Good Morning. This is the Investor Lookout with the daily digest.

Here’s what we got today:

• 🤖 The History of Musk’s Exchange With Altman Yesterday

• 🎥 Netflix Seeks Growth in the Ads Business After Record Subscribers Count

• 🚗 Stellantis CEO Reopens Plant After Talks With Trump

The History of Musk’s Exchange With Altman Yesterday

If bird is the word, Elon Musk is chirping. Over the past day, Elon Musk and Sam Altman exchanged jabs after President Trump revealed Stargate—a $500 billion AI initiative involving Altman’s OpenAI, SoftBank ($JP:9984), and Oracle ($ORCL). Musk questioned the project’s funding, claiming they lack sufficient capital, while Altman insisted the resources are ready. Altman also extended praise to Musk before suggesting Tesla’s interests might not align with America’s. Musk responded by sharing Altman’s past comments opposing Trump, prompting Altman to acknowledge he has since revised his views on the administration. Tensions trace back to Musk’s departure from OpenAI and his repeated legal challenges to its for-profit pivot. Musk’s December lawsuit was withdrawn, only to be refiled in August.

• Musk has dubbed Altman “Swindly Sam” in earlier posts.

• Altman invited Musk to tour the first Stargate site, though Musk has yet to reply publicly.

Netflix Seeks Growth in the Ads Business After Record Subscribers Count

Netflix wants to skip intro to play ads. The streaming giant added 19 million subscribers last quarter, thanks partly to its cheaper, ad-supported tier that enticed cost-conscious binge-watchers. Co-CEO Gregory Peters called it progress from “crawl to walk,” pointing to a doubling of advertising revenue over the past year. With subscriber numbers now above 300 million, Netflix ($NFLX) also bumped monthly prices for both its ad-free and ad-supported plans in the U.S. Analysts attribute this pivot to a 2022 subscriber slump and say it has shored up Netflix’s bottom line after the recent crackdown on password sharing. For now, the numbers seem to support the company’s new balancing act between premium and ad-funded users.

• Ads-plan memberships jumped 30% last quarter following a 35% rise in Q3.

• The ad-free plan in the U.S. now costs $17.99 per month, while ads cost $7.99.

Stellantis CEO Reopens Plant After Talks With Trump

Stellantis is shifting gears on its Belvidere plant. After Chairman John Elkann met with President Trump, the automaker reversed course on earlier plans that would have offshored production for models like the Dodge Durango. Elkann pledged a billion-dollar U.S. investment to secure the future of two endangered factories, including Belvidere, which once built the Jeep Cherokee but sat idle since February 2023. Stellantis ($STLA) also confirmed it sacked former CEO Carlos Tavares, whose decisions to prioritize margins over volume strained relations with union workers and franchise dealers. UAW boss Shawn Fain welcomed the move, calling it a victory that preserves American manufacturing.

• Elkann is an heir to the Agnelli dynasty that founded Fiat over a century ago.

• The Jeep Cherokee is expected to resume production later this year at Stellantis’s facility in Toluca, Mexico.

#1

The Musk–Altman exchange highlights competition in the AI space. Investors may watch for strategic partnerships or capital-raising efforts in large-scale projects like Stargate.

#2

Netflix’s success with ad-supported tiers could prompt other streaming platforms to introduce or expand similar offerings. This may shift profit models in the broader media sector.

#3

Stellantis reopening its Belvidere plant underscores the importance of local production and stable labor relations. Such developments can bolster investor confidence in U.S.-based operations.

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