| Here’s your daily business briefing. - 💉 Eli Lilly invests $5.3B to expand Indiana Plant
- 🔍 Deep Dive: Superyacht sales dip, Oligarchs exit
- 🚀 Elon Musk's xAI raises $6B from investors
Thanks for reading! Shriram
p/Shriram | |
| 1 | | Eli Lilly ($LLY) will invest an additional $5.3B in its Indiana plant to boost production of its weight loss drug Zepbound, diabetes treatment Mounjaro, and other medicines. High demand for Zepbound and Mounjaro has caused shortages in the U.S. market. More: - This new $5.3B investment raises Eli Lilly's total at the site to $9B, marking its largest manufacturing investment in nearly 150 years.
- The Lebanon site is slated to begin medicine production by late 2026 and scale up operations through 2028.
- The plant will boost Eli Lilly's capacity to produce tirzepatide, the active ingredient in Zepbound and Mounjaro.
- The company plans to employ 900 staff at the fully operational site, including engineers, scientists, operators, and lab technicians.
- Since 2020, Eli Lilly has allocated over $18B to develop and expand manufacturing plants in the U.S. and Europe, with several sites now ramping up or under construction.
|     | |
| 2 | | 
What the numbers say: In 2023, sales of new superyachts exceeding 100 feet in length declined by 17%, dropping from 245 to 203 sales compared to 2022, while sales of superyachts surpassing 200 meters decreased by 40%. According to SuperYacht Times, the global count of super yachts stands at 5,787 as of 2024. Pandemic-related backlogs have extended wait times for new yachts over 200 feet to three to four years, despite a 31% surge in completions, totaling 202 superyachts. Relevance: Long waitlists, higher costs, and sanctions against Russian oligarchs are driving the decline in superyacht sales, especially among Russian buyers amidst the Ukraine invasion, while Americans now account for nearly a quarter of all sales, often opting for larger vessels compared to Middle Eastern and Russian purchasers. More data: Saudi-owned superyachts average 202 feet, Russians opt for 200 feet, and Americans typically purchase yachts of 177 feet. Despite declining new sales, the growing superyacht fleet indicates increased demand across the yacht economy, driven by affluent buyers upgrading vessels during the pandemic. | | | |
| 3 | | Elon Musk's AI venture, xAI, secured $6B in Series B funding, with backers such as Valor Equity Partners, Vy Capital, and Andreessen Horowitz, among others, valuing the company at $18B pre-money. Founded recently and emerging from the social network X, xAI is poised to fiercely compete with industry giants like OpenAI, Microsoft, and Google. More: - xAI releases its Grok 1.0 chatbot model in November, followed by Grok 1.5 in April, targeting Premium+ users on X who pay $16 monthly.
- The company plans to use the funding to bring its products to market, develop advanced infrastructure, and accelerate R&D for future technologies.
- xAI is focused on developing "truthful" AI systems, although its Grok news summary feature has generated reports of hallucinations and misleading information.
- Partnerships are likely as xAI seeks to introduce Grok to users beyond its current platform.
| | | |
| 4 | | Tennis is experiencing a resurgence, boosted by its presence in fashion, film, and social media, with top players featured in luxury campaigns and viral TikTok videos. The sport also grew during the COVID-19 pandemic as a socially distanced activity, increasing viewership and participation. More: - The USTA reported nearly 24 million people playing tennis, marking four consecutive years of growth.
- Tennis has seen a significant boost in sponsorships and advertising, with a 41% rise in sponsorships and a 40% increase in brand advertising over the past year.
- This growth is driven by rising TV ratings, popular documentaries, and expanding social media presence of tennis players.
- ESPN's selection of Serena Williams as host for the ESPY Awards underscores the renewed appeal of tennis.
- Emerging talents such as Coco Gauff use their social media presence to secure sponsorships and endorsements, contributing to the sport's growing popularity.
| | | |
| 5 | | Dell Technologies ($DELL) shares hit an all-time high as AI stocks surged, fueled by the company's introduction of AI-focused PCs and robust servers developed in partnership with Nvidia, solidifying its foothold in the AI sector. Bob O'Donnell of TECHnalysis Research sees this as a significant opportunity for Dell to capitalize on. More: - Dell's shares surged 6% to $162.82, increasing its market value by $6.6B, doubling YTD, and closing positively in the last three sessions.
- Nvidia's robust quarterly performance and forecast of higher-than-expected current-quarter revenue bolster confidence in their genAI technology.
- Major chip firms like Nvidia and Qualcomm saw gains, while C3.ai and Palantir Technologies experienced moderate increases.
- An analyst at Counterpoint Research predicts chip companies will see substantial gains from AI chip orders, especially from cloud providers increasing their 2024 capital expenditures.
| | | |
| 6 | | Despite price increases for certain grilling essentials, home-grilled burgers can still be affordable thanks to substantial retail discounts. Over the last year, ground beef prices rose by 6.4%, condiments like ketchup surged by 8.9%, and barbecue sauce by 14.6%, but hot dogs saw only a modest 1.4% increase. More: - Retailers provide substantial discounts for Memorial Day to attract cost-conscious shoppers and boost foot traffic and overall sales.
- Target is reducing prices on numerous items and providing exclusive deals, including a buy one, get one 20% off offer on ground beef and burgers for rewards members, available from May 19-27.
- Kroger offers Memorial Day specials on sliced cheese, hamburger buns, and potato chips.
- Aldi is lowering prices on steak and chicken breasts until July 10, with chicken breast prices decreasing by 2.5% and chicken wings by 9.2% over the past year.
| | | |
| 7 | | Quick Hits: *This is a sponsored listing. | | | |
| Upcoming Events | * This is a sponsored event | | | |
 | Freelance Writer | | Shriram is pursuing Master’s in Business with Marketing at Warwick Business School. He worked as a Senior Consultant in Tech and Political Consultancies before his Masters. He is passionate about Tech, Marketing, Strategy, Anthropology and Politics. He is also the Postgraduate Ambassador for Warwick Business School. | | This newsletter was edited by Shriram Jeevakumar | |
| |
| |
