Ƶ

How Trump plans to crack down on immigration during his second term

Asylum-seeking migrants line up near the border while waiting to be transported by the U.S. Border Patrol after crossing the border from Mexico into the U.S. in Jacumba Hot Springs, California, U.S. April 29, 2024. (REUTERS)
Asylum-seeking migrants line up near the border while waiting to be transported by the U.S. Border Patrol after crossing the border from Mexico into the U.S. in Jacumba Hot Springs, California, U.S. April 29, 2024. (REUTERS)
Short Url
Updated 12 November 2024

How Trump plans to crack down on immigration during his second term

How Trump plans to crack down on immigration during his second term
  • Trump has said he would restore his 2019 “remain in Mexico” program, which forced asylum-seekers of certain nationalities attempting to enter the US at the southern border to wait in Mexico for the resolution of their cases
  • Trump told Time he did not rule out building new migrant detention camps but “there wouldn’t be that much of a need for them” because migrants would be rapidly removed

WASHINGTON: Republican Donald Trump is expected to crack down on illegal immigration and try to restrict legal immigration when he returns to the White House on Jan. 20, following up on campaign promises and unfinished efforts from his 2017-2021 presidency.
Here are some of the policies under consideration, according to Trump, his campaign and news reports:

BORDER ENFORCEMENT

Trump is expected to take a slew of executive actions on his first day as president to ramp up immigration enforcement, including deploying National Guard troops to the US-Mexico border and declaring a national emergency to unlock funds to resume construction of a wall on the US-Mexico border. Trump has said he would restore his 2019 “remain in Mexico” program, which forced asylum-seekers of certain nationalities attempting to enter the US at the southern border to wait in Mexico for the resolution of their cases. The program was terminated by Biden, a Democrat who ended his faltering reelection campaign in July, making Vice President Kamala Harris the candidate. Biden defeated Trump in 2020, pledging more humane and orderly immigration policies, but struggled to deal with record levels of migrants caught crossing the US-Mexico border illegally. Immigration was a top voter issue heading into last week’s election, in which Trump defeated Harris in a stunning political comeback. Edison Research exit polls showed 39 percent of voters said most immigrants in the US illegally should be deported while 56 percent said they should be offered a chance to apply for legal status.
Trump also would reinstate the COVID-19-era Title 42 policy, which allowed US border authorities to quickly expel migrants back to Mexico without the chance to claim asylum, he told Time magazine in an interview.
He would use record border crossings and trafficking of fentanyl and children as reasons for the emergency moves, Time reported, citing comments from advisers.
Trump has said he will seek to detain all migrants caught crossing the border illegally or violating other immigration laws, ending what he calls “catch and release.” At an October campaign event, Trump said he would call on Congress to fund an additional 10,000 Border Patrol agents, a substantial increase over the existing force. Harris criticized Trump for helping kill a bipartisan border security bill earlier this year that could have added 1,300 more agents. Trump criticized a Biden asylum ban rolled out last June and pledged to reverse it during a campaign event in Arizona. He said the measure would not adequately secure the border, even though it mirrored Trump-era policies to deter would-be migrants and has contributed to a steep drop in migrants caught crossing illegally. Trump also said at the campaign event that he would consider using tariffs to pressure China and other nations to stop migrants from their countries from coming to the US-Mexico border.

MASS DEPORTATIONS

Trump has pledged to launch the largest deportation effort in American history, focusing on criminals but aiming to send millions back to their home countries, an effort that is expected to tap resources across the US government but also face obstacles. As part of his Day One executive actions, Trump is expected to scrap Biden’s immigration enforcement priorities, which focused on arresting serious criminals and limited enforcement against people with no criminal records.
During a rally in Wisconsin in September, Trump said deporting migrants would be “a bloody story,” rhetoric that sparked criticism from immigrant advocates.
Trump told Time he did not rule out building new migrant detention camps but “there wouldn’t be that much of a need for them” because migrants would be rapidly removed.
Trump would rely on the National Guard, if needed, to arrest and deport immigrants in the US illegally, he said. When questioned, he also said he would be willing to consider using federal troops if necessary, a step likely to be challenged in the courts. Trump has also vowed to take aggressive new steps to deport immigrants with criminal records and suspected gang members by using the Alien Enemies Act, a 226-year-old statute last utilized for interning people of Japanese, German and Italian descent during World War Two. Trump called for the death penalty for migrants who kill US citizens or law enforcement officers at an October rally in Aurora, Colorado. Stephen Miller, the architect of Trump’s first-term immigration agenda who reportedly will return in a top White House role, said in an interview last year with a right-wing podcast that National Guard troops from cooperative states could potentially be deployed to what he characterized as “unfriendly” states to assist with deportations, which could trigger legal battles.
Vice President-elect JD Vance said in a New York Times interview published in October that deporting 1 million immigrants per year would be “reasonable.” Biden in the 2023 federal fiscal year outpaced Trump deportation totals for any single year — with a total 468,000 migrants being deported to their home countries or returned to Mexico by US immigration authorities — and is on pace for even more this year, a tally that includes migrants returned to Mexico.

TRAVEL BANS

Trump has said he would implement travel bans on people from certain countries or with certain ideologies, expanding on a policy upheld by the Supreme Court in 2018. Trump previewed some parts of the world that could be subjected to a renewed travel ban in an October 2023 speech, pledging to restrict people from the Gaza Strip, Libya, Somalia, Syria, Yemen and “anywhere else that threatens our security.” During the speech, Trump focused on the conflict in Gaza, saying he would bar the entry of immigrants who support the Islamist militant group Hamas and send deportation officers to pro-Hamas protests.
Trump said last June he would seek to block communists, Marxists and socialists from entering the US

LEGAL IMMIGRATION

Trump plans to end Biden’s humanitarian “parole” programs, including one that allowed hundreds of thousands of migrants with US sponsors to enter the US and obtain work permits. He has called Biden’s programs an “outrageous abuse of parole authority.” Trump said last year that he would seek to end automatic citizenship for children born in the US to immigrants living in the country illegally, an idea he flirted with as president.
Such an action would run against the long-running interpretation of an amendment to the US Constitution and would likely trigger legal challenges. During his first term, Trump greatly reduced the number of refugees allowed into the US and has criticized Biden’s decision to increase admissions. He would again suspend the resettlement program if elected, the New York Times reported in November 2023.
Trump has said he would push for “a merit-based immigration system that protects American labor and promotes American values.” In his first term, he took steps to tighten access to some visa programs, including a suspension of many work visas during the COVID pandemic. The Trump campaign criticized a Biden program — currently blocked by a federal judge — that offered a path to citizenship to immigrants in the US illegally who are married to an American citizen and have lived in the US for at least a decade. Trump said on a podcast in June that he backed giving green cards to foreign students who graduate from US colleges or junior colleges, but Trump campaign spokesperson Karoline Leavitt later said the proposal “would only apply to the most thoroughly vetted college graduates who would never undercut American wages or workers.”
He would seek to roll back Temporary Protected Status designations, the New York Times reported, targeting a humanitarian program that offers deportation relief and work permits to hundreds of thousands. Trump tried to phase out most Temporary Protected Status enrollment during his first term, but was slowed by legal challenges. A federal appeals court in September 2020 allowed him to proceed with the wind-down, but Biden reversed that and expanded the program after taking office.

FAMILY SEPARATION
In a town hall with CNN last year, Trump declined to rule out resuming his contentious “zero tolerance” policy that led thousands of migrant children and parents to be separated at the US-Mexico border in 2018.
He defended the separations again in November 2023, telling Spanish-language news outlet Univision that “it stopped people from coming by the hundreds of thousands.” While Trump has refused to rule out reinstating a family separation policy, Trump’s incoming “border czar” Tom Homan told Reuters last year that the separations “caused an uproar” and that it would be better to detain families together. The Biden administration last year reached a settlement agreement with separated families that would offer them temporary legal status and other benefits while barring similar separations for at least eight years.

DACA
Trump tried to end a program that grants deportation relief and work permits to “Dreamer” immigrants brought to the US illegally as children, but the termination was rebuffed by the Supreme Court in June 2020. Following the Supreme Court ruling, the Trump administration said it would not accept any new applications to the program, known as Deferred Action for Childhood Arrivals, or DACA, and would explore whether it could again attempt to end it.
Trump plans to try to end DACA if elected, the New York Times reported.


US appeals court finds Trump’s effort to end birthright citizenship unconstitutional, upholds block

US appeals court finds Trump’s effort to end birthright citizenship unconstitutional, upholds block
Updated 13 sec ago

US appeals court finds Trump’s effort to end birthright citizenship unconstitutional, upholds block

US appeals court finds Trump’s effort to end birthright citizenship unconstitutional, upholds block
  • Trump’s order asserts that a child born in the US is not a citizen if the mother does not have legal immigration status or is in the country legally but temporarily, and the father is not a US citizen or lawful permanent resident

WASHINGTON: A federal appeals court ruled Wednesday that President Donald Trump’s order seeking to end birthright citizenship is unconstitutional, affirming a lower-court decision that blocked its enforcement nationwide.
The ruling from a three-judge panel of the 9th US Circuit Court of Appeals comes after Trump’s plan was also blocked by a federal judge in New Hampshire. It brings the issue one step closer to coming back quickly before the Supreme Court.
The 9th Circuit decision keeps a block on the Trump administration enforcing the order that would deny citizenship to children born to people who are in the United States illegally or temporarily.
“The district court correctly concluded that the Executive Order’s proposed interpretation, denying citizenship to many persons born in the United States, is unconstitutional. We fully agree,” the majority wrote.
The 2-1 ruling keeps in place a decision from US District Judge John C. Coughenour in Seattle, who blocked Trump’s effort to end birthright citizenship and decried what he described as the administration’s attempt to ignore the Constitution for political gain.
The White House and Justice Department did not immediately respond to messages seeking comment.
The Supreme Court has since restricted the power of lower court judges to issue orders that affect the whole country, known as nationwide injunctions.
But the 9th Circuit majority found that the case fell under one of the exceptions left open by the justices. The case was filed by a group of states who argued that they need a nationwide order to prevent the problems that would be caused by birthright citizenship only being the law in half of the country.
“We conclude that the district court did not abuse its discretion in issuing a universal injunction in order to give the States complete relief,” Judge Michael Hawkins and Ronald Gould, both appointed by President Bill Clinton, wrote.
Judge Patrick Bumatay, who was appointed by Trump, dissented. He found that the states don’t have the legal right, or standing, to sue. “We should approach any request for universal relief with good faith skepticism, mindful that the invocation of ‘complete relief’ isn’t a backdoor to universal injunctions,” he wrote.
Bumatay did not weigh in on whether ending birthright citizenship would be constitutional.
The Citizenship Clause of the 14th Amendment says that all people born or naturalized in the United States, and subject to US jurisdiction, are citizens.
Justice Department attorneys argue that the phrase “subject to United States jurisdiction” in the amendment means that citizenship isn’t automatically conferred to children based on their birth location alone.
The states — Washington, Arizona, Illinois and Oregon — argue that ignores the plain language of the Citizenship Clause as well as a landmark birthright citizenship case in 1898 where the Supreme Court found a child born in San Francisco to Chinese parents was a citizen by virtue of his birth on American soil.
Trump’s order asserts that a child born in the US is not a citizen if the mother does not have legal immigration status or is in the country legally but temporarily, and the father is not a US citizen or lawful permanent resident. At least nine lawsuits challenging the order have been filed around the US.


Black student dragged from his car and punched by Florida officers says he was scared and confused

Black student dragged from his car and punched by Florida officers says he was scared and confused
Updated 43 min 29 sec ago

Black student dragged from his car and punched by Florida officers says he was scared and confused

Black student dragged from his car and punched by Florida officers says he was scared and confused
  • William McNeil Jr. 's encounter with teh abusive cops happened in February, but the arrest didn’t capture much attention until the video from McNeil’s car-mounted camera went viral over the weekend

A Black college student shown on video being punched and dragged from his car by Florida law officers during a traffic stop faces a long recovery from injuries that include a concussion and a broken tooth that pierced his lip and led to several stiches, his lawyers said Wednesday.
At a news conference in Jacksonville, 22-year-old William McNeil Jr. spoke softly as he made a few brief comments with his family and civil rights attorneys by his side.
“That day I just really wanted to know why I was getting pulled over and why I needed to step out of the car,” he said. “I knew I didn’t do nothing wrong. I was really just scared.”
McNeil is a biology major who played in the marching band at Livingstone College, a historically Black Christian college in Salisbury, North Carolina, Livingstone President Anthony Davis said.
The encounter with law enforcement happened in February, but the arrest didn’t capture much attention until the video from McNeil’s car-mounted camera went viral over the weekend. That’s when the sheriff said he became aware of it and opened an internal investigation, which is ongoing. The sheriff said a separate probe by the State Attorney’s Office cleared the officers of any criminal wrongdoing — a finding fiercely criticized by McNeil’s lawyers.
Video from inside the car captures him being punched
Footage of the violent arrest has sparked nationwide outrage, with civil rights lawyers accusing authorities of fabricating their arrest report.
The video filmed by McNeil’s camera shows him sitting in the driver’s seat, asking to speak to the Jacksonville officers’ supervisor, when they broke his window, punched him in the face, pulled him from the vehicle and punched him again. He was then knocked to the ground by an officer who delivered six closed-fist punches to the hamstring of his right thigh, police reports show.

Florida Republican Gov. Ron DeSantis on Wednesday defended law enforcement officers and implied the video was posted to advance a “narrative” and generate attention on social media.
“That’s what happens in so many of these things,” DeSantis said. “There’s a rush to judgment. There’s a, there’s a desire to try to get views and clicks by creating division.”
DeSantis says he hasn’t seen the video, but backs law enforcement
DeSantis said he hasn’t reviewed the viral video but has “every confidence” in Jacksonville Sheriff T.K. Waters, who has urged the public not to cast judgment based on the footage alone.
“If people get out of line, he’s going to hold them accountable,” DeSantis said.
Body camera footage of the encounter shows McNeil had been repeatedly told to exit the vehicle. And, though he earlier had his car door open while talking with an officer, he later closed it and appeared to keep it locked for about three minutes before the officers forcibly removed him, the video shows. The vantage point of the body camera footage that was released makes it difficult to see the punches.
The cellphone footage from the Feb. 19 arrest shows that seconds before being dragged outside, McNeil had his hands up and did not appear to be resisting as he asked, “What is your reason?” He had pulled over and had been accused of not having his headlights on, even though it was daytime, his lawyers said.
On Wednesday, civil rights lawyer Ben Crump said his client had every right to ask why he was being pulled over and to ask for a supervisor.
Report that McNeil reached toward a knife is disputed
A point of contention in the police report is a claim that McNeil reached toward an area of the car where deputies found a knife when they searched the vehicle after taking him into custody.
“The suspect was reaching for the floorboard of the vehicle where a large knife was sitting,” Officer D. Bowers wrote in his report.
Crump called that police report a “fabrication,” saying McNeil “never reaches for anything.” A second officer observed that McNeil kept his hands up as Bowers smashed the window.
“After Ofc. Bowers opened the door, the subject refused to exit the vehicle, but kept his hands up,” the second officer wrote.
Sheriff says officers have been cleared of committing any crimes
The State Attorney’s Office determined that the officers did not violate any criminal laws, the sheriff said. No one from the State Attorney’s Office ever interviewed McNeil, Crump said.
Daniels called their investigation “a whitewashing.”
“But for that video, we would not be here,” Daniels said. “And we thank God Mr. McNeil had the courage to record.”
Asked about the criticism of the State Attorney’s review, a spokesperson for the office said Wednesday that “a memo to McNeil’s file will be finalized in the coming days that will serve as our comment.”
Shortly after his arrest, McNeil pleaded guilty to charges of resisting an officer without violence and driving with a suspended license, Waters said.
Civil rights attorneys call for accountability
“America, we’re better than this, we’re at a crossroads,” Crump said. “We are a Democracy, we believe in the Constitution. We are not a police state where the police can do anything they want to citizens without any accountability.”
Crump said his client remained calm while the officers who are trained to deescalate tense situations were the ones escalating violence. He said the case harkened back to the Civil Rights movement, when Black people were often attacked when they tried to assert their rights.
“What he exhibited was a 21st century Rosa Parks moment where an African American had the audacity to say ‘I deserve equal justice under the law. I deserve to be treated like a human being with all the respect that a human being is entitled to.’”
The sheriff has pushed back on some of the claims by Crump and lawyer Harry Daniels, saying the cellphone camera footage from inside the car “does not comprehensively capture the circumstances surrounding the incident.”
“Part of that stems from the distance and perspective of the recording cell phone camera,” the sheriff said in a statement, adding that the video did not capture events that occurred before officers decided to arrest McNeil.
Cameras “can only capture what can be seen and heard,” the sheriff added. “So much context and depth are absent from recorded footage because a camera simply cannot capture what is known to the people depicted in it.”
Many of the speakers at Wednesday’s news conference said they hope the Florida case results in accountability so that what happened to McNeil doesn’t happen to others.
“It’s incumbent upon everyone to understand that this could have been us, this could have been me, this could have been you,” civil rights lawyer Gerald Griggs said.
 


Columbia University agrees to pay more than $220M in deal with Trump to restore federal funding

Columbia University agrees to pay more than $220M in deal with Trump to restore federal funding
Updated 48 min 46 sec ago

Columbia University agrees to pay more than $220M in deal with Trump to restore federal funding

Columbia University agrees to pay more than $220M in deal with Trump to restore federal funding
  • The Trump administration pulled the funding, because of what it described as the university’s failure to squelch antisemitism on campus

NEW YORK: Columbia University has reached a deal with the Trump administration to pay more than $220 million to the federal government to restore federal research money that was canceled in the name of combating antisemitism on campus, the university announced Wednesday.
Under the agreement, the Ivy League school will pay a $200 million settlement over three years, the university said. It will also pay $21 million to settle investigations brought by the US Equal Employment Opportunity Commission.
“This agreement marks an important step forward after a period of sustained federal scrutiny and institutional uncertainty,” acting University President Claire Shipman said.
The Trump administration pulled the funding, because of what it described as the university’s failure to squelch antisemitism on campus during the Israel-Hamas war that began in October 2023.
Columbia then agreed to a series of demands laid out by the Republican administration, including overhauling the university’s student disciplinary process and adopting a new definition of antisemitism.
Wednesday’s agreement — which does not include an admission of wrongdoing — codifies those reforms while preserving the university’s autonomy, Shipman said.
The school had been threatened with the potential loss of billions of dollars in government support, including more than $400 million in grants canceled earlier this year.
“The settlement was carefully crafted to protect the values that define us and allow our essential research partnership with the federal government to get back on track,” Shipman said. “Importantly, it safeguards our independence, a critical condition for academic excellence and scholarly exploration, work that is vital to the public interest.”
As part of the deal, Columbia agreed to a series of changes previously announced in March, including reviewing its Middle East curriculum to make sure it was “comprehensive and balanced” and appointing new faculty to its Institute for Israel and Jewish Studies. It also promised to end programs “that promote unlawful efforts to achieve race-based outcomes, quotes, diversity targets or similar efforts.”
The university will also have to issue a report to a monitor assuring that its programs “do not promote unlawful DEI goals.”
The pact comes after months of uncertainty and fraught negotiations at the more than 270-year-old university. It was among the first targets of President Donald Trump’s crackdown on pro-Palestinian campus protests and on colleges that he asserts have allowed Jewish students be threatened and harassed.
Columbia’s own antisemitism task force found last summer that Jewish students had faced verbal abuse, ostracism and classroom humiliation during the spring 2024 demonstrations.
Other Jewish students took part in the protests, however, and protest leaders maintain they aren’t targeting Jews but rather criticizing the Israeli government and its war in Gaza.
Columbia’s leadership — a revolving door of three interim presidents in the last year — has declared that the campus climate needs to change.
Also in the settlement is an agreement to ask prospective international students “questions designed to elicit their reasons for wishing to study in the United States,” and establishes processes to make sure all students are committed to “civil discourse.”


State Department approves $322 million in proposed weapons sales to Ukraine

State Department approves $322 million in proposed weapons sales to Ukraine
Updated 24 July 2025

State Department approves $322 million in proposed weapons sales to Ukraine

State Department approves $322 million in proposed weapons sales to Ukraine
  • The approvals come weeks after Defense Secretary Pete Hegseth directed a pause on other weapons shipments to Ukraine to allow the Pentagon to assess its weapons stockpiles

The State Department said Wednesday that it has approved $322 million in proposed weapons sales to Ukraine to enhance its air defense capabilities and provide armored combat vehicles, coming as the country works to fend off escalating Russian attacks.
The potential sales, which the department said were notified to Congress, include $150 million for the supply, maintenance, repair and overhaul of US armored vehicles, and $172 million for surface-to-air missile systems.
The approvals come weeks after Defense Secretary Pete Hegseth directed a pause on other weapons shipments to Ukraine to allow the Pentagon to assess its weapons stockpiles, in a move that caught the White House by surprise. President Donald Trump then made an abrupt change in posture, pledging publicly earlier this month to continue to send weapons to Ukraine.
“We have to,” Trump said. “They have to be able to defend themselves. They’re getting hit very hard now. We’re going to send some more weapons — defensive weapons primarily.”
Trump recently endorsed a plan to have European allies buy US military equipment that can then be transferred to Ukraine. It was not immediately clear how the latest proposed sales related to that arrangement.
Since Russia launched its full-scale invasion of Ukraine in February 2022, the US has provided more than $67 billion in weapons and security assistance to Kyiv.
Since Trump came back into office, his administration has gone back and forth about providing more military aid to Ukraine, with political pressure to stop US funding of foreign wars coming from the isolationists inside the Trump administration and on Capitol Hill.
Over the course of the war, the US has routinely pressed for allies to provide air defense systems to Ukraine. But many are reluctant to give up the high-tech systems, particularly countries in Eastern Europe that also feel threatened by Russia.


Tesla profit plunges in latest quarter as Musk’s turn to politics continues to keep buyers away

Tesla profit plunges in latest quarter as Musk’s turn to politics continues to keep buyers away
Updated 24 July 2025

Tesla profit plunges in latest quarter as Musk’s turn to politics continues to keep buyers away

Tesla profit plunges in latest quarter as Musk’s turn to politics continues to keep buyers away
  • Faced with boycotts for months, the car company’s profits slumped 16 percent in the three months through June
  • Musk also alienated many in the market for cars in Europe by embracing far-right candidates for office on the continent

NEW YORK: The fallout from Elon Musk’s plunge into politics a year ago is still hammering his Tesla business as both sales and profits dropped sharply again in the latest quarter.
The car company that has faced boycotts for months said Wednesday that revenue dropped 12 percent and profits slumped 16 percent in the three months through June as buyers continued to stay away.
“The perception of Elon Musk, its chief executive, has rubbed the sheen right out of what once was a darling and soaring automotive brand,” wrote Forrester analyst Dipanjan Chatterjee in an email. Tesla is “a toxic brand that is inseparable from its leader.”
Quarterly profits at the electric vehicle, battery and robotics company fell to $1.17 billion, or 33 cents a share, from $1.4 billion, or 40 cents a share. That was the third quarter in a row that profit dropped. On an adjusted basis, the company said it earned 40 cents a share, matching Wall Street estimates.
Revenue fell from $25.5 billion to $22.5 billion in the April through June period, slightly above Wall Street’s forecast.
Tesla shares were little changed in after-hours trading as investors wait to hear from Musk on the company’s earnings call later in the afternoon.
Musk, who helped elect President Donald Trump with a massive campaign donation and then headed his DOGE cost-cutting program, has been pinning the future of the company less on car sales and more on robotaxis, automated driving software and robotics. But those businesses are yet to take off, and the gap between promise and profits was apparent in the second quarter.
A big challenge is that potential buyers not just in the US but Europe are still balking at buying Teslas. Musk alienated many in the market for cars in Great Britain, France, Germany and elsewhere by embracing far-right candidates for office on the continent. And rival electric vehicle makers such as China’s BYD and German’s Volkswagen have pounced on the weakness, stealing market share.
Tesla began a rollout of its paid pickup robotaxi service in Austin, Texas, and hopes to introduce the driverless cabs in several other cities soon. Musk has said he expects to have hundreds of thousands of the cabs on US roads by the end of next year.
In a conference call after the results were announced, Musk said the service will be available to probably “half of the population of the US by the end of the year — that’s at least our goal, subject to regulatory approvals.”
He added, “We are being very cautious. We don’t want to take any chances.”
The test run in Austin has mostly gone off without a hitch, though there have been a few alarming incidents, such as when a robotaxi went down a lane meant for opposing traffic.
With driverless taxis, though, the billionaire who upended the space race and the EV manufacturing faces tough competition. The dominant provider now, Waymo, is already in several cities and recently logged its ten-millionth paid trip.
Meanwhile other threats loom. The new federal budget just passed by Congress eliminates a credit worth as much as $7,500 for buying an electric car. It also wipes out penalties for car makers to exceeding carbon emission standards. That threatens Tesla’s business of selling its “carbon credits” to traditional car companies that regularly fall short of emission standards.
Tesla generated $439 million from credit sales, down sharply from $890 million a year ago.
One way to boost sales that Musk has long promised: A cheaper model. The company now is planning to introduce that to the market in the last three months of the year. Tesla had previously said that was going to happen by June this year.
“It appears management’s focus will now shift to robotaxis and away from deliveries growth,” said Morningstar analyst Seth Goldstein, referring to the car sales.
“If Tesla continues to execute well with vehicle autonomy and humanoid robot autonomy,” Musk said in his remarks, “it will be the most valuable company in the world.”
Musk also said he expected regulatory approval to introduce its so-called Full Self-Driving software in some parts of Europe by the end of the year. Musk had previously expected that to happen by March of this year. The feature, which is available in the US, is a misnomer because it is only a driver assistance feature.
Gross margins for the quarter, a measure of earnings for each dollar of revenue, fell to 17.2 percent from 18 percent a year earlier.
A highlight from the quarter was from something far removed from cars and robots: the company’s investment in bitcoin. That bet generated a $284 million paper gain, compared with a loss the previous quarter.