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Traders work on the floor of the New York Stock Exchange during morning trading on Aug. 20, 2024.

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This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

What you need to know today

End of a run
Wall Street
closed lower ending a multi-session winning streak. After an eight-day run-up, the S&P 500 and the Nasdaq Composite climbed 0.2% and 0.3% respectively. The Dow Jones Industrial Average dropped 0.2%, snapping a five-day win streak. Boeing was among the biggest decliners, down 4.2%, after finding defects on engine mounting structures on a 777X test plane. Meanwhile, the yield on the 10-year Treasury was little changed as investors await minutes from the Federal Reserve’s July meeting due Wednesday. U.S. oil prices fell below $74 a barrel on demand concerns. 

Diabetes risk cut
Eli Lilly‘s weight loss drug tirzepatide, used in Zepbound and Mounjaro, reduced the risk of developing Type 2 diabetes by 94% in obese or overweight adults with prediabetes, according to preliminary findings from a long-term study. The trial, which studied over 1,000 participants over 176 weeks, also showed sustained weight loss, with patients on the highest dose losing 22.9% of body weight on average. The results highlight the potential of GLP-1 drugs in delaying diabetes and offering significant long-term health benefits for people with obesity and prediabetes. Eli Lilly’s shares rose 3%.

Waiting for Fed cut
Lowe’s has lowered its full-year sales and earnings forecasts as it anticipated weak home improvement spending. CEO Marvin Ellison told CNBC that consumers are waiting for the Federal Reserve to cut interest rates. “Inflation remains high,” he said. “And big-ticket purchases are being delayed as customers sit back and wait for interest rates to fall.” Lowe’s stock dropped 1.2%.

Shein sues Temu
Chinese-linked fast-fashion retailer Shein is suing rival Temu for allegedly stealing its designs and engaging in counterfeiting, intellectual property infringement and fraud. Shein, which filed the suit in Washington D.C. on Monday, is fending off similar allegations from the likes of Levi Strauss and H&M. Shein claims Temu falsely presents itself as a legitimate marketplace while actively encouraging its sellers to copy designs and preventing them from removing infringing products. PDD Holdings, which owns Temu, dropped 4.5% on Tuesday. 

China EV tariffs
The European Union reduced its planned tariffs on Tesla vehicles imported from China, from 20.8% to 9%. The European Commission hit “heavily” subsidized Chinese electric vehicle imports with tariffs in June, saying they “pose a threat of economic injury” to local EV manufacturers. The EU has also lowered tariffs for other Chinese electric vehicle companies, including BYD, Geely and SAIC.

[PRO] Avoid crowded trades
Morgan Stanley warns that individual investors should be cautious about buying stocks favored by hedge funds. Such “crowded trades” often face high valuations and increased volatility, making it difficult to find new buyers.

The bottom line

As the S&P 500 and Nasdaq failed to extend their recovery rally into a ninth session, it’s worth reflecting on the past few weeks. When asked by CNBC’s Sara Eisen to describe the market’s current state, Holly Newman Kroft of Neuberger Berman Private Wealth said “it’s been a little crazy” this summer.

“We couldn’t have scripted a better start to the summer with equities really rallying and everyone feels good when the market goes up. The last six, seven, eight weeks have been many head-spinning turns of events. We had an assassination attempt. We had a broadening of the market. We had the market pricing in a Trump win, a red wave. Then we had Biden drop out, Kamala come in and now its sort of a dead heat,” Kroft explained.

Kroft said the market is navigating an uncertain environment plagued with volatility. “Two weeks ago, in the face of a not-great-jobs number — it wasn’t bad jobs number but it wasn’t great — we had a knee-jerk reaction in the market. And so on Monday it opened down almost 10%. What’s kind of also mind-blowing is by the end of the week the market was flat.”

With the S&P 500 less than two percentage points shy of its July record high, Kroft sees limited upside and expects more volatility to pick up into the election. What the markets need is for “calmer heads to prevail in the role of the Fed,” she said.

Oppenheimer’s chief investment strategist, John Stoltzfus, said Fed Chair Jerome Powell’s speech on Friday could influence markets, with investors awaiting rate cuts at the central bank’s September meeting.

“With many folks now looking for a cut of as much as 50 bps in September, a degree of hesitancy in the Chair’s remarks could reintroduce some volatility into the market ahead of next weekend,” Stoltzfus wrote in a Monday note. Still, he believes a 25 basis-point cut is more likely, given last week’s stronger-than-expected jobs and retail sales data.

Yung-Yu Ma, investment chief at BMO Wealth Management, believes the Fed’s rate cuts could have a more significant impact than investors anticipate. “We think that the rate cuts are actually going to have much stronger and favorable impact, probably than the markets are pricing in now,” Ma told CNBC’s “Money Movers.”

“Maybe not the first rate cut, but after we get 75 basis points, 100 basis points of rate cuts, we think there’s a lot of pent-up demand lurking beneath the surface,” Ma added.

CNBC’s Hakyung Kim, Sarah Min, Alex Harring, Gabrielle Fonrouge, Yun Li, Melissa Repko, Annika Kim Constantino and Spencer Kimball contributed to this report.

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Honda’s super low-cost electric motorcycle revealed in new patent images

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Honda's super low-cost electric motorcycle revealed in new patent images

Honda’s patent filings offer a clear glimpse into the company’s plans for an ultra-affordable electric motorcycle, integrating a proven chassis with a simple electric powertrain. It’s a clear glimpse into how the world’s most prolific motorcycle maker plans to challenge the nascent electric motorcycle market.

The filings in Honda’s new patent show a bike built around the familiar platform of the Honda Shine 100, a best-selling commuter in India, reimagined in electric form for a cost-effective future of urban mobility.

According to Cycle World’s Ben Purvis, Honda’s patent sketches outline a design that repurposes the Shine’s sturdy frame and chassis mounting points to house an electric motor and compact battery setup. Positioned where the engine once sat, a mid-motor drives the rear wheel via a single-speed reduction gear and chain – mirroring the essentials of the original gasoline-powered commuter bike.

Instead of a traditional fuel tank, the design features two lithium-ion battery packs, angled forward on either side of the spine frame and fitting neatly into the existing geometry.

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What makes the bike revealed in this patent even more interesting isn’t just its clever packaging, but rather the platform. By leveraging the proven Shine chassis, Honda can significantly cut development costs, manufacturing complexity, and market price. That’s a big statement given that surviving in price-sensitive markets like India demands simplicity and reliability. And by piggybacking off a proven platform, Honda can dramatically reduce the time to market from the time the boardroom bigwigs give the project the final green light.

Honda’s patent images show an electric motorcycle built on the same platform as the Honda Shine 100

The design still seems to feature styling that would be fairly consistent with the Shine 100, even down to a gas cap-like circular protrusion likely on top of a faux-tank. Some electric motorcycles in the past have used this location to hide a charging port, keeping similar form and function to outdated fuel tanks and fill ports, though it’s not clear if that is Honda’s intention.

It’s not clear what power level Honda could be targeting, but the Shine bike from which Honda’s creation draws its design inspiration could provide some clues. The Honda Shine 100 features a 99cc engine that provides around 7.3 horsepower (around 5.5 kW) and has a top speed of 85 km/h (53 mph), solidly planting it in the commuter segment of motorcycles.

The electric motorcycle in Honda’s design would be unlikely to target much higher performance as it would drastically increase the required battery capacity, and thus similar speeds of around 80-85 km/h (50-53 mph) would seem likely.

There also appears to be no active cooling, which would also limit the amount of power that Honda would be likely to draw continuously. The patent describes a channel formed by the two battery packs, leading to the speed controller and creating ducted cooling that pulls heat out of the batteries and electronics without drawing extra power.

Honda hasn’t released a final design, but I ask AI to create one based on the patent images. I’d ride that!

This emerging design is just one piece of Honda’s broader electric two-wheeler strategy. Their entry-level EM1 e: and Activa e: scooters launched with mobile battery packs and budget-friendly pricing. Meanwhile, high-tech concepts continually push the envelope. But this Shine-based bike aims squarely at the heart of mainstream affordability – a move likely to resonate with millions of new electric riders in developing regions like India where traditionally-styled small-dsiplacement motorcycles reign supreme.

Honda hasn’t revealed a timeline or pricing yet, but Honda’s patents offer real hope to fans of the brand’s electric efforts. If scaled effectively, this could be the first truly mass-market electric motorcycle from a major OEM, with a sticker price likely far below the $5,000 mark usually seen as a floor for commuter electric motorcycles from major manufacturers. That would also dramatically undercut models from brands like Zero or Harley-Davidson’s LiveWire, even as those brands rush to bring their own lower-cost models to market.

Electrek’s Take

Honda’s patent reveals a clever, no-frills EV designed to democratize electric two-wheeling, especially in developing markets that are even more price-sensitive than Western electric motorcycle customers.

Using a trusted frame, simple electric drive, and passive cooling, I’d say it definitely prioritizes cost over complexity, which is exactly what urban commuters need. If Honda can bring this to market, it would not just add another electric bike to the mix… it could create a new baseline for affordability in affordable electric mobility. Now we’re just waiting for the rubber to hit the road!

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Musk will ask Tesla shareholders to vote on bailout for twitter/xAI

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Musk will ask Tesla shareholders to vote on bailout for twitter/xAI

Tesla shareholders will vote on whether to invest into xAI, Tesla CEO Elon Musk’s private company, according to a post by Musk on twitter today.

Elon Musk is not just the CEO of Tesla, the electric car company that you may have heard about from time to time in Electrek’s coverage, but several other companies as well. And, famously, Musk companies often share resources – there has been much talk of incorporating SpaceX technology into Tesla vehicles, and putting xAI/twitter’s “MechaHitler”…. er, I mean, “Grok”…. feature into Tesla cars, among other collaborations that have happened over his various companies’ histories.

And today, Musk made it official that he will seek greater collaboration between three of his companies: Tesla, xAI, and twitter, in the form of an investment into xAI by Tesla.

The situation is a little more complicated than that, though.

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Tesla is a public company, owned by shareholders. Musk is the largest shareholder, but only owns around 12% of the company himself.

This is a different situation than xAI, which is a private company, owned by Musk. While there are other investors, he can exercise much more direct control over the company, and doesn’t have to put big decisions up to a vote.

One of the recent decisions he made with xAI was to purchase twitter in March. You may say, “wait, I thought he bought twitter back in 2022?,” and you’d be correct. Musk purchased twitter for $44 billion in 2022, which was widely agreed to be far too high a price, and then rapidly saw the company’s valuation drop to under $10 billion.

Then, in March 2025, Musk had xAI purchase twitter in an all-stock deal, valuing twitter company at $45 billion – again, far too high of a valuation, but considering he purchased the company from himself, he could set the price at whatever he wanted.

The move was widely considered to be a bailout of twitter, and the numbers involved considered arbitrary, perhaps partially to help save face for Musk after he made one of the worst business deals of all time.

Now the two are the same entity, and it seems clear that he would like to bring Tesla into the fold, in some way or another.

Musk has already improperly used resources from Tesla, a public company, to boost xAI and twitter, his private companies. Last year, he gave up Tesla’s priority position for highly sought-after NVIDIA H100 GPUs, instead shipping those GPUs to xAI and twitter. Tesla could have used these GPUs for training its FSD/Robotaxi systems, which Musk has claimed is the most important thing to Tesla’s future, but instead graciously sent them to his other company that used them to, uh, train a bot to say Nazi stuff apparently.

xAI has also poached talent from Tesla, multiple times, showing how Musk is using Tesla as a farm team for his private company.

So it hasn’t been a secret that Musk would like to use public money to bail out his private companies, as he’s been setting the stage for for a while now.

Musk has previously “discussed” getting Tesla to invest in xAI in the past, but the idea was never made official until today, when Musk said that he will put the idea to a shareholder vote.

In response to one of his superfans asking for the the opportunity to waste money on an overvalued social media app (which would mark the third time it has been overpaid for in as many years), and the backend fueling “MechaHitler,” Musk said this:

Tesla traditionally holds its annual shareholder meeting around the middle of the year, so if it were a normal year, this shareholder vote might be imminent.

But it’s not a normal year, as just last week Tesla announced an exceptionally late shareholder meeting, pushing it back to November, the latest it has ever held the meeting.

This means that Musk will have around four months to campaign for this idea – something that he’ll perhaps have more time to do, now that he’s no longer cosplaying as a government official.

We don’t know what the structure of the deal might look like yet, but Musk has been clear in the past that he wants more shares in Tesla. After selling many of his shares in order to buy twitter, he later complained that he doesn’t feel comfortable having less than 25% of Tesla. Given that his recent xAI/twitter deal was an all-stock deal, Musk could attempt to fund any investment of Tesla into xAI via shares, giving himself more Tesla shares in exchange for the company gaining a portion of xAI. Though to get him to 25% voting shares in Tesla, that would require either an enormous valuation for xAI, a small valuation for Tesla, or purchasing a large percentage of xAI (or, perhaps, all three, given how much higher TSLA’s valuation is than xAI’s).

We may however have a hint as to how that vote will go, because the last time Musk campaigned for a clearly terrible idea, Tesla shareholders ate it up.

In mid-2024, Musk ended his yearslong absenteeism at Tesla in a flurry of activity, hoping to persuade enough shareholders to vote for his illegal $55B pay package.

That flurry involved firing 10% of the company (supposedly in order to save money – though Tesla’s earnings have dropped drastically since), including important leadership and successful teams, which caused chaos with Tesla’s projects. He also pushed back an all-important affordable car project (which we’ve still heard nothing about) and held Tesla’s AI projects hostage while shifting both resources and staff from Tesla to his private AI company, even as he claims that AI is the future of Tesla.

In the end, these bad decisions worked, and shareholders voted to give their bad CEO his $55B pay package, even though it was later ruled to still be illegal.

So it looks like we’ve got another campaign coming up, and if last time was any indication, expect some really bad decisions along the way. It worked last time, didn’t it?


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E-quipment highlight: Perkins TracStar battery electric power unit

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E-quipment highlight: Perkins TracStar battery electric power unit

The off-highway equipment experts at Perkins and McElroy have teamed up to develop a plug-and-play battery electric power unit designed to help equipment OEMs and upfitters to seamlessly transition from diesel to battery electric power.

Designed to occupy the same space as the companies’ diesel-engined power units, Perkins dropped its new battery power unit into the similarly new McElroy TracStar 900i pipe fusion machine (specialized equipment used to join thermoplastic pipes like HDPE or polypropylene by heat-welding them end-to-end to form a continuous length pf pipe).

Perkins’ battery electric power unit replaces the company’s proprietary 134 hp, 3.6 liter 904 Series Tier V diesel engine, enabling units that are already deployed to be quickly upgraded to electric power – and helping trade allies and development partners to easily retrofit existing equipment in order to add zero-emission options to their operational fleet.

“We’re actively helping customers navigate the shift in power system requirements, with a range of advanced power systems including electric, diesel-electric and alternative fuel compatible engines,” says Jaz Gill, vice president, global sales, marketing at Perkins. “When it comes to the innovative fully integrated battery electric power unit, it can be ‘dropped in’ to a machine to replace a diesel engine. The system consists of a Perkins battery along with inverters, motors and on-board chargers – all packaged up into a compact drop-in system to support seamless transition from diesel to electric for our customers looking to make that move.”

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McElroy believes that an electric, emissions-free power unit like this one will open new opportunities and applications for its customers.

“Their team has done a phenomenal job of integrating their battery electric system into our TracStar 900i,” explains McElroy President and CEO Chip McElroy. “We’re really excited to see what the market thinks about this concept.”

Development of the battery electric powered pipe fusion machine was completed in about nine months. Future Perkins-powered electric equipment running the 904 diesel (small excavators, telehandlers, pumps, and gensets) could be developed even more quickly. You can find out more in the company’s promo video, below.

Perkins electric power unit


SOURCE | IMAGES: McElroy, Perkins.

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