October 16, 2026

Happy Friday. It’s that time of the year again: The sky has been pitch-black for an hour, you put on your PJs, and get ready for bed…until you look at the clock and realize it’s only 7pm.

Winter is coming.

—Holly Van Leuven, Sam Klebanov, Molly Liebergall, Dave Lozo, Adam Epstein, Neal Freyman

In today’s newsletter, we’ll get into:

Tesla’s Roadster reveal
Why CoreWeave is freaking everyone out about AI stocks again
Amazon’s new “personal AI” devices

Markets

Nasdaq

26,713.03

+0.08%

S&P

7,744.06

+0.33%

Dow

52,177.69

+1.08%

10-Year

5.089%

-10.0 bps

Bitcoin

$82,271.09

+0.73%

SpaceX

$148.62

-2.33%

Data is provided by

*Stock data as of market close, cryptocurrency data as of 4:30pm ET. Here's what these numbers mean.

Markets: After fluctuating throughout the day, stocks eked out a win yesterday as the global tech sell-off petered out. Elsewhere, SpaceX fell following yesterday’s reports that Starlink stopped working properly in Ukraine. (Service has since been restored.)

far out

Tesla’s next-gen Roadster is more like a Flyster

Tesla

We still don’t know who the next James Bond will be, but it’s possible that his car got cast last night: At an event in Texas, Tesla CEO Elon Musk staged and livestreamed a long-awaited demonstration of the next-generation Roadster, which many viewers found to be out of this world.

Putting the “launch” in product launch

Before the event, Musk said the revamped Roadster would be “the best of the last of the human-driven cars.” In the demo, he described it as the result of “a collaboration with the world’s best car company and the world’s best rocket company”:

The car used its fan suction system to generate enough downforce to drive upside down on a parabolic ramp, spin around, and then activated thrusters to glide to a landing.
Later, the Roadster did an aerial kick flip over a line of five parked Tesla vehicles before landing smoothly.
In a pre-recorded segment, the Roadster appeared to accelerate from 0 to 60 mph in less than a second using the thrusters.

Three trims of the Roadster are planned: “Performance” (the “road ready” one), “Thrust” (a “race ready” option), and “Rocket” (the “air ready” configuration that seats one and can do the sickest of the moves displayed).

The long and bumpy road: The original Tesla Roadster was the EV maker’s first car, offered in 2008. Production ended in 2012. In 2017, Musk teased a second-generation Roadster. Since then, according to instances enumerated by TechCrunch, he delayed its reveal seven times. Yesterday, he said it would go into production in “2028, actually.”

Musk didn’t provide pricing for the rebooted Roadster, but Tesla’s website requires a $50,000 deposit for the Performance trim and a $250,000 deposit for the Thrust to get on the waiting lists. The Rocket trim is available “by invite only.”

Zoom out: The Verge wrote, “Some analysts theorize that the decision to re-release the Roadster is an attempt to set the stage for a rumored Tesla-SpaceX merger.”—HVL

World

Tour de headlines

a candlelight memorial at Silver Rail Elementary school

Mathieu Lewis-Rolland/Getty Images

💔 Three children, one teacher killed in Oregon elementary school shooting. Authorities said a 16-year-old shot his way through locked doors at Silver Rail Elementary in Bend, OR, killing three children aged 5, 8, and 11, as well as a teacher. Another child and a teacher were shot and were in critical condition last night. Police said the shooter was shot and killed by a bystander who pursued him from outside the school shortly after they arrived yesterday afternoon. Authorities said the shooter was a Bend resident, but did not release his name.—HVL

🌏 Trump’s “energy ceasefire” in Russia and Ukraine collapses. Days after President Trump unilaterally declared a ceasefire on energy infrastructure, Ukraine resumed attacks on Russian oil refineries. Ukraine’s attacks came after Russia violated the ceasefire several times, including launching missiles that killed civilians and left 600,000 Ukrainians without power. Ukraine’s defiance of Trump’s declaration underscores its mounting frustration with the United States in light of the Trump administration’s surprise diesel deal with Moscow. Ukrainian President Volodymyr Zelensky said in recent interviews that he feels betrayed by the US and doesn’t understand Trump’s relationship with Russian leader Vladimir Putin. “How can Trump be friends with him?” Zelensky asked.—AE

📈 Anthropic is reportedly swimming in cash with its IPO looming. The AI giant staged an all-day brag session with potential investors on Wednesday that included the revelation that it generated $16.8 billion in Q3 revenue—a 45% increase from Q2. (That’s still a slower growth pace than between Q1 and Q2, when revenue spiked more than 140%.) The Claude creator said it was profitable and had a gross margin of 85% after certain adjustments. The disclosure comes about a month before a scheduled public offering that’s expected to raise ~$100 billion at a $2 trillion valuation, which would break SpaceX’s record IPO in June that valued Elon Musk’s company at $1.77 trillion.—DL

Default assumption

CoreWeave’s debt makes investors question AI finances

Michael M. Santiago/Getty Images

Wall Street is treating the AI data center operator CoreWeave like an underemployed boyfriend who just revealed he’s maxing out six different credit cards. As investors dumped the debt-saddled company’s bonds yesterday, the market for insuring against CoreWeave defaulting on its debt priced in a more than 60% chance it would be insolvent within five years.

The company’s stock recovered yesterday afternoon following a 15% drop on Wednesday. But its shares are down 13% this week amid a broader AI sell-off tied to fears that Silicon Valley’s debt-fueled splurge on AI infrastructure is unsustainable.

Core concern

Investors began to get nervous about CoreWeave’s plans to keep adding to its $50 billion debt pile to build AI data centers earlier this week:

CoreWeave co-founder Brannin McBee told the Financial Times in an interview published Wednesday that the company is seeking to borrow from the “unlimited” pool of money held by insurers, after which a sell-off followed.
Then came the unexpectedly hot government inflation data for consumers and businesses, making it more likely the Fed will hike rates, which could raise CoreWeave’s loan payments.

Plus, there’s unease about CoreWeave being financed by its largest vendor, Nvidia, which supplies it with AI chips and owns 10% of its stock. Nvidia CEO Jensen Huang tried to assuage concerns yesterday, saying CoreWeave’s borrowing costs are declining. It seemed to have worked, boosting the stock to close almost 6% in the green yesterday.

Beyond CoreWeave: Concerns about unsustainable debt and signs that revenue growth at AI labs might be slowing battered other stocks dependent on the AI hardware binge, with chipmakers crashing particularly hard. The Philadelphia semiconductor index is down almost 6% this week.—SK

WE’RE LISTENING

Amazon’s new AI wearables can hear it all

Amazon Bee Frontier and Amazon Bee Eclipse

Illustration: Morning Brew Inc., Photos: Amazon

Your friends might be tired of your terrible memory, but Amazon wants you just the way you are. Yesterday, the tech company introduced two new AI devices that record and summarize users’ conversations so you can keep track of…everything?

The gizmos are: The $75 Bee Frontier, a wristband available now, and the $100 Bee Eclipse, a magnetic smartphone attachment coming soon.

They join an emerging AI wearables market that’s notorious for a convenience-versus-privacy trade-off:

When turned on, the new Bee devices act as note-takers—transcribing, summarizing, and creating to-dos. An optional $12 subscription lets users link the gadgets with Amazon.com, Gmail, Google Calendar, Apple Health, and Microsoft Outlook.
Though the devices have on/off indicator lights, nearby people might not notice: Amazon said that it will prompt users to ask permission before they record (you know, like Meta glasses users definitely always do), and that nobody but the user will be able to access their conversation transcripts, unless the user shares them.

Just in time for the holidays: These are the first new Bee devices since Amazon acquired the startup last year, hoping to plow ahead in the AI gadget race. There’s plenty of competition: In recent weeks, Meta unveiled a pendant for its new Muse agent, and Apple launched a smart home hub and an “always-listening” Apple Watch feature.—ML

Dave’s sports desk

MLB owners want a salary cap…but is it needed?

Illustration showing a close crop of a baseball plate with a bat and ball visible and a single dollar plus a few coins emerging from the dirt.

Nick Iluzada

On Fridays, the Brew’s Dave Lozo looks at a sports business story that says a lot more than just the final score of a game.

An MLB work stoppage may be inevitable, with the collective bargaining agreement between players and owners set to expire on Dec. 2 amid a spat over a potential salary cap. Owners want one, while the players have been dead-set against it for decades.

The impetus is the recent success of the Los Angeles Dodgers, which outspent nearly everyone during the previous three years en route to World Series titles in 2024 and 2025. But the other three teams that made this year’s playoffs are ~~cheapskates~~ fiscally responsible:

The Milwaukee Brewers (19th), Tampa Bay Rays (28th), and Cleveland Guardians (30th) are each in the bottom half of MLB payroll, according to Spotrac.
Despite their perennial pocket-watching, those three teams are still top 10 in regular-season wins since 2016, per StatMuse.

Fans side with the owners. A survey from The Athletic showed that 68% of respondents want a salary cap for baseball, up from 59% four years ago (just before the Dodgers’ mini-dynasty).—DL

Reader Poll

Who will win the 2026 World Series?

Tampa Bay Rays
Cleveland Guardians
Milwaukee Brewers
Los Angeles Dodgers
What sport is this?

Friday trivia

Find a rhyme for each word below to end up with a familiar three-word phrase in the form of “__, __, and __.”

Example: If the clue is “Cook, wine, drinker,” the answer is “Hook, line, and sinker.”

1. Palm, pool, protected

2. Deer, chose, goat

3. Pup, cup, convey

4. Tap, shackle, cop

5. Flood, threat, beers

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Answer

Calm, cool, and collected
Ear, nose, and throat
Up, up, and away
Snap, crackle, and pop
Blood, sweat, and tears

(Source)

Word of the Day

Today’s Word of the Day is: impetus, meaning “a driving force or stimulus that gets something moving.” Thanks to Marco from Liberty Hill, TX, for the suggestion. Submit another Word of the Day here.

Written by Adam Epstein, Holly Van Leuven, Sam Klebanov, Molly Liebergall, Dave Lozo, and Neal Freyman

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