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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
An aerial view shows cars parked at the Tesla Fremont Factory in Fremont, California. (AFP)
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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.


EU commission president seeks sanctions, partial trade suspension against Israel over war in Gaza

EU commission president seeks sanctions, partial trade suspension against Israel over war in Gaza
Updated 52 min 59 sec ago

EU commission president seeks sanctions, partial trade suspension against Israel over war in Gaza

EU commission president seeks sanctions, partial trade suspension against Israel over war in Gaza
  • The European Commission president says she plans to seek sanctions and a partial trade suspension against Israel over the war in Gaza
  • Von der Leyen added that the commission “will set up a Palestine donor group next month,” part of which will focus on Gaza’s future reconstruction

STRASBOURG, France: The European Commission president said Wednesday she would seek sanctions and a partial trade suspension against Israel over the war in Gaza, an announcement that marked a sharp turnaround for Ursula von der Leyen, a longtime supporter of Israeli Prime Minister Benjamin Netanyahu.
The 27-nation EU is deeply divided in its approach to Israel and the Palestinians, and it’s unclear whether a majority will be found to endorse the sanctions and trade measures.
Von der Leyen added that the commission “will set up a Palestine donor group next month,” part of which will focus on Gaza’s future reconstruction. She said the events in Gaza and the suffering of children and families “has shaken the conscience of the world.”
The Gaza Health Ministry says 126 Palestinians, including 26 children, have died of causes related to malnutrition since international experts announced famine in Gaza City on Aug. 22.
“Man-made famine can never be a weapon of war. For the sake of the children, for the sake of humanity. This must stop,” Von der Leyen said Wednesday, to applause in the European Parliament at its meeting in Strasbourg, France.
Israeli Foreign Minister Gideon Saar, in a social media post, said Von der Leyen had succumbed to pressures that undermine Israel-Europe relations. He said her actions will embolden Hamas.
Warning Gaza City residents to evacuate
Von der Leyen’s comments followed Israel’s military warning on Tuesday to Gaza City residents to evacuate ahead of its plans to take control of what it portrays as Hamas’ last remaining stronghold and where hundreds of thousands of people remain under conditions of famine.
An estimated 1 million Palestinians — around half of Gaza’s overall population — live in the area of north Gaza around Gaza City, according to the Israeli military and the United Nations. Many are exhausted from moving multiple times and unsure if traveling south will be safer.
The warnings directed at Gaza City — the first calling for its full evacuation — came before an Israeli strike on Tuesday targeting Hamas’ leaders in Qatar, where negotiations over ending the war in Gaza appeared to be at a standstill.
The strike on the territory of a U.S. ally drew widespread condemnation from countries in the Mideast and beyond. It also marked a dramatic escalation in the region and risked upending talks aimed at ending the war and freeing hostages still held by Hamas in Gaza.
Hamas claims its senior leadership survived the strike.
EU Commission plans to freeze Israel support
Von der Leyen also said she plans to freeze support to Israel given by the European Union’s executive branch, which would not require the approval of the 27 member countries.
It was not immediately clear how much financial support the executive branch, known as the European Commission, provides to Israel and what it is used for.
“We will put our bilateral support to Israel on hold. We will stop all payments in these areas, without affecting our work with Israeli civil society or Yad Vashem,” the Holocaust memorial, von der Leyen told EU lawmakers.
The commission also gives support to the Palestinian Authority.


German court jails Syrian man for life for deadly knife attack

German court jails Syrian man for life for deadly knife attack
Updated 10 September 2025

German court jails Syrian man for life for deadly knife attack

German court jails Syrian man for life for deadly knife attack
  • A Syrian man was sentenced to life in prison on Wednesday for killing three people in an Islamist-motivated knife attack at a summer festival in the German city of Solingen last year

DUSSELDORF: A Syrian man was sentenced to life in prison on Wednesday for killing three people in an Islamist-motivated knife attack at a summer festival in the German city of Solingen last year.
The court in Duesseldorf said Issa Al Hasan, who was 27 at the start of his trial in May, was a member of the Daesh group and had acted out of “treacherous and base motives.”


Protesters clash with police in Paris as ‘Block Everything’ movement gains momentum

Protesters clash with police in Paris as ‘Block Everything’ movement gains momentum
Updated 10 September 2025

Protesters clash with police in Paris as ‘Block Everything’ movement gains momentum

Protesters clash with police in Paris as ‘Block Everything’ movement gains momentum
  • Protesters have clashed with police in Paris, setting garbage bins on fire as the French government deployed 80,000 police for a nationwide protest

PARIS: Protesters clashed with police early Wednesday in Paris, where garbage bins were set on fire, as the government deployed an exceptional 80,000 police for a day of nationwide action under the slogan “Block Everything.”
The protesters, angry at French President Emmanuel Macron over his leadership and austerity policies, are planning to disrupt activity across the country.
The Paris police prefecture said 75 people had already been detained by 9 a.m., with demonstrations and blockades expected to continue throughout the day.
Two days after François Bayrou was ousted as prime minister in a parliamentary confidence vote and replaced on Tuesday by Sébastien Lecornu, thousands of protesters responded to online calls to disrupt the country.
The “Bloquons Tout” (Block Everything) movement had gathered momentum on social media and in encrypted chats over the summer. Its call for a day of blockades, strikes, demonstrations, and other acts of protest comes as Macron — one of the movement’s main targets — installed his fourth prime minister in 12 months.
The movement, which has grown virally with no clear identified leadership, has a broad array of demands — many targeting contested belt-tightening budget plans that Bayrou championed before his demise — as well as broader complaints about inequality.
Calls online for strikes, boycotts, blockades and other forms of protest on Wednesday have been accompanied with appeals to avoid violence.
The spontaneity of “Block Everything” is reminiscent of the “Yellow Vest” movement that rocked Macron’s first term as president. It started with workers camping out at traffic circles to protest a hike in fuel taxes, sporting high-visibility vests. It quickly spread to people across political, regional, social and generational divides angry at economic injustice and Macron’s leadership.


EU Commission chief says she will propose new measures targeting Israel

EU Commission chief says she will propose new measures targeting Israel
Updated 10 September 2025

EU Commission chief says she will propose new measures targeting Israel

EU Commission chief says she will propose new measures targeting Israel
  • Von der Leyen said that the Commission will put its bilateral support for Israel on hold

BRUSSELS: The European Commission will propose sanctioning extremist Israeli ministers and a partial suspension of the European Union’s association agreement with Israel, targeting trade-related matters, European Commission President Ursula von der Leyen said on Wednesday.
In a State of the Union speech to the European Parliament in Strasbourg, von der Leyen also said that the Commission will put its bilateral support for Israel on hold, without affecting work with Israeli civil society and Yad Vashem, Israel’s main Holocaust memorial center.
The Commission had previously proposed curbing Israeli access to its flagship research funding program but failed to garner sufficient support from EU member countries for the move.
Von der Leyen said the Commission would now do what it can on its own.
The Commission chief said the body will set up a Palestine Donor Group next month, including an instrument for Gaza reconstruction.


South Korea sends plane to US to bring back workers detained in immigration raid

South Korea sends plane to US to bring back workers detained in immigration raid
Updated 10 September 2025

South Korea sends plane to US to bring back workers detained in immigration raid

South Korea sends plane to US to bring back workers detained in immigration raid
  • South Korean media reports a charter plane has left for the US to bring back Korean workers detained in an immigration raid in Georgia
  • A total of 475 workers, more than 300 of them South Koreans, were rounded up in the Sept. 4 raid at the battery factory under construction at Hyundai’s sprawling auto plant west of Savannah

SEOUL: A South Korean charter plane left for the US on Wednesday to bring back Korean workers detained in an immigration raid in Georgia last week.
A total of 475 workers, more than 300 of them South Koreans, were rounded up in the Sept. 4 raid at the battery factory under construction at Hyundai’s sprawling auto plant. US authorities released video showing some being shackled with chains around their hands, ankles and waists, causing shock and a sense of betrayal among many in South Korea, a key US ally.
South Korea’s government later said it reached an agreement with the US for the release of the workers.
Korean workers will be brought back home after days of detention
South Korean TV footage showed the charter plane, a Boeing 747-8i from Korean Air, taking off at Incheon International Airport, just west of Seoul. South Korea’s Foreign Ministry said it was talking with US officials about letting the plane return home with the released workers as soon as possible. But it said the plane cannot depart from the US on Wednesday as South Korea earlier wished due to an unspecified reason involving the US side.
The Korean workers are currently being held at an immigration detention center in Folkston in southeast Georgia. South Korean media reported that they will be freed and moved to Atlanta to take the charter plane.
South Korean officials said they’ve been negotiating with the US to win “voluntary” departures of the workers, rather than deportations that could result in making them ineligible to return to the US for up to 10 years.
The workplace raid by the US Homeland Security agency was its largest yet as it pursues its mass deportation agenda. The Georgia battery plant, a joint venture between Hyundai and LG Energy Solution, is one of more than 20 major industrial sites that South Korean companies are currently building in the United States.
Many South Koreans view the Georgia raid as a source of national disgrace and remain stunned over it. Only 10 days earlier, South Korean President Lee Jae Myung and US President Donald Trump held their first summit in Washington on Aug. 25. In late July, South Korea also promised hundreds of billions of dollars in US investments to reach a tariff deal.
Experts say South Korea won’t likely take any major retaliatory steps against the US, but the Georgia raid could become a source of tensions between the allies as the Trump administration intensifies immigration raids.
South Korea calls for improvement in US visa systems
US authorities said some of the detained workers had illegally crossed the US border, while others had entered the country legally but had expired visas or entered on a visa waiver that prohibited them from working. But South Korean experts and officials said Washington has yet to act on Seoul’s yearslong demand to ensure a visa system to accommodate skilled Korean workers needed to build facilities, though it has been pressing South Korea to expand industrial investments in the US
South Korean companies have been relying on short-term visitor visas or Electronic System for Travel Authorization to send workers needed to launch manufacturing sites and handle other setup tasks, a practice that had been largely tolerated for years.
LG Energy Solution, which employed most of the detained workers, instructed its South Korean employees in the US on B-1 or B-2 short-term visit visas not to report to work until further notice, and told those with ESTAs to return home immediately.
During his visit to Washington, South Korean Foreign Minister Cho Hyun met representatives of major Korean companies operating in the US including Hyundai, LG and Samsung on Tuesday. Cho told them that South Korean officials are in active discussions with US officials and lawmakers about possible legislation to create a separate visa quota for South Korean professionals operating in the US, according to Cho’s ministry.
Trump said this week the workers “were here illegally,” and that the US needs to work with other countries to have their experts train US citizens to do specialized work such as battery and computer manufacturing.
Atlanta immigration attorney Charles Kuck, who represents four of the detained South Korean nationals, told The Associated Press on Monday that no company in the US makes the machines used in the Georgia battery plant. So they had to come from abroad to install or repair equipment on-site — work that would take about three to five years to train someone in the US to do, he said.
The South Korea-US military alliance, forged in blood during the 1950-53 Korean War, has experienced ups and downs over the decades. But surveys have shown a majority of South Koreans support the two countries’ alliance, as the US deployment of 28,500 troops in South Korea and 50,000 others in Japan has served as the backbone of the American military presence in the Asia-Pacific region.
During a Cabinet Council meeting on Tuesday, Lee said he felt “big responsibility” over the raid and expressed hopes that the operations of South Korean businesses won’t be infringed upon unfairly again. He said his government will push to improve systems to prevent recurrences of similar incidents in close consultations with the US.