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How transportation startups feel about Trump 2.0

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There have been dozens of Tesla Cybertrucks this week in Bentonville, Ark., shuttling startup founders and executives between their private planes and hotels and the row of airplane hangars outside a small, municipal airport where the UP.Summit took place this week.

It’s not every day that so many of the companies I cover actually come to me and the small city I’ve decided to call home. But once a year—when the transportation-focused VC firm UP.Partners hosts this event (this year with Walmart heirs Tom and Steuart Walton as co-hosts)—they do just that. 

I’ve spent the last two days peering into the commercial space station the startup Vast plans to send into orbit next year; doing flight simulations for Joby Aviation’s electric air taxi and Regent’s Seaglider vessel; and sitting across from the son of Robinhood cofounder Baiju Bhatt in a mockup of Blue Origin’s astronaut capsule, which is sending people into space. Tesla’s new Cybercab, and two of its Optimus robots, were here for attendees to gawk at, and Tesla Chief Designer Franz von Holzhausen laughed on stage about the mishap at the initial unveiling of the Cybertruck in 2019, when he threw a steel ball at the window and it broke.

The energy is always high at this annual event—likely in part because of UP.Partners cofounder Cyrus Sigari’s boundless energy and enthusiasm for flying cars and the Jetsons. But there was something else that kept popping up in conversations I had this year: Donald Trump.

If you’ve been paying attention to the transportation and aviation/aerospace industries for any amount of time—flying cars! Mars missions! Autonomous planes!—you know that the enthusiasm around those shiny, cool toys can quickly run dry when you consider the enormous regulatory hurdles that still lie between these companies and many of their products coming to market in the U.S. Here’s an example: Three years ago at this same event, Zipline CEO Keller Rinaudo Cliffton was celebrating his company’s tens of thousands of drone deliveries in Africa. Flash forward to today and I still can’t get anything sent to my house from the company, even though my home is only about a 15-minute drive away from one of their delivery outposts. Executives at transportation companies have long fumbled through questions about certification and product timelines, as there’s so much that is completely out of their control.

But these days, the regulatory piece is actually starting to feel more attainable for many companies that have been playing the waiting game. Adam Woodworth, the CEO of Wing, Alphabet’s drone delivery company, described on stage how his team are in the early stages of scaling up their delivery operations to several cities around the country. I was surprised to hear Walmart innovation executive Greg Cathey be so brazen about Walmart’s plans to bring drone delivery to “most areas that we operate in” due to changes in the regulatory environment. Adam Goldstein, CEO of air taxi startup Archer Aviation, told me about joining the White House’s eVTOL Integration Pilot Program, a group put together after one of Trump’s executive orders pushed the FAA to accelerate the process of getting air taxis into the skies. And Billy Thalheimer, CEO of Regent, a startup building seaglider vessels to shuttle people—and cargo—along the coasts, said that the speed and clarity with which his company has received responses from the Coast Guard has been significant since Trump was elected. 

All this enthusiasm has its limits, of course. Just yesterday, the EV tax credit went away—a notable loss for EV companies like Tesla, Slate Auto, and Scout, which were all present at the Bentonville event. Even for some of the most obvious benefactors of the Trump Administration’s tech agenda, it’s not all milk and roses. Wing CEO Woodworth said he was thrilled to see the new regulation around flying beyond visual line of sight—at first. 

“We were less excited when we started reading it, because there’s a lot of steps back in that rule,” Woodworth said on stage, noting how there had already been a lot of progress made between industry and regulators in the time since the initial rule was drafted.

Politics aside, everyone is excited to talk about what comes next—and the money they still want from investors to make it happen. And I sure got a laugh when, upon arriving on my e-bike— at a transportation conference, no less—there was no place to park my bike, and everyone at the check-in counter seemed bewildered as to what I should do with it.

Until next time,

Jessica Mathews
X:
@jessicakmathews
Email: jessica.mathews@fortune.com

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VENTURE DEALS

Einride, a Stockholm, Sweden-based provider of digital, electric, and autonomous solutions for road freight, raised $100 million in funding from EQT Ventures and others.

Phaidra, a Seattle, Wash.-based developer of AI agents for AI factories, raised $50 million in Series B funding. Collaborative Fund led the round and was joined by Helena, Index Ventures, NVIDIA,

Vibe.co, a New York City-based ad platform designed to bring hyper-targeting to connected TV, raised $50 million in Series B funding. Hedosophia led the round and was joined by Elaia, Singular, and others. 

Baselane, a New York City-based banking and financial platform designed for real estate investors, raised $34.4 million across Series A and B rounds. Thomvest Ventures led the $20 million Series B round and Matrix Partners led the $14.4 million Series A round.

Kanastra, a São Paulo, Brazil-based fintech company for private credit funds and securitizations, raised $30 million in Series B funding. F-Prime led the round and was joined by the International Finance Corporation and others.

Moonlake AI, a San Francisco-based AI research lab, raised $28 million in seed funding from AIX Ventures, Threshold, NVIDIA Ventures, and others.

Predicta Biosciences, a Cambridge, Mass.-based precision oncology company, raised $23.4 million in Series A funding. Engine Ventures led the round and was joined by Illumina Ventures, Lightchain Capital, Mass General Brigham Ventures, and others. 

Remitee, a Buenos Aires, Argentina-based remittance infrastructure provider, raised $20 million in funding. Krealo led the round and was joined by Copec Wind Ventures, Soma Capital, Redwood Ventures, Latitud, and Algorand.

Filament, a New York City-based invite-only connection platform for professionals, raised $10.7 million in seed funding from EQT Ventures, Flybridge Capital, Oceans Ventures, and others.

DJUST, a Paris, France-based business-to-business operations platform, raised €7 million ($8.2 million) in a Series A extension. NEA led the round and was joined by Elaia and Speedinvest.

Mesta, a San Francisco-based global fiat and stablecoin payment network, raised $5.5 million in seed funding. Village Global led the round and was joined by Circle Ventures, Paxos, Canonical Crypto, WTI,  and existing investors Garuda Ventures, Everywhere Ventures, and Inventum Ventures.  

PRIVATE EQUITY

Arlington Capital Partners acquired a majority stake in Concord Biomedical Sciences and Emerging Technologies, a Boston, Mass.-based provider of translational research and product development services for the medical device, pharmaceutical, diagnostic, and biomedical research industries. Financial terms were not disclosed.

Future Standard agreed to acquire the Digital Infrastructure platform of Post Road Group, a Stamford, Conn.-based alternative investment advisory platform. Financial terms were not disclosed. 

Magirus, a portfolio company of Mutares, agreed to acquire Achleitner Fahrzeugbau GmbH, a Radfeld, Austria-based designer and developer of customized vehicles for offroad, police, military, and paramilitary application. Financial terms were not disclosed.

VisuSewer, a portfolio company of Fort Point Capital, acquired MOR Construction Services, a Glen Mills, Penn.-based provider of utility and commercial wastewater infrastructure services. Financial terms were not disclosed.



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Hollywood writers say Warner takeover ‘must be blocked’

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Hollywood writers, producers, directors and theater owners voiced skepticism over Netflix Inc.’s proposed $82.7 billion takeover of Warner Bros. Discovery Inc.’s studio and streaming businesses, saying it threatens to undermine their interests.

The Writers Guild of America, which announced in October it would oppose any sale of Warner Bros., reiterated that view on Friday, saying the purchase by Netflix “must be blocked.”

“The world’s largest streaming company swallowing one of its biggest competitors is what antitrust laws were designed to prevent,” the guild said in an emailed statement. “The outcome would eliminate jobs, push down wages, worsen conditions for all entertainment workers, raise prices for consumers, and reduce the volume and diversity of content for all viewers.”

The worries raised by the movie and TV industry’s biggest trade groups come against the backdrop of falling movie and TV production, slack ticket sales and steep job cuts in Hollywood. Another legacy studio, Paramount, was sold earlier this year.

Warner Bros. accounts for about a fourth of North American ticket sales — roughly $2 billion — and is being acquired by a company that has long shunned theatrical releases for its feature films. As part of the deal, Netflix co-CEO Ted Sarandos has promised Warner Bros. will continue to release moves in theaters.

“The proposed acquisition of Warner Bros. by Netflix poses an unprecedented threat to the global exhibition business,” Michael O’Leary, chief executive officer of the theatrical trade group Cinema United, said in en emailed statement Friday. “The negative impact of this acquisition will impact theaters from the biggest circuits to one-screen independents.”

The buyout of Warner Bros. by Netflix “would be a disaster,” James Cameron, the director of some of Hollywood’s highest-grossing films in history including Titanic and Avatar, said in late November on The Town, an industry-focused podcast. “Sorry Ted, but jeez. Sarandos has gone on record saying theatrical films are dead.”

On a conference call with investors Friday, Sarandos said that his company’s resistance to releasing films in cinemas was mostly tied to “the long exclusive windows, which we don’t really think are that consumer friendly.”

The company said Friday it would “maintain Warner Bros.’ current operations and build on its strengths, including theatrical releases for films.”

On the call, Sarandos reiterated that view, saying that, “right now, you should count on everything that is planned on going to the theater through Warner Bros. will continue to go to the theaters through Warner Bros.” 

Competition from online outfits like YouTube and Netflix has forced a reckoning in Hollywood, opening the door for takeovers like the Warner Bros. deal announced Friday. Media giants including Comcast Corp., parent of NBCUniversal, are unloading cable-TV networks like MS Now and USA, and steering resources into streaming. 

In an emailed note to Warner Bros. employees on Friday, Chief Executive Officer David Zaslav said the board’s decision to sell the company “reflects the realities of an industry undergoing generational change in how stories are financed, produced, distributed, and discovered.”

The Producers Guild of America said Friday its members are “rightfully concerned about Netflix’s intended acquisition of one of our industry’s most storied and meaningful studios,” while a spokesperson for the Directors Guild of America raised concerns about future pay at Warner Bros.

“We will be meeting with Netflix to outline our concerns and better understand their vision for the future of the company,” the Directors Guild said.

In September, the DGA appointed director Christopher Nolan as its president. Nolan has previously criticized Netflix’s model of releasing films exclusively online, or simultaneously in a small number of cinemas, and has said he won’t make movies for the company.

The Screen Actors Guild said Friday that the transaction “raises many serious questions about its impact on the future of the entertainment industry, and especially the human creative talent whose livelihoods and careers depend on it.”

Oscar winner Jane Fonda spoke out on Thursday before the deal was announced. 

“Consolidation at this scale would be catastrophic for an industry built on free expression, for the creative workers who power it, and for consumers who depend on a free, independent media ecosystem to understand the world,” the star of the Netflix series Grace and Frankie wrote on the Ankler industry news website.

Netflix and Warner Bros. obviously don’t see it that way. In his statement to employees, Zaslav said “the proposed combination of Warner Bros. and Netflix reflects complementary strengths, more choice and value for consumers, a stronger entertainment industry, increased opportunity for creative talent, and long-term value creation for shareholders.”



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4 times in 7 seconds: Trump calls Somali immigrants ‘garbage’

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He said it four times in seven seconds: Somali immigrants in the United States are “garbage.”

It was no mistake. In fact, President Donald Trump’s rhetorical attacks on immigrants have been building since he said Mexico was sending “rapists” across the border during his presidential campaign announcement a decade ago. He’s also echoed rhetoric once used by Adolf Hitler and called the 54 nations of Africa “s—-hole countries.” But with one flourish closing a two-hour Cabinet meeting Tuesday, Trump amped up his anti-immigrant rhetoric even further and ditched any claim that his administration was only seeking to remove people in the U.S. illegally.

“We don’t want ‘em in our country,” Trump said five times of the nation’s 260,000 people of Somali descent. “Let ’em go back to where they came from and fix it.” The assembled Cabinet members cheered and applauded. Vice President JD Vance could be seen pumping a fist. Defense Secretary Pete Hegseth, sitting to the president’s immediate left, told Trump on-camera, “Well said.”

The two-minute finale offered a riveting display in a nation that prides itself as being founded and enriched by immigrants, alongside an ugly history of enslaving millions of them and limiting who can come in. Trump’s U.S. Immigration and Customs Enforcement raids and deportations have reignited an age-old debate — and widened the nation’s divisions — over who can be an American, with Trump telling tens of thousands of American citizens, among others, that he doesn’t want them by virtue of their family origin.

“What he has done is brought this type of language more into the everyday conversation, more into the main,” said Carl Bon Tempo, a State University of New York at Albany history professor. “He’s, in a way, legitimated this type of language that, for many Americans for a long time, was seen as outside the bounds.”

A question that cuts to the core of American identity

Some Americans have long felt that people from certain parts of the world can never really blend in. That outsider-averse sentiment has manifested during difficult periods, such as anti-Chinese fear-mongering in the late 19th century and the imprisonment of some 120,000 Japanese Americans during World War II.

Trump, reelected with more than 77 million votes last year, has launched a whole-of-government drive to limit immigration. His order to end birthright citizenship — declaring that children born to parents who are in the United States illegally or temporarily are not American citizens despite the 14th Amendment — is being considered by the Supreme Court. He has largely frozen the country’s asylum system and drastically reduced the number of refugees it is allowed to admit. And his administration this week halted immigration applications for migrants from 19 travel-ban nations.

Immigration remains a signature issue for Trump, and he has slightly higher marks on it than on his overall job approval. According to a November AP-NORC poll, roughly 4 in 10 adults — 42% — approved of how the president is handling the issue, down from about half who approved in March. And Trump has pushed his agenda with near-daily crackdowns. On Wednesday, federal agents launched an immigration sweep in New Orleans,

There are some clues that Trump uses stronger anti-immigration rhetoric than many members of his own party. A study of 200,000 speeches in Congress and 5,000 presidential communications related to immigration between 1880 and 2020 found that the “most influential” words on the subject were terms like “enforce,” “terrorism” and “policy” from 1973 through Trump’s first presidential term.

The authors wrote in the Proceedings of the National Academy of Sciences that Trump is “the first president in modern American history to express sentiment toward immigration that is more negative than the average member of his own party.” And that was before he called thousands of Somalis in the U.S. “garbage.”

The U.S. president, embattled over other developments during the Cabinet meeting and discussions between Russian President Vladimir Putin and U.S. envoys, opted for harsh talk in his jam-packed closing.

Somali Americans, he said, “come from hell” and “contribute nothing.” They do “nothing but bitch” and “their country stinks.” Then Trump turned to a familiar target. Rep. Ilhan Omar, D-Minn., an outspoken and frequent Trump critic, “is garbage,” he said. “Her friends are garbage.”

His remarks on Somalia drew shock and condemnation from Minneapolis to Mogadishu.

“My view of the U.S. and living there has changed dramatically. I never thought a president, especially in his second term, would speak so harshly,” Ibrahim Hassan Hajji, a resident of Somalia’s capital city, told The Associated Press. “Because of this, I have no plans to travel to the U.S.”

Omar called Trump’s “obsession” with her and Somali-Americans “creepy and unhealthy.”

“We are not, and I am not, someone to be intimidated,” she said, “and we are not gonna be scapegoated.”

Trump’s influence on these issues is potent

But from the highest pulpit in the world’s biggest economy, Trump has had an undeniable influence on how people regard immigrants.

“Trump specializes in pushing the boundaries of what others have done before,” said César Cuauhtémoc García Hernández, a civil rights law professor at Ohio State University. “He is far from the first politician to embrace race-baiting xenophobia. But as president of the United States, he has more impact than most.” Domestically, Trump has “remarkable loyalty” among Republicans, he added. “Internationally, he embodies an aspiration for like-minded politicians and intellectuals.”

In Britain, attitudes toward migrants have hardened in the decade since Brexit, a vote driven in part by hostility toward immigrants from Eastern Europe. Nigel Farage, leader of the hard-right Reform U.K. party, has called unauthorized migration an “invasion” and warned of looming civil disorder.

France’s Marine Le Pen and her father built their political empire on anti-immigrant language decades before Trump entered politics. But the National Rally party has softened its rhetoric to win broader support. Le Pen often casts the issue as an administrative or policy matter.

In fact, what Trump said about people from Somalia would likely be illegal in France if uttered by anyone other than a head of state, because public insults based on a group’s national origin, ethnicity, race or religion are illegal under the country’s hate speech laws. But French law grants heads of state immunity.

One lawyer expressed concerns that Trump’s words will encourage other heads of state to use similar hate speech targeting people as groups.

“Comments saying that a population stinks — coming from a foreign head of state, a top world military and economic power — that’s never happened before,” said Paris lawyer Arié Alimi, who has worked on hate speech cases. “So here we are really crossing a very, very, very important threshold in terms of expressing racist … comments.”

But the “America first” president said he isn’t worried about others think of his increasingly polarizing rhetoric on immigration.

“I hear somebody say, ‘Oh, that’s not politically correct,’” Trump said, winding up his summation Tuesday. “I don’t care. I don’t want them.”

___

Contributing to this report are Associated Press writers Will Weissert and Linley Sanders in Washington, John Leicester in Paris, Jill Lawless in London, Evelyne Musambi in Nairobi, Kenya, and Omar Faruk in Mogadishu.



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Nearly three-quarters of Trump voters think the cost of living is bad or the worst ever

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President Donald Trump and his administration insist that costs are coming down, but voters are skeptical, including those who put him back in the White House.

Despite Republicans getting hammered on affordability in off-year elections last month, Trump continues to downplay the issue, contrasting with his message while campaigning last year.

“The word affordability is a con job by the Democrats,” Trump said during a Cabinet meeting on Tuesday. “The word affordability is a Democrat scam.”

But a new Politico poll found that 37% of Americans who voted for him in 2024 believe the cost of living is the worst they can ever remember, and 34% say it’s bad but can think of other times when it was worse.

The White House has said Trump inherited an inflationary economy from President Joe Biden and point to certain essentials that have come down since Trump began his second term, such as gasoline prices.

The poll shows that 57% of Trump voters say Biden still bears full or almost full responsibility for today’s economy. But 25% blame Trump completely or almost completely.

That’s as the annual rate of consumer inflation has steadily picked up since Trump launched his global trade war in April, and grocery prices have gained 1.4% between January and September.

Meanwhile, Vice President JD Vance pleaded for “patience” on the economy last month as Americans want to see prices decline, not just grow at a slower pace.

Even a marginal erosion in Trump’s electoral coalition could tip the scales in next year’s midterm elections, when the president will not be on the ballot to draw supporters.

A soft spot could be Republicans who don’t identify as “MAGA.” Among those particular voters, 29% said Trump has had a chance to change things in the economy but hasn’t taken it versus 11% of MAGA voters who said that.

Across all voters, 45% named groceries as the most challenging things to afford, followed by housing (38%) and health care (34%), according to the Politico poll.

The poll comes as wealthier households are having trouble affording basics, while discount retailers like Walmart and even Dollar Tree are seeing more higher-income customers.

And in a viral Substack post last month, Michael Green, chief strategist and portfolio manager for Simplify Asset Management, argued that the real poverty line should be around $140,000.

“If the crisis threshold—the floor below which families cannot function—is honestly updated to current spending patterns, it lands at $140,000,” he wrote. “What does that tell you about the $31,200 line we still use? It tells you we are measuring starvation.”



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