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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 10 sec ago

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.


French president Macron sues influencer over claim France’s first lady was born male

French president Macron sues influencer over claim France’s first lady was born male
Updated 22 sec ago

French president Macron sues influencer over claim France’s first lady was born male

French president Macron sues influencer over claim France’s first lady was born male
  • Macrons allege ’relentless bullying on a worldwide scale’

French President Emmanuel Macron and his wife Brigitte filed a defamation lawsuit in the U.S. on Wednesday against right-wing influencer and podcaster Candace Owens, centered on her claim that France's first lady is male.
The Macrons said in a lawsuit filed in Delaware Superior Court that Owens has waged a lie-filled "campaign of global humiliation" to promote her podcast and expand her "frenzied" fan base.
The Macrons said the lies included that Brigitte Macron, 72, was born under the name Jean-Michel Trogneux, the actual name of her older brother.
"Owens has dissected their appearance, their marriage, their friends, their family, and their personal history — twisting it all into a grotesque narrative designed to inflame and degrade," the complaint said.
"The result," the complaint added, "is relentless bullying on a worldwide scale."
In a statement, a spokesperson for Owens called the lawsuit itself an effort to bully her, after Brigitte Macron rejected Owens' repeated requests for an interview.
"Candace Owens is not shutting up," the spokesperson said. "This is a foreign government attacking the First Amendment rights of an American independent journalist."
In a joint statement released by their lawyers, the Macrons said they sued after Owens rejected three demands that she retract defamatory statements.
"Ms. Owens's campaign of defamation was plainly designed to harass and cause pain to us and our families and to garner attention and notoriety," the Macrons said. "We gave her every opportunity to back away from these claims, but she refused."

HIGH LEGAL STANDARD
Wednesday's lawsuit is a rare case of a world leader suing for defamation.
U.S. President Donald Trump has also turned to the courts, including in a $10 billion lawsuit accusing The Wall Street Journal of defaming him by claiming he created a lewd birthday greeting for disgraced late financier Jeffrey Epstein in 2003.
The Journal said it would defend against that case and had full confidence in its reporting.
In December, meanwhile, Trump reached a $15 million settlement with Walt Disney-owned ABC over an inaccurate claim that a jury found him liable for rape, rather than sexual assault, in a civil lawsuit.
To prevail in U.S. defamation cases, public figures must show defendants engaged in "actual malice," a tough legal standard requiring proof the defendants knew what they published was false or had reckless disregard for its truth.
Owens has more than 6.9 million followers on X and more than 4.5 million YouTube subscribers.
CARLSON, ROGAN
The Macrons' lawsuit focuses on the eight-part podcast "Becoming Brigitte," which has more than 2.3 million views on YouTube, and X posts linked to it.
According to the Macrons, the series spread "verifiably false and devastating lies," including that Brigitte Macron stole another person's identity and transitioned to female, and that the Macrons are blood relatives committing incest.
The complaint discusses circumstances under which the Macrons met, when the now 47-year-old president was a high school student and Brigitte was a teacher. It said their relationship "remained within the bounds of the law."
According to the complaint, baseless speculation about Brigitte Macron's gender began surfacing in 2021, and the topic has been discussed on popular podcasts hosted by Tucker Carlson and Joe Rogan, who have many conservative followers.
In September, Brigitte won a lawsuit in a French court against two women, including a self-described medium, who contributed to spreading rumors about her gender.
An appeals court overturned that decision this month, and Brigitte Macron has appealed to France's highest court.
The case is Macron et al v Owens et al, Delaware Superior Court, No. N25C-07-194. 


Trump’s AI plan prioritizes deregulation to boost US dominance

Trump’s AI plan prioritizes deregulation to boost US dominance
Updated 16 min 26 sec ago

Trump’s AI plan prioritizes deregulation to boost US dominance

Trump’s AI plan prioritizes deregulation to boost US dominance
  • The administration frames AI advancement as critical to maintaining economic and military supremacy

WASHINGTON: President Donald Trump unveiled an aggressive, low-regulation strategy on Wednesday to boost big tech’s race to stay ahead of China on artificial intelligence and cement US dominance in the fast-expanding field.
Trump’s 25-page “America’s AI Action Plan” outlines three aims: accelerating innovation, building infrastructure, and leading internationally on AI.
The administration frames AI advancement as critical to maintaining economic and military supremacy. Environmental consequences are sidelined in the planning document.
“America is the country that started the AI race, and as president of the United States, I’m here today to declare that America is going to win it,” Trump told an AI event in Washington.
“Winning this competition will be a test of our capacities unlike anything since the dawn of the space age,” he said, before signing several executive orders to give components of the strategy additional legal weight.
In its collection of more than 90 government proposals, Trump’s plan calls for sweeping deregulation, with the administration promising to “remove red tape and onerous regulation” that could hinder private sector AI development.
In his wide-ranging speech, Trump insisted that “winning the AI race will demand a new spirit of patriotism and national loyalty in Silicon Valley and beyond.”
Trump complained that for too long “many of our largest tech companies have reaped the blessings of American freedom while building their factories in China, hiring workers in India and slashing profits in Ireland.”
The plan also asked federal agencies to find ways to legally stop US states from implementing their own AI regulations and threatened to rescind federal aid to states that did so.
“We have to have a single federal standard, not 50 different states, regulating this industry of the future,” Trump said.
The American Civil Liberties Union warned this would thwart “initiatives to uphold civil rights and shield communities from biased AI systems in areas like employment, education, health care, and policing.”
The Trump action plan also calls for AI systems to be “free from ideological bias” and designed to pursue objective truth rather than what the administration calls “social engineering agendas,” such as diversity and inclusion.
This criterion would apply to AI companies wanting to do business with the US government.
Trump also called for AI development to be broadly immune from copyright claims — currently the subject of legal battles — saying it was a “common sense” approach.
“You can’t be expected to have a successful AI program when every single article, book, or anything else that you’ve read or studied, you’re supposed to pay for,” he said.
A major focus in the plan involves building AI infrastructure, including streamlined permitting for data centers and energy facilities that would overlook environmental concerns to build as swiftly as possible.
The administration, which rejects international science showing a growing climate crisis, proposes creating new environmental review exemptions for data center construction and expanding access to federal lands for AI infrastructure development.
Trump also called for the swift construction of coal and nuclear plants to help provide the energy needed to power the data centers.
The strategy also calls for efforts to “counter Chinese influence in international governance bodies” and strengthen export controls on advanced AI computing technology.
At the same time, the strategy calls on the government to champion US technology in conquering overseas markets, a priority that was spelled out in an executive order.
These plans will help “ensure America sets the technological gold standard worldwide, and that the world continues to run on American technology,” US Secretary of State Marco Rubio said in a statement.
Critics of the plan said the policies were a gift to US tech giants that were scaling back their goals for zero carbon emissions in order to meet the acute computing needs for AI.
“Trump’s plan reads like a twisted Gilded Age playbook that rewards the rich while punishing everyday Americans and the environment,” said Jean Su of the Center for Biological Diversity


Trump was told he is in Epstein files, Wall Street Journal reports

Trump was told he is in Epstein files, Wall Street Journal reports
Updated 22 min 50 sec ago

Trump was told he is in Epstein files, Wall Street Journal reports

Trump was told he is in Epstein files, Wall Street Journal reports
  • White House calls report “fake news“

WASHINGTON:  US Attorney General Pam Bondi told President Donald Trump in May that his name appeared in investigative files related to convicted sex offender Jeffrey Epstein, the Wall Street Journal reported on Wednesday.
The disclosure about Trump’s appearance in the Justice Department’s case records threatened to deepen a political crisis that has engulfed his administration for weeks. Some Trump supporters for years have fanned conspiracy theories about Epstein’s clients and the circumstances of his 2019 death in prison.
The White House sent mixed signals following the story. It released an initial statement characterizing it as “fake news,” but a White House official later told Reuters the administration was not denying that Trump’s name appears in some files, noting that Trump was already included in a tranche of materials Bondi assembled in February for conservative influencers.
Trump, who was friendly with Epstein in the 1990s and early 2000s, appears multiple times on flight logs for Epstein’s private plane in the 1990s. Trump and several members of his family also appear in an Epstein contact book, alongside hundreds of others.
Much of that material had been publicly released in the criminal case against Epstein’s former associate Ghislaine Maxwell, who was sentenced to 20 years in prison after her conviction for child sex trafficking and other crimes.
During her trial, Epstein’s longtime pilot testified that Trump flew on Epstein’s private plane multiple times. Trump has denied being on the plane.
Reuters was not able to immediately verify the Journal’s report.
Trump has faced intense backlash from his own supporters after his administration said it would not release the files, reversing a campaign promise.
The Justice Department said in a memo earlier this month that there was no basis to continue probing the Epstein case, sparking anger among some prominent Trump supporters who demanded more information about wealthy and powerful people who had interacted with Epstein.
Trump has not been accused of wrongdoing related to Epstein and has said their friendship ended before Epstein’s legal troubles first began two decades ago.
Bondi and Deputy Attorney General Todd Blanche issued a statement that did not directly address the Journal’s report.
“Nothing in the files warranted further investigation or prosecution, and we have filed a motion in court to unseal the underlying grand jury transcripts,” the officials said. “As part of our routine briefing, we made the President aware of the findings.”
The newspaper reported that Bondi and her deputy told Trump at a White House meeting that his name, as well as those of “many other high-profile figures,” appeared in the files.
Epstein died by suicide in 2019 while awaiting trial on sex trafficking charges, to which he had pleaded not guilty. In a separate case, Epstein pleaded guilty in 2008 to a prostitution charge in Florida and received a 13-month sentence in what is now widely regarded as too lenient a deal with prosecutors.
Under political pressure last week, Trump directed the Justice Department to seek the release of sealed grand jury transcripts related to Epstein.
On Wednesday, US District Judge Robin Rosenberg denied one of those requests, finding that it did not fall into any of the exceptions to rules requiring grand jury material be kept secret.
That motion stemmed from federal investigations into Epstein in 2005 and 2007, according to court documents; the department has also requested the unsealing of transcripts in Manhattan federal court related to later indictments brought against Epstein and Maxwell.
Last week, the Journal reported that Trump had sent Epstein a bawdy birthday note in 2003 that ended, “Happy Birthday — and may every day be another wonderful secret.”
Reuters has not confirmed the authenticity of the alleged letter. Trump has sued the Journal and its owners, including billionaire Rupert Murdoch, asserting that the birthday note was fake.
Trump and his advisers have long engaged in conspiracy theories, including about Epstein, that have resonated with Trump’s political base. The Make American Great Again movement’s broad refusal to accept his administration’s argument that those theories are now unfounded is unusual for a politician who is accustomed to enjoying relatively unchallenged loyalty from his supporters.
Epstein hung himself in prison, according to the New York City chief medical examiner. But his connections with wealthy and powerful individuals prompted speculation that his death was not a suicide. The Justice Department said in its memo this month that it had concluded Epstein died by his own hand.
In a sign of how the issue has bedeviled Trump and divided his fellow Republicans, US House Speaker Mike Johnson on Tuesday abruptly said he would send lawmakers home for the summer a day early to avoid a floor fight over a vote on the Epstein files.
His decision temporarily stymied a push by Democrats and some Republicans for a vote on a bipartisan resolution that would require the Justice Department to release all Epstein-related documents.
But a subcommittee of the House Oversight Committee on Wednesday approved a subpoena seeking all Justice Department files on Epstein. Three Republicans joined five Democrats to back the effort, in a sign that Trump’s party was not ready to move on from the issue.
Trump, stung and frustrated by the continued focus on the Epstein story, has sought to divert attention to other topics, including unfounded accusations that former President Barack Obama undermined Trump’s successful 2016 presidential campaign. Obama’s office denounced the allegations as “ridiculous.”
More than two-thirds of Americans believe the Trump administration is hiding information about Epstein’s clients, according to a Reuters/Ipsos poll conducted last week. 


World’s top court paves way for climate reparations

World’s top court paves way for climate reparations
Updated 27 min 28 sec ago

World’s top court paves way for climate reparations

World’s top court paves way for climate reparations
  • Countries breaching their climate obligations were committing a “wrongful act,” the court said in its advisory opinion
  • Campaigners hailed a milestone moment in the fight for accountability from big polluters most responsible for global warming

THE HAGUE: The world’s highest court Wednesday declared that states are obliged under international law to tackle climate change and warned that failing to do so could open the door to reparations.
In a historic statement, the International Court of Justice said climate change was an “urgent and existential threat” and countries had a legal duty to prevent harm from their planet-warming pollution.
Countries breaching their climate obligations were committing a “wrongful act,” the court said in its advisory opinion, which is not legally binding but carries political and legal weight.
“The legal consequences resulting from the commission of an internationally wrongful act may include... full reparations to injured states in the form of restitution, compensation and satisfaction,” said ICJ President Yuji Iwasawa on behalf of the 15-judge panel.
This would be on a case-by-case basis where a “sufficient direct and certain causal nexus” had been shown “between the wrongful act and the injury,” the court added.
Campaigners and countries on the climate frontlines hailed a milestone moment in the fight for accountability from big polluters most responsible for global warming.
“This is a victory for our planet, for climate justice and for the power of young people to make a difference,” said UN Secretary-General Antonio Guterres.
Ralph Regenvanu, the climate change minister for Vanuatu, the Pacific island nation that spearheaded the case at The Hague, was jubilant.
Speaking to AFP outside the court, Regenvanu said it was “a very strong opinion at the end” and better than hoped.
“We can use these arguments when we talk with our partners, some of the high-emitting states. We can say you have a legal obligation to help us,” he said.
“This helps us in our arguments. It’s going to give us a lot more leverage... in all negotiations.”

This was the biggest case in ICJ history, and seen as the most consequential in a recent string of landmark climate moves.
The United Nations had tasked the 15 judges at the ICJ, a UN court in The Hague that adjudicates disputes between nations, to answer two fundamental questions.
First: what must states do under international law to protect the environment from greenhouse gas emissions for the future?
Second: what are the consequences for states whose emissions have caused environmental harm, especially to vulnerable low-lying island states?
In a detailed summary of the opinion, Iwasawa said the climate “must be protected for present and future generations.”
The adverse effect of a warming planet “may significantly impair the enjoyment of certain human rights, including the right to life,” he added.
Legal and climate experts said the opinion, while not legally binding, could have far-reaching consequences for national courts, legislation and public debate.
“The court’s clear and detailed articulation of state obligations will be a catalyst for accelerated climate action and unprecedented accountability,” David Boyd, a former UN Special Rapporteur on Human Rights and the Environment, told AFP.
Johan Rockstrom, director of the Potsdam Institute for Climate Impact Research, said the ruling bound all nations by international law to prevent harm from emissions of planet-warming greenhouse gases.
The court was “pointing the direction for the entire world and making clear that every nation is legally obliged to solve the climate crisis,” he told AFP.

 ‘Perfect ending’
Courts have become a key battleground for climate action as frustration has grown over sluggish progress toward curbing planet-warming pollution from fossil fuels.
The Paris Agreement, struck through the UN Framework Convention on Climate Change (UNFCCC), has rallied a global response to the crisis, but not at the speed necessary to protect the world from dangerous overheating.
The journey to The Hague began six years ago with students from the climate-imperilled Pacific region fed up with the lack of accountability for the damage afflicting their homelands.
“Young Pacific Islanders initiated this call for humanity to the world. And the world must respond,” said UN chief Guterres, praising Vanuatu’s leadership.
The fight pitted major wealthy economies against the smaller, less developed states which are most at the mercy of a warming planet.
More than 100 nations and groups made submissions, many from the Pacific who gave impassioned appeals in colorful traditional dress.
“It’s such a perfect ending to a campaign that started in a classroom,” said Vishal Prasad, director of the student-led campaign that kicked off the case.
“We have now a very, very strong tool to hold power accountable, and we must do that now. The ICJ has given everything possible,” he told AFP.
The United States, which has embraced a fossil fuel agenda under President Donald Trump, had a muted response to the ruling.
A US State Department spokesperson said it “will be reviewing the Court’s advisory opinion in the coming days and weeks.”
French Ecological Transition Minister Agnes Pannier-Runacher hailed the advisory opinion as a “victory for the most vulnerable states, a victory for France and a victory for the climate.”
John Kerry, the former US special envoy for climate change, said “it should not take the stamp of international law to motivate countries to do what is already profoundly in their economic interests.”
“We shouldn’t need another reason to act and accelerate action,” he told AFP.
 


‘A free Ukraine’: Kyiv protests law threatening anti-corruption bodies

‘A free Ukraine’: Kyiv protests law threatening anti-corruption bodies
Updated 54 min 38 sec ago

‘A free Ukraine’: Kyiv protests law threatening anti-corruption bodies

‘A free Ukraine’: Kyiv protests law threatening anti-corruption bodies
  • Critics say the legislation would facilitate presidential interference in corruption probes and threatens the independence of key institutions in Ukraine
  • Zelensky says he will submit a new bill ensuring “all norms for the independence of anti-corruption institutions will be in place”

KYIV, Ukraine: At a rare protest in central Kyiv demonstrators rallied Wednesday against a law that curbs the power of anti-corruption agencies, warning the fight for Ukraine’s democracy was taking place both on the battlefield and at home.
The legislation, removing the independence of two key anti-corruption bodies, sparked the first major protests in Ukraine since it began fighting off the Russian invasion over three years ago.
“Our struggle takes place on two fronts. Our main enemy is external, but we have an internal battle too,” said protester Viacheslav Bykov.
“We don’t want Ukraine to be part of Russia, we don’t want a corrupt or authoritarian Ukraine. We want a free Ukraine,” he added.
Several thousand demonstrators — mostly young — gathered outside a theater in Kyiv, calling for a veto to the law passed by Ukraine’s parliament on Tuesday.
The law places the National Anti-Corruption Bureau of Ukraine (NABU) and Specialized Anti-Corruption Prosecutor’s Office (SAPO) under the direct authority of the prosecutor general, who is appointed by the president.
Critics say the legislation would facilitate presidential interference in corruption probes and threatens the independence of key institutions in Ukraine.

European Commission weighs in

Zelensky responded to the backlash on Wednesday evening, saying he would submit a new bill ensuring “all norms for the independence of anti-corruption institutions will be in place.”
Kyiv’s partners had reacted with alarm, including European Commission head Ursula von der Leyen, who the EU said demanded explanations from Zelensky over the change.
Civil society groups warn the bill is part of a broader pattern of pressure on anti-corruption activists and bodies.
Some European allies worry the moves will undermine anti-corruption reforms key to Ukraine’s bid to join the European Union — a fear shared by many protesting on Wednesday.
“We’ve worked for years to move closer to Europe... only to be thrown back 10 years in a single day,” said protester Anya Kutsevol.
Ukraine’s two anti-corruption bodies, NABU and SAPO, were born a decade ago in the wake of the 2014 Maidan revolution.
Those pro-European protests, centered on Kyiv’s main square, also called Maidan, ousted a Kremlin-backed leader who scrapped a key partnership agreement with the EU.
The Kremlin, which refused to accept Ukraine’s democratic turn toward Europe, then launched a first assault over Ukraine that led Moscow-backed separatists to occupy Crimea and parts of the eastern Donbas region.
“Ukraine is Europe,” Kutsevol said, “we won’t be returned to Russia. We’ll keep fighting for Europe.”

‘Undermining unity’
Some fear that a political crisis over the legislation could work in Russia’s favor by undermining unity within the country, which is struggling to hold the front.
Kremlin spokesman Dmitry Peskov seized on the opportunity to say there was “a lot of corruption” in Ukraine.
“If I were Russia, I would do the same,” said another protester, Yevgen Popovychenko, convinced Moscow would try to exploit the protests.
He was holding a banner that read: “Don’t take me back” to the years of Maidan, where he took to the streets as a 21-year-old.
As he stood in the crowd, he said he was having flashbacks from Maidan, a feeling shared by his friends.
But many other protesters were only children during the famed 2014 demonstrations — including 25-year-old Kutsevol.
“When tires were still burning, I was 14. What good was I?” she said.
Wednesday’s was her first political protest, and she teared up looking at people gathered around her for the second day in a row, despite martial law banning large gatherings.
She vowed to keep defending Ukraine’s democracy.
“We’re adults now. Now it’s our turn.”