Good morning. In today’s edition:

• 🗳️ Tesla’s $45 billion vote is here
• 🍌 Where the phrase “banana republic” comes from
• 📈 The cost of home ownership is soaring

… and more.

🚀⏰ Ready, Set, Go: Today’s news should be a ~5.25-minute read (1,398 words).

P.S. First time reading? Subscribe here for free.

“Perfection is not attainable, but if we chase perfection we can catch excellence.”

–Vince Lombardi (1913-1970)

Today, Tesla shareholders – much like a kid who just got passed a note from their crush – will be faced with a choice: Do you like me? Should CEO Elon Musk receive a ~$45 billion pay package (at current share values)? Check yes or no.

Background: Musk’s pay package previously passed a vote in 2018, with 73% of voted shares supporting it.

But a Delaware judge in January ordered it to be rescinded, ruling that Musk had largely dictated the terms to a board of directors stacked with close friends and his brother, the NY Times reports – which is information shareholders weren’t privy to at the time of the vote, per the judge.

• The disputed pay package, awarded in 2018, gave Musk options for up to 12% of Tesla’s outstanding shares at the time. To cash in, he had to hit strong revenue or profit benchmarks and increase the company’s market cap to $650 billion – goals many thought were out of reach.
• But Tesla, under Musk’s oversight, put on its Elastigirl arms and went to work. At the end of 2018, Tesla’s market cap was ~$57 billion. By the end of 2021, it had reached ~$1.1 trillion (though it’s since fallen to ~$555 billion).

What happens if shareholders vote no? Musk – who has said he’s “uncomfortable growing Tesla to be a leader in AI & robotics without having ~25% voting control” – could walk.

However, Tesla is "determined" to pay Musk for his previous work. And many skeptics point to Musk's 13% stake in Tesla, worth ~$75 billion and accounting for a big chunk of his wealth, as strong reasons to put those boots made for walking back into the closet.

If shareholders vote yes, this doesn’t necessarily mean the package is approved. Tesla plans to use an affirmative shareholder vote as legal ammunition to try and reverse the Delaware judge’s ruling.

It could be close: While some key investors – including California Public Employees’ Retirement System (CalPERS), the largest pension fund in the US, and Norges Bank Investment Management, which manages Norway’s oil wealth and is the world’s largest sovereign wealth fund – have said they intend to oppose the package, while other institutional investors – like Vanguard, BlackRock, and State Street, which collectively own ~17% of Tesla – have been silent. Another wildcard is Tesla’s retail investors, which own ~40% of the EV-maker.

“Coastal Bedroom” has been a popular choice lately and many predict it’s here to stay. Characterized by light colors complimented by rich, natural textures, it exudes a unique and airy sensibility.

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🇩🇪 German researchers uncovered and deciphered what they say is the oldest written record of Jesus’ childhood. The papyrus document, dating back to the 4th or 5th century, is a fragment from the Gospel of Thomas, an apocryphal book not included in the Bible. The papyrus contains 13 legible lines in Greek describing a reported miracle that Jesus performed as a child that involved bringing clay figures of birds to life.

🇨🇴🍌 Chiquita, a banana company with operations in the US, was found liable for deaths caused by a Colombian paramilitary group it funded. A Florida jury this week ordered the banana grower to pay $38.3 million to the families of eight people killed by a Colombian paramilitary group which received payments from Chiquita between 1997-2004. During the trial, Chiquita executives testified that the payments were voluntary and aimed at protecting the company’s local interests from other paramilitary groups. The verdict reportedly marks the first time an American jury has held a large US corporation liable for a major human rights violation in another country. Fun fact: The origin of the phrase “banana republic” is directly tied to previous actions by Chiquita – formerly the United Fruit Company.

🇪🇺🇨🇳 The EU unveiled tariffs of up to 38% on Chinese-made EVs. The import tariffs follow an EU investigation that found “unfair” state-backed subsidization allows Chinese EV makers to sell cheaper vehicles than European competitors. The tariffs' most vocal opponents include Europe's largest carmakers, who are concerned that retaliation in China will set off a trade war.

Wall Street experienced a rare Barbenheimer-like double feature of economic news yesterday, with the Labor Department reporting key inflation data and the Federal Reserve announcing its latest interest rate decision.

Here’s what they revealed:

• Inflation eased slightly last month. The Consumer Price Index, America’s most widely used measure of inflation, was essentially flat in May compared to the month before, and up 3.3% from one year ago (versus a 3.4% annual increase in April). Core inflation, which excludes often-volatile food and energy products, rose 0.2% in May and was up 3.4% from a year ago – both of which represent the mildest increases since 2021.
• The Fed is in no hurry to lower rates. The central bank has opted to hold baseline US interest rates steady at a 23-year high of 5.25%-5.5% since last July – and yesterday was no different. Additionally, while a majority of economists were predicting at least two rate cuts in 2024 prior to yesterday, new forecasts show Fed policymakers now expect only a single rate cut this year.

📈📉 The markets react: US markets closed mixed – with the morning’s inflation data coinciding with a notable increase and the afternoon’s Fed decision coming alongside a slight market-wide dip. The S&P 500 and Nasdaq both ended trading at new record highs (again).

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“Nominative determinism would suggest that a person named Dennis is more likely to choose to be a dentist than, say, a lawyer, or that Dennis is more likely to choose to live in Denver than Cleveland.”

• People across the world tend to gravitate towards professions and cities that share the same first letter as their name at a rate too high to be considered coincidental, per a recent study from University of Utah scientists. Their research involved using AI tools trained on Common Crawl, X, Google News, and Google Books to capture millions of people’s names, professions, and cities of residence across recent decades. After controlling for factors like gender, ethnicity, and the frequency of names/professions, researchers found “consistent evidence” that people are more likely to make major life decisions tied to things that share the same letter as their first name. The results support the concept of nominative determinism, a scientific hypothesis that suggests a person’s name subconsciously affects their career arcs and other major life choices (e.g., world-famous sprinter Usain Bolt, or Nintendo of America President Doug Bowser).

📰 Stat of the Day: PSA to all first-time home buyers: you might want to add an extra 15 Benjamins to your monthly expense budget. The average cost of owning and maintaining a single-family US home – including property taxes, homeowners insurance, and energy/internet/cable bills – is currently ~$1,510/month in addition to mortgage payments, up 26% compared to four years ago, per a new Bankrate study.

🤔 Did You Know? Theodore Roosevelt is the only US President to receive the Medal of Honor. He was awarded it posthumously in 2001 for his actions at the Battle of San Juan Hill (1898).

📰 Worth a Read: The wild tale of the man who founded Rainforest Cafe → (The Hustle)

• ☝️ Torrential downpours have dumped up to a foot of rain across South Florida over the past 24 hours, causing Governor Ron DeSantis to declare a state of emergency last night for several counties.

BUSINESS & MARKETS

in partnership with The Bright Side

• 🙅 Shari Redstone, controlling shareholder of Paramount Global, has ended negotiations with Skydance Media about a prospective merger.
• 🧴 Online influencer/boxer Jake Paul launched a new line of men’s personal care products under the “W” brand; they’re currently available at Walmart, with future plans to launch on Amazon.
• ⚖️ Johnson & Johnson agreed to pay $700 million to settle an investigation by 42 US states and Washington, DC, over allegations that its baby powder and other talc-based products caused cancer.

*From our partners: 🤳🚫 Your best Summer involves aimlessly scrolling hanging with epic people… The Bright Side newsletter is running a 30-day micro-challenge designed to help you reclaim free time, create boundaries, and feel totally in control of your devices. Bring a friend for a $30 discount (promo code DONUTBFF).

SPORTS, MEDIA & ENTERTAINMENT

• 🏌️ The US Open tees off this morning; world No. 1 Scottie Scheffler has the best betting odds to win the tournament since Tiger Woods in 2007.
• 📽️ Sony agreed to buy Alamo Drafthouse, America’s seventh-largest movie theater chain, in a deal with unreported terms; it'll make Sony the first movie studio to own a theater chain in 75 years. | 🌭 Netflix will host a live hot dog-eating contest between legends Joey Chestnut and Takeru Kobayashi; Chestnut is banned from next month’s Nathan's Hot Dog Eating Contest.
• 🙏 Jerry West, a Hall-of-Fame NBA player and executive who was the inspiration for the league’s logo, died at the age of 86.

SCIENCE, SPACE & EMERGING TECH

in partnership with Paleovalley

• 🧑‍🚀 Four people who spent three days in space showed dramatic signs of aging, though 95% of the biological changes went away a few months after returning to Earth, per a new study.
• 🍬 Xylitol, a low-calorie sugar substitute used in sugar-free gum, toothpaste, and baked goods, is linked to a higher risk of heart attack and stroke, per a new study.
• 🔬 A trio of scientists – Paul Alivisatos, Chad Mirkin, and Robert Langer – were awarded the $1 million Kavli Prize in nanoscience for their work in biomedicine.

*From our partners: 🤤 Our go-to delicious and healthy protein snack… Made with wholesome, whole food ingredients, 100% Grass Fed Beef Sticks from Paleovalley are clean, gut-friendly – and incredibly delicious. Click here and save 15% on Grass Fed Beef Sticks from Paleovalley.

MISCELLANEOUS

• 🛂🌐 The US State Department launched a beta program yesterday that allows a select number of applicants to renew their passports online. | 🏥💳 The Biden administration proposed a new regulation that would remove Americans’ medical debt from their credit report.
• 🗳️ North Dakota voters approved a first-in-the-nation law establishing a maximum age limit for congressional candidates, though it’s expected to face legal challenges. | ⛪ The Southern Baptist Convention, America’s second-largest Christian body, narrowly rejected a measure it passed last year to expel churches with female pastors.
• 🏛️ The House voted 216-207 to hold AG Merrick Garland in contempt of Congress over his failure to disclose audio of an interview with President Biden about his handling of classified documents; one Republican joined all House Democrats in voting against the measure. (Read more)

CLICKBAIT

• 🎶 The Best Songs of 2024 So Far.

We bring you the most unusual, off-the-wall and occasionally laugh-out-loud headlines from this week.

• ‘Do it legally’: Woman stealing car calls police on herself → (Boston 25 News)
• Martha's Vineyard is about to run out of pot. That's led to a lawsuit and a scramble by regulators → (NBC News)
• Giraffe’s nibble turns into airborne safari adventure for Texas toddler → (Associated Press)
• Denmark recalls Korean instant noodles for being too spicy → (Deutsche Welle)
• Skateboarding cat breaks speed record in China → (UPI)

Yesterday, we covered a new FBI report, along with other data, which collectively show that violent crime in the US fell significantly in the first quarter of 2024 compared to last year.

❓ Our question to you: In your opinion, which option best describes the current state of violent crime in America?

• An extremely serious problem: 35%
• A moderately serious problem: 39%
• A not too serious problem: 20%
• A not at all serious problem: 6%

Click here to read the most thoughtful longform responses.

+Note on sample size: We received 3,470 votes and 369 longform responses.

Five years ago, French friends Nicolas Barrioz and David Peyrou were sitting in a bar when they had the idea to build the tallest rideable bike ever made. 

What started as a drunken idea eventually turned into reality, with the two friends recently claiming the official world record. 

🚲 If theres a will, there's a way... Their bicycle, nicknamed "Starbike," reaches a height of 25 feet and 5 inches, breaking the previous record by over a foot, according to Guinness World Records. 

• “It also has a bell, in case other road users have not seen you," Nicolas joked.

The most northern part of Africa is located in which country?

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What to do: Copy your unique link below, then send it to anyone who you think would like the DONUT. Once you hit each milestone, you'll get an email with a link to claim your prize.

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Tunisia