TESLA Motors

Elon Musk’s $1T pay deal backed by Tesla shareholders

Nov. 7 (UPI) — Tesla shareholders approved an unprecedented new package for CEO Elon Musk that could see him become the world’s first trillionaire.

The firm said 75% of shareholders with voting rights on Thursday backed Musk’s 10-year pay deal, which could net him $1 trillion over that time by boosting his stake in Tesla by more than 423 million shares.

The share bonanza is contingent on him delivering on a promise to drive up Tesla’s market capitalization five-fold from is current level of around $1.5 trillion to $8.5 trillion, roughly double the size of the Japanese economy.

Shareholders at the annual general meeting at Tesla HQ in Austin, Texas, voted it through on the recommendation of Tesla’s board, arguing Musk might quit if it were rejected and that the company could not afford to lose him.

Counsel from independent advisors Glass Lewis and Institutional Shareholder Services who said the “astronomical” deal should be rejected due to “unmitigated concerns surrounding the special award’s magnitude and design,” was largely ignored.

Addressing the meeting after the result, Musk thanked the board and shareholders, saying what Tesla was poised to do was not just “a new chapter in the future of Tesla, but a whole new book.”

Under the deal, Musk will receive the stock in tranches tied to delivering financial and production targets, including 20 million new electric vehicles rolling off production lines, 10 million full self-driving subscriptions​, 1 million Optimus humanoid robots and 1 million robotaxis in service.

The first block of stock gets paid to Musk when Telsa market capitalization reaches $2 trillion with the next nine awarded each time the company’s value rises by another $500 billion, up to $6.5 trillion.

Two additional rises in market capitalization, each of $1 trillion, bringing the value to $8.5 trillion, are required for the final two stock grants to kick in.

While the deal is performance-based, it’s not set in stone — with Musk still in line to earn more $50 billion even if he fails to meet the bulk of the targets — and includes riders for so-called “covered events” with the potential to impact Tesla’s future designs, manufacturing and sales.

These include natural disasters, wars, pandemics and changes to “international, federal, state and local law, regulations or other governmental action or inaction.”

In June 2024, Musk reincorporated Tesla in Texas, the company’s headquarters and center of operations, moving from Delaware six months after a court there struck down a $56 billion pay deal the board awarded to Musk in 2018, ruling it was “unfair” and that Musk held excessive power over the rules and size of the deal.

On the same day, shareholders voted to reinstate the package, at the time the largest in corporate history.

In December 2024, the Delaware judge in the case reaffirmed her ruling in favor of the complainant, shareholder Tornetta, and ordered Musk must return what he had already received from the package.

The board eventually awarded Musk a $29 billion “good faith” package in August, aimed at keeping Musk at the helm, that would see him granted 96 million shares after two years of service in a “senior leadership role” at Tesla.

Musk’s mega-deal on Thursday came three weeks after Tesla reported Tesla reported third quarter profits down 37%, despite a jump in revenue to a record $28.1 billion on stronger sales of its electric cars in the domestic market.

Source link

Tesla inquiry grows over door handle issue

A Tesla pictured in Oct. 2022 near the Meta campus in Menlo Park, Calif. According to the National Highway Traffic Safety Administration, Tesla received 16 reports of exterior door handles becoming “inoperative due to low 12VDC battery voltage in certain MY 2021 Tesla Model Y vehicles.” File Photo by Terry Schmitt/UPI | License Photo

Nov. 3 (UPI) — Federal regulators have ordered Tesla to comply with an investigation into possibly defective door handles that reportedly led to trapped passengers.

The National Highway Traffic Safety Administration told the Elon Musk-owned Tesla that the federal government received scores of complaints on its electric vehicles.

As of Oct. 27, the NHTSA said it received 16 reports of exterior, retractable door handles becoming “inoperative due to low 12VDC battery voltage in certain MY 2021 Tesla Model Y vehicles.”

Reports indicated children were trapped in the cars in some cases, and owners unable to enter or exit vehicles due to battery that impeded door handle use.

A deadly 2024 crash in Wisconsin led to a lawsuit that claimed Tesla was negligent in its door handle designs.

Meanwhile, Tesla officials have until Dec. 10 to provide records to federal regulators.

Source link

Telsa Q3 profit down more than a third despite record $28.1B revenue

Tesla posted sharply lower profit for the July to September quarter despite a signifcant jump in revenue. The firm’s performance was hit by tough competition in the EV market, U.S. duties on imports of parts and materials to make its cars, higher capital expenditure costs and a sales slump in Europe. File photo by Divyakant Solanki/EPA

Oct. 23 (UPI) — Tesla reported profits were down 37% in the third quarter despite a jump in revenue to $28.1 billion on frontloading of sales driven by buyers racing to beat the deadline for a federal tax credit before it expired Sept. 30.

The tax credit, worth up to $7,500 on EV purchases, helped the firm buck a run of declining quarterly sales along with a new six-seat version of its popular Model Y midsize SUV that performed well in the Chinese market.

While sales of competitors, including Ford and Hyundai, still outpaced Tesla’s it also lured in buyers with interest-free finance and insurance contributions.

That helped overall income rise by just under $3 billion, compared with the same period last year, and $1.73 billion more than predicted by analysts, with the largest contribution still coming from vehicle sales.

Revenue from Tesla’s energy generation and storage division surged 44% to $3.42 billion.

However, net profit slumped from $2.17 billion in the third quarter of 2024, to just $1.37 billion this year, with the results sending the stock price lower.

Tesla’s shares were down more than 3% at $424.60 in out-of-hours trade on the NASDAQ before Thursday’s market open — but remained well above the 30-day low of $413.49 they hit Oct. 10. The stock is up 9% year-to-date.

The firm’s performance was dragged down by an ongoing slump in its European market, partly due to a public backlash against Musk and tough competition from rivals from the continent and beyond, such as Volkswagen and China’s BYD.

Tariffs on car parts and raw materials imposed by President Donald Trump and higher research and development costs were also factors as the company embarks on CEO Elon Musk‘s efforts for an increased focus on AI and robotics.

Chief Accounting Officer Vaibhav Taneja told investors on a conference call Wednesday that the hit to Tesla from import duties in the July to September period was in excess of $400 million.

Tesla said it aimed to meet its target to begin “volume production” of Cybercab, heavy-duty electric semi trucks and its new Megapack 3 battery energy storage system in 2026, with Musk saying he expected Cybercab to begin rolling off the production line in the second quarter.

“First generation production lines” for Tesla’s humanoid Optimus robot were currently under construction. Musk said the firm expected to unveil Optimus V3 in the first quarter.

Tesla posted its latest results as shareholders were preparing for a November vote to approve a new remuneration package for Musk of as much as $1 trillion, all in shares.

The deal would be conditioned on his delivering an ambitious turnaround program involving boosting market capitalization from around $1.38 trillion to an unprecedented $8.5 trillion by pivoting Tesla to concentrate on autonomous driving, AI and robotics.

Apple, Microsoft and NVIDIA, the current behemoths of the U.S. tech sector, have market caps in the $2.6 to $3.2 trillion range.

Source link

Tesla teaser suggests new car could come out Tuesday

A Tesla Model Y car is on display inside a new Tesla car showroom in Mumbai, India, in July. Some Elon Musk teasers on X seem to announce a new vehicle for Tuesday. File Photo by Divyakant Solanki/EPA

Oct. 6 (UPI) — Tesla CEO Elon Musk made two posts on X that appear to tease a new car or relaunch of an existing car for “10/7.”

Because of the teasers, Tesla stock rose by 4.72%, on pace for its largest one-day percentage gain in a little over a week, MarketWatch said.

Theories about what the teasers mean include that it could be the next-generation Roadster that Musk has been touting for years, or that Tesla is going to release a mass-market model.

Musk teased the next-gen Roadster in 2017 and 2018. He has since hyped the vehicle repeatedly and, in September, said on X that “the new Roadster is something special beyond a car.” He didn’t elaborate.

Tesla has been saying a cheaper mass-market car will be released this year. But Musk has said this lower-cost vehicle will be a stripped down Model Y, NBC reported.

While Tesla stock has risen recently, it took a hit earlier this year when Musk began his moves into politics, which soured some on Tesla.

In mid-September, Musk invested about $1 billion into Tesla, which made the market jump by about $30 per share.



Source link

Tesla to offer Elon Musk pay package worth nearly $1 trillion

Sept. 5 (UPI) — Tesla is preparing to offer Elon Musk a new pay and incentives plan that would give him more control, more shares and up to nearly $1 trillion in compensation.

Musk is already the world’s wealthiest person, and this new plan is worth about $975 billion.

In order to cash in on the full amount, Musk would have to multiply Tesla’s stock value by eight times over the next decade. All of his compensation would be in Tesla shares. Stockholders will vote on the package at a Nov. 6 annual shareholders’ meeting. Tesla also said in the filing Friday that it will ask shareholders to vote on whether to invest in Musk’s new xAI.

“Retaining and incentivizing Elon is fundamental to Tesla achieving these goals and becoming the most valuable company in history,” Robyn Denholm, chair of the Tesla board, and Kathleen Wilson-Thompson, a director on the board, said in a letter to shareholders.

Musk’s net worth is more than $400 billion, according to Forbes. This compensation plan would add around $900 billion. If he raises Tesla’s stock value from $1.1 trillion to $8.5 trillion, it would be the highest compensation in history.

He would also have to stay at Tesla for 7.5 years to cash in his shares, and 10 years to get the full amount. He would also have to deploy 1 million autonomous taxis and humanoid robots, plus see a more than 24-fold increase in profits.

“If he performs, if he hits the super ambitious milestones that are in the plan then he gets equity — it’s 1% for each half a trillion dollars of market cap, plus operational milestones he has to hit in order to do that,” Denholm said on CNBC’s Squawk Box.

As companies around the world work to create electric cars, self-driving cars and robots, these milestones will be an enormous challenge.

Many shareholders are disillusioned with Musk over his recent performance. Tesla has seen profits slow in the past year as his behavior and his foray into politics hurt the company’s stock prices.

In January, a Delaware Chancery Court judge ruled against Musk’s 2018 compensation package and ordered him to return what he’d already earned from it.

Each of the 96 million shares received in the deal trades at just over $300. Musk would have to pay $23.34 for each of those shares, equal to the amount he was expected to pay when he was first awarded his 2018 compensation package. Tesla is appealing the ruling.

In early August, ​​Tesla’s board gave Musk a $29 billion pay package.

The new package was a “good faith” award designed to keep Musk at the helm of the company.

It would give him 96 million shares of the company that he could take after two years of service in a “senior leadership role” at Tesla. Musk hinted last month that he wanted more ownership at Tesla beyond his 13% stake to prevent his ouster by “activist” shareholders.

Source link

Trumps to host tech leaders in newly-renovated Rose Garden

Sept. 4 (UPI) — Several leaders from the tech sector will travel to the White House on Thursday for the fist event in the newly renovated Rose Garden.

Guests expected to attend include Apple CEO Tim Cook, Microsoft founder Bill Gates Meta founder Mark Zuckerberg and OpenAI founder Sam Altman, among more than two dozen other prominent tech and business guests.

Venture capitalist David Sacks, who has served as the White House czar on AI and cryptocurrency, will also be in attendance.

According to a press release, First Lady Melania Trump will host a meeting of the White House Task Force on Artificial Intelligence Education, at which she will speak, alongside Task Force members and leaders from the private AI technology sphere.

President Donald Trump will then lead an event in the Rose Garden with the guests, which will be the first such happening there since it was renovated under the direction of the Trumps.

“The Rose Garden Club at the White House is the hottest place to be in Washington, or perhaps the world,” White House spokesperson Davis Ingle said in a statement to The Hill.

“The president looks forward to welcoming top business, political, and tech leaders for this dinner and the many dinners to come on the new, beautiful Rose Garden patio,” he added.

Those in attendance will see changes to the Rose Garden such as pavement over the former grassy space, with umbrella-shaded tables set in similar fashion to patio arrangements found at Trump’s Mar-a-Lago property in Florida.

One top tech leader not on the guest list is Tesla CEO and SpaceX founder Elon Musk, who served as an advisor to Trump and the head of the Department of Government Efficiency, or DOGE.

Trump and Musk famously feuded shortly after Musk left working with the government.

Source link

Elon Musk says improved Tesla full self-driving technology is coming soon

Aug. 6 (UPI) — Tesla CEO Elon Musk announced Wednesday that the U.S. automaker is working on an improved full-self driving, or FSD, model that may be ready to roll soon.

“Tesla is training a new FSD model with ~10X params and a big improvement to video compression loss,” he posted to X. “Probably ready for public release end of next month if testing goes well.”

“Params” refers to a larger parameter size, which has to do with its artificial intelligence. An increase in parameters usually means that the AI is a larger model that is more capable and has been trained on more data. In a self-driving car, this means its AI can better use its cameras and sensors to recognize its surroundings and better navigate.

Tesla has been scrutinized in the past by the U.S. Department of Transportation, which in October of last year announced its Office of Defects Investigation was examining the records related to the use of Tesla’s self-driving systems.

According to the ODI, it identified four reports of a Tesla vehicle crashing after entering an area of “reduced roadway visibility conditions.” Each crash occurred with the FSD function engaged, in conditions like fog, sun glare or airborne dust.

The ODI reported that a pedestrian was fatally struck by a Tesla using its FSD, and another person was injured in a separate incident.

Tesla stock price has been down nearly 19% year-to-date as of Tuesday.

Source link

Tesla to pay $243M for deadly 2019 Florida Keys accident

Aug. 1 (UPI) — Tesla must pay $243 million for a 2019 accident that killed a pedestrian and badly injured another in the Florida Keys, a federal jury decided on Friday.

The accident occurred at a T-intersection after sundown in the Florida Keys in 2019 when the Tesla did not stop and rammed a parked SUV.

The collision killed Naibel Benavides Leon, 20, as she stood next to the SUV. Her boyfriend, Dillon Angulo, was injured.

The Miami jury granted a $43 million award for compensatory damages for pain and suffering and another $200 million for punitive damages arising from the vehicular accident that occurred in the Florida Keys, NBC News reported.

Attorneys for the plaintiffs successfully argued Tesla officials overestimated the capabilities of the autopilot program in the Tesla Model S sedan that the defendant was driving.

The jury determined the plaintiff’s pain and suffering merited a total of $129 million in compensatory damages, but Tesla only pays a third of that amount.

The jury assigned one-third of the blame to Tesla and two-thirds to the driver, who said he was distracted while reaching for his cell phone when the accident occurred.

The motorist was sued separately from Tesla and was not a party to the federal lawsuit that the jury decided on Friday.

U.S. District Court of Southern Florida Judge Beth Bloom accepted the jury’s verdict and said she will order Tesla to pay the judgment.

The jury of eight found Tesla was partly liable because the vehicle’s autopilot system did not brake in time to prevent the deadly accident.

Officials for Elon Musk-owned and publicly traded electric vehicle manufacturer Tesla said they will appeal the jury’s verdict.

“Today’s verdict is wrong and only works to set back automotive safety and jeopardize Tesla’s and the entire industry’s efforts to develop and implement life-saving technology,” they said in a prepared statement.

“We plan to appeal given the substantial errors of law and irregularities at trial.”

Source link

Tesla shareS end week in decline amid third straight quarterly loss

July 24 (UPI) — Tesla’s shares price declined 1.74% for the week on Friday, two days after posting declining profits for a third straight quarter amid increased competition and a pending loss of federal tax credits.

On Friday, the stock price closed at $316.06, up $10.76, or 3.52%, from the day before, when the stock slumped 8.2%. Its market capitalization slumped to $984.73 billion. Tesla earnings report was released after the market closed on Wednesday.

Tesla is down 16.7% year to date but up 43.5% from one year ago, according to NASDAQ.

Tesla’s price was as low as $284.70 on June 5 when Elon Musk’s feud with President Donald Trump intensified and $221.85 on April 8 when stock indexes and bond market were tumbling before Trump announced a pause on harsh tariffs on trading partners.

The company’s stock price reached a record of 479.86 on Dec. 17 before Trump entered the White House as president again on Jan. 20. Tesla first began trading on June 29, 2010, with an initial price offering of $17 but opened trading at $19 per share.

Back then the only car for sale was the Roadster and two years before the Model S hit the market. The top-selling cars are now the Model Y SUV and Model 3 sedan.

Musk wasn’t Tesla founder but he invested early and served as chairman and took over as CEO in 2008.

The conference call Thursdsay was light in earnings information and more focused on robotics and artificial intelligence.

“The company offered remarkably little detail on some of the most important factors” – like its mysterious new lower-priced model – “making our outlook lean more on imagination than realistic targets,” Truist’s William Stein, who has a hold rating on Tesla, said in a note after the call in a report by CNN.

“I wouldn’t say it was a conference call that should be put in the Hall of Fame,” Dan Ives of Wdbush Securities, told CNN on Thursday, but said he is still bullish on Tesla’s robotics future with Musk in charge. “Communication on the call was less than stellar in terms of details, and I think that definitely played into the selloff that we’re seeing.”

Tesla later told staff Thursday it plans to launch its Robotaxi service in San Francisco this weekend, according to an internal memo obtained by Business Insider. Tesla has a permit for testing its self-driving software in California with a driver behind the wheel.

Earning report

Looking back, Tesla sold $22.5 billion worth of products during the second quarter, which is $3 billion less than the $25.5 billion in sales during the same period in 2024.

Tesla reported $1.2 billion in earnings profit from April to June, which is down from $1.4 billion a year earlier.

The earnings drop is the third straight quarter for the EV maker that last reported an earnings gain during the third quarter last year.

Driving much of the loss is a decline in Tesla vehicle sales, which totaled $16.7 billion during the second quarter — down by 16% from a year ago.

Tesla delivered 384,000 vehicles during the second quarter, which is 14% fewer than a year ago, the company announced in July.

Several factors have contributed to the decline in Tesla sales, including the end to federal tax credits for buying electric vehicles and increased competition for EV makers in China and elsewhere.

Musk recently cautioned investors about the approach of a “few rough quarters” due to the loss of the federal EV tax credits.

A recently signed budget bill that Trump dubbed “one big, beautiful bill” eliminates a $7,500 federal tax credit after September.

Trump said he does not intend to eliminate federal subsidies for Tesla, though.

“I want Elon and all businesses within our country to thrive … like never before,” Trump said in a Truth Social post on Thursday.

“The better they do, the better the USA does, and that’s good for all of us,” Trump added.

Tesla also posted a decline in new vehicle registrations in Europe in July and only sold 4,300 units of its Cybertruck during the second quarter.

Tesla sold about half as many Cybertrucks during the second quarter than it did a year earlier, according to Cox Automotive.

Musk has announced Tesla will soon offer a new EV that costs less after beginning production in June.

Industry analysts anticipate it will be similar to Tesla’s electric Model Y SUV.

Tesla’s declining EV sales come as demand for EVs has grown by 1.5% so far in 2025 in the United States and by 32% and 26%, respectively, in China and Europe, Cox Automotive and Rho Motion reported.

China’s BYD EV maker is growing its market share there, while JATO Dynamics reported Volkswagen has overtaken Tesla as the top EV seller in Europe.

Recent political turmoil also has led to negative publicity for Musk and Tesla by extension.

Musk’s recently controversial activities as the former director of the Department of Government Efficiency, subsequent fallout with Trump and recent announcement of founding a third political party have preceded declines in sales and Tesla’s share price.

Source link

Musk announces ‘America Party’ founding

July 5 (UPI) — Entrepreneur and former Department of Government Efficiency Director Elon Musk on Saturday announced the creation of the America Party.

Musk says the American Party will restore democracy and freedom after suggesting he would a new political party amid a high-profile feud with President Donald Trump.

He conducted a straw poll on his social media platform X on Friday, Politico reported.

“By a factor or 2 to 1, you want a new political party, and you shall have it,” Musk said Saturday afternoon in a post on X.

“When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy,” Musk continued. “Today, the America Party is formed to give you back your freedom.”

Musk suggested the political party would focus on two or three Senate seats and between eight and 10 House seats during the 2026 mid-term elections, CNBC reported.

Given the narrow margins among House and Senate majorities in recent years, a small number of seats in both chambers would be enough to significantly influence legislation, Musk said.

He said the party would caucus independently of Democrats and Republicans but enter into legislative discussions with both.

Musk did not say if he registered the party with the Federal Election Commission, but an “America Party” search of the FEC website did not produce any results on Saturday.

Source link

Tesla fires VP of manufacturing Omead Afshar amid declining EV sales

A row of Teslas charge at a Tesla power station (2018). The company announced on Thursday that it sold fewer cars in 2024 than it did in 2023, the first time sales dropped since Tesla began mass producing EVs. Its profits fell 71% in the first quarter of 2025, too. File Photo by Stephen Shaver/UPI | License Photo

June 26 (UPI) — Tesla CEO Elon Musk fired the carmaker’s vice president of manufacturing and operations following a falloff in auto sales in the nation’s largest markets this year.

Omead Afshar oversaw more than six upper-level employees in the company, including Troy Jones, Tesla’s vice president of sales in North America, and Joe Ward, vice president of the Europe, Middle East and Africa region.

The firing was first reported by Bloomberg News.

Afshar is the second high-level employee to leave the company recently. His termination follows the resignation of Milan Kovac, who was the company’s head of its Optimus humanoid robotics program.

Kovac said in a post on X that he was leaving Tesla to spend more time with his family. Musk later thanked Kovac publicly for his time with the company.

In 2022, Afshar was the subject of an internal investigation at Tesla that focused on his involvement in trying to secure construction materials for a secret project for Musk that included hard-to-get glass.

Prior to his job as Tesla vice president, Afshar worked for SpaceX, Musk’s aerospace company. Afshar’s X account, which had not been updated, said he still works for Tesla, and he praised Musk for his leadership and work ethic following the launch of the company’s Robotaxi service in Austin, Texas.

“Thank you, Elon, for pushing us all,” Afshar wrote.

Tesla’s stock price has dropped 19% this year, and took an especially hard hit following Musk’s association with President Donald Trump, who appointed Musk to oversee the Department of Government Efficiency.

DOGE took a broad and aggressive approach to eliminating federal employees, downsizing federal agencies and ending diversity, equity and inclusion programs at some of the nation’s largest companies and universities.

The company sold fewer cars in 2024 than it did in 2023, the first time sales dropped since Tesla began mass producing EVs. Its profits fell 71% in the first quarter of 2025. European sales dropped 28%, and dropped for a fifth straight month in May.

The European Automobile Manufacturers Association said buyers are shifting to cheaper Chinese models.

Source link

Amid declining EV sales, Tesla fires vice president of manufacturing

A row of Teslas charge at a Tesla power station (2018). The company announced on Thursday that it sold fewer cars in 2024 than it did in 2023, the first time sales dropped since Tesla began mass producing EVs. Its profits fell 71% in the first quarter of 2025, too. File Photo by Stephen Shaver/UPI | License Photo

June 26 (UPI) — Tesla CEO Elon Musk has fired the carmaker’s vice president of manufacturing and operations following a falloff in auto sales in the nation’s largest markets this year.

Omead Afshar oversaw more than a half dozen upper-level employees in the company, including Troy Jones, Tesla’s vice president of sales in North America, and Joe Ward, vice president of the Europe, Middle East and Africa region.

The firing was first reported by Bloomberg News.

Afshar is the second high-level employee to leave the company recently. His termination follows the resignation of Milan Kovac, who was the company’s head of its Optimus humanoid robotics program.

Kovac said in a post on X that he was leaving Tesla to spend more time with his family. Musk later thanked Kovac publicly for his time with the company.

In 2022, Afshar was the subject of an internal investigation at Tesla that focused on his involvement in trying to secure construction materials for a secret project for Musk that included hard-to-get glass.

Prior to his job as Tesla vice president, Afshar worked for SpaceX, Musk’s aerospace company. Afshar’s X account, which had not been updated, said he still works for Tesla, and he praised Musk for his leadership and work ethic following the launch of the company’s Robotaxi service in Austin, Texas.

“Thank you, Elon, for pushing us all,” Afshar wrote.

Tesla’s stock price has dropped 19% this year, and took an especially hard hit following Musk’s association with President Donald Trump, who appointed Musk to oversee the Department of Government Efficiency.

DOGE took a broad and aggressive approach to eliminating federal employees, downsizing federal agencies and ending diversity, equity and inclusion programs at some of the nation’s largest companies and universities.

The company sold fewer cars in 2024 than it did in 2023, the first time sales dropped since Tesla began mass producing EVs. Its profits fell 71% in the first quarter of 2025. European sales dropped 28%, and dropped for a fifth straight month in May.

The European Automobile Manufacturers Association said buyers are shifting to cheaper Chinese models.

Source link

Tesla begins robotaxi launch in Austin

June 22 (UPI) — Tesla will begin its launch of robotic taxis in Austin, Texas, on Sunday afternoon, Elon Musk announced.

“The @Tesla_AI robotaxi launch begins in Austin this afternoon with customers paying a $4.20 flat fee!” Musk said in a post on social media.

Earlier this month, Musk had revealed Sunday as the tentative start date while cautioning that the company was “being super paranoid about safety” and that the date might shift.

The electric carmaker has provided few details about the plans for the robotaxi since it was announced last year, but some information on the service can be found on the company’s website.

To get started using the robotaxis, users must download the Robotaxi app and use their Tesla account to log in, where it then functions like most ridesharing apps.

“Our fleet will initially consist of model year 2025 Model Y vehicles,” the service’s FAQ section reads. “Riders are prohibited from sitting in the front-left seat, which is typically a driver’s customary seating position.”

Tesla notes that children are not allowed to ride in the vehicles and only service animals are permitted to accompany disabled riders.

“Riders may not always be delivered to their intended destinations or may experience inconveniences, interruptions, or discomfort related to the Robotaxi,” the company wrote in a disclaimer in its terms of service. “Tesla may modify or cancel rides in its discretion, including for example due to weather conditions.”

The terms of service include a clause that Tesla will not be liable for “any indirect, consequential, incidental, special, exemplary, or punitive damages, including lost profits or revenues, lost data, lost time, the costs of procuring substitute transportation services, or other intangible losses” from the use of the robotaxis.

As reported by The Guardian, Musk previously told reporters that there may be less than a dozen cars available to the public in Austin during the Sunday launch. It was not immediately clear if human drivers would be in the cars during the rollout, which has become a standard practice during launches by rival companies.

Meanwhile, Tesla’s robotaxis have already received some pushback from Democratic lawmakers in Texas, who penned a letter last week asking the company to delay the launch until at least September.

“Next week, Tesla plans to launch robotaxis in Austin — before Texas’ new AV safety law takes effect. We’re urging a delay until those safety standards are in place,” Texas Sen. Sarah Eckhardt said in a post to social media.

“Public trust comes from safety and transparency. We look forward to working with Tesla to achieve both.”

Source link

Tesla signs deal for $556 million grid-scale battery storage station in China

June 20 (UPI) — Tesla Friday signed a $556.8 million agreement to build a grid-scale battery storage station in China.

The deal is with China Kangfu International Leasing Co., as well as the Shanghai local government.

It’s the first Tesla large-scale battery storage facility in China.

In a statement on Chinese social media site Weibo, Tesla said, “Tesla’s first grid-side energy storage power station project in mainland China has been officially signed.The grid-side energy storage power station is a ‘smart regulator’ for urban electricity, which can flexibly adjust grid resources.”

Tesla said that, when complete, this project is expected to become the largest grid-side energy storage project in China.

Utility-scale battery energy storage assists energy grid management by keeping supply and demand in balance. More is being built worldwide.

Tesla competed against two Chinese companies that offer similar products. CATL and automaker BYD have significant global market share in these battery storage products.

China plans to add nearly 5 gigawatts of electricity supply powered by batteries by the end of 2025, which would bring the total capacity to 40 gigawatts.

Source link

DOGE results murky amid Elon Musk’s exit

June 10 (UPI) — Elon Musk‘s work in the government has ended after five months and former White House staff have serious doubts about the Department of Government Efficiency self-reported results.

To date, DOGE claims that it has saved the government about $180 billion by slashing the federal workforce, ending contracts, selling assets and cutting grant programs. However, its so-called “Wall of Receipts” is filled with questionable or inaccurate entries, according to Elaine Karmarck, senior fellow at the Brookings Institution.

Karmarck led President Bill Clinton‘s Reinventing Government Initiative, a program that cut 426,000 civil servants from the federal payroll and cut federal and agency regulations.

There are three metrics Karmarck told UPI she uses to measure how effective DOGE is. Some of those metrics will not be available until the next administration takes office on Jan. 20, 2029.

The first metric is whether there are fewer people working in the federal government at the end of President Donald Trump‘s term. There are about 2.2 million federal employees, a number that — despite narratives claiming the government continues to grow — has been consistent for decades.

In the 1940s, there were as many as 3 million federal employees. In the 1950s, there were about 2.5 million. In the 1980s, the number of federal employees increased back to about 3 million. It has remained between 2 and 3 million since.

Federal judges have ruled that some federal employees DOGE advised to be fired must be rehired. Musk also said that it has made mistakes in some layoffs, including laying off employees with the National Nuclear Safety Administration who are responsible for the safekeeping of the U.S. nuclear stockpile.

The second metric is whether there are fewer government contracts and fewer dollars spent on those contracts.

DOGE lists more than 11,000 contract terminations totaling $34 billion in savings. It says more than 15,000 grants have been terminated resulting in about $44 billion in savings.

Third is the government’s performance as measured by economic markers such as the Bureau of Labor Statistics’ unemployment reports as well as people’s own experiences receiving government services.

“That’s a biggie. In other words, you can cut the government but if you have airplanes crashing and you have massive mix ups in Social Security checks, nobody is going to be applauding you for this,” Karmarck said.

DOGE’s goal has been to cut about $2 trillion in federal spending.

UPI reached out to the White House Press Office and Tesla’s press office for interviews or comments. Neither responded to the requests.

About a quarter of the government’s budget is discretionary spending, meaning spending that is subject to appropriations by Congress. It amounts to less than $2 trillion. In fiscal year 2024, discretionary outlays totaled about $1.8 trillion.

The rest of the budget is mandatory spending, also known as direct spending. This funding goes toward programs like Social Security, Medicare, veterans’ benefits and other programs.

Jenny Mattingly, vice president of government affairs for Partnership for Public Service, told UPI it would be difficult to reach DOGE’s goal without cutting into mandatory spending.

“Most of the U.S. budget is this mandatory, non-discretionary spending,” Mattingly told UPI. “Just a small portion, comparatively, goes to the federal workforce.”

While the number of federal employees has remained relatively consistent, Mattingly notes that there are fewer federal employees per capita as the population has grown.

“When you look at the U.S. population, that’s exploded,” she said. “So we actually have fewer federal employees per capita than in the past and they’re doing an enormously greater magnitude and scope of work than the federal government did, say 30, 40, 100 years ago. What Congress and administrations have authorized the government to do is far greater and far more complex than it was.”

Measuring DOGE’s progress five months in remains a challenge. The most recent date that DOGE updated its payment statistics or “receipts” was May 13. At that time, less than half of those receipts were itemized.

The most cost savings, indicated by DOGE’s “Agency Efficiency Leaderboard,” have come from the Department of Health and Human Services, followed by the General Services Administration, the Department of Education and the Office of Personnel Management.

“The list they put on the DOGE website turns out to be about 40% inaccurate,” Karmarck told UPI. “We can’t take their word for it. They were very sloppy. They made no effort at transparency other than a website which just has a list of things.”

An example of the inaccuracies shared by Karmarck is that DOGE has taken credit for ending contracts that ended before Trump was inaugurated.

Faith Williams, director of the Effective and Accountable Government Program for Project on Government Oversight, agrees that DOGE’s website cannot be trusted based on its inaccuracies and a lack of transparency.

Inaccuracies have been brought to DOGE’s attention on social media and it has made some corrections, though questions remain about its transparency.

“Transparency has been an issue since day one,” Williams told UPI. “This is an example of where DOGE has the power of a cabinet-level agency when it wants to but doesn’t have to recordkeep when it doesn’t want to. DOGE gets to be whatever is convenient in the moment.”

Musk’s initial role — as stated by him and Trump — was to lead DOGE in an effort to tackle waste, fraud and abuse in the federal government for the purpose of making it run more efficiently. The White House later downplayed his direct role with DOGE, referring to him as an adviser to the president.

The murkiness of Musk’s true role in DOGE underlines why Williams has concerns about its structure, mission and lack of transparency. She has been investigating the office since it began, looking into its structure, who works for DOGE and its potential conflicts of interest.

“One thing we learned fairly early on DOGE, its structure was very questionable. It was very opaque and it was opaque by design,” Williams said. “That opacity really helped shield it and its actors and its actions from any kind of accountability, whether that’s from members of the public or even congressional accountability or even in the courts.”

“Who led DOGE and worked at DOGE was one thing one day and a different thing on a different day depending on what was advantageous,” she continued.

Project on Government Oversight filed a lawsuit against DOGE over its lack of recordkeeping made available to the public and accessing sensitive records. DOGE faces lawsuits from other organizations related to its alleged lack of compliance with the Freedom of Information Act.

In March, U.S. District Court Judge Casey Cooper ruled that DOGE’s records are likely subject to the Freedom of Information Act. This was in response to a lawsuit by the government watchdog group Citizens for Responsibility and Ethics in Washington.

There are several more lawsuits against DOGE related to its handling of data, compliance with FOIA and methods of cutting federal workers.

In contrast, Karmarck’s Reinventing Government Initiative did not face any litigation.

“The reason we had no lawsuits is we followed the law,” she said. “We passed a buyout bill so we had the congressional authority for buying people out. We simply followed the law.”

Instead of recommending Congress take actions like laying off federal employees or rescinding funds it has approved, DOGE has taken unilateral actions resulting in lawsuits. Funding approved by Congress requires congressional action to end.

DOGE is not a congressionally approved agency, as a president cannot unilaterally create a new agency. He can create a new office, as past presidents have done. The authority of that office to take actions is limited, making it closer to an adviser than a federal agency.

Accessing federal data systems and making changes is among the actions DOGE has taken that have raised the greatest concerns.

Beth Noveck was the founding director of the White House’s Open Government Initiative, a program started under President Barack Obama‘s administration that focused on using technology and data to modernize and improve government operations. She is currently the director of the Governance Lab and its MacArthur Research Network on Opening Governance at New York University.

Noveck told UPI oversight on DOGE is past overdue, due to reports of the data it has accessed or attempted to access, including Medicare and Medicaid payment data, Social Security records, student loan data and the Office of Personnel Management systems.

“Who has access and how it is being used is something we need an accounting of,” Noveck said. “It’s concerning and it seems that we’re giving access to the likes of Palantir [Technology] to combine data that will effectuate mass surveillance and control. The risk is not just a failed attempt at cost savings, it’s a successful attempt at authoritarian overthrow.”

The main tenets of DOGE are not new, evidenced by the work Noveck and Karmarck did for past administrations. There are nonpartisan government oversight entities that existed before Trump’s current term as well, including the Office of Government Ethics and the inspectors general. However, shortly after Trump returned to office he fired the head of the Office of Government Ethics and 18 inspectors general.

Last week, Sen. Elizabeth Warren, D-Mass., released a report on Musk’s 130 days working in the government. The report alleges that Musk used his position to direct lucrative government contracts toward himself and his companies SpaceX, Tesla, Boring Company and Starlink.

Amid an online feud with Musk following his departure as a White House Adviser, Trump has threatened to cancel all contracts with his companies.

Warren’s report also alleges that Musk and DOGE undercut agencies responsible for regulating his businesses and stopped enforcement actions against them.

Source link

Trump threatens to cut Musk government contracts amid agenda bill spat

June 5 (UPI) — President Donald Trump on Thursday threatened to cut Elon Musk‘s government contracts through Tesla amid his departure from his role cutting government spending and opposition to Trump’s sweeping legislative agenda bill.

Trump threatened to end all government contracts with the Musk-founded Tesla in a post on Truth Social and suggested that would be a fast way to reduce government spending.

“The easiest way to save money in our budget, billions and billions of dollars, is to terminate Elon’s governmental subsidies and contracts,” Trump wrote.

Tesla share prices declined by more than 14% on Thursday and shed $152 billion in value from the EV maker.

Trump on Thursday accused Musk of going “crazy” after the president canceled the federal electric vehicle mandate imposed by the Biden administration.

“I took away his EV mandate that forced everyone to buy electric cars that nobody else wanted,” Trump said in a Truth Social post on Thursday. “He just went crazy!”

Trump said he asked Musk to leave his advisory position with DOGE, although Musk was scheduled to exit the position at the end of May.

Musk earlier said Trump would not have won the Nov. 5 election without his help.

He contributed an estimated $250 million to Trump’s campaign effort.

“Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate,” Musk said Thursday morning in a post on X.

Musk has criticized the proposed “one big, beautiful” federal government budget bill as increasing the nation’s debt and negating his work with DOGE.

The entrepreneur opposes the spending bill that the House has passed and is before the Senate because it removed tax credits and subsidies for buying EVs, Trump claimed.

“I don’t mind Elon turning against me, but he should have done that months ago,” Trump said in a subsequent Truth Social post on Thursday afternoon.

“This is one of the greatest bills ever presented to Congress,” he continued. “It’s a record cut in expenses, $1.6 trillion dollars, and the biggest tax cut ever given.”

If the measure is not passed, Trump said it will trigger a 68% tax increase, “and things far worse than that.”

The president said the “easiest way to save money … is to terminate Elon’s governmental subsidies and contracts” with Tesla.

Later on Thursday, Musk in an X post said it is “time to drop the really big bomb” on the president.

Trump “is in the Epstein files,” Musk said. “That is the real reason they have not been made public.”

Musk did not say in what context Trump allegedly appears in the Epstein files, but ended his post with: “Have a nice day, DJT!”

He made a subsequent post that asks: “Is it time to create a new political party in America that actually represents the 80% in the middle?”

Trump and Musk often appeared together at high-profile events in the first four months of the administration.

Source link

Trump, Musk feud escalates amid high-profile bromance breakup

June 5 (UPI) — President Donald Trump and former Department of Government Efficiency Director Elon Musk are slinging accusations after an apparent end to their short-lived friendship.

Trump on Thursday accused Musk of going “crazy” after the president canceled the federal electric vehicle mandate imposed by the Biden administration.

“I took away his EV mandate that forced everyone to buy electric cars that nobody else wanted,” Trump said in a Truth Social post on Thursday. “He just went crazy!”

Trump also has threatened to end all government contracts with the Musk-founded Tesla and suggested that would be a fast way to reduce government spending.

The president’s threat likely resonated with investors as Tesla share prices declined by more than 14% on Thursday and shed $152 billion in value from the EV maker.

Trump said he asked Musk to leave his advisory position with DOGE, although Musk was scheduled to exit the position at the end of May.

Musk earlier said Trump would not have won the Nov. 5 election without his help.

He contributed an estimated $250 million to Trump’s campaign effort.

“Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate,” Musk said Thursday morning in a post on X.

Musk has criticized the proposed “one big, beautiful” federal government budget bill as increasing the nation’s debt and negating his work with DOGE.

The entrepreneur opposes the spending bill that the House has passed and is before the Senate because it removed tax credits and subsidies for buying EVs, Trump claimed.

“I don’t mind Elon turning against me, but he should have done that months ago,” Trump said in a subsequent Truth Social post on Thursday afternoon.

“This is one of the greatest bills ever presented to Congress,” he continued. “It’s a record cut in expenses, $1.6 trillion dollars, and the biggest tax cut ever given.”

If the measure is not passed, Trump said it will trigger a 68% tax increase, “and things far worse than that.”

The president said the “easiest way to save money … is to terminate Elon’s governmental subsidies and contracts” with Tesla.

Later on Thursday, Musk in an X post said it is “time to drop the really big bomb” on the president.

Trump “is in the Epstein files,” Musk said. “That is the real reason they have not been made public.”

Musk did not say in what context Trump allegedly appears in the Epstein files, but ended his post with: “Have a nice day, DJT!”

He made a subsequent post that asks: “Is it time to create a new political party in America that actually represents the 80% in the middle?”

Trump and Musk were very close during the first four months of the Trump administration and often appeared together at high-profile events.

Source link