Musk damaged Tesla’s brand in just a few months. Fixing it will likely take longer

US President Donald Trump and Tesla CEO Elon Musk speak to the press as they stand next to a Tesla Cybertruck on the South Portico of the White House on March 11, 2025 in Washington, DC. (AFP)
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Updated 24 April 2025
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Musk damaged Tesla’s brand in just a few months. Fixing it will likely take longer

  • Sales have plunged for Tesla amid protests and boycotts over Musk’s embrace of far right-wing views
  • Profits have been sliced by two-thirds so far this year, and rivals from China, Europe and the US are pouncing

 

NEW YORK: Elon Musk has been called a Moonshot Master, the Edison of Our Age and the Architect of the Future, but he’s got a big problem at his car company and it’s not clear he can fix it: damage to its brand.
Sales have plunged for Tesla amid protests and boycotts over Musk’s embrace of far right-wing views. Profits have been sliced by two-thirds so far this year, and rivals from China, Europe and the US are pouncing.
On Tuesday came some relief as Musk announced in an earnings call with investors that he would be scaling back his government cost-cutting job in Washington to a “day or two per week” to focus more on his old job as Tesla’s boss.
Investors pushed up Tesla’s stock 5 percent Wednesday, though there are plenty of challenges ahead.
Who wants a Tesla?
Musk seemed to downplay the role that brand damage played in the drop in first-quarter sales on the investor call. Instead, he emphasized something more fleeting — an upgrade to Tesla’s best-selling Model Y that forced a shutdown of factories and pinched both supply and demand.
While financial analysts following the company have noted that potential buyers probably held back while waiting for the upgrade, hurting results, even the most bullish among them say the brand damage is real, and more worrisome.
“This is a full blown crisis,” said Wedbush Securities’ normally upbeat Dan Ives earlier this month. In a note to its clients, JP Morgan warned of “unprecedented brand damage.”
Musk’s take on the protests
Musk dismissed the protests against Tesla on the call as the work of people angry at his leadership of the Department of Government Efficiency because “those who are receiving the waste and fraud wish it to continue.”
But the protests in Europe, thousands of miles from Washington, came after Musk supported far-right politicians there. Angry Europeans hung Musk in effigy in Milan, projected an image of him doing a straight-arm salute on a Tesla factory in Berlin and put up posters in London urging people not to buy “Swasticars” from him.
Sales in Europe have gone into a free fall in the first three months of this year — down 39 percent. In Germany, sales plunged 62 percent.
Another worrying sign: On Tuesday, Tesla backed off its earlier promise that sales would recover this year after dropping in 2024 for the first time a dozen years. Tesla said the global trade situation was too uncertain and declined to repeat the forecast.
Here come the rivals
Meanwhile, Tesla’s competition is stealing its customers.
Among its fiercest rivals now is Chinese giant BYD. Earlier this year, the EV maker announced it had developed an electric battery that can charge within minutes. And Tesla’s European rivals have begun offering new models with advanced technology that is making them real Tesla alternatives just as popular opinion has turned against Musk.
Tesla’s share of the EV market in the US has dropped from two-thirds to less than half, according to Cox Automotive.
Pinning hopes on cybercabs
Another rival, Google parent Alphabet, is already ahead of Tesla in an area that Musk has promised will help remake his company: Cybercabs.
One of the highlights of Tesla’s call Tuesday was Musk sticking with his previous prediction that it will l aunch driverless cabs without steering wheels and pedals in Austin, Texas, in June, and in other cities soon after.
But Google’s service, called Waymo, already has logged millions of driverless cybercab trips in San Francisco, Phoenix, Los Angeles, and Austin as part of a partnership with ride-hailing leader Uber.
A driverless future for Tesla owners?
Musk also told analysts that this driverless capability will be available on the Tesla vehicles already on the road through software updates over the air, and put a timeline on it: “There will be millions of Teslas operating autonomously in the second half of the year.”
But he has made similar promises before, only to miss his deadlines, such as in April 2019 when he vowed full automation by the end of the next year. He repeated the prediction, moving up the date, several more times, in following years.
A big problem is federal investigators have not given the all-clear that Tesla vehicles can drive completely on their own safely. Among other probes, safety regulators are looking into Tesla’s so-called Full Self-Driving, which is only partial self-driving, for its tie to accidents in low-visibility conditions like when there is sun glare.
On the positive side
In competition with rivals in the US, Tesla currently has one clear advantage: It will get hurt by less by tariffs because most of its vehicles are built in the countries where they are sold, including those in its biggest market, the US
“Tariffs are still tough on a company where margins are still low, but we do have localized supply chains,” Musk said Tuesday. “That puts us in a strong position.”
The company also reconfirmed that a cheaper version of its best-selling vehicle, the Model Y sport utility vehicle, will be ready for customers in the first half of this year. That could help boost sales.
Another plus: The company had a blow out first quarter in its energy storage business. And Musk has promised to be producing 5,000 Optimus robots, another Tesla business, by the end of the year.
Pricey stock
Even after falling nearly 50 percent from its December highs, Tesla’s stock is still very richly valued based on the one yardstick that really matters in the long run: its earnings.
At 110 times its expected per share earnings this year, the stock is valued more than 25 times higher than General Motors. The average stock on in the S&P 500 index trades at less than 20 times earnings.
That leaves Tesla little margin for error if something goes wrong.


Taiwan pursues homegrown Chinese spies as Beijing’s influence grows

Updated 7 sec ago
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Taiwan pursues homegrown Chinese spies as Beijing’s influence grows

  • Alarm is growing in Taiwan over the extent of China’s infiltration on the self-ruled island
  • The main targets of Chinese infiltration have been retired and active members of the military

TAIPEI: Taiwan is vetting hundreds of thousands of military service members, public school teachers and civil servants in a bid to root out potential homegrown Chinese sympathizers, as Beijing intensifies espionage on the island.
Alarm is growing in Taiwan over the extent of China’s infiltration on the self-ruled island, which Beijing claims is part of its territory and has threatened to seize by force.
Prosecutors last week charged four recently expelled members of the ruling Democratic Progressive Party — including a former staffer in President Lai Ching-te’s office — for sharing state secrets with Beijing.
While Taipei and Beijing have spied on each other for decades, analysts warn the threat to Taiwan is more serious given the risk of a Chinese attack.
The main targets of Chinese infiltration have been retired and active members of the military, persuaded by money, blackmail or pro-China ideology.
Lai, an outspoken defender of Taiwan’s sovereignty and loathed by Beijing, has branded China a “foreign hostile force” and sought to raise public awareness about Chinese actions he says threaten national security.
After a sharp rise in the number of people prosecuted for spying for China in recent years, the government is trying to identify people within its own departments, military and public schools with a possible allegiance to Beijing.
Anyone on the public service payroll found with Chinese residence or other identification cards risks losing their Taiwanese household registration, effectively their citizenship.
“The reason we started to survey (for Chinese IDs) is because China uses this way to coerce Taiwanese people, to penetrate our system, especially the public service,” DPP lawmaker Wang Ting-yu told AFP.
“The threat is getting worse and worse and we have to deal with that.”

In the first round held recently, 371,203 people, or nearly all of those surveyed, signed statements declaring they did not hold any Chinese ID documents prohibited by Taiwanese law.
Two people admitted having Chinese ID cards and 75 having residence permits, which were annulled, Taiwan’s top policy body on China, the Mainland Affairs Council, said.
The second round of vetting is underway, but the government has said the general public will not be targeted.
Concern over Taiwanese people holding Chinese ID documents flared after a YouTube video last year alleged there were tens of thousands of cases.
A senior Taiwanese security official said recently China was issuing ID papers to a growing number of people from Taiwan, but it was “difficult to estimate” how many or track down offenders without Beijing’s cooperation.
“The idea is to define Taiwanese citizens as Chinese citizens under their legal framework,” the official said.
Legal scholar Su Yen-tu said there were limits on the government’s “investigatory power” to find out who held Chinese ID cards in Taiwan.
If Taiwanese people did not voluntarily disclose the information, “there’s not much the government can do,” said Su, a research professor at Academia Sinica.
Collecting records was still “potentially useful,” Jamestown Foundation president Peter Mattis told AFP, particularly if someone under investigation in the future is found to have lied about their documents.
Taiwan has also asked around 10,000 Chinese spouses and their China-born children for proof they have given up their Chinese household registration, a decades-old requirement under Taiwanese law.

The notices sparked criticism that the government was being heavyhanded, but Wang said stricter enforcement was needed because some “new immigrants” from China had spied for Beijing and interfered in Taiwan’s elections.
“I personally feel that it’s a bit disturbing for the people,” said Li I-ching, a 23-year-old graduate student in Taipei, who was born in China to a Chinese mother and a Taiwanese father.
Like many others, Li has to obtain evidence from China that she no longer holds permanent residence status.
The Beijing-friendly main opposition Kuomintang party (KMT) has accused the government of conducting “loyalty” tests.
“At a time when our country is facing so many difficulties... the government is only thinking about how to cleanse the population,” said KMT lawmaker Chen Yu-jen.
The dispute between Taiwan and China dates back to 1949 when Chiang Kai-shek’s nationalist forces lost the Chinese civil war to Mao Zedong’s communist fighters and fled to the island.
China has vowed to annex Taiwan and in recent years has ramped up its military pressure on the island.
Taiwan says China also uses disinformation, cyberattacks and espionage to weaken its defenses.
“It’s a fight every day for the Taiwanese against this sort of stuff,” said Mark Harrison, a senior lecturer in Chinese studies at the University of Tasmania.
“I think their democracy has tremendous integrity, but it does have to be defended, and when you defend something, it certainly generates a lot of discourse, a lot of debate.”
 


Warning signs on climate flashing bright red: top scientists

Updated 19 June 2025
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Warning signs on climate flashing bright red: top scientists

  • “The next three or four decades is pretty much the timeline over which we expect a peak in warming to happen”

PARIS: From carbon pollution to sea-level rise to global heating, the pace and level of key climate change indicators are all in uncharted territory, more than 60 top scientists warned Thursday.
Greenhouse gas emissions from burning fossil fuels and deforestation hit a new high in 2024 and averaged, over the last decade, a record 53.6 billion tons per year — that is 100,000 tons per minute — of CO2 or its equivalent in other gases, they reported in a peer-reviewed update.
Earth’s surface temperature last year breached 1.5 degrees Celsius for the first time, and the additional CO2 humanity can emit with a two-thirds chance of staying under that threshold long-term — our 1.5C “carbon budget” — will be exhausted in a couple of years, they calculated.
Investment in clean energy outpaced investment in oil, gas and coal last year two-to-one, but fossil fuels account for more than 80 percent of global energy consumption, and growth in renewables still lags behind new demand.
Included in the 2015 Paris climate treaty as an aspirational goal, the 1.5C limit has since been validated by science as necessary for avoiding a catastrophically climate-addled world.
The hard cap on warming to which nearly 200 nations agreed was “well below” two degrees, commonly interpreted to mean 1.7C to 1.8C.
“We are already in crunch time for these higher levels of warming,” co-author Joeri Rogelj, a professor of climate science and policy at Imperial College London, told journalists in a briefing.
“The next three or four decades is pretty much the timeline over which we expect a peak in warming to happen.”
No less alarming than record heat and carbon emissions is the gathering pace at which these and other climate indicators are shifting, according to the study, published in Earth System Science Data.
Human-induced warming increased over the last decade at a rate “unprecedented in the instrumental record,” and well above the 2010-2019 average registered in the UN’s most recent Intergovernmental Panel on Climate Change (IPCC) report, in 2021.
The new findings — led by the same scientists using essentially the same methods — are intended as an authoritative albeit unofficial update of the benchmark IPCC reports underpinning global climate diplomacy.
They should be taken as a reality check by policymakers, the authors suggested.
“I tend to be an optimistic person,” said lead author Piers Forster, head of the University of Leed’s Priestley Center for Climate Futures.
“But if you look at this year’s update, things are all moving in the wrong direction.”
The rate at which sea levels have shot up in recent years is also alarming, the scientists said.
After creeping up, on average, well under two millimeters per year from 1901 to 2018, global oceans have risen 4.3 mm annually since 2019.
An increase in the ocean watermark of 23 centimeters — the width of a letter-sized sheet of paper — over the last 125 years has been enough to imperil many small island states and hugely amplify the destructive power of storm surges worldwide.
An additional 20 centimeters of sea level rise by 2050 would cause one trillion dollars in flood damage annually in the world’s 136 largest coastal cities, earlier research has shown.
Another indicator underlying all the changes in the climate system is Earth’s so-called energy imbalance, the difference between the amount of solar energy entering the atmosphere and the smaller amount leaving it.
So far, 91 percent of human-caused warming has been absorbed by oceans, sparing life on land.
But the planet’s energy imbalance has nearly doubled in the last 20 years, and scientists do not know how long oceans will continue to massively soak up this excess heat.
Dire future climate impacts worse than what the world has already experienced are already baked in over the next decade or two.
But beyond that, the future is in our hands, the scientists made clear.
“We will rapidly reach a level of global warming of 1.5C, but what happens next depends on the choices which will be made,” said co-author and former IPCC co-chair Valerie Masson-Delmotte.
The Paris Agreement’s 1.5C target allows for the possibility of ratcheting down global temperatures below that threshold before century’s end.
Ahead of a critical year-end climate summit in Brazil, international cooperation has been weakened by the US withdrawal from the Paris Agreement.
President Donald Trump’s dismantling of domestic climate policies means the United States is likely to fall short on its emissions reduction targets, and could sap the resolve of other countries to deepen their own pledges, experts say.


Congo and Rwanda sign preliminary peace agreement in Washington

Updated 19 June 2025
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Congo and Rwanda sign preliminary peace agreement in Washington

  • Accord included conditional integration of non-state armed groups, says US State Department
  • Congo has accused Rwanda of backing M23 rebels in the east of the country

DAKAR, Senegal: Representatives from Congo and Rwanda have signed the text of a peace agreement between the two countries in Washington, according to a joint press release from the nations and the US State Department on Wednesday.
Congo has accused Rwanda of backing M23 rebels in the east of the country. UN experts says the rebels are supported by about 4,000 troops from the neighboring nation.
The decades-long conflict escalated in January, when the M23 rebels advanced and seized the strategic Congolese city of Goma, followed by the town of Bukavu in February.
“The Agreement includes provisions on respect for territorial integrity and a prohibition of hostilities; disengagement, disarmament, and conditional integration of non-state armed groups,” said the statement posted to the State Department’s website.
The agreement signed included a commitment to respecting territorial integrity and the conditional integration of non-state armed groups. Both sides also committed to a ministerial-level meeting next week and invited the leaders of both countries to attend.
This is not the first time peace talks have been held. Talks hosted by Qatar in April fell apart.
Corneille Nangaa, leader of the Congo River Alliance, a coalition of rebel groups, told The Associated Press in April that international sanctions and Congo’s proposed minerals deal with the United States in search of peace would not stop the fighting.
M23 is one of about 100 armed groups that have been vying for a foothold in mineral-rich eastern Congo near the border with Rwanda. The conflict has created one of the world’s worst humanitarian crises and has displaced more than 7 million people.


US safety board wants warnings on Boeing 737 MAX engines over smoke entering cockpit

Updated 19 June 2025
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US safety board wants warnings on Boeing 737 MAX engines over smoke entering cockpit

  • The NTSB wants the Federal Aviation Administration to ensure that operators inform flight crews of airplanes equipped with the affected engines

WASHINGTON: The National Transportation Safety Board issued an urgent safety recommendation Wednesday to address the possibility of smoke entering the cockpit or cabin of Boeing 737 MAX airplanes equipped with CFM International LEAP-1B engines.
The NTSB also recommended evaluating the potential for the same issue with LEAP-1A and LEAP-1C engines, which are used on some Airbus A320neo variants and COMAC’s Chinese-made C919 jets.
The recommendation comes after two incidents involving Southwest Airlines Boeing 737 MAX jets that experienced bird strikes in 2023. The NTSB wants the Federal Aviation Administration to ensure that operators inform flight crews of airplanes equipped with the affected engines.
Southwest said it is reviewing the recommendations and that it has mitigation procedures currently in place. Southwest notified its flight crews about the effects of certain bird strikes following two events that occurred in 2023, reiterating the importance of following established safety procedures.
CFM, the world’s largest engine maker by units sold, is co-owned by GE Aerospace and Safran.
The NTSB said it was “critical to ensure that pilots who fly airplanes equipped with CFM International LEAP-1B engines are fully aware of the potential for smoke in the cockpit if the load reduction device is activated during a critical phase of flight (takeoff or landing).”
The FAA and Boeing both said they agreed with the NTSB recommendations, and the planemaker alerted operators that smoke could enter the flight deck following the activation of the Load Reduction Device (LRD) in the engines, as a result of a bird strike.
“We advised operators to evaluate their procedures and crew training to ensure they address this potential issue,” the FAA said. “When the engine manufacturer develops a permanent mitigation, we will require operators to implement it within an appropriate timeframe.”
Boeing said that CFM and Boeing “have been working on a software design update.” The NTSB wants the update to be required on all 737 MAX planes once completed.
GE, Airbus and COMAC did not immediately respond to requests for comment
The NTSB asked the European Union Aviation Safety Agency and the Civil Aviation Administration of China to determine if other variants of the CFM LEAP engine are also susceptible to smoke in the cabin or cockpit when an LRD activates. EASA did not immediately respond to requests for comment.
In November, the FAA said it would not require immediate action after convening a review board to consider concerns about Boeing 737 MAX engines after two bird strike incidents involving the CFM LEAP-1B.
The FAA had been considering recommendations for new takeoff procedures to close the airflow to one or both engines to address the potential impact of a bird strike and prevent smoke from entering the cockpit.
In 2024, the NTSB opened an investigation into the Southwest left engine bird strike and subsequent smoke in cockpit event that occurred near New Orleans in December 2023.
The other incident occurred in a Southwest March 2023 flight that had departed Havana and in which a bird strike led to smoke filling the passenger cabin.
In February 2024, Boeing published a bulletin to inform flight crews of potential flight deck and cabin effects associated with severe engine damage.


Malaysia trade ministry probing reports of Chinese firm’s use of Nvidia AI chips

Updated 19 June 2025
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Malaysia trade ministry probing reports of Chinese firm’s use of Nvidia AI chips

  • WSJ earlier reported that a Chinese group is seeking to build AI models in Malaysian data centers containing servers using Nvidia chips

KUALA LUMPUR: Malaysia’s trade ministry is verifying media reports that a Chinese company in the country is using servers equipped with Nvidia and artificial intelligence chips for large language models training, it said on Wednesday.
The ministry “is still in the process of verifying the matter with relevant agencies if any domestic law or regulation has been breached,” it said in a statement.
The Wall Street Journal had earlier reported that Chinese engineers had flown into Malaysia in early March carrying suitcases filled with hard drives.
It said they sought to build AI models in Malaysian data centers containing servers using Nvidia chips.
The Biden administration had put in place curbs on the export of sophisticated AI chips. Malaysia was in a second tier of countries subject to restrictions, with caps on the number of chips that it could receive.
The Trump administration has since scrapped the curbs, but it has issued guidance reminding US companies that if they have knowledge that an AI chip used in Chinese AI model training will be used for a weapon of mass destruction then a license may be required.