Dear Studio Fam,
This week’s rundown begins and ends with updates from Tesla, including the launch of a new model. Tesla investors will be pleased that both updates are positive! In between you’ll find a major development in the ongoing TikTok saga, another victory from FTC Chair Lina Khan, and the surprising return of internet regulation that might make streaming services cheaper.
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Tesla Refreshes “Insane” Model 3 Performance
The Model 3 was the world’s first mass market EV but remained relatively unchanged for the first six years of its existence. That changed this year with major upgrades to practically every part of the vehicle, except for the top-of-the-line Performance model. But the new Tesla Model 3 Performance is finally available, featuring an unprecedented combination of speed and luxury for the price. For just $53,000, the Model 3 Performance accelerates in “insane” mode to 60 miles per hour in 2.9 seconds – the same as a $479,000 Ferrari 812.
The TikTok Ban Countdown Has Begun
The law was signed this week banning TikTok if its Chinese-owners do not divest it to a US company, starting a nine month countdown to block the law in court, sell, or cease operations. CEO Shou Zi Chew said the app isn't "going anywhere" and vowed a quick lawsuit while potential buyers like former Treasury Secretary Steve Mnuchin prepared offers. Technically TikTok could continue operating under Chinese control but be subject to $85 million of fines per day.
FTC Bans Non-Compete Agreements
FTC Chair Lina Khan won another regulatory victory this week with the passage of a new rule banning almost all non-compete agreements. In a 3-2 vote along party lines, the FTC declared non-compete agreements to be a form of unfair competition and unlawful. According to the FTC, freeing millions of workers to start competing businesses will drive down costs for consumers. Once the rule takes effect, all existing non-compete agreements will be void except for employees making over $152,000.
FCC Brings Back Net Neutrality
A quirk of Federal law making is that many details are left to agencies, so rules can change according to the whims of the current president. That’s how Net Neutrality – the idea that internet providers must treat all network traffic equally – came and went under the last two presidents. But it’s back again, forbidding internet providers from making secret deals that make some content faster to load. According to the FCC, the biggest issue for consumers is “zero rating” deals by internet providers with data caps, which drive subscribers to content that doesn’t count against their bandwidth limits.
Cybertruck Accelerator Fixed In 35 Seconds
Tesla began retrofits of the Cybertruck accelerator pedal in response to the recall issued last week. The simple repair takes less than 35 seconds and requires a technician to drill one bolt into the base of the pedal.