topics

politics-policy

epstein-files

donald-trump

2026-midterm-elections

immigration

behind-the-curtain

race-and-equity

technology

privacy-tech-regulation

automation-and-ai

tiktok-news

big-tech

social-media

cybersecurity

economy

social-security

inflation

tariffs

federal-reserve

jobs

transportation

business

stock-market-news

retail-news

crypto

media

elon-musk

dealmaking

health

rfk-jr

drug-prices

axios-explains-abortion

public-health

world

israel

axios-explains-ukraine

iran

russia

china

energy-climate

nuclear-energy

climate-energy-policy

climate-change

extreme-weather

alternative-energy

electric-vehicles

science

emerging-tech

biomedicine

newsletters

pittsburgh

atlanta

san-diego

charlotte

boulder

washington-dc

kansas-city

dallas

denver

detroit

des-moines

austin

boston

chicago

cleveland

columbus

houston

indianapolis

miami

nashville

new-orleans

nw-arkansas

philadelphia

phoenix

portland

richmond

salt-lake-city

san-antonio

san-francisco

seattle

tampa-bay

twin-cities

raleigh

huntsville

colorado-springs

axios-local

axios-pro

axios-live

the-axios-show

National

Tesla's stock plunged by 9% on Tuesday, poised to end 2022 on a grim note after having shed over 70% of value this year.

Why it matters: Investors are expressing dissatisfaction with Elon Musk by punishing Tesla's shares, with the billionaire distracted by his tumultuous buyout of Twitter. 

Meanwhile, Tesla is facing challenges associated with a slowing global economy and reported troubles in China, its largest market.

Driving the news: A rout in blue chip and technology shares, and the failure of traditional year-end "Santa Claus" rally to materialize, has helped Tesla's market losses snowball, with the stock having fallen for seven consecutive days.  

On Tuesday, a report that Chinese production was being halted accelerated the dramatic selloff.

Tesla's declines have caused the stock to crash out of the S&P 500's top 10 most valued companies, Bloomberg notes. 

Zoom out: During the pandemic, Tesla could seemingly do no wrong, muscling its way into the exclusive club of companies worth over $1 trillion. A relentless bear market has conspired with concerns about a distracted Musk, and a weaker environment for electric vehicles overall, to shave billions from Tesla's market capitalization.

The intrigue: With the House that Elon built seemingly on fire — and the polarizing billionaire's own net worth suffering as a result — Musk is actively seeking a full-time CEO to helm Twitter. But a concrete timetable has yet to be revealed. 

What they're saying: "At the same time that Tesla is cutting prices and inventory is starting to build globally in face of a likely global recession, Musk is viewed as "asleep at the wheel" from a leadership perspective for Tesla at the time investors need a CEO to navigate this Category 5 storm," Dan Ives, Wedbush's veteran tech analyst, wrote in a research note on Tuesday.

The bottom line: Everyone, including faithful Tesla investors, are wondering where the bottom is. Until Musk designates a successor at Twitter, an end to the rout might not be in sight. 

Tesla stock walloped by "Category 5" storm as woes mount

The company's stock plunged by 9% on Tuesday, poised to end 2022 on a grim note.

Illustration of a flat tire leaking air with the Tesla logo on it

Elon Musk

Social Media

Top stories & latest news on the Federal Reserve, real-time data, plus the biggest shifts happening in the U.S. and global economy.

Economy

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

Economy & Business

Adam Fox, who was convicted in August of conspiring to abduct Michigan Gov. Gretchen Whitmer in 2020, was sentenced to 16 years in prison by a U.S. District Court judge on Tuesday.

Why it matters: Fox and his co-defendant were accused of leading the plot to kidnap Whitmer and violently attack and overthrow the state government, though it was ultimately disrupted by the FBI.

Both Fox and Barry Croft Jr. were convicted on one count each of conspiring to abduct the governor and conspiring to obtain a weapon of mass destruction.

Prosecutors said they planned to use a bomb to destroy a bridge as part of the kidnapping plot.

Fox faced a possible life sentence over the convictions. 

What they're saying: "Mr. Fox, and his confederate Mr. Croft, were convicted by a jury of masterminding a plot to kidnap the Governor of Michigan and to use weapons of mass destruction against responding law enforcement," Matthew Olsen, assistant attorney general of the Justice Department's National Security Division, said in a statement.

"Today’s sentence reflects the Department of Justice’s unwavering commitment to protecting our elected officials, law enforcement officers, and dedicated public servants from criminal threats and violence — and to holding the perpetrators of such acts fully accountable under the law," Olsen added.

The big picture: Three men were sentenced earlier this month after being found guilty of providing material support to a terrorist act over the plot, which was partially in response to Whitmer's COVID-19 restrictions.

One got 12 years in prison, while the others were given 10 and seven-year sentences.

Other men arrested in the plot received prison sentences of four years and two-and-a-half years. Two more men were acquitted by a jury. 

What's next: Croft, who was also found guilty of knowingly possessing an unregistered destructive device, is set to be sentenced on Wednesday. He faces a possible life sentence.

Go deeper: DHS chief warns of "emerging threat of the domestic violent extremist"

Editor's note: This article has been updated with a statement from the Justice Department.

Whitmer kidnapping plot ringleader sentenced to 16 years in prison

He was convicted in August of conspiring to abduct the governor in 2020.

Michigan Gov. Gretchen Whitmer in East Lansing in November 2022.

Michigan Gov. Gretchen Whitmer in East Lansing in November 2022. Photo: Brandon Bell/Getty Images

Michigan

2024 will be an election year like no other, as President Biden seeks re-election amid economic uncertainty, two wars and questions about his age. His likely foe, former President Trump, faces felony charges and vows revenge on his political enemies. Meanwhile, Americans generally are dissatisfied with those choices and are divided over immigration, race, education and more.

Politics & Policy

Taiwan will extend and reform its period of mandatory military service to one year as the country continues to contend with heightened tensions with China, Taiwanese President Tsai Ing-wen announced at a press conference Tuesday.

Why it matters: Taiwan's current four-month mandatory military service program is no longer sufficient to meet the country's combat readiness "in terms of quantity and quality of training," Tsai said.

Tsai called the move an "incredibly difficult decision" but emphasized that it was necessary for the country's national security and "democratic way of life."

State of play: Starting in 2024, the military service will be extended to one year, with the change applying to all men born after Jan. 1, 2005.

The salary of draftees will also be quadrupled, from roughly $195 to more than $650 per month, per CNN.

Changes will also be made to make the program more rigorous, including training with new weapons such as javelin missiles and increasing the amount of live ammunition training, Tsai said.

Military service is currently optional for women in Taiwan, per the Washington Post. 

What they're saying: "Not only in Europe, but also in Asia, China's expansion continues to impact the international order, threatens regional peace and stability, and affects cross-strait relations," Tsai said.

"No one wants war, neither the government and people of Taiwan nor the international community," she added.

"Peace will not fall from the sky," Tsai said, adding that "only by preparing for war can we avoid war, and only by being able to fight can we stop war."

The big picture: Tensions between China and Taiwan have been rife in 2022. After outgoing House Speaker Nancy Pelosi visited Taiwan in August, China responded with live-fire drills near Taiwan.

Tsai's announcement came days after China's military deployed dozens of planes across the median line of the Taiwan Strait.

The U.S. has been urging Taiwan to bulk up its defense capabilities for years, per the Financial Times.

“We welcome Taiwan’s recent announcement on conscription reform, which underscores Taiwan’s commitment to self-defense and strengthens deterrence," read a statement Tuesday from the American Institute in Taiwan, the de facto U.S. embassy.

Go deeper: Beijing sends dozens of warplanes across Taiwan Strait

Taiwan extends mandatory military service as tensions with China persist

"Only by preparing for war can we avoid war, and only by being able to fight can we stop war," Taiwanese President Tsai Ing-wen said Tuesday.

Tsai Ing-wen during a news conference at the Presidential Palace in Taipei, Taiwan, on Dec. 27. Photo: Lam Yik Fei/Bloomberg via Getty Images

Taiwan

China

Conflicts, policies and powers are intersecting and shaping the world. Breaking news and analysis of national security, foreign policy and global crises.

World

Axios AM

Share of independent voters who supported <strong style="color:#15a0ff;">Democrat</strong> or <strong style="color:#fa4f3b;">Republican </strong> candidates

Data: AP VoteCast, conducted by NORC at the University of Chicago for The Associated Press. (The remaining voters chose "another candidate.") Chart: Jacque Schrag/Axios

Interviews with midterm voters show Republicans continually underperform Democrats with one of the ripest targets in politics — independents who say they don't lean toward either party.

Why it matters: The interviews, by AP VoteCast (methodology), show a critical mass of moderates aren't thrilled with Democrats — but are resistant to a MAGA-fied GOP.

The data show Republicans have been stuck in the high 30s among independents in each of the past three elections.

These voters made up 12% of the electorate in 2018, 5% in 2020 and 8% in 2022.

20% of independents didn't vote for either party in 2022 (the missing votes in the chart above).

Between the lines: In November, independents didn't entirely blame Biden for the bad economy, even though they rated it poorly, AP reports.

Few independents said the economy is doing well — and about two-thirds disapproved of Biden's handling of it.

But independents were slightly more likely to say inflation is the result of factors outside Biden's control.

Reality check: That nuance was often missing from GOP messaging.

New data: GOP's gap with independent voters

Republicans are continually underperforming Democrats with one of the ripest targets in politics.

Midterm elections 2022

A chart showing share of independent voters who supported Democrat or Republican candidates in 2018, 2020 and 2022.

Vitals

Axios Vitals

There are few things more stressful than getting a serious medical diagnosis, but pandemic-era changes in virtual care are prompting more patients to obtain a second opinion without leaving home.

Why it matters: The telehealth explosion made it easier to get advice from top doctors across the country  — and for health systems to grow business beyond their physical footprints and even treat some of the people seeking consultations.

Case in point: The Clinic, a joint venture between Cleveland Clinic and telehealth giant Amwell, launched in 2020 just before the pandemic began.

The idea was to pair the Cleveland Clinic brand with Amwell's virtual tools and its existing connections with private insurers to make it easier for patients to get their records reviewed, said Frank McGillin, CEO of The Clinic.

State of play: Patients customarily have to run the traps to get relevant health records and test results to a new doctor and may endure extended wait times, McGillin said. And on the backend, some providers still rely on large binders of physical records and scans that have to be lugged around.

The Clinic works like a pricey concierge service that gathers records in digital form and pairs patients with a specialist who reviews the case and typically delivers a second opinion within two weeks.

The speed and convenience can be valuable in the case of a cancer diagnosis or in a situation where the course of treatment isn't clear. But for now, patients not referred by one of The Clinic's insurance partners have to pay close to $2,000 out-of-pocket, not including any additional tests or services. 

How it works: Patients register on The Clinic's website, then have a live intake interview with a nurse care manager. Once patients give their consent, The Clinic collects the relevant medical records for review.

Cleveland Clinic specialists deliver a written report with a video consultation after reviewing imaging scans and lab tests. 

The Clinic was already offering second opinions and digitizing clients' medical records when the pandemic hit, giving it a head start as social distancing measures kicked in and in-person care dropped off, McGillin said. 

"Digitizing it helped us survive because clearly blue binders weren't going to work," he said. 

The big picture: This was part of the bigger expansion of virtual specialty services during the pandemic, said Ido Schoenberg CEO of Amwell.

"The aversion against connecting digitally is really very, very different today than it was," Schoenberg said.

Other virtual care companies' offering second opinions were boosted by the pandemic-driven explosion in telehealth. Health benefits company Accolade acquired virtual second opinion startup 2nd.MD and covers more than 9 million individuals. 

Large insurers like Elevance Health, formerly known as Anthem, have begun offering second opinion services to major national employers, Schoenberg said. Patients can access the services from around the world, making it easier for those in underserved areas to get a second opinion without having to travel.   

"It’s no longer a single soldier patient trying to find their way in the maze of options. It’s becoming part of a normal benefit," Schoenberg said. 

The business case: So far, The Clinic estimates it's been able to save $65 million per 100,000 health plan members. 

More than 70% of the time, the second opinion program eliminates unnecessary tests or procedures or otherwise modifies a diagnoses or treatment plan, McGillin said, citing average savings of $12,000 when there's a change in diagnoses.

One common example is disagreeing with a recommendation that a patient get spinal fusion surgery when physical therapy would be more appropriate, he said. 

While McGillin said the second opinion service don't steer patients to a particular facility, the health system does earn new patients through the program. 

"It does help achieve that mission as a feeder for more patients which is absolutely a good business opportunity," he said. 

Yes, but: It's still a premium offering for most, requiring patients to pay out of pocket rather than serving as a reimbursed visit. The cost for self-paying patients is $1,850.

Studies generally find the cost-effectiveness of seeking a second opinion varies greatly by patient group and specialty.

Patients may not like the answer they get from a second opinion, there can be confusing disagreements between doctors, and sometimes there just won't be a clear answer. 

What to watch: The expansion of virtual specialty care programs that offer second opinions for chronic care management.

McGillin said the program is likely a starting point for Cleveland Clinic "as we build on this approach, to rethink the delivery of specialty care outside the four walls of the hospital." 

He expects better management of large populations with chronic conditions, like heart failure, will be the next step.

The evolving business of virtual second opinions

The telehealth explosion made it easier for patients to search out advice from top doctors across the country — and for health systems to get more revenue beyond their physical footprints.

Illustration of a stethoscope combined with a wifi signal

Axios

Tuesday's top stories

Tesla stock walloped by "Category 5" storm as woes mount

Whitmer kidnapping plot ringleader sentenced to 16 years in prison

Taiwan extends mandatory military service as tensions with China persist

New data: GOP's gap with independent voters

The evolving business of virtual second opinions

Crypto will be fine

Scoop: U.S. Jewish leaders warn Israeli officials over incoming right-wing government

Transportation Department to review Southwest's mass flight cancellations

Rep.-elect George Santos apologizes for "embellishing" resume

Biden approves New York emergency declaration over "blizzard of the century"