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Bill Ackman has grown Pershing Square Capital Management to more than $16 billion from $54 million since he founded the fund nearly two decades ago. The 57-year-old activist investor speaks with On The Money about his return to office policy, his possible presidential picks and why hes still bullish on New York City.

Lydia: You are among the big names on Wall Street who didn’t move to Florida. Why?

Bill: The short answer is that I love New York City. My desire to be successful is founded on a desire to be independent. It always seemed crazy to me to sacrifice that independence to save money on taxes. If you make $100 million some people in finance make even more than that you can save $25 million of that by living somewhere cheaper.

Some people choose to manage their lives that way. I do think it’s incumbent upon New York City to make this a desirable place to live and we have to make it an attractive place to do business. If one super wealthy person leaves the city thats really bad for the revenue. I dont think it’s smart to push taxes higher I think that would actually generate less revenue.

Lydia: There have been some top players in finance like Ken Griffin who have made a show of moving to Miami and talking about how smart it is for their business. But do you think that trend will be reversed? Will we see a lot of headlines in the next year about people moving back?

Bill: I think it’s a great thing that [Citadel founder] Ken Griffin is building a major campus, if you will, in New York City on Park Avenue. I think thats an amazing thing for NYC whether it’s his primary office or not, and it speaks to the fact that a lot of the youngest, most talented people want to be here. My nephew graduated from Harvard and many of his classmates moved here even before they had a job. The city is still a big draw for young people and if this is where the talented, young people want to be, then the companies will have to have a major presence here.

Lydia: Given the younger generation wants flexibility, is it realistic to expect people to return to the office five days a week? On the flip side, can New York City flourish if you dont have people back in Midtown and back in office buildings?

Bill: Everyone wants more flexible work whether its a school play, a sports game you dont want to miss and we have technology that lets you do that. What weve done at Pershing Square is bring people back five days a week 10 months a year. Of course if theres something you need to do like a doctors appointment or working from home one day, use your best judgment. And then we give people July and August to work from anywhere with the caveat that if there’s something where we need to bring everyone together, you show up. Weve experimented with that for two years and thats worked well, people like the balance, and it works for our business.

Lydia: And you believe New York will still be a place where businesses want to operate? 

Bill: I think if NYC became an unsafe place the images you see of San Francisco where you have open air drug users lying on the street that would be very damaging and could be a tipping point for people leaving the city.

You have to manage the city and its population effectively. In San Francisco you have homeless people acting in a threatening and hostile way thats led to the emptying out and death spiral of San Francisco. Again you want to manage a city so that it is pro-business and pro-resident and you want to show care for people who are less fortunate, but that doesnt mean they can defecate on the street and threaten parents or kids.

Lydia: Is NYC poised to go into that kind of death spiral?

Bill: No, I dont think so. We have a mayor who has for obvious reasons respect for the police force and I think they respect him. I think thats really important. The whole defunding the police movement was not a good one. Bail reform went too far. If you believe the statistic, it’s several hundred people committing the vast majority of street crime and those people should be locked up.

Lydia: The new movie Dumb Money and the meme stock craze clearly a cautionary tale of a short bet gone wrong. What do you make of that film?

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Bill: We are among the most famous short sellers but thats because we shorted two stocks in the last twenty years. One short theres a movie about Herbalife [Betting on Zero] and the other short theres a book about MBIA [Confidence Game]. But we dont short stocks for precisely the reason you say. We gave up that business a long time ago because its too risky. Even when youre right you can lose a lot of money. Of course, short sellers can do amazing research.

Lydia: Youve publicly applauded the work Hindenburg has done on Carl Icahns firm. How are you thinking about Icahn now? Do you think the report captured whats going on at his firm?

Bill: What Hindenburg said has been proven out.

Lydia: Youve expressed support for a lot of different 2024 presidential candidates. Anyone else you plan to support? 

Bill: Id love Jamie Dimon to be president but hes made it clear hes not going to run. Id love for a candidate of his quality to run. I think Biden-Trump part II is not the best option for America. It would be great for us to be brought together by a more centrist candidate that members of both parties can vote for. 

Lydia: What about Vivek or RFK Jr. youve tweeted support for?

Bill: Id like to see multiple alternatives. Ive been supportive of Vivek because I know him and hes super smart and capable. I wish he was a more centrist candidate. Ive not yet met RFK but hopefully will have an opportunity to do so. But I still havent found my ideal candidate. Biden should step aside and that would create a flurry of alternative candidates. People are afraid to run against the president and I think theres some possibility of that happening.

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Science

Raphael Domjan Soars to 8,224 Meters in SolarStratos

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Raphael Domjan Soars to 8,224 Meters in SolarStratos

Raphael Domjan, Swiss Aviator, came close to reaching the distance of a world record while flying a solar Stratos plane on Sunday. He departed from Sion Airport in Southwestern Switzerland, reaching an altitude of 8224 meters; it lasted for four hours. Domjan, tagged as an eco-explorer for his aviation focus, and is known for his eco-friendly ambitions. According to him, achieving a height of more than 10,000 meters is still a dream for him to come true soon, hopefully.

Raphael Domjan Sets New SolarStratos Altitude Record

As per TechExplore, In 2010, Andre Borschberg set the record for the highest flight in a solar plane for 9,235 meters as a Swiss pilot flying the Solar Impulse. Domjan won’t just break the record of Borschberg but also intends to fly to the same altitude just like commercial jets. The challenge is as important as Solar Stratos has a boundary on the altitude that it can reach and while relying on solar power only.

The Road to 10,000 Meters: A Green Aviation Dream

Prior to this attempt, Domjan completed a practice flight on July 31, reaching an altitude of 6,589 meters, which was a record for the SolarStratos. Last Friday, he attempted a flight, but the thermals which usually aid in altitude gain were absent. He decided to turn back to conserve battery power for future attempts.

Earlier this week, conditions proved more favorable, leading to a new record altitude for the SolarStratos. As an innovation, the plane has solar panels on its 24.8-meter wings, which power its batteries. During the flight’s solar charging cycle, the plane’s batteries will automatically recharge to full. Domjan and his team are preparing for the next record attempt to make sure it will be a guaranteed success.

Asked about the 10,000 meter target, Domjan believes it is a target which will be achieved only by relentless attempts. For him, it is about the achievement, and an achievement only possible through determination and resilience on the aviations of the future as a green revolution.

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Science

Singapore Researchers Build Maple Seed Drone with Record 26-Minute Flight

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Singapore Researchers Build Maple Seed Drone with Record 26-Minute Flight

A flying robot inspired by the anatomy of a maple seed, samaras, was developed by researchers of the Singapore University of Technology and Design (SUTD). This new monocopter, besides flying much longer than other drones of its size, proves its superiority by running on a single rotor for 26 minutes. This feat is a marked achievement, proving the goals of SUTD’s associate professor Foong Shaohui, who built a 50 minute flying drone for Singapore’s 50 year anniversary. Now, the focus shifts to efficiency in smaller designs.

Nature-Inspired Design Brings Breakthrough in Small Drone Efficiency

According to Techxplore, Nature proves to be the ultimate guide for the SUTD team, as they had previously designed quadcopters with no external help. In the case of maple seeds that spin and gently fall to the ground creating lift, the team built a singular powered wing monocopter. This improvement, while simple, also greatly enhances control, efficiency, effectiveness, and reduces weight.

The collective mix of human creativity with AI enabled tools to further enhance the designs fuel origami’s makes the monocopter a success. AI enabled tools allowed the team to simulate various shapes, angles, and weight before creating the final prototype. As a result, the team had a drone that is 32 grams while retaining the ability to endure more than other drones.

From 10-Year Challenge to Record-Breaking Maple Seed Monocopter

This small monocopter could be extremely beneficial for low-cost, long-duration missions. An example mission could be to transport instruments for measuring meteorological conditions. Taking home the Sustainability Winner award at the 2024 Dyson Awards felt like a decisive victory for monocopter, underscoring its potential for environmental monitoring missions. Now refinement efforts will target a larger payload, longer endurance, and extended range, all without adding weight.

The achievement shows the ten years of steady progress, which started from the SG50 quadcopter and evolved into the SG60 monocopter. It is planned for rollout during the 60th birthday of Singapore festivities. It has been guided by advanced engineering, insights from nature and on-board AI from the team has demonstrated the practical versatility and impressive performance of compact flying robots.

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Environment

Elon Musk went from promising Tesla unsupervised self-driving to ‘less nag’

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Elon Musk went from promising Tesla unsupervised self-driving to 'less nag'

Elon Musk is hyping an upcoming Tesla ‘Full Self-Driving’ (FSD) update by claiming that it will have “less nag” – a far cry from its long-unfulfilled promise of unsupervised self-driving.

For the last few weeks, Tesla CEO Elon Musk has been hyping a new FSD update that he claims will include “10x higher parameters.”

We already reported how FSD owners should manage their expectations based on the last time Musk claimed a significant increase in parameter count.

Other than the increase in parameter count and the timing for the “end of September”, the CEO didn’t elaborate much on the update.

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He again commented on it this weekend:

The FSD release in about 6 weeks will be a dramatic gain with a 10X higher parameter count and many other improvements. It’s going through training & testing now.

But this time he also added that the update should result in “much less nag”:

Once we confirm real-world safety of FSD 14, which we think will be amazing, the car will nag you much less.

“Nag” is what some people refer to as the alerts FSD gives drivers to stay attentive to the road.

Tesla requires all drivers to remain attentive to the road when using Autopilot or Full Self-Driving, and they are responsible for any mistakes made by the vehicle.

Musk has repeatedly promised that Full Self-Driving would eventually become unsupervised, but every time he shared a timeline, Tesla failed to deliver.

Electrek’s Take

We are talking about 6 weeks – meaning the end of September, which also happens to be the end of the third quarter.

Tesla will release the update just in time to justify recognizing some deferred revenue set aside from selling its Full Self-Driving package.

“Less nag” means nothing. 99% of the value of FSD is in unsupervised operation with responsibility on Tesla. That’s where the value lies, and we are still far from that.

Musk is now talking about FSD having “less nag” by the end of September. And then what? We should expect Tesla to go from that to taking responsibility for the system in customer cars by the end of the year? Please.

The best data available points to Tesla achieving about 400-500 miles between critical disengagements and the last time Tesla introduced a big parameter increase it resulted in roughly a 2x improvement.

At 800-1,000 miles between disengagement, Tesla would still be years away from unsupervised self-driving in customer vehicles.

Look, I have FSD. I’m incentivized for Tesla to deliver here. I want to believe, but to do so, I can only rely on the latest in a long series of unfulfilled promises from a known liar versus actual data pointing the other way.

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