Saturday at age 80. (FE)

• Hedge fund leverage surged to a five-year high last week, driven by robust investor demand for bank, trading, and insurance stocks amid stable U.S. interest rates, Goldman Sachs reported. (INV)

💵 Energy & Commodities

• ⭐ Editor’s Pick: Cobalt futures prices soared to a three-month high after the Democratic Republic of Congo extended its four-month cobalt export ban by three months to curb oversupply. (MN)

• Finland’s nuclear regulator issued a favorable safety assessment for Steady Energy’s LDR-50, touted as the “world’s simplest” small modular reactor, designed for district heating and slated for market entry by 2030. (IE)

• Form Energy’s iron-air battery project in Mendocino County, California, leveraging reversible rusting technology, aims to deliver 100-hour grid backup power by 2026. (NBBJ)

• Bank of America predicts gold prices will climb to $4,000 per ounce within the next year, fueled by escalating U.S. fiscal debt. (FM)

🌕 Crypto

• ⭐ Editor’s Pick: Texas Governor Greg Abbott (R) signed Senate Bill 21 (SB21) into law, formally establishing the Texas Strategic Bitcoin Reserve. (CT)

• Coinbase has obtained a license from Luxembourg, enabling the cryptocurrency exchange to provide services throughout the European Union. (CNBC)

• Global crypto funds recorded $1.2 billion in inflows last week, extending a 10-week streak, driven by investors seeking safe-haven assets amid geopolitical uncertainty. (CS)

• The crypto market suffered over $1 billion in daily liquidations, with Bitcoin dropping below $100,000, following U.S. military strikes on Iran. (TB)

• Bloomberg ETF analysts Eric Balchunas and James Seyffart expressed 90% confidence that spot XRP, Dogecoin, and Cardano ETFs will gain approval this year. (TP)
  

TECH

🚗 Tesla Launches Robotaxi Trial in Austin

The Scoop: Tesla launched a limited Robotaxi trial in Austin, Texas, on Sunday, with CEO Elon Musk calling it the “culmination of a decade of hard work,” highlighting Tesla’s proprietary AI chip and software development.

The Details:

• The trial operates in Austin’s South Congress neighborhood, deploying 10 Model Y vehicles charging $4.20 per ride, each with a human safety monitor.

• Influencers Sawyer Merritt and Farzad Mesbahi posted videos on X, showcasing smooth rides to local spots like Frazier’s Long and Low bar.

• Tesla’s app guides users on Model Y features, recommends nearby destinations such as cafes, parks, and shopping centers, and automatically syncs passengers’ media and streaming preferences before pickup for a personalized experience.

• Texas Governor Greg Abbott (R) signed legislation on Friday, effective September 1, requiring state permits for autonomous vehicles, a move signaling cautious support for the industry while ensuring safety oversight.

What’s Next: Tesla’s Austin trial could lay the groundwork for wider rollout, but regulatory challenges, competition from Alphabet’s Waymo and Texas’s new permit requirements may hinder rapid scaling. Nonetheless, in a recent CNBC interview, Musk projected “hundreds of thousands” of self-driving Robotaxis across the U.S. by the end of 2026, with plans to expand to San Francisco, Los Angeles, and San Antonio.

Tech Roundup

🧠 AI

• ⭐ Editor’s Pick: An Anthropic study found that top AI models, including Claude Opus 4, GPT-4.1, and Gemini 2.5 Flash, frequently resorted to blackmail in simulated scenarios when faced with shutdown threats. (AN)

• Elon Musk said he plans to use Grok to rewrite human knowledge, correcting errors and filling gaps in AI training data, which he claims is riddled with “garbage.” (CT)

• OpenAI removed all references to its partnership with Jony Ive’s io from its website and social media following a trademark infringement lawsuit from Google X spinoff iyO against OpenAI, io, Sam Altman, and Ive. (TC)

• A U.S. official says DeepSeek aids China’s military and seeks restricted U.S. chips via Southeast Asian shell companies. (RTS)

• Meta explored a potential acquisition of AI startup Perplexity AI, but the two companies failed to reach a deal. (CNBC)

• Apple was sued by shareholders in a securities fraud class action, alleging it downplayed delays in integrating advanced AI into Siri. (NBC)

🤖 Hardware & Robotics

• ⭐ Editor’s Pick: Police in Chengdu, China, deployed robots to enhance public safety and traffic management ahead of the upcoming World Games. (CB)

• Japanese researchers developed a groundbreaking technique to prepare "magic states" for quantum computers, reducing errors and cutting computational costs by up to 30 times. (EN)

• Kawasaki unveiled the Corleo, a hydrogen-powered, four-legged robot concept that runs, jumps, and climbs like a horse. (FOR)

• Researchers at the University of Sheffield have developed ‘Pipebots,’ miniature robots with sensors that autonomously navigate water pipes to detect and repair leaks without requiring road excavations. (ET)

• Hyundai unveiled autonomous parking robots capable of navigating complex environments and parking vehicles with precision. (SCB)

🚀 Defense & Space

• ⭐ Editor’s Pick: The U.S. launched Operation Midnight Hammer, a surprise airstrike on Iran’s nuclear sites at Fordow, Natanz, and Isfahan, using over 125 aircraft, including B-2 bombers, and decoys to inflict severe damage without losses. (BD)

• Anduril and General Atomics unveiled autonomous "wingmen" drones for the sixth-generation F-47 jet at the Paris Air Show, designed to enhance air combat capabilities at lower costs. (IE)

• Chinese scientists claimed to develop a 2-kilowatt fiber laser weapon that operates without cooling or heating systems in extreme climates, from Arctic cold to Sahara heat, offering portable defense capabilities. (SCMP)

• United Launch Alliance is testing an early version of OpenAI’s government-compliant AI chatbot, one of the first deployments tailored for defense contractors managing sensitive data. (SN)

• The U.S. Air Force’s DASH experiment demonstrated an AI transformational model that accelerated battle staff decision-making sevenfold, marking a significant advancement in human-machine teaming. (BD)

• SpaceX delayed its Transporter-14 mission launch, originally scheduled for Sunday, to Monday afternoon from Vandenberg Space Force Base. (KEYT)

💰 Venture Capital & Deals

• ⭐ Editor’s Pick: Thinking Machines Lab, a stealthy AI startup launched by OpenAI’s former CTO Mira Murati, secured a $2 billion seed round at a $10 billion valuation. (FT)

• Cluely, an AI startup that claims to facilitate “cheating” on interviews and exams secured a $15 million Series A led by Andreessen Horowitz with an estimated $120 million post-money valuation. (TC)

• Snowcap Compute, a startup backed by former Intel CEO Pat Gelsinger, raised $23 million to develop superconducting AI chips that aim to surpass current systems with 25 times better performance-per-watt. (RTS)

• Finom, an Amsterdam-based digital bank serving small businesses, which reported doubling its revenue in 2024, raised €115 million ($133 million) in a Series C funding round led by AVP. (YF)

• British AI startup PhysicsX raised €117.3 million ($135 million) in a Series B funding round led by Atomico to advance AI-native engineering and manufacturing. (EUS)

FREEDOM

👀 Companies Rebrand DEI as “Belonging” Amid Trump’s Crackdown, Risking Legal Backlash

The Scoop: As President Donald Trump pushes to dismantle DEI policies, major companies are rebranding these initiatives as “belonging” programs, preserving their ideological core under a less contentious label, according to Consumers’ Research executive director Will Hild.

The Details:

• Companies like Kohl’s, Nationwide, and Disney have replaced DEI with “belonging” messaging, yet retain similar practices. Kohl’s renamed its DEI page to “Inclusion and Belonging,” with its chief DEI officer now titled Chief Inclusion and Belonging Officer.

• Consumers’ Research predicted this rebranding a year ago, noting “belonging” as a common substitute. Nationwide’s “Belonging, respect and fairness” slogan masks ongoing race-based resource groups, while Disney’s “belonging” page still tracks workforce diversity by race and sex.

• The Federal Communications Commission, led by Commissioner Brendan Carr, launched an investigation into Disney’s DEI practices, demanding an end to discriminatory initiatives beyond mere name changes.

• Assistant Attorney General Harmeet Dhillon, heading the Justice Department’s Civil Rights Division, is poised to target companies violating federal civil rights laws through disguised DEI programs, signaling potential legal action.

What’s Next: Trump’s directive to eliminate DEI in public and private sectors could spur lawsuits against firms clinging to rebranded programs, with executives risking litigation for non-compliance. Consumers’ Research urges boycotts of companies using “belonging” as a DEI cover, predicting public backlash will force substantive policy changes or erode corporate trust.

Freedom Roundup

🏛️ Economic & Education Policy

• ⭐ Editor’s Pick: The Senate Parliamentarian ruled that key provisions of Trump’s “Big, Beautiful Bill,” including defunding the CFPB and easing environmental rules, violate the Byrd Rule and must be cut for reconciliation passage. (TH)

• Trump claimed Harvard University is engaged in settlement talks with the White House, suggesting a potentially “mindbogglingly historic” resolution could be announced “over the next week or so.” (HC)

•  The Republican National Committee entered June with $72 million cash on hand, nearly five times the Democrat National Committee’s $15 million. (CNBC)

• Japan canceled a planned meeting with U.S. officials after Washington pressed Tokyo to increase defense spending. (FT)

• A U.S. judge halted a plan to cut federal funding for universities from the National Science Foundation, preserving research grants. (RTS)

💻 Business & Tech Policy

• ⭐ Editor’s Pick: The Senate parliamentarian allowed Republicans to incorporate a 10-year ban on enforcing state and local artificial intelligence laws into their megabill. (POL)

• The Supreme Court overturned a lower court's ruling, affirming that fuel producers have standing to challenge the Environmental Protection Agency's decision to allow California to impose stricter vehicle emission standards. (FBN)

• EU governments have approved a boost to the European Investment Bank’s annual spending to €100 billion ($115 billion) this year, tripling its funding for the EU’s defense industry. (RTS)

• Britain plans to reduce energy costs for businesses as part of a new industrial strategy aimed at boosting economic growth. (INV)

• David Sacks, Trump’s AI and crypto czar, said Nvidia leads Huawei by only 1.5-2 years in semiconductor technology, warning, “We have to remain paranoid about China technology.” (FBN)

💬 Free Speech & Woke Overreach

• ⭐ Editor’s Pick: EU governments are pushing for mandatory real-ID age verification on social media under the Digital Services Act, raising significant privacy concerns among advocates. (RTN)

• China has intensified internet censorship by mandating ID verification for content creators, further tightening control over online expression. (CNN)

• Austria’s government approved a controversial law allowing police to deploy spyware to monitor encrypted messaging platforms like WhatsApp and Signal. (RTS)

• As companies reduce DEI policies, workplace religious discrimination remains a serious issue, with employee complaints rising since 2020, according to a report. (LF)

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DISCLAIMER: The CAPITAL newsletter is for informational purposes only and does not constitute financial, investment, or professional advice. Readers should conduct their own research and consult a qualified financial advisor before making investment decisions. The CAPITAL newsletter and its owner and operator, Josh Caplan, are not liable for any loss or damage resulting from reliance on this information. The CAPITAL newsletter is solely owned and independently operated by Josh Caplan, separate from any employer affiliations.