
GM poaches Aurora self-driving exec for key product role
General Motors hired Sterling Anderson, co-founder of autonomous trucking company Aurora, to be its chief product officer, a new role with broad responsibilities to overhaul the way GM designs, engineers and builds high-tech cars of the future.
Why it matters: GM, like other automakers, is under intense pressure to reinvent itself by integrating hardware and software for the next era of electric, connected and automated vehicles.
A pioneer in the self-driving industry, Anderson previously worked at Tesla, giving him a breadth of experience that could help GM bridge the gap between the software and automotive worlds.
Driving the news: Anderson will oversee the end-to-end product lifecycle for both gas- and electric-powered vehicles, including hardware, software, services, and user experience, GM said.
As executive vice president, global product, and chief product officer, he'll report to GM president Mark Reuss.
He'll join GM on June 2 and will be based in the automaker's Mountain View Tech Center in California.
Context: Anderson is jumping to GM just after Aurora launched its commercial driverless trucking service in Texas.
"Leaving Aurora is one of the most difficult decisions I've ever made, especially given the exciting stage Aurora is at," Anderson said during a call with Aurora investors last week.
But he said he is confident the company's momentum would continue.
Before co-founding Aurora in 2017, Anderson worked at Tesla, where he led development of the Model X and Tesla Autopilot.
Between the lines: Anderson told Axios he was drawn to GM because of the scope of the opportunity to shape future mobility.
GM has a rich heritage and a bold vision, he said, and CEO Mary Barra and Reuss have built a solid foundation for change.
"There was just the mindset, the vision for the future, the desire to drive accountability throughout the organization," he said in an interview.
"These were things that just made me think, look, this is a company that's ready. It's ready for some transformation," Anderson said. "It wants to know what it can do and when ... the question is not why, but how that's different."
Yes, but: Automakers — GM and Ford, in particular — have recruited lots of Silicon Valley talent in recent years, often accompanied by culture clash.
In part, that's because the tech sector's mantra to "move fast and break things" conflicts with the auto industry's slower product cycles and imperatives for safety and quality.
As chief product officer, Anderson's job is to more tightly integrate hardware and software at GM, which could help reduce some of that friction.
What they're saying:"Sterling joins GM at a critical time as our industry continues to reinvent itself," Barra said in a statement, adding that his decades of leadership in the auto and tech sectors will help accelerate the pace of progress.

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Forbes
26 minutes ago
- Forbes
Tesla Stock Drops 10% As Trump-Musk Relationship Appears To Unravel
Shares of Tesla dropped by 10% on Thursday as the relationship between Elon Musk and President Donald Trump's appeared to unravel, with Musk launching attacks at the president on X and Trump suggesting to reporters at the White House criticism of his signature bill from the world's wealthiest person amounts to 'Trump derangement syndrome.' Musk has called to 'kill' Trump's policy bill, criticizing the legislation as 'massive, outrageous' ... More and 'pork-filled.' Tesla's stock fell 10.1% to around $298.52 as of around 2:20 p.m. EDT on Thursday, with losses accelerating following Trump's comment. Thursday's decline paces what would be Tesla's largest decrease since the stock plummeted 10.4% on April 4. Through more than a dozen posts on X since Tuesday, Musk has referred to Trump's policy bill as 'massive, outrageous' and 'pork-filled,' while adding, 'shame on those who voted for it: you know you did wrong.' Musk's latest criticism of the bill Thursday targeted Trump for the first time, as Musk wrote 'wise words' in response to a tweet from Trump in 2013, in which Trump said, 'I cannot believe the Republicans are extending the debt ceiling—I am a Republican & I am embarrassed!' Trump responded to Musk's recent attacks, suggesting Thursday he and Musk 'had a great relationship,' but 'I don't know if we will anymore.' $17.2 billion. That's how much was cut from Musk's fortune amid Tesla's stock slide, bringing his net worth below $400 billion to $398 billion, according to Forbes' estimates. Tesla's stock jumped 22% in May, which came as Musk said he would leave the White House and committed to serving as Tesla's chief executive for the next five years. Trump has called on Republican senators to approve his policy bill by a July 4 deadline set by Senate leadership. A stock slide for Tesla also comes as sales for the automaker declined in the U.K., Germany, Italy and China in May. Tesla's sales dropped more than 45% in the U.K., despite sales across the industry increasing by 28%. Tesla will launch a robotaxi service in Austin, Texas, in June, featuring some 20 self-driving Model Y vehicles. The service's debut in Austin follows criticism about Tesla's self-driving software and Musk's failure to disclose detailed safety and technical data about Tesla's technology. The National Highway Traffic Safety Administration has opened several investigations into Tesla's Autopilot feature over nearly a decade, including recent probes into whether Tesla's Full-Self Driving software is linked to two deaths. Musk has repeatedly said the software allows for 'full autonomy' while in a vehicle, though he has said an active driver is still required. Musk's attacks on Trump's policy bill follow his monthslong stint in the White House leading the Department of Government Efficiency. Trump and Musk have said Musk's departure happened on good terms, and that Musk would continue to be present as a Trump adviser. White House press secretary Karoline Leavitt said Trump 'already knows' Musk's stance on his bill, saying 'it doesn't change the president's opinion.' Tesla's stock declined in recent months as Musk appeared to increasingly focus on his role with the Trump administration, with some analysts criticizing him for spending '110%' of his time as head of the DOGE rather than leading Tesla. After Tesla's first-quarter earnings report in April, Musk signaled he would be 'allocating far more of my time' to Tesla, though he had yet to commit to exiting his government role.


Forbes
31 minutes ago
- Forbes
Does Elon Musk's Borrowing Show A Super Low Tesla Stock Valuation?
CANNES, FRANCE - JUNE 19: Elon Musk attends 'Exploring the New Frontiers of Innovation: Mark Read in ... More Conversation with Elon Musk' session during the Cannes Lions International Festival Of Creativity 2024 - Day Three on June 19, 2024 in Cannes, France. (Photo by) A practice of Elon Musk and Tesla's board raises questions about the company's governance and the possible low valuation that private capital markets are putting on its shares. At the heart of the issue is how the company's CEO borrows money and whether he pledged an astoundingly large percentage of his shares — close to 7% of all outstanding stock — as collateral for a sum under 4% of the market value. The question is also not just about Tesla, but all public companies where executives and directors might pledge stock for borrowing in ways that could affect the market caps of the corporations. Because this has been a potential and actual problem across companies over time. Chief executive officers often borrow money against their shares as a tax-avoidance measure. Borrowing doesn't typically trigger income recognition requirements, so it is a mechanism for gaining liquidity without causing a taxable event. The interest paid on the loan is likely far less than the capital gains tax that would otherwise be required. Boards accept the approach for two major reasons. Generally, stock is considered to be a way to 'align the interests, ' as typically put, of executives and shareholders. But executives don't want to sit on shares without access to their value. Stock as collateral offers a balance. The other reason is to avoid a company's leader dumping shares. Such a situation could affect the stock's price, both because of supply and demand, and also from the psychological impact of an assumed loss of confidence by leadership. However, a problem appears if the market value of the shares falls and the lender makes a margin call in which the borrower must increase the amount of collateral against the loan, whether that is more shares, other assets of value, or cash. The board won't want a large sale of shares because of the effect on the overall stock price, and yet they may also be concerned about the executive tying up even more shares as collateral. In 2016, The Wall Street Journal wrote about margin debt on company stock held by the CEO of trucking firm Swift Transportation. A share price downturn in 2015 left him with margin calls, some of which he met by pledging more company shares. The board had to raise its limits on pledging multiple times and approved a stock buyback to raise share prices as part of the response. The CEO had pledged what was a quarter of all outstanding shares. Sumner Redstone sold 20% of his stake in Viacom and CBS in late 2008 to meet margin calls. Aubrey McClendon, founder and former CEO of Chesapeake Energy, had to sell 94% of his shares to cover loans. In 2015, Goldman Sachs called in $100 million of share-backed loans to Valeant's CEO, the Journal separately reported. Business Insider in 2022 wrote about 'cash-poor but equity-rich tech founders' who borrowed heavily and then faced a stock plunge. They mentioned eight such people who pledged more than 10% of their stakes and then were hurt by falling share prices. The potential for an executive to get caught out by falling share prices and the need to backstop collateral for loans they've taken is broader than one might think. Michael Chadwick of Fiscal Wisdom Wealth Management says that many corporate executives amass an overconcentration in their companies' shares. 'We have a [client] who's a director for a big pharmaceutical company,' Chadwick says. The person bought a house and got a loan from a non-bank lending company with his shares as collateral. Now the share price is down sharply, and he received a margin call. Tesla's stock plunged about 8.5% by 2:20 p.m. on Thursday. As Forbes reported, this seems to be a result of the relationship between Must and President Donald Trump appearing to unravel, with each attacking the other. The Tesla 10-K for fiscal year 2024 cites Musk's borrowing as one of its risk factors: 'If Elon Musk were forced to sell shares of our common stock, either that he has pledged to secure certain personal loan obligations, or in satisfaction of other obligations, such sales could cause our stock price to decline.' In the eyes of some, that might not be enough. 'The valuation issue is a really important one,' says Nell Minow, an expert in corporate governance and chair of ValueEdge Advisors, an institutional investor advisory firm. 'Were representations made to the lenders contrary to what is being told to the shareholders?' She adds that 'stock valuations should recognize any restrictions on a significant portion of the stock.' And the amount of collateral that lenders, including big banks, want could be an indicator of concern over the stability of share prices, the direction of the company, and how much they can trust the CEO. Page 20 of Tesla's 10-K/A, filed January 30, 2025, for the company's fiscal year that ended December 31, 2024, explains the board's rules for 'directors and executive officers to pledge Tesla stock for personal loans and investments' as something 'inherently related to their compensation due to our use of equity awards and promotion of long-termism and an ownership culture.' Directors and executive officers can pledge stock (not including warrants, options, restricted stock units, or other rights to purchase stock) as loan or investment collateral. Everyone other than the CEO is limited to borrowing no more than 15% of the total value of the pledged stock. Musk, by name, has a more complex limitation: the lesser of $3.5 billion or 25% of the total value of the pledged stock. 'It's an area where boards play a critical role, because there aren't any laws or rules that regulate pledging of shares by CEOs,' says Larry Cunningham, director of the Weinberg Center for Corporate Governance at the University of Delaware. 'All the rules that exist are disclosure rules. The SEC requires companies to disclose information about a CEO pledging shares.' Tesla's board explicitly notes on page 21 that 'such pledging does not indicate the extent to which there may be actual borrowings against such shares as of such date, which may be substantially less than the value of the shares pledged.' The total amount collateralized by all directors and officers 'was less than 1% of the total value of the pledged shares.' According to Tesla public documents, the company's management 'monitors compliance with the policy by regularly reviewing and requesting updates from the applicable director or executive officer on his or her pledged stock amount and loan amount.' Then, 'if necessary,' management reports to the board or its committees the extent of pledging. 'We believe that this monitoring is effective and includes appropriate controls, and we have confirmed that each of our directors and executive officers who have pledged stock are and have been compliant with this policy since our last confirmation,' they further said. Tesla did not respond to multiple requests for more insight into the situation. Also, PwC, the audit firm involved with the 10-K, said that it doesn't comment on organizations or clients. On page 23 is the list of beneficial owner names with at least 5% of shares, as well as named executive officers and directors, who may have less than 1%. As of December 31, 2024, Musk owned 714,754,706 shares, or 20.3% of all shares. That includes 410,794,076 shares in the Elon Musk Revocable Trust dated July 22, 2003, and 303,960,630 issuable on exercise of options within 60 days after December 31, 2024. As of then, all of the shares that Musk owned outright were in that revocable trust. They include 235,998,721 shares pledged against his personal loans. The opening value Tesla shares on Tuesday, May 27, 2025, was $347.35. The value of the shares pledged is $81.97 billion. Round it to $82 billion. A quarter of that amount is $20.5 billion. According to the board's rule, Musk can have borrowed no more than $3.5 billion against all that stock, or 4.3% of the shares' total value. Furthermore, the shares he's pledged are 6.7% of all Tesla shares. If the board approved the borrowing because the loaned amount was far lower than the value of the shares, the question of potential impact on the valuation of the company's market cap remains. Not just for Tesla, but any company whose executives could pledge significant amounts of stock for low valuations. 'Banks typically require 50-70% loan-to-value ratios on stock collateral, with daily mark-to-market,' says Giacomo Santangelo, a senior lecturer in economics at Fordham University. 'A 20% stock decline on a 60% loan-to-value loan means the borrower must immediately post additional collateral or face forced liquidation. This creates cascade risk, where small declines trigger margin calls, forcing either more pledging or open-market sales, putting more pressure on the stock.' Santangelo adds that from a share valuation perspective, 'traditional models miss this entirely' as they typically assume continuous liquidity. 'But pledged shares behave more like restricted stock with embedded put options held by creditors,' meaning there are two constraints. One is on the shareholder's ability to turn the shares into cash through a sale. The other is of a potential forced sale. Depending on the circumstances, banks can look for other assets, whether securities, real estate, cash, or even alternative assets like art. If an executive is caught on a margin call from borrowing, where the equity of the stock pledge is worth less than a set baseline, the person will have to pony up more cash, offer alternative assets, or sell off additional shares to cover the balance. This can happen when a stock's price drops. Tesla has seen downward pressures on its shares. As Yahoo Finance reported, Tesla electric vehicle registrations (a proxy for sales) were down 49% year-over-year in Europe even as overall EV registrations were up 34.1%. Citi Analyst Jeff Chung noted that recent sales in China were down about 16% year over year, as Barron's reported. Shares did jump on Tuesday, May 27, on Musk saying that he would return to the office rather than spending more time in politics. In 2022, Forbes reported that out of the Forbes 400 list of 2021, 32 billionaires pledged shares of public companies listed on the New York Stock Exchange or Nasdaq where they were either directors or significant shareholders (at least 5% of total shares of a company). Musk reportedly pledged a greater amount than the other 31 billionaires combined. He was fueling business deals like the Twitter takeover. According to that Forbes report, he pledged $62.5 billion in Tesla stock as collateral for margin loans of $12.5 billion. In the 2022 proxy statement, the board wrote that it limited loans with stock collateral to 25% of the pledged stocks. 'We believe this cap places sufficient limitation on any potential risk attendant to pledging stock, while still allowing flexibility in the use of equity awards to promote long-termism and ownership culture,' they wrote at the time. Also, the statement noted that a proxy advisory firm had 'concerns about the Board's risk oversight with respect to Tesla's policy regarding pledging of shares by directors and officers.' The proxy advisory was also concerned over 'hypotheticals of increasing share pledges.' In 2023, the board added the $3.5 billion cap to Musk's borrowing. Whether that applied in retrospect is unclear. If so, it would suggest that Musk had to repay a massive sum to keep within the new bounds. There seems to be nothing to indicate that his previous borrowing was grandfathered. If it were, there should be some documentation to that effect. Had he repaid that money, it would seem unlikely that vast number of shares would still be pledged. If he did repay the previous amounts, then under the Board's rules, the value of the shares to the maximum he could borrow, $3.5 billion, would be a roughly 23-times collateral coverage. According to Santangelo, that would signal that the lender saw an extreme risk in the pledged shares. What is clear is that in 2023, Musk had 238,441,261 shares pledged — 2,442,540 shares more than in 2024. That was a big jump from 2022, when Musk had pledged 92,331,125 shares, just under 39% of the 2023 figure. Also, the total shares he had in 2022 was 172,608,251, 21.2% of the total shares. There a large increase in the total number of shares as well, from 1,033,507,611 in 2022 to 3,164,102,701 in 2023. 'The whole point of caring about how much stock the executives and directors have is so investors can assess how well the interests of insiders align with theirs,' Minow says. 'Using stock as collateral arguably provides even more of an incentive to keep the price up, unless, as apparent in the Twitter purchase, the board is willing to open the spigot to make up for any squeezes.'


WIRED
36 minutes ago
- WIRED
The Elon Musk and Donald Trump Breakup Has Started
Jun 5, 2025 2:13 PM Trumpworld insiders fear that Elon Musk's attacks on Donald Trump's "Big Beautiful Bill" could kill it—and are already advising candidates to turn their backs on the world's richest man. Tesla CEO Elon Musk speaks alongside US President Donald Trump in the Oval Office of the White House on May 30, 2025. Photograph:Elon Musk may have finally reached the end of his rope with President Donald Trump—and vice versa. While the world's richest man wars with the president on X, Republican strategists and insiders in Trumpworld tell WIRED that Musk's broader future in Republican politics is on shaky ground. Over the last few days, Musk has posted increasingly personal criticisms at Trump and the Republican budget reconciliation package known as the Big Beautiful Bill on X. This came to a head on Thursday, when Trump addressed the relationship during a press conference with German chancellor Friedrich Merz. 'Elon and I had a great relationship. I don't know if we will anymore,' said Trump, who compared Musk to past aides who have, he said, developed 'Trump derangement syndrome' after leaving his administration. Trump and Musk have been in lockstep since Musk endorsed the president in July 2024. Musk poured hundreds of millions into Trump's re-election bid, and their close relationship has been promoted by the pair countless times. Just last week, the two held a joint press conference as an apparent celebration of and conclusion to Musk's time as a special government employee involved with his so-called Department of Government Efficiency (DOGE). Today's remarks, though, reveal how fractured that relationship has become. 'Without me, Trump would have lost the election,' Musk posted on X shortly after Trump's comments. 'Dems would control the House and the Republicans would be 51-49 in the Senate.' Behind the scenes, Trumpworld Republicans tell WIRED, this tension is about more than just a bromance falling apart. If Musk continues to escalate, he may drag down legislation that Trump sees as a key part of his political legacy. 'If [Musk] actually successfully gets any votes switched to tank this bill and kills it,' a senior Trumpworld strategist tells WIRED, 'then I think at that point he's fucking dead to Donald Trump.' This Republican—who, like the four WIRED spoke to for this story, requested anonymity to keep what's left of their political futures alive after the current implosion of the Trump-Musk relationship—went on to say that Musk meddling in the Big Beautiful Bill came at the worst time and with the highest stakes for the Trump White House. At best, they say, Trump has '18 months' to cement his legacy with his signature legislation. 'Some of the priorities of President Trump are not possible outside of this bill.' After that, this same senior Republican said, the remainder of Trump's term will likely be hamstrung by an expected Democratic victory in the House in the midterms that would prevent any major legislative wins. 'Whatever,' Musk tweeted minutes after Trump's comment about their relationship, and the president's claims that Musk was only upset about the potential impact to his automotive business. 'Keep the EV/solar incentive cuts in the bill, even though no oil & gas subsidies are touched (very unfair!!), but ditch the MOUNTAIN of DISGUSTING PORK in the bill. In the entire history of civilization, there has never been legislation that both (sic) big and beautiful. Everyone knows this! Either you get a big and ugly bill or a slim and beautiful bill. Slim and beautiful is the way.' Musk has continued posting, attacking, he says, what he believes is Trump's about-face on raising the debt ceiling. (According to the nonpartisan Congressional Budget Office, the package would increase the deficit by $2.4 trillion through 2034, mostly due to an anticipated $3.7 trillion decline in revenues due to the extension of tax cuts passed during Trump's first term. The package would cut spending by about $1.3 trillion, with most of that coming from cuts to Medicaid and food assistance. Other spending would decline by about $64 billion on net, the CBO has written, with cuts offset by 'increases in outlays for defense, immigration enforcement, and homeland security.' Because the package would increase the deficit, it would necessitate increasing the debt ceiling—something Trump has said he would like to do away with entirely.) Republicans familiar with the dynamic between Trump and Musk said several recent flashpoints have brought the two men closer to the brink. The most notable were Musk's reported outrage at Trump's announcement that he was withdrawing the nomination of Jared Isaacman, a Musk ally, for Nasa administrator. The Big Beautiful Bill, if passed, would also cut the electric tax vehicle credit that benefits companies like Tesla. 'If this really is a divorce and they start butting heads,' a second senior Republican strategist plugged into Trumpworld tells WIRED, 'it doesn't take much for Trump to put out a Truth Social post that undermines what Elon's trying to do.' Two of the Trumpworld Republican strategists WIRED spoke with who have clients on Capitol Hill—including senators facing reelection—said that even before Thursday's outburst, Musk had become so toxic that even his seemingly endless funds couldn't change their outlook. 'My advice to clients, many of which are in Congress in the Senate and seeking reelection, is to take the side of their voters and not the side of Elon Musk,' says the senior Republican strategist. 'If you vote to basically throw your district under the bus,' the second Republican adds, 'that means you're going to lose in November anyways.' Fearing a midterms wipeout and a lingering, toxic drag on the GOP brand from Musk, Republicans who had been cautious in their approach to the world's richest man are feeling increasingly emboldened to encourage their clients to break free. 'You should not turn your back on promises made [to voters] just because Elon Musk is mad about it,' the first strategist says. 'Unless Elon Musk spends a couple hundred million dollars going after people in these primaries, that is not going to have the impact that people think he does because Donald Trump is still more popular than anybody else in the party. And if you're on the side of Donald Trump, then ultimately you're going to be okay.'