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Tesla shares rise on plans to accelerate launch of ‘more affordable’ models

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Tesla shares rise on plans to accelerate launch of ‘more affordable’ models


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Tesla has pledged to bring forward the launch of “more affordable” models of its electric vehicles, helping its stock recover some of its recent losses despite reporting a 9 per cent decline in first-quarter revenue amid a sharp fall in sales.

In a filing on Tuesday, the electric-car maker said it had “updated our future vehicle line-up to accelerate the launch of new models ahead of our previously communicated start of production in the second half of 2025”.

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It added that these would include “more affordable” vehicles that could be produced on its existing manufacturing lines. Tesla shares rose more than 12 per cent in after-hours trading.

Chief executive Elon Musk said in January that Tesla was preparing to start production of a new lower-cost car next year, priced at $25,000 and dubbed Model 2. The stock had fallen on a Reuters report earlier this month that the project had been shelved, which Musk denied.

On a conference call, Musk refused to be drawn on specific plans for an affordable “next generation vehicle” or how it would be produced using Tesla’s current infrastructure. He had previously said the Model 2 would require a new “revolutionary manufacturing system” at factories in Austin, Texas, as well as in Mexico.

Instead, Musk said more information would be given alongside an August announcement about “robotaxis” and sketched an ambitious vision for Tesla as an “AI and robotics company” based around its autonomous driving system and humanoid robots.

“If you value Tesla just as an auto company you fundamentally have the wrong framework. If you ask the wrong question, the right answer is impossible,” he said. “If somebody doesn’t believe Tesla is going to solve autonomy they should not be an investor in the company. And we will and we are.”

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The results come at turbulent time for Musk and the EV sector. Before Tuesday’s after-hours share price rise, Tesla stock had plunged more than 40 per cent since the start of the year after warning of slowing vehicle deliveries, eroding profit margins, a potential move of its incorporation to Texas from Delaware and revealing plans to cut more than 10 per cent of its workforce — at least 14,000 jobs.

Most big US carmakers have reported a drop in EV sales due to softening consumer demand, a shift in preference to hybrids and increased competition from low-cost options from Chinese brands.

“While Tesla has real issues to contend with, we believe the company’s long-term upward trajectory remains intact,” said Christopher Tsai of Tsai Capital, which holds Tesla stock. “The potential for high-margin autonomy revenue should not go unheeded.”

Absent the enthusiasm about a new vehicle line-up, the underlying financial performance remained disappointing. First-quarter revenue fell to $21.3bn from $23.3bn in the same period last year, missing analysts’ expectations for $22.3bn. That marks Tesla’s first year-on-year quarterly drop since the start of 2020.

Adjusted earnings per share almost halved from a year ago to 45 cents, versus estimates for 52 cents, and the carmaker reported a sixth consecutive quarter of declining gross margins. The closely watched financial metric fell to 17.4 per cent, down from a peak of 29.1 per cent in the first quarter of 2022.

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“We experienced numerous challenges, from the Red Sea conflict and the arson attack at Gigafactory Berlin, to the gradual [increase in production] of the updated Model 3 in Fremont,” Tesla said of the start to the year. “Global EV sales continue to be under pressure as many carmakers prioritise hybrid over EVs. ”

Earlier this month, Tesla said it had delivered 386,810 electric cars between January and March, a fifth lower than the previous quarter, and 8 per cent below the same period in 2023. It has continued to cut prices for its most popular models as unsold-vehicle inventory piles up: that measure rose to 28 days of supply from 15 days a year ago.

Tesla still makes more than 80 per cent of its revenue from selling cars. Excluding the effects of regulatory credits, the gross margin from its automotive unit — a closely watched measure of its core operations — fell to 16.4 per cent for the quarter, down from 19 per cent a year ago.

Musk’s commitment to AI was evident in a big jump in “AI infrastructure capex” to $1bn, resulting in cash flow of negative $2.5bn in the period.

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He said that Tesla had installed 35,000 H100 Nvidia AI model training graphics processing units and that this number would rise to 85,000 by year end. He added that its humanoid robot, dubbed Optimus, would be “more valuable than everything else combined”.

Musk is also seeking to change the company’s state of incorporation to Texas, partly in protest at a Delaware court decision to void a $56bn pay package he was awarded in 2018. Shareholders will vote on the move and whether to reaffirm his share award at its annual meeting in June.

Additional reporting by Richard Waters



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Austin, TX

Texas DEI shutdown: UT Austin faculty members push back

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Texas DEI shutdown: UT Austin faculty members push back


In this edition of Texas: The Issue Is, the issue is the DEI purge pushback. 

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Since January, when SB 17 took effect, college administrators all across Texas have been shutting down diversity, equity and inclusion programs. 

In response to that, members of a faculty labor union rallied at the University of Texas here in Austin, calling on school leaders to stop the rollback. 

FOX 7 Austin’s Rudy Koski spoke to two members about why they believe some form of DEI should remain on every campus. 

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PAULINE STRONG: I would like the university to restore the programs that were lost. I believe they were lost to please political forces in the state. 

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KARMA CHAVEZ: I never understood what people were saying about what was wrong with it, because all we’re trying to do is make a better campus for more students. 

RUDY KOSKI: There are some programs that are viewed to be divisive, where we start breaking people up into compartments. You’re in this tribe, you’re in this tribe, you’re in this tribe. Do you feel that we can move away from that? 

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KARMA CHAVEZ: Well, it’s not a either or. So, there’s got to be space for people who come from marginalized backgrounds to have their own space to represent their cultures, to just feel comfortable. A campus like this, it can be really hard if you’re a student of color, for example. And so it’s nice to have spaces that are meant for you.

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RUDY KOSKI: DEI has become a four-letter word. Can the concept be rebooted and do you think it could be less divisive? 

PAULINE STRONG: We are a diverse group of people, so diversity is already here. Equity and inclusion are not. We need to keep working at equity and inclusion, and we need to acknowledge how many different kinds of people we have in Texas, how many different kinds of students we have. And we need to work to support each other. And we need staff who help us do that as well. 

RUDY KOSKI: There are people who will say, Texas already is doing that. We recognize we’re diverse, and we recognize people should be treated fairly. Why do we need DEI? 

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PAULINE STRONG: I don’t see that happening outside of DEI. I see the purge of staff who had decades of experience, many of them, working with students to help them succeed. I think that purge shows that we’re not doing what we need to be doing. 

RUDY KOSKI: But at the expense of another race, because that was the argument against DEI was that we’re lifting up one group, pushing down another. 

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PAULINE STRONG: I don’t think anything about DEI pushes down another group. It is lifting up people who have been marginalized, people whose parents and grandparents did not have the chance to go to college. It is uplifting us all. 

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RUDY KOSKI: Don’t we already have these protections in place? Affirmative action, discrimination laws? 

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KARMA CHAVEZ: I mean, well, we don’t really have affirmative action anymore. That’s pretty much been thrown out the window. You know, discrimination is about a very kind of particular legal definition. And it doesn’t get at, for example, microaggressions and the kind of little things that happen to students on the day to day, that make being on a campus like this really hard, and all DEI was, was a Band-Aid to try to make life a little bit better for folks. 

RUDY KOSKI: So how do we reboot this? How do we come together, especially during these times? 

KARMA CHAVEZ: Yeah. I mean, I think we need people to come together in earnestness. So not, just to prove that my point is right, for you to prove that your point is right, but really, to hear each other. 

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Campus protests continue in Austin

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Campus protests continue in Austin


Campus protests continue in Austin – CBS Texas

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A lot of eyes were focused on Austin Sunday where another pro-Palestine rally was held on the campus of the University of Texas. It raised concerns about whether demonstrators would again clash with police after two recent protests resulted in more than 100 arrests.

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Austin, Texas, opioid outbreak leaves at least 9 dead, 75 overdoses in 3 days – Washington Examiner

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Austin, Texas, opioid outbreak leaves at least 9 dead, 75 overdoses in 3 days – Washington Examiner


(The Center Square) – Over the last few days, city and county officials are responding to what appears to be “the largest opioid overdose outbreak” in Austin and Travis County, Travis County Judge Andy Brown said at a news conference.

Austin Police Department Assistant Chief Eric Fitzgerald said police officers and emergency personnel reduced an untold number of deaths, saying, “there is a deadly batch of illicit narcotics in our community. Our intent … is to find those persons responsible and hold them accountable.”

Lt. Patrick Eastlick with the APD’s narcotics unit said two persons of interest were detained and one was arrested for felony possession of a firearm. An investigation is ongoing into the source of where the drugs came from. “Anyone found responsible for distributing the suspected fentanyl faces potential charges of murder or manufactured delivery of controlled substance causing death or serious bodily injury,” he said.

Last year, the Texas legislature passed a bill that Gov. Greg Abbott signed into law changing state law to classify fentanyl poisoning as murder, require death certificates to state cause of death related to fentanyl poisonings, expand distribution of Narcan, among other measures.

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So far, the APD has filed five charges related to fentanyl overdose deaths, Eastlick said.

Austin-Travis County EMS Assistant Chief Steve White said emergency personnel initially responded to calls in the downtown area Monday morning, which later spread throughout the city. Emergency teams were deployed to quickly distribute Narcan rescue kits.

Within a 24-hour period, they responded to over 51 suspected overdoses with many individuals in cardiac arrest. Four people were first reported dead.

“We have not experienced overdoses of this volume since 2015, when K2 struck our community,” White said, referring to synthetic marijuana. EMS usually gets an average of two to three calls a day, but responded to over 50 calls after the outbreak began, “well over a thousand percent increase.”

In a separate press announcement, Dr. Angela Carr with Travis County EMS said as of 6 pm on Thursday, Austin Travis County EMS had responded to 75 suspected overdoses. So far, more than 400 doses of Narcan have been distributed to affected areas.

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Brown said they had to wait until the toxicology reports were completed but they were investigating “eight deaths as suspicious.”

The current death total is nine, according to a county spokesperson. “Preliminary toxicology reports indicated the presence of fentanyl in nine cases, cocaine in eight and methamphetamine in three, the American-Statesman reported.

Brown said emergency personnel saved dozens of lives by administering Narcan, a drug that reverses opioid overdoses if administered quickly enough. Information about where Texans can obtain Narcan can be found here and at Txcope.org.

“Drug overdose deaths continue to be the number one cause of non-accidental deaths in Travis County,” Brown said. In 2022, Travis County commissioners declared the county’s overdose epidemic as a public health crisis.

In March, White spoke at an Austin City Council meeting on public safety saying, “Travis County now has twice as many opiate overdose deaths than any other county in Texas, per capita.” He explained the scope of the “severe increase” in opioid overdoses, saying they averaged roughly 100 a month at the time.

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Last year, while the legislature was in session, Texas Department of Public Safety troopers seized half a million lethal doses of fentanyl in Austin, The Center Square reported. They also seized other narcotics, weapons, ammunition, and several stolen vehicles in a bust that was part of a DPS Austin Violent Crimes Task Force operation assisting the APD.

Violent crime and fentanyl overdoses have increased in the state capital since the Austin City Council voted to defund the APD in 2020. Efforts by voters to increase APD funding and reverse the city council’s actions failed in 2021. After losing a significant number of APD’s force, the number of homicides in Austin spiked, APD was no longer able to respond quickly to 911 calls, street takeovers got out of control, a machete crime spree ensued among other violent crimes being reported.

CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER

In response, Gov. Abbott took action, creating task forces and surging additional resources, including directing DPS troopers to provide long-term assistance to APD. He also worked with the Texas legislature to implement measures to prevent municipalities from defunding the police in the future, The Center Square reported.

“Overdose deaths are completely preventable and everyone in Travis County should be aware and prepared to respond to an overdose incident,” Brown said. “Everyone should carry Narcan and know how to respond to an overdose. I carry a dose of it in my computer bag.”

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