Elon Musk’s xAI, a competitor to AI giant OpenAI, is reportedly raising $6 billion in funding, valuing the company at $18 billion. The investment round, expected to close in the coming weeks, will give investors a quarter stake in xAI. Sequoia Capital and Future Ventures, co-founded by Musk’s close associate Steve Jurvetson, are among the participating investors.
Tesla shareholders are once again being asked to approve Elon Musk’s extraordinary compensation package, worth roughly $47 billion. This request comes at a time when the company’s share price has been down significantly, profits have declined, and Tesla has announced layoffs. As Tesla becomes a large, multinational corporation, the debate over Musk’s pay raises fundamental questions about the nature of startups and the role of a single individual in leading a company of this magnitude.
Today, April 25, marks the 116th day of 2024. Throughout history, significant events have occurred on this date. In 404 B.C., the Peloponnesian War concluded with Athens surrendering to Sparta. The year 1507 saw the creation of a world map by German cartographer Martin Waldseemueller, which included the first recorded use of the term “America” to honor Italian navigator Amerigo Vespucci. Other notable events include the groundbreaking for the Suez Canal in 1859, the capture of New Orleans by Union forces during the Civil War in 1862, and the United States’ declaration of war on Spain in 1898, leading to the Spanish-American War. The early 20th century witnessed milestones such as the implementation of a 15 mph speed limit on highways in New York in 1901 and the invasion of the Gallipoli Peninsula by Allied soldiers in 1915. During World War II, U.S. and Soviet forces joined forces on the Elbe River in 1945, while delegates gathered in San Francisco to establish the United Nations. In 1990, the Hubble Space Telescope was launched into orbit, later requiring corrective components to rectify a flawed primary mirror. The year 2013 saw President Barack Obama offer condolences to a Texas community following a deadly fertilizer plant explosion, and in 2018, Danish engineer Peter Madsen was convicted of murdering a Swedish journalist on his submarine. Former Vice President Joe Biden entered the Democratic presidential race in 2019, and “Nomadland” won Best Picture at the 2021 Academy Awards. In 2022, Elon Musk acquired Twitter, and President Joe Biden declared his intention to seek reelection in 2024.
Despite the Indian government’s efforts to attract electric vehicle (EV) manufacturers like Tesla, the company’s plans for entering the Indian market remain uncertain. Tesla has not conducted significant studies or held detailed discussions with state governments, indicating a lack of immediate intent to establish a manufacturing presence in the country. The automaker’s lack of communication with suppliers in India further suggests that it does not have an immediate plan for the Indian market. Tesla’s cautious approach contrasts with other automakers like VinFast, which has already begun constructing a battery and vehicle assembly plant in India. Tesla’s CEO, Elon Musk, has prioritized other commitments over a visit to India, adding to the uncertainty surrounding the company’s India plans. While Tesla’s global ecosystem partners suggest that establishing a manufacturing facility in India could take up to three years, the company’s current focus on optimizing production lines and its strategic shift toward AI and robotics may not align well with the current technological and regulatory landscape in India.
Chinese electric car brand Zeekr, owned by Geely, is outperforming Tesla in certain regions of China and plans to expand into Europe and Latin America this year. Despite Tesla reporting its largest global quarterly revenue drop since 2012, Zeekr has seen a surge in sales. According to Zeekr’s data, it outsold Tesla in the provinces of Zhejiang, Anhui, and Guangxi during the first three weeks of April. While Tesla’s Model Y remains the bestseller in China for battery-powered electric cars priced above 200,000 yuan, Zeekr’s 001 and 007 models rank among the top sellers in their respective price categories. Zeekr’s CEO, Andy An, declined to comment on the recent launch of Xiaomi’s electric sedan but highlighted the differences in strategy and resources between the two companies. At the Beijing auto show, Zeekr unveiled a new car structure that offers more interior space. An emphasized the company’s focus on creating a smart mobility experience, with future vehicles designed to accommodate activities such as gaming and dining. Zeekr expects overseas sales to boost revenue this year, with plans to enter six to eight additional countries in Europe and expand into Latin America. The company is also developing right-hand drive cars for markets like Hong Kong, Macao, and Singapore. An confirmed that Zeekr is exploring the possibility of building factories overseas but provided no specific details. Long-term support from its parent company Geely, which owns Volvo, provides Zeekr with access to resources and expertise. An emphasized the importance of combining talent, technology, and capital for long-term success in the automotive industry. Zeekr has filed for an IPO on the New York Stock Exchange but has not yet announced a listing date.
Despite missing revenue and earnings expectations in its Q1 2024 financial results, Tesla’s stock surged 12%. The company attributed the stock surge to positive factors such as stable automotive gross margins, confirmation of future cheaper models, and its strategic positioning in the artificial intelligence space.
In a recent earnings call, Tesla CEO Elon Musk unveiled his vision for the company’s future, which includes the introduction of robotaxis and new, affordable electric vehicles. The robotaxi fleet will allow Tesla owners to rent out their cars through a ride-hailing program, generating additional income while reducing idle time. The affordable EVs, slated for production in 2025, will be built on existing manufacturing lines, reducing costs and expanding Tesla’s market reach. These initiatives are part of Musk’s broader vision for Tesla as a leader in artificial intelligence and robotics, with the humanoid robot Optimus expected to be available for sale by 2025.
Tesla’s recent performance has been underwhelming, with profits falling by 55% and revenue decreasing by 9% in the first quarter compared to last year. The company’s operating profit has also been halved, coming in at 5.5%, which is more in line with traditional automakers. This news comes after Tesla announced a 10% workforce layoff and disappointing vehicle delivery numbers. Despite these setbacks, Tesla CEO Elon Musk is optimistic about the company’s future, revealing plans to begin producing new and more affordable models next year. This announcement temporarily boosted Tesla’s stock price by over 10% on Wednesday.
Katy Perry is facing backlash after posting a photo with her new Tesla Cybertruck, which was recently recalled due to a faulty accelerator pedal. Many users have criticized Perry’s choice of vehicle, mocking its appearance and safety concerns.
French music legend Jean-Michel Jarre has made history as the first person to pilot the revolutionary flying car developed by KleinVision, a company backed by tech entrepreneur Elon Musk. The AirCar, which seamlessly transforms from a sports car to an aircraft in minutes, has received flight approval following over 200 successful takeoffs and landings. Jarre, who has sold over 100 million albums worldwide, praised the experience, highlighting its transformative potential. The AirCar is slated to go on sale in the coming months, but aspiring pilots will require both a driver’s license and a pilot’s license, as well as specialized flight training.
