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The Federal Reserve’s campaign to squash inflation is a long-term win for the U.S. economy, but investors in companies such as Walmart are paying the price now, CNBC’s Jim Cramer said Thursday.

The U.S. retail behemoth, along with cybersecurity firm Palo Alto Networks and energy giant Chevron, all saw their stock prices decline meaningfully Thursday for reasons that can be traced back to the Fed’s interest rate hikes, Cramer explained.

“Saying goodbye to inflation is sweet, but there’s a little momentary sorrow, too,” Cramer said. “That’s the sorrow of Walmart or Chevron or Palo Alto Networks and so many other companies that are victims of their own success.”

Walmart shares tanked 8% Thursday after the company reported quarterly earnings before the bell. While the top-and-bottom line results topped expectations, Walmart’s same-store sales — a closely watched metric in the retail industry — decelerated for the third consecutive quarter.

One reason for that slowdown is emerging deflation, Cramer said. When inflation was raging, he said Walmart’s same-store sales were boosted by the company passing on its own higher costs to shoppers with price hikes. Additionally, Cramer said Walmart is grappling with more cautious consumers, who’ve seen their budgets squeezed by inflation for well over a year.

Meanwhile, shares of Palo Alto Networks slid 5.4% Thursday as its earnings report from the prior evening disappointed investors. The primary issue was Palo Alto lowering its full-year billings outlook, which management chalked up to customers needing to ink shorter contracts due to higher borrowing costs. The reason for elevated borrowing costs, Cramer explained, is the Fed’s rate hikes, which have made money more expensive.

Cramer’s Charitable Trust, the portfolio used by the CNBC Investing Club, owns Palo Alto shares.

Chevron’s stock, on the other hand, fell 2.6% Thursday alongside a steep drop in oil prices. That continues a multiweek downward trend for the commodity, amid concerns about demand. While Chevron and its energy peers benefited from higher oil prices last year, Cramer said the falling oil prices are a direct consequence of a slowing economy. And that’s exactly what the Fed wants to see, he said.

“The good news of lower prices finally breaking the inflationary spiral is also bad news for the profits of many companies,” Cramer said. “It’ll take some sorting out, but never believe that that lower consumer prices are just a magic elixir for long-term stock market gains.”

Jim Cramer’s Guide to Investing

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Global offshore wind surges ahead as Trump sinks US progress

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Global offshore wind surges ahead as Trump sinks US progress

Global offshore wind targets are still strong enough to triple global capacity by 2030, despite the US’s offshore wind stagnation under Trump. A new analysis from energy think tank Ember and the Global Offshore Wind Alliance (GOWA) shows that the rest of the world is charging forward, underscoring confidence in offshore wind as a cornerstone of future clean energy systems.

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Tesla ‘Robotaxis’ keep crashing despite ‘safety monitors’

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Tesla 'Robotaxis' keep crashing despite 'safety monitors'

Based on the latest NHTSA report, Tesla’s ‘Robotaxis’ keep crashing in Austin, Texas, despite ‘safety monitors’ preventing an unknown number of crashes.

Under an NHTSA Standing General Order SGO, automakers are required to report crashes involving their autonomous driving (ADS) and advanced driver assistance systems (ADAS) within five days of being notified of them.

For years, Tesla was only reporting ADAS crashes, since, despite the names of its Autopilot and Full Self-Driving systems, they are only considered level 2 driver assistance systems.

Since the launch of the Robotaxi service in Austin, Texas, where Tesla moved the supervisor from the driver’s seat to the passenger seat, it has now reported its first few crashes under the ADS reporting.

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In the first month of operation in July, Tesla reported three crashes with its ‘Robotaxi’ service in Austin.

This week, NHTSA has updated its crash report and revealed a 4th crash that happened in September:

Report ID Incident Date Incident Time (24:00) Make Model Model Year Automation System Engaged? Highest Injury Severity Alleged Crash With Roadway Type Weather
13781-11687 SEP-2025 01:25 TESLA Model Y 2026 ADS Property Damage. No Injured Reported Other Fixed Object Parking Lot Partly Cloudy

As we previously highlighted, when it comes to both ADS and ADAS crash reporting, Tesla abuses the redacting capacity and hides most information about its crashes, unlike most of its competitors.

Therefore, we don’t have much information about this new crash, but it reportedly occurred in a parking lot and involved a Tesla Robotaxi crashing into a “fixed object,” resulting in property damage.

What’s most interesting about this crash is that it comes as Tesla released the first bit of data about its Robotaxi program in Austin.

During its earnings call last week, Tesla confirmed that the Robotaxi fleet has traveled 250,000 miles since its launch in late June.

Therefore, Tesla Robotaxi currently crashes at a rate of about once every 62,500 miles. That’s with a safety monitor with a finger on a kill switch, ready to stop the vehicle at all times.

We have no data on how often Tesla’s safety monitors prevent crashes in its robotaxis.

For comparison, the NHTSA report lists 1,267 crashes involving Waymo vehicles. However, Waymo’s robotaxis have covered over 125 million fully driverless miles since inception. That’s a crash every 98,600 miles and without any onboard safety monitor.

Electrek’s Take

That’s the problem with comparing Tesla and Waymo.

At least we can now clearly see that Waymo’s incident rate is much lower than Tesla’s, but that’s with a safety monitor in Tesla robotaxis that prevents an untold number of crashes.

The actual difference could be 10x higher. We simply don’t know. Tesla has always refused to share any data regarding disengagement or intervention rates.

One thing is clear: Tesla is way behind Waymo in autonomous driving safety.

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This electric hot hatch is the Subaru STI we deserve

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This electric hot hatch is the Subaru STI we deserve

The electric hot hatch is more than just a show car, Subaru says it offers capabilities only possible with a battery EV.

Subaru unveils new electric STI hot hatch

It’s been quiet on the STI front since Subaru dropped the gas-powered WRX STI in 2022. However, that may change very soon.

The WRX STI was axed due to stricter emissions regulations in Europe, leading many to believe it would be replaced with an electric version. Subaru even said it was looking into opportunities for a next-gen STI version, including an electrified model, but said it would not be built on the new WRX platform.

Now, we are getting our first look at the future of STI. Subaru unveiled two new STI vehicles at the Japan Mobility Show on Wednesday, one a battery-electric (BEV) model and the other a gas-powered model.

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Subaru said the EV variant, dubbed the Performance-E STI concept, “represents the future of the Performance Scene, spearheading Subaru’s new generation.”

Subaru-electric-hot-hatch-STI
The Subaru Performance-E STI Concept (Source: Subaru)

The electric hot hatch still features a design that “evokes the brand’s heritage,” but with a bit more flair. Unlike the gas version, the Performance-B STI, the EV debuts a new three-line LED headlight design and sportier silhouette.

According to Subaru, the electric STI is “not just a show car,” it can also be used as a daily driver. The aim was to create a performance car that “would inspire everyday life,” Subaru said, adding that “this packaging is only possible with a battery EV.”

The electric hot hatch is equipped with a cylindrical battery, which offers a lower center of gravity and opens up interior space.

Subaru said the setup results in a 15% lower center of gravity than on its previous vehicles. By optimizing downforce and air resistance, the company claims it will outperform the current Subaru Global Platform.

The electric hot hatch also features a new “next-generation suspension” that lowers the hood height by more than 5% while improving control and responsiveness.

Subaru didn’t reveal any other specifics, but said that it will incorporate “innovative technologies” to offer an intuitive, exhilarating driving experience.

Will we see the electric hot hatch actually come to life? Subaru didn’t confirm it was headed for production, but said it represents the future and spearheads a new generation. When and if we will see an electric Subaru STI remains up in the air for now.

Subaru isn’t the only one jumping into the electric hot hatch craze. Honda revealed the Super-ONE at the Japan Mobility Show today, a compact EV that’s packed with fun features.

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