Rich Kid Cars 🚗

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Welcome back to another edition of Lifestyles of the Rich and Infamous. Let's get into it.

by Allison Morrow

⚖️ HOLMES TRIAL

We're just two weeks into what is expected to be a three-month trial for Elizabeth Holmes, the founder of failed blood-testing startup Theranos. Already, we're learning a lot about what went down at the company and the alleged fraud that bilked investors out of millions of dollars.

What prosecutors say: Holmes, who was 19 when she founded the company, knowingly misled investors, patients and doctors about the capabilities of Theranos' blood-testing technology as she found herself running out of time and money to make the technology work.

The defense: Holmes was a young, ambitious CEO. Her company failed, but that failure is not a crime. Holmes has pleaded not guilty to a dozen counts of federal fraud and conspiracy, and she could face up to 20 years in prison.

Here are some of the revelations that have come out in the trial so far:

The Walgreens rollout: A scientist who worked for Theranos testified that Holmes knew about the failings of Theranos' blood analysis machine yet moved forward with the rollout of its devices to Walgreens locations anyway.
Forged documents: Prosecutors told the jury that Holmes outright lied to investors when she told them that Theranos' technology had been validated by a majority of the big pharma companies. They pointed to what they described as a forged document that had Pfizer's logo printed on it to signal the pharma giant's support. "Pfizer did not write this…Pfizer did not give its permission to put its logo on this," prosecutor Robert Leach said in opening statements.
Burning through cash: There were years during which Theranos reported no revenue and, at one point in 2013, the company was burning through $2 million per week, according to testimony from Theranos' former corporate comptroller. By 2015, the company had accumulated hundreds of millions of dollars in losses. Meanwhile, Holmes' salary jumped from $200,000 to $400,000 during that time.

CNN Business' Sara Ashley O'Brien is in the courtroom, taking all the notes.

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#️⃣ NUMBER OF THE DAY

$2.1 billion

The office is decidedly not dead for Google, which just inked a $2.1 billion deal for a building on Manhattan's West Side — the biggest US office sale since the pandemic sent workers home and put a big question mark over the future of offices entirely. Google, like most tech giants, is embracing a flexible work model in response to Covid-19, but it also wants to encourage in-person collaboration, and it plans to open the new office in 2023.

💰 RICH KIDS

Look, I can spend all day poking fun at the excesses wrought by our capitalist system: Jeff Bezos' superyacht, which is so big it requires its own service yacht. Bill Gates' 66,000-square-foot estate named Xanadu 2.0. This hideous $500 million LA mansion that no one in LA would be caught dead in.

But you know the system is fundamentally broken when there's a market for this: A $123,000 battery-powered Aston Martin DB5. The same car James Bond drives. But for children.

The Aston Martin DB5 Junior is a pint-size version of the one in the movies. It even has little toy machine guns that come out of the front as the headlights retract (you know, cute!) It also has a "smokescreen" device that pumps dark smoke through "exhaust pipes." Perfect for when your toddler decides to play a sophisticated game of hide-and-seek at 50 mph (that's not a joke – this adorable six-figure kiddie car tops out between 45 and 50 mph).

"We'd encourage parents to ensure their kids wear a helmet and that kids are supervised while driving," an Aston Martin spokesman said.

MY TWO CENTS

Alternatively, you can buy your kid a bike and teach them about, I dunno, the incomparable beauty of using one's own two legs to create momentum, build physical strength, feel the wind in their hair, have an adventure that teaches them about their own inner drive and ability to push through obstacles, to endure ... Plus, with all the money left over you can send them to college. Or whatever.

WHAT ELSE IS GOING ON?

💸 US stocks attempted a rebound Tuesday but couldn't quite stick the landing. Stocks finished mixed, still bruised by Monday's selloff, which was driven by concerns about the imminent default of Chinese property giant Evergrande.

🏦 A few weeks ago, investors were convinced the Federal Reserve would announce a tapering of its massive pandemic stimulus program at its September meeting, which began Tuesday. But somber economic data, including a disappointing jobs report, have pushed back expectations for the taper timeline.

♻️ McDonald's is giving Happy Meals a green makeover, phasing out plastic toys in favor of paper-based trading cards and board games.

🌯 Chipotle is adding smoked brisket to its menus nationwide