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Tariffs are effectively a tax on consumers, but If the Supreme Court overturns President Donald Trump’s recent levies, some of the biggest corporations could also see a windfall. Justices will hear oral arguments today in a case challenging the legality of Trump’s wide-ranging “Liberation Day” tariffs, and if the nation’s highest court determines he does not have the authority to impose them, companies could be entitled to refunds. The biggest winners would be companies like Walmart, Home Depot and Best Buy, experts told Forbes. Consumers may be able to get a slice of that refund money, too, by way of class action lawsuits. This is a published version of the Forbes Daily newsletter, you can sign-up to get Forbes Daily in your inbox here. FIRST UP Democrats dominated the first major election since President Donald Trump returned to the White House, winning key gubernatorial races in Virginia and New Jersey. And in a victory for progressives, Zohran Mamdani will become New York City’s next mayor, as the 34-year-old state assemblymember beat former New York Gov. Andrew Cuomo and Republican Curtis Sliwa, calling his win a “mandate for a new kind of politics.” Meanwhile, Trump suggested Republicans performed poorly partly because his name wasn’t on the ballot, though he endorsed many of the candidates who lost key races. MORE: Mamdani, a self-proclaimed democratic socialist who has said billionaires should not exist, overcame opposition from billionaires, though at least two did support his campaign. At least 26 billionaires and members of billionaire families, including Michael Bloomberg, Airbnb cofounder Joseph Gebbia and the Lauder family, donated over $22 million to his opponents. BUSINESS + FINANCE Crypto’s hot streak has come to an end over the last month, and on Tuesday, bitcoin prices fell under $100,000—a five-month low. Investors seem to be retreating from riskier assets as the Federal Reserve slashes interest rates, though a December cut still isn’t guaranteed. Tesla stock closed down 5% as more opposition emerged to a pay package for CEO Elon Musk that could be as much as $1 trillion. Norway’s sovereign wealth fund, which holds a 1.14% stake in the electric car maker, came out against the pay proposal ahead of a shareholder vote set for Thursday. Musk’s compensation would only be earned in full if he meets an ambitious set of goals, including growing sales and the company’s market cap. Auto parts company First Brands is accusing its founder and former CEO of misusing millions in company money in a lawsuit, leading the company to declare bankruptcy. The firm alleged that Patrick James funneled over $700 million in cash either to himself or his affiliated entities, which he used to enrich himself and fund an extravagant lifestyle. TECH + INNOVATION One of Silicon Valley’s most well-known venture capital funds will have new leaders, with Midas List investors Alfred Lin and Pat Grady taking over as “senior stewards” of Sequoia Capital. It caps a turbulent period for the fund, which manages more than $56 billion in assets. Despite surpassing earnings expectations, shares of Palantir tumbled 8% Tuesday, leading a broader market downturn. Palantir’s stock has soared amid the AI frenzy despite concerns about a bubble, though the CEOs of Goldman Sachs and Morgan Stanley said this week they expect a major stock market correction. MONEY + POLITICS California voters approved a congressional map with five new districts favoring Democrats on Tuesday night, the party’s first official effort to counter Republican gerrymandering efforts in other states ahead of next year’s midterm elections. Campaigns in support of the ballot measure, Proposition 50, were backed by major Democratic donors George Soros and Netflix CEO Reed Hastings, while Republican megadonor Charles Munger Jr. helped fund an effort to defeat the initiative. TRAVEL + LIFESTYLE If the government shutdown extends into next week, it could plunge air travel into “mass chaos,” Transportation Secretary Sean Duffy warned, with nearly half of all major air traffic control facilities facing staffing shortages. Duffy said he may eventually be forced to shut down the airspace in certain parts of the country. TRENDS + EXPLAINERS While gubernatorial and mayoral races generated most of the headlines in this off-year election, tax measures were also on the ballot for millions of voters in states like Colorado, Texas and Washington. Such measures are a key gauge of how Americans feel about tax policy and spending, as governments aim to strike a balance between keeping taxes low and funding essential services. DAILY COVER STORY How Two Silicon Valley A-Listers Became Billionaires By Remaking Customer Service With AI Through their $10 billion startup Sierra, two Silicon Valley legends are on a quest to make AI agents the primary way companies interact with their customers. The company won’t share its exact number of clients, but they include a mix of startups and large consumer brands, including retailer The North Face, electric vehicle maker Rivian, home security giant ADT and digital radio company SiriusXM. Sierra is on track to exceed $100 million in annualized revenue by the end of the fiscal year in January, according to a source familiar with the company’s performance. Cofounders Bret Taylor and Clay Bavor don’t think of Sierra as a business that only helps handle customer complaints, though for now, agents can still be pretty rudimentary. They think agents will become so powerful that they’ll eventually become the primary way that businesses interact with customers. The opportunity has attracted a who’s who of blue chip investors to Sierra, including Sequoia, Benchmark, Iconiq and Thrive Capital. In September, the startup raised $350 million in a round that valued the company at $10 billion. Even Taylor’s old boss Mark Zuckerberg is getting into the game. In an interview, Zuckerberg pointed out that Meta, too, builds AI business tools, but focuses more on small companies rather than the large enterprises Sierra is targeting. “Part of when [Taylor and I] connect these days, we’re just sharing notes on what we see, building what are actually complementary products at different parts of the market,” Zuckerberg said. WHY IT MATTERS “Bret Taylor and Clay Bavor having sterling Silicon Valley résumés,” says Forbes senior writer Richard Nieva. “Taylor is the board chairman of OpenAI and former co-CEO of Salesforce. Bavor is an 18-year Google veteran who led emerging tech projects in virtual and augmented reality. Now they are trying their hand at an AI customer service startup in a competitive market, with a bet that agents will be the primary way businesses interact with their customers.” MORE Meet The Stanford Dropout Building An AI To Solve Math’s Hardest Problems—And Create Harder Ones FACTS + COMMENTS The Nintendo Switch 2 is flying off the shelves, causing Nintendo to raise its sales expectations despite the console’s higher price tag thanks to tariffs. The original Nintendo Switch is close to becoming the gaming company’s best-selling console of all time: $450: The price tag for the Switch 2, 50% higher than the price of the original Switch at launch 10.36 million: The number of Switch 2 units sold in the four months since its June release ‘[D]urable consumer confidence, not panic buying’ says Joost van Dreunen, professor at NYU Stern School of Business and CEO of a gaming consulting firm, of Switch 2 sales STRATEGY + SUCCESS It may not always feel this way, but job interviews are a two-way street—be sure to use the hiring process to evaluate how a potential employer operates. Keep an eye on a company’s communication style, and assess not only their answers to your questions, but also the interviewer’s tone and facial expressions. If they act evasive or defensive, it could suggest discomfort with transparency. QUIZ A popular drink company released AI-generated Christmas ads, prompting backlash online. Which brand was the ad for? A. Coca-Cola B. Red Bull C. Dr Pepper D. Monster Energy Check your answer. Thanks for reading! This edition of Forbes Daily was edited by Sarah Whitmire and Chris Dobstaff.
