Latest news with #Tesla
Gizmodo
20 minutes ago
- Business
- Gizmodo
Elon Musk Is Trying to Get His Other Companies to Foot the Bill for xAI
Elon Musk's SpaceX is set to invest billions in his artificial intelligence company, and now he is hoping Tesla will do the same. Investors familiar with the matter told The Wall Street Journal that the rocket company SpaceX has agreed to invest a whopping $2 billion in xAI, the Musk-led firm behind the controversial large language model Grok. This investment makes up almost half of the $5 billion of equity that the AI company raised last month. Unsurprisingly, the richest man in the world isn't satisfied. On Sunday, he posted on his social media platform X (formerly Twitter) that Tesla shareholders will vote on whether they will also invest in his AI company. He responded to an X user asking about a Tesla investment in xAI by posting, 'It's not up to me. If it was up to me, Tesla would have invested in xAI long ago. We will have a shareholder vote on the matter.' xAI merged with X earlier this year, putting it at a $113 billion valuation. The AI company is now reportedly targeting a $200 billion valuation in its next round of fundraising. This comes as xAI is also reportedly burning through cash at a rapid rate. According to Bloomberg, xAI is bleeding roughly $1 billion per month. Musk himself has since responded to the article as 'nonsense.' Since its launch, xAI has been racing to catch up with OpenAI and other industry leaders. The company unveiled its latest model, Grok 4, this month and claimed that it's the 'most intelligent model in the world.' Musk also introduced today a new 'companions' feature allowing users to talk to Grok via 3D-animated characters. However, Grok has not been without its issues. Earlier this month, an update intended to address what Musk described as a 'center-left bias' instead caused Grok to generate antisemitic propaganda, even referring to itself as 'MechaHitler.' Shortly after, the company said it had taken steps to remove the offensive posts and had banned Grok from using hate speech on X. As Musk seeks new funding for the AI model, he has turned to one of his old playbooks — shuffling around funds and resources among his business empire. For instance, in 2009, Musk borrowed $20 million from SpaceX to help fund Tesla. The rocket company also provided equipment for Musk's tunneling startup, The Boring Company. More recently, Musk took a $1 billion loan from SpaceX around the time he bought Twitter.
Yahoo
23 minutes ago
- Business
- Yahoo
China's 4.2 Trillion Yuan Lending Spike: Stimulus Firepower or Economic Red Flag?
China's credit engine just kicked into high gearbut it's not the full story. Total social financing hit 4.2 trillion yuan ($585.7 billion) in June, coming in well above economists' expectations. Banks extended 2.2 trillion yuan in new loans, thanks to a seasonal lending push and a wave of government bond issuance. The People's Bank of China doubled down on its moderately loose stance, signaling it will maintain ample liquidity while monitoring the impact of existing measures. Officials say the goal is to stimulate demand and stabilize investor sentimentbut so far, private sector appetite still looks soft. Warning! GuruFocus has detected 3 Warning Sign with MRK. Take a closer look and cracks start to show. ING's Lynn Song noted that the credit bump was heavily propped up by government bond sales, not organic business borrowing. Property remains a key drag: new-home sales from China's top 100 developers dropped 23% in June year-over-year, steeper than May's 8.6% decline. While interbank borrowing costs have eased, and liquidity is flowing, the real economy hasn't caught uplending growth in the first half of 2025 still paints a picture of weak confidence and subdued risk-taking. So what does it mean for global investors? For companies tethered to Chinese demandlike Tesla (NASDAQ:TSLA)this rebound in headline credit may look promising, but the story underneath remains complex. Unless wage growth stabilizes and consumer confidence picks up, the credit tap alone may not be enough to drive a lasting recovery. Eyes now turn to whether China's next round of stimulus can translate into real-world spendingand whether the private sector is ready to step off the sidelines. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Mint
25 minutes ago
- Business
- Mint
Elon Musk rules out merger but confirms Tesla investor vote on xAI investment
Tesla Inc. plans to poll shareholders on whether to invest in xAI, Elon Musk said after the Wall Street Journal reported SpaceX was prepared to funnel $2 billion into the Grok chatbot developer. The billionaire entrepreneur, responding to a post on X, said any decision to back the startup ultimately wasn't his to make. Musk asked X users publicly last year if Tesla should invest $5 billion in xAI, writing at the time that he was just testing the waters. But he said then that the EV maker's board and backers would need to green-light such a decision. Musk set up xAI in early 2023, months after OpenAI ushered in the AI boom with the launch of ChatGPT. It's since merged with the social media service X in a deal Musk said valued the AI startup at $80 billion and the social network company at $33 billion. That deal meant the X platform would come in handy to further distribute xAI products, while also providing a real-time feed of users' posts, screenshots and massive amounts of other data. Investments into xAI would help Grok better compete with OpenAI's ChatGPT by increasing capital toward research and development. The potential investments emerged as the combined entity xAI Holdings engages in talks to raise money at a valuation of as much as $200 billion, Bloomberg News has reported. They suggest Tesla's billionaire chief executive officer is seeking to more closely entwine the various parts of his corporate empire. This month, the CEO revealed Tesla will adopt Grok within vehicles — days after the bot posted antisemitic content on X. The integration suggests an expanded relationship between the two firms, something some Tesla investors have called for as EV sales have slumped. Tesla disclosed in April that xAI was a customer last year, with the startup incurring $198.3 million of expenses tied to commercial, consulting and support agreements with the carmaker. The bulk of that business — $191 million — involved xAI purchasing Tesla's utility-scale energy storage batteries, called Megapack. Responding to a user post on X asking Tesla investors if they supported a merger between the two companies, Musk on Monday replied "No." "If it was up to me, Tesla would have invested in xAI long ago," Musk had said on X, having previously signaled that close ties between the companies could help advance Tesla's autonomous-driving ambitions. Tesla had last week said it was planning to hold its annual shareholder meeting on November 6, setting the date a day after a group of 27 investors pushed for it, citing legal obligations. (With inputs from agencies)
Hindustan Times
26 minutes ago
- Automotive
- Hindustan Times
Model Y likely to lead Tesla's India entry. Here's what to expect
Tesla Model Y is likely to make its India debut tomorrow as the American EV giant's debutante product in India. (AFP) Notify me Tesla is scheduled to formally enter India's market on July 15, 2025, which is a major development in the nation's electric vehicle (EV) market. Tesla will open its first store at the Bandra Kurla Complex (BKC) in Mumbai, along with an invite-only event for its guests and potential customers. Although Tesla has finalized its entry into India, it is yet to disclose which model will spearhead the brand's launch. But industry rumors point rather compellingly to the Model Y—its top-selling electric SUV in the world—being the launch vehicle. Tesla Model Y: Design If the Model Y will bring Tesla's minimalistic design language to the streets of India. Based on the Model 3, it has a higher stance with a panoramic glass roof and a sportier coupe-like outline. In addition, it has a pretty blank exterior, featuring flush door handles, slim headlamps, and an overall aerodynamic shape that leans towards functionality rather than fanciness. Tesla Model Y: Expected features Tesla vehicles are famous for software-first designs, and the Model Y is no different. The global models come with a 15-inch mid-level touchscreen, Tesla's own operating system, and over-the-air updating of software. The Indian version is expected to carry the same. Some of the other features might include a premium audio system, multi-zone climate control, and smartphone integration with the Tesla app. Advanced driver-assistance systems such as Autopilot could be provided in limited form, depending on Indian regulations. Also Read : Why July 15 going to be a red-letter day for India's EV journey. Know here Tesla Model Y: Expected specifications Globally, the Model Y is available in Long Range AWD and Performance variants. The Long Range version offers up to 530 km of WLTP-certified range, powered by dual motors. Acceleration from 0-100 km/h in under 5 seconds, fast charging compatibility, and regenerative braking could be part of the package if Tesla introduces the same variant here. Tesla Model Y: Expected price With Tesla's initial models arriving as fully imported CBUs, the Model Y—if launched—could be priced between ₹ 75 lakh and ₹ 90 lakh (ex-showroom). More clarity is expected at the unveiling event, as Tesla lays the foundation for its long-term strategy in India. Check out Upcoming EV Cars in India, Upcoming EV Bikes in India. First Published Date: 14 Jul 2025, 16:46 pm IST
Yahoo
29 minutes ago
- Automotive
- Yahoo
GM surges in EV sales as Tesla stumbles amid Musk controversy
Tesla Inc., the No. 1 electric vehicle company in the United States, is shedding customers as public opinion soured on its polarizing billionaire CEO Elon Musk. The gap it leaves in the market is steadily filling, auto experts say, with products produced by General Motors. The Detroit automaker accelerated electric vehicle sales and market share in the first half of the year thanks to expanded electric offerings across three of its four brands. Meanwhile, consumer sentiment for Texas-based rival Tesla cratered this spring due to criticism over Musk's hands-on involvement in Washington politics. 'GM is quietly building trust while Elon burns it,' said Paul Waatti, director of industry analysis for AutoPacific. 'Consumers are responding to consistency, not volatility, and GM's steady hand is starting to pay dividends.' Though the tides shifted somewhat, the sales gulf between the American automakers remains vast. GM EV sales are a distant second to Tesla. Still, GM reported triple-digit growth in its EVs while Tesla faced a double-digit loss during that period. Tesla said it delivered 384,122 vehicles in the second quarter globally through June, down 13% from 443,956 deliveries in the same period a year ago. Tesla does not break out deliveries by region, so sales estimates conducted by the Automotive News Data Center put Tesla's second-quarter U.S. sales around 125,000, down 16.7%. For the first six months of 2025, Tesla sold 255,000 in the U.S., down 13% from first half of 2024. GM, meanwhile, sold 78,167 electric cars in the United States for the first half of the year, an 111% increase from midyear 2024. Of those, 46,280 were sold in the second quarter. Through June of this year, GM's estimated EV market share reached 13% — but it could still grow as the year progresses, and Tesla's may yet still shrink, according to Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions. In case you missed it: GM's CEO Mary Barra tops Detroit Three pay rankings with $29.5 million salary Annual sales of Tesla's lineup fell for the first time in 2024. Tesla attributed the decline to a pause in production to shift to a refreshed version of its bestselling Model Y SUV, which industry experts said would prompt customers to hold off on buying until the newer version could be rolled out. Instead, people bought fewer Tesla vehicles. 'There's not one thing that's causing Tesla sales to go down and GM's to go up. It's a combination of factors,' Fiorani said. 'Some of that will be a response to Elon Musk, some will be to the EV tax credits going away. The EV market is developing so fast, but we are still just at the beginning of the bell curve.' Tesla, Inc., which manufactures electric cars, batteries and solar panels, was founded in 2003 by Martin Eberhard and Marc Tarpenning. PayPal cofounder Elon Musk invested $30 million into the venture and served as chair of the company before taking over as CEO shortly after its first vehicle launch, the Roadster, in 2008. GM, on the other hand, was founded 100 years before the Roadster hit the road, and even benefited from creating the first modern electric vehicle in 1996 with the EV1, but did not rally behind wide-scale electric vehicle production until the 2010s. Tesla's longevity as a household name in electric vehicles may give it an advantage over larger legacy automakers like GM, but that name is losing luster amid a stagnating vehicle lineup and weaker physical footprint, Stephanie Valdez-Streaty, Cox's director of industry insights, told the Free Press, part of the USA TODAY Network. (Tesla does not use franchise dealerships and does not offer promotional discounts on its products.) Tesla hasn't launched an all-new vehicle since the Cybertruck in 2023. 'Tesla has had this head start, but you see these other manufacturers launch products that resonate and engage their dealerships to sell them,' she said. GM's sales of electric vehicles may be growing exponentially, but they still fall far short of the business the company does with gas-powered models. GM has used its multi-powertrain portfolio to its advantage. Popularity of the gas-powered versions of the Chevrolet Equinox and Blazer likely aided sales of electric offerings, analysts contend, as consumers leaned on familiar choices. The Chevrolet Equinox EV, launched last year at $34,995, had sales of 17,420 so far this year. GM sold 12,736 Blazer EVs so far in 2025, up from the 7,234 it sold through June of 2024. "We're all about giving our customers more choices. We made the right investments over the last few years to bring the industry's broadest ICE and EV portfolio to market,' said GM spokeswoman Tara Kuhnen. "We're proud to keep driving innovation here in the U.S.' Joe LaFeir, president of automotive insights at S&P Global Mobility, noted in a February statement announcing GM's 10th consecutive year securing the top spot for Highest Overall Manufacturer Loyalty that an automaker sporting a healthy pipeline of product offerings that appeal to a wide range of buyers encourages return sales. Fiorani added that the more options consumers have in general, the more likely they are to find what they're looking for when brands transition to electric powertrains. 'GM has Cadillacs, and Chevrolets and GMCs spread across a number of segments,' Fiorani said. 'They're still way behind Tesla's, but they offer choices to their customers that Tesla does not.' Musk's role in President Donald Trump's administration leading the so-called Department of Government Efficiency has garnered the company negative press and customer backlash. DOGE, Musk's brainchild, has been responsible for thousands of job cuts in the public sector, which, in turn, were blamed for inspiring mass vandalism of Teslas at dealerships and public parking lots. Videos of people keying Teslas have gone viral on social media platforms Instagram and X. A Detroit Free Press reporter rented a Tesla in March to gauge reactions of metro Detroit residents and to connect with Tesla owners, some of whom shared that the CEO's involvement in politics added stress to their ownership and were advised by others to return the vehicle. The true impact of Tesla's shifting public image may yet materialize, Valdez-Streaty added, as it will take time for polarizing headlines to tangibly impact vehicle sales. She compared the change to consumer sentiment, where spending habits take time to catch up to reports of economic uncertainty. 'When it comes to data on favorability by brand, Tesla is definitely down,' she said. Jackie Charniga covers General Motors for the Free Press. Reach her at jcharniga@ This article originally appeared on Detroit Free Press: Tesla's decline opens door for GM's electric vehicle rise
