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We wish we could say Good Morning…
But after what happened last night in Washington D.C. — it’s difficult to say.
Tragically, 67 lives were lost in the airplane / helicopter crash. This marks the first U.S. airline crash since 2009 and one of the deadliest airplane crashes in the last 50 years.
As a result, thousands of people will be impacted by the loss of a family member, partner, friend, neighbor, colleague, teammate, and everything in-between. Our prayers will continue to be sent to all of those impacted, as well as the first responders that continue to try to help the situation.
Throughout whatever difficulties you’re going through today — remember that there are so many people going through something unspeakably tragic today.
Below is a breakdown is of everything covered in today’s newsletter:
⭐ Elon claims that Optimus can capture $10T+ of revenue.
⭐ Our three favorite tips to automate your money in 2025.
⭐ The Fed unanimously decided to leave interest rates unchanged.
⭐ Big Tech Capital Expenditure (CapEX) growth is expected to slow in 2026.
⭐ GDP grew at a +2.3% pace in Q4, less than expected.
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Market Overview
As of market open, 1/30/2025
Chart of the Week
“Optimus has the potential to generate more than $10 trillion in revenue.”
— Elon Musk
Tesla (TSLA) reported their Q4 earnings yesterday and Elon shared some pretty insane quotes, including the one shown above.
Another favorite was… “There is a path to Tesla being worth more than the next five largest companies combined,” which at currently valuations would put Tesla’s market cap somewhere around $15 TRILLION — or $5,000 per share.
Why is Elon saying these things?
Real-world AI — which is also known as “physical AI.”
Essentially, Elon claims Tesla is lightyears ahead of their competition when it comes to their real-world AI infrastructure. This more specifically means autonomous cars and humanoid robots, like Optimus.
Elon believes that his humanoid robot Optimus, once scaled to millions of units manufactured per year, has to opportunity to completely revolutionize physical labor — therefore the world. The largest revenue opportunity known to mankind is human labor, and Elon plans to commoditize it via Optimus robots.
This is why he believes Tesla will eventually become the world’s most valuable company — because he’s building a solution for the world’s more valuable asset. Think about it… if by the end of the decade Tesla is able to sustainably sell ten million Optimus robots per year at $50K per unit, that’s $500B per year in revenue.
Maybe his $10 trillion figure isn’t too far off? Especially when you’re talking about the numerous ramp up timelines this man has been able to execute upon in the past when it came to his vehicles. Tesla manufactured 2M vehicles in 2024.
I don’t know about you, but we’re not getting left in the dust! We’re very happy long-term shareholders of Tesla stock.
In Case You Missed It…
In this week’s Monday-morning episode of the Rich Habits Podcast (linked here) — Robert and Austin shared their three favorite tips to build automation with your money in 2025.
Here’s what they shared:
Automating Your Bills — Ad hoc management of your bills could lead to surprises and overdrafts. The solution? Full visibility and auto-pay. Start by listing the due date of every monthly bill — subscriptions, insurance, rent, utilities, etc. — so you know exactly when money will leave your account. Then, put everything on auto-pay to avoid late fees. By planning your payments ahead of time, you can better prepare for investing and saving throughout the month.
Automating 401(k) Contributions — Despite 78% of Americans having access to a 401(k), many still don’t take full advantage — especially when an employer match is available. That’s free money being left on the table! If you don’t have high-interest debt, automate contributions up to the match and let compounding work its magic. The key is removing the decision-making process so investing becomes second nature.
Automating Your Investments with Public — With an Investment Plan from Public.com, you can set up recurring contributions to a customized mix of stocks, ETFs, and crypto. Whether you want broad market exposure (VOO, VTI), thematic investing (AI, biotech), or diversified bonds for lower risk, Public handles the allocation and execution automatically. There’s no need to manually buy shares or second-guess market timing — it’s all done for you. Just set it and forget it!
By implementing these three automation strategies — you can eliminate financial stress, stay consistent, and build wealth effortlessly.
Make 2025 the year you put your finances on autopilot!
Here’s a link to the Q&A episode that was posted this morning.
We answered questions from: Heather, Daryl, Mario, Susan, Hannah, Kirk, and Erin.
You can submit questions for these episodes by asking them inside of the Rich Habits Network, replying to this email, or sending us a DM on Instagram.
The Rich Habits Podcast is available on Spotify, Apple, iHeart, YouTube, and wherever else you get your content!
Robert’s Callout
The Fed unanimously decided to leave interest rates unchanged.
The Federal Reserve kept its key interest rate unchanged at 4.25%-4.5%, pausing after three consecutive cuts since September 2024. The decision reflects concerns about inflation, which remains above the Fed’s 2% target, despite a strong labor market and solid economic growth. Chair Jerome Powell emphasized the need for further progress on inflation or labor market weakness before considering additional rate cuts. Meanwhile, President Trump has pushed for immediate rate reductions, though Powell stated he has had no direct contact with the president regarding monetary policy.
So what are the takeaways?
To me — this seems like the beginning of the “Fed Pause” that will last for awhile.
Fed Chair Powell acknowledged significant economic progress, with inflation nearing the 2% target but still being slightly elevated. He stated that the labor market is not contributing to inflationary pressures. The Fed doesn’t see urgency to adjust interest rates and will take a cautious, meeting-by-meeting approach.
During a “Fed Pause” with interest rates as high as they are — we’re going to learn a lot about American businesses. If we see cracks start to emerge in the labor market and the earnings reports of small-cap / mid-cap companies, then there could be a lot of red flags.
If we don’t — then this market should continue to rip higher.
Austin’s Callout
Big Tech Capital Expenditure (CapEX) growth is expected to slow in 2026.
Big Tech companies like Google, Microsoft, Amazon, and Meta are set to spend well over $250 billion on capital expenditures in 2025 — driven largely by AI investments.
Microsoft alone plans to spend $80 billion on AI-enabled data centers, while Meta’s CapEx will rise to as much as $65 billion. This level of spending surpasses the market cap of most S&P 500 companies and is comparable to the size of household names like Coca-Cola or Wells Fargo.
“It’s going to be expensive for us to serve all of these people because we are serving a lot of people,” said Zuckerberg, whose company said it had 3.35 billion daily active users in Q4.
“I continue to think that investing very heavily in CapEx and infrastructure is going to be a strategic advantage over time… It’s possible that we’ll learn otherwise at some point, but I just think it’s way too early to call that, and at this point, I would bet that the ability to build out that kind of infrastructure is going to be a major advantage.”
But what happens after all of this spending takes place?
As you can see in the bullet points above, total CapEx growth across Big Tech is expected to reduce dramatically from 2025 to 2026. I’m very curious to see if these massive companies are reducing their CapEx growth in reaction to the DeepSeek news.
Another thing to recognize here is caution. Big Tech companies are being very aggressive right now, but they recognize that spending this aggressively 12 months from now could be met with a different set of challenges.
There’s a lot of uncertainty in the market, and I believe that’s reflected by the 2026 CapEx expectations for these companies. It’s a risk-on, AI arms at the moment — and I find that to be very bullish. I even mentioned that in my recent Wall Street Journal feature!
Analysts will be begging for updates regarding this more-than-quarter-trillion of CapEx spend for many months to come.
The Rich Habits Radar
👉 Nvidia went on a wild ride from the Chinese DeepSeek app.
👉 GDP grew at a +2.3% pace in Q4, less than expected.
👉 Starbucks shares rose +12% after reporting earnings and turnaround plan.
👉 Royal Caribbean surged +14% after earnings beat & optimistic guidance.
👉 Meta crushed earnings & stays committed to large capex in AI infrastructure.
👉 IBM soared +15% after revealing major free cash flow improvements.
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Disclaimer: This is not financial advice or a recommendation for any investment. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.