Tag: Tesla

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Are we looking at an AI house of cards? Bubble worries emerge after Oracle blowout figures

AI Bubble?

There’s growing concern that parts of the AI boom—especially the infrastructure and monetisation frenzy—might be built on shaky foundations.

The term ‘AI house of cards’ is being used to describe deals like Oracle’s multiyear agreement with OpenAI, which has committed to buying $300 billion in computing power over five years starting in 2027.

That’s on top of OpenAI’s existing $100 billion in commitments, despite having only about $12 billion in annual recurring revenue. Analysts are questioning whether the math adds up, and whether Oracle’s backlog—up 359% year-over-year—is too dependent on a single customer.

Oracle’s stock surged 36%, then dropped 5% Friday as investors took profits and reassessed the risks.

Some analysts remain neutral, citing murky contract details and the possibility that OpenAI’s nonprofit status could limit its ability to absorb the $40 billion it raised earlier this year.

The broader picture? AI infrastructure spending is ballooning into the trillions, echoing the dot-com era’s early adoption frenzy. If demand doesn’t materialise fast enough, we could see a correction.

But others argue this is just the messy middle of a long-term transformation—where data centres become the new utilities

The AI infrastructure boom—especially the Oracle–OpenAI deal—is raising eyebrows because the financial and operational foundations look more speculative than solid.

Here’s why some analysts are calling it a potential house of cards

⚠️ 1. Mismatch Between Revenue and Commitments

  • OpenAI’s annual revenue is reportedly around $10–12 billion, but it’s committed to $300 billion in cloud spending with Oracle over five years.
  • That’s $60 billion per year, meaning OpenAI would need to grow revenue 5–6x just to break even on compute costs.
  • CEO Sam Altman projects $44 billion in losses before profitability in 2029.

🔌 2. Massive Energy Demands

  • The infrastructure needed to fulfill this contract requires electricity equivalent to two Hoover Dams.
  • That’s not just expensive—it’s logistically daunting. Data centres are planned across five U.S. states, but power sourcing and environmental impact remain unclear.
AI House of Cards Infographic

💸 3. Oracle’s Risk Exposure

  • Oracle’s debt-to-equity ratio is already 10x higher than Microsoft’s, and it may need to borrow more to meet OpenAI’s demands.
  • The deal accounts for most of Oracle’s $317 billion backlog, tying its future growth to a single customer.

🔄 4. Shifting Alliances and Uncertain Lock-In

  • OpenAI recently ended its exclusive cloud deal with Microsoft, freeing it to sign with Oracle—but also introducing risk if future models are restricted by AGI clauses.
  • Microsoft is now integrating Anthropic’s Claude into Office 365, signalling a diversification away from OpenAI.

🧮 5. Speculative Scaling Assumptions

  • The entire bet hinges on continued global adoption of OpenAI’s tech and exponential demand for inference at scale.
  • If adoption plateaus or competitors leapfrog, the infrastructure could become overbuilt—echoing the dot-com frenzy of the early 2000s.

Is this a moment for the AI frenzy to take a breather?

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China’s EV Price War: BYD falters as the Chinese EV machine reshapes the global car market

EV global price war

China’s electric vehicle (EV) powerhouse is rewriting the global automotive playbook—but not without homegrown company damage.

BYD, now the world’s largest EV manufacturer by volume, has been caught in the crossfire of a domestic price war.

Damaging price war

The price war is damaging margins. It is unnerving investors and revealing the perils of hyper-competition in the world’s most aggressive car market.

In Q2 2025, BYD posted a 30% drop in net profit to 6.4 billion yuan (£700 million), its first earnings decline in over three years.

Despite a 145% surge in overseas sales, the company’s sweeping discounts across 22 models have eroded profitability at home.

Gross margins slipped to around 16%, and its Hong Kong-listed shares tumbled 8% to a five-month low.

Analysts reportedly now question whether BYD can hit its ambitious 5.5-million-unit sales target, having reached only 45% by July 2025.

The price war, ignited by BYD’s aggressive cuts in May 2025, has forced rivals like Geely, Chery, and SAIC-GM to follow suit. Entry-level EVs now start below (£6,500), with features like driver assistance and smart infotainment once reserved for premium models.

But the race to the bottom has drawn concern from regulators and industry leaders. The China Association of Automobile Manufacturers (CAAM) warned of “disorderly competition”, while executives fear quality compromises and supplier strain.

Yet even as BYD stumbles, the broader Chinese EV machine is gaining global momentum. In Europe, BYD overtook Tesla in July sales, capturing 1.1% market share versus Tesla’s 0.7%.

Chinese EV car brands account for around 10% of new UK car sales

Chinese brands now account for around 10% of new car sales in the UK. There are over 30 affordable EV models priced under £30,000.

Their edge lies in battery supply chains, manufacturing efficiency, and software integration. Transforming cars into ‘smartphones on wheels’ tailored to digitally connected consumers.

China’s EV revolution is no longer just a domestic shake-up—it’s a global reordering. Legacy automakers are retreating from the budget segment. But Chinese firms flooding international markets with sleek, connected, and competitively priced vehicles.

BYD’s profit dip may be a temporary wobble. The long-term trajectory is clear: China isn’t just building cars—it’s building the future of mobility.

For global rivals, the message is unmistakable: adapt, or be outpaced by the dragon’s electric roar.

Infographic: China’s BYD and other EVs

Summary

BYD’s Q2 2025 net profit drop of 30% to 6.4 billion yuan: This figure aligns with recent earnings reports and analyst commentary. The drop is consistent with margin pressure from domestic price cuts.

Gross margin falling to 16.3%: Matches industry estimates for BYD’s automotive segment, which has seen compression due to aggressive discounting.

Overseas sales up 145% YoY: BYD’s international expansion—especially in Europe, Southeast Asia, and Latin America—has been rapid. This growth rate is plausible and supported by export data.

BYD reaching only 45% of its 5.5 million unit sales target by July: This tracks with cumulative delivery figures through mid-year, suggesting a potential shortfall unless H2 volumes accelerate.

Price war triggered by BYD’s cuts across 22 models in May: Confirmed by industry reports and BYD’s own promotional campaigns. Other automakers like Geely and Chery have responded with similar discounts.

CAAM warning of “disorderly competition”: This quote has appeared in official statements and media coverage, reflecting regulatory concern over unsustainable pricing.

Chinese EVs gaining market share in Europe and UK: BYD overtaking Tesla in July 2025 sales in Europe is supported by registration data. Chinese brands now account for ~10% of UK new car sales, with many models priced under £30,000.

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Tesla’s European market meltdown – sales plunge 49% amid brand damage and fierce competition

Tesla's European sales fall!

Tesla’s vehicle sales in Europe plummeted by 49% in April 2025, marking the fourth consecutive month of decline.

Despite an overall 27.8% rise in battery-electric vehicle sales, Tesla struggled to maintain its foothold in the region.

The drop in sales has been attributed to increasing competition from Chinese automakers, a shift in consumer preferences towards hybrid vehicles, and growing backlash against CEO Elon Musk’s political affiliations.

Tesla’s market share in Europe nearly halved, falling from 1.3% to 0.7%. The company’s aging lineup, particularly the Model Y, has failed to attract new buyers, while rivals such as BYD have overtaken Tesla in European EV sales for the first time.

Additionally, European carmakers are cutting costs and adapting to U.S. tariffs on auto imports, further intensifying competition. Chinese EV manufacturers are also cutting EV prices.

While Tesla faces challenges in Europe, the broader EV market continues to expand, driven by government incentives and stricter emission targets.

However, unless Tesla refreshes its lineup and rebuilds consumer trust, its dominance in the European market may continue to erode.

The company’s future remains uncertain as it navigates political controversies and shifting market dynamics

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BYD Surpasses Tesla in European EV sales for the first time in upset for Tesla

BYD

April 2025 marked a watershed moment in the European electric vehicle (EV) market as BYD outsold Tesla for the first time ever.

According to JATO Dynamics, BYD registered 7,231 battery-electric vehicles, narrowly surpassing Tesla’s 7,165 registrations.

This shift comes despite EU-imposed tariffs on Chinese-made EVs, which were expected to hinder BYD’s growth. However, the company’s aggressive expansion strategy and diversified lineup – including plug-in hybrids – helped it navigate trade barriers and maintain momentum.

Tesla, on the other hand, has faced declining sales, with its European registrations dropping 49% year-over-year. Production delays, protests against CEO Elon Musk, and consumer hesitation over new Model Y trims have contributed to the slump.

BYD’s success signals a changing landscape in Europe’s EV market. With its Hungarian production plant set to open soon, the company is poised for further growth.

Presumably now, Tesla must reassess its strategy to regain dominance in a market it once ruled.

As competition intensifies, European consumers will benefit from greater EV choices, potentially driving further innovation in the industry

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Tesla and Musk struggle against Trump’s Tariff Tidalwave

Tesla

Tesla has been making headlines with a series of major developments, from financial setbacks to strategic shifts by CEO Elon Musk.

The electric vehicle giant recently reported a 20% drop in automotive revenue, a significant decline that has raised concerns among investors.

Meanwhile, Musk has announced that he will be spending much less time on the Department of Government Efficiency (DOGE), a move that could signal a renewed focus on Tesla.

Additionally, Tesla’s ambitious Optimus humanoid robot project has hit a roadblock due to China’s restrictions on rare earth materials, further complicating the company’s future plans.

Tesla’s Revenue Decline

Tesla’s first-quarter earnings report revealed a 20% drop in automotive revenue, with total revenue sliding 9% year-on-year.

The company attributed the decline to factory retooling for a refreshed Model Y, lower average selling prices, and increased sales incentives.

Net income plummeted 71%, reflecting the broader challenges Tesla faces in a competitive EV market.

Tesla 3 month share price chart 2025

The company has refrained from promising growth this year, stating that it will revisit its 2025 guidance in its Q2 update.

Musk’s Shift Away from DOGE

Elon Musk’s involvement in the Department of Government Efficiency (DOGE) has been a controversial topic, with critics arguing that his political commitments have distracted him from Tesla’s operations.

However, Musk has now confirmed that his time allocation to DOGE will drop significantly, allowing him to focus more on Tesla.

He stated that he will likely spend only one or two days per week on government matters, a shift that could reassure investors concerned about his divided attention.

Reports of his popularity in recent U.S. polls suggest he is out of favour with the American people and is now low in people’s opinion around the world because of his contentious DOGE role.

Optimus Robots and China’s Rare Earth Restrictions

Tesla’s Optimus humanoid robots, which Musk has touted as a revolutionary step toward automation, have encountered a major obstacle due to China’s export restrictions on rare earth materials.

The restrictions, imposed as part of an escalating trade war, have disrupted Tesla’s supply chain, particularly affecting the rare earth magnets used in Optimus actuators.

Musk has expressed hope that Tesla will secure an export licence, but the uncertainty surrounding the restrictions could delay production.

Looking Ahead

Tesla is navigating a challenging landscape, balancing financial setbacks, Musk’s shifting priorities, and geopolitical hurdles.

While the company remains a leader in EV innovation, its ability to adapt to market pressures and geopolitical challenges will be crucial in determining its future success.

Investors and industry watchers will be closely monitoring Tesla’s next moves as it works to regain momentum.

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Dow drops 2200 points Friday 4th April 2025 – S&P 500 loses 10% in 2 days as Trump’s tariff rout deepens – just two days after ‘Liberation Day!’

Stocks down

The stock market was smashed for a second day Friday 4th April 2025 after China retaliated with new tariffs on U.S. goods, sparking fears President Donald Trump has ignited a global trade war that will lead to a global recession.

Stock market damage

The Dow Jones Industrial Average dropped 2,231.07 points, or 5.5%, to 38,314.86 on Friday 4th April 2025, the biggest decline since June 2020 during the Covid-19 pandemic.

This follows a 1,679-point decline on Thursday 3rd April 2025 and marks the first time ever that it has shed more than 1,500 points on consecutive days.

The S&P 500 collapsed 5.97% to 5,074.08, the biggest decline since March 2020. The benchmark shed 4.84% on Thursday 3rd April 2025 and is now down more than 17% off its recent high.

The Nasdaq Composite, home to many well-known tech companies that sell to China and manufacture there as well, dropped 5.8%, to 15,587.79.

This follows a nearly 6% drop on Thursday 3rd April 2025 and takes the index down by 22% from its December 2024 record – pushing it into a bear market.

The selling was wide ranging with only 14 members of the S&P 500 higher on the day. Major market indexes closed at their lows of the session.

China’s commerce ministry said the country will impose a 34% levy on all U.S. products, disappointing investors who had hoped countries would negotiate with Trump before retaliating.

Technology stocks led the massive rout Friday

Apple shares slumped 7%, bringing its loss for the week to 13%.

Nvidia dropped 7% during the session.

Tesla fell 10%.

All three companies have large exposure to China and are among the hardest hit from Beijing’s retaliatory tariffs.

The bull market is dead, and it was destroyed by self-inflicted wounds!

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U.S. tech giants are betting big on humanoid robots

Humanoid robots

U.S. tech giants are making bold strides in the development of humanoid robots, signalling a transformative shift in the robotics industry

Companies like Tesla, Google, Microsoft, and Nvidia are investing heavily in this cutting-edge technology, aiming to create machines that mimic human movement and behaviour.

These humanoid robots are envisioned to revolutionise industries ranging from manufacturing to healthcare, offering solutions to labor shortages and enhancing productivity.

Tesla’s Optimus project is a prime example of this ambition. CEO Elon Musk has announced plans to produce thousands of these robots, designed to perform repetitive and physically demanding tasks.

Optimus robots are expected to integrate seamlessly into factory settings, reducing the need for human intervention in hazardous environments.

Similarly, Boston Dynamics, known for its agile robots, continues to push the boundaries of what humanoid machines can achieve, focusing on tasks that require precision and adaptability.

The integration of artificial intelligence (AI) is a driving force behind these advancements. AI enables robots to learn from their environments, adapt to new tasks, and interact with humans in more intuitive ways.

Companies like Nvidia are leveraging their expertise in AI and machine learning are helping to develop robots capable of complex decision-making and problem-solving.

However, challenges remain. High production costs, limited battery life, and safety concerns are significant hurdles that need to be addressed before humanoid robots can achieve widespread adoption.

Despite these obstacles, the potential benefits are immense. From assisting the elderly to performing intricate surgeries, humanoid robots could redefine the boundaries of human capability.

As U.S. tech giants continue to innovate, the race to dominate the humanoid robotics market intensifies.

Tesla Optimus Gen 2

With China and other nations also making significant investments, the competition is fierce. Analysts warn that U.S. firms could lose out to China, which aims to replicate its success with electric vehicles in the robotics space race.

The future of humanoid robots promises to be a fascinating blend of technology, creativity, and global collaboration

U.S. companies that may benefit from this AI humanoid tech advancement

Tesla: Known for its Optimus humanoid robot project, Tesla is pushing boundaries in robotics and AI.

Google (Alphabet): A leader in AI and robotics research, with projects aimed at enhancing humanoid capabilities.

Microsoft: Investing in AI technologies that support robotics and automation.

Nvidia: Provides advanced AI chips and systems crucial for humanoid robot development.

Boston Dynamics: Famous for its agile robots like Atlas, focusing on precision and adaptability.

Agility Robotics: Creator of Digit, a humanoid robot designed for logistics and manufacturing.

Meta (Facebook): Exploring humanoid robots for social and interactive applications.

Apple: Investing in robotics and AI for potential humanoid advancements.

Amazon: Developing robots like Astro for home monitoring and other tasks.

Figure AI: Innovating humanoid robots like Figure 02 for various industries.

Bill Gates on AI

Bill Gates has shared some fascinating insights about AI recently. He reportedly believes that within the next decade, AI will transform many industries, making specialised knowledge widely accessible.

For example, he predicts that AI could provide high-quality medical advice and tutoring, addressing global shortages of doctors and educators.

Gates has also described this shift as the ‘age of free intelligence,’ where AI becomes a commonplace tool integrated into everyday life. While he acknowledges the immense potential of AI to solve global challenges – like developing breakthrough treatments for diseases and innovative solutions for climate change – he also recognises the disruptive impact it could have on jobs and the workforce.

Despite these concerns, Gates remains optimistic about AI’s ability to drive innovation and improve lives.

He has emphasised that certain human activities, like playing sports or hosting talk shows, will likely remain uniquely human.

However, despite all these predictions from powerful tech leaders – it does beg the question, do these ultra rich CEOs predict the future, or simply make it?

What if Quantum Physics coincides and collides with the ‘full’ arrival of AI and humanoid robots

Quantum computing could enhance the capabilities of AI-powered robots by solving complex optimisation problems, improving machine learning algorithms, and enabling real-time decision-making.

For instance, robots equipped with quantum sensors could navigate intricate environments, detect subtle changes in their surroundings, and interact with humans in more intuitive ways.

This fusion could revolutionise industries such as healthcare, manufacturing, and space exploration. Imagine humanoid robots performing intricate surgeries with precision, managing large-scale logistics, or exploring distant planets with advanced problem-solving abilities.

However, this convergence also raises ethical and societal questions. The potential for such powerful technologies to disrupt industries, impact employment, and challenge privacy norms must be carefully managed.

Collaboration between scientists, policymakers, and ethicists will be crucial to ensure these advancements benefit humanity as a whole.

The intersection of quantum physics, AI, and humanoid robotics is not just a technological milestone – it’s a glimpse into a future where the boundaries of human capability and machine intelligence blur.

It’s an exciting, albeit complex future humans are creating.

But will AI surpass human intelligence – and if it does what then for the human civilisation?

Access videos of Tesla robots here

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BYD unveils new super-charging EV tech – twice as fast as the Tesla system

BYD

BYD, a leading name in the electric vehicle (EV) industry, has unveiled groundbreaking super-charging technology that could redefine EV adoption

The new ‘super e-platform’ boasts peak charging speeds of 1,000 kilowatts (kW), enabling vehicles to gain a range of 400 kilometers (249 miles) in just five minutes.

This innovation brings EV charging times closer to the convenience of refueling traditional gasoline vehicles.

Charging speeds of 1,000 kW would be twice as fast as Tesla’s superchargers whose latest version offers up to 500 kw charging speeds. Fast-charging technology has been key to increasing EV adoption as it is seen to help assure EV drivers’ concerns over being able to charge their cars quickly.

The announcement, reportedly made at BYD’s Shenzhen headquarters, marks a significant leap in addressing ‘charging anxiety’- a key concern for EV users. Founder Wang Chuanfu emphasised the company’s commitment to making EV charging as quick and seamless as possible.

This is the first time the industry has achieved megawatt-level charging power, setting a new benchmark.

To complement this technology, BYD plans to build over 4,000 ultra-fast charging stations across China.

The initial rollout will feature the super e-platform in two new models: the Han L sedan and Tang L SUV, priced from 270,000 yuan ($37,328). These vehicles will pioneer the use of this cutting-edge charging system.

As competition in the EV market intensifies, BYD’s innovation positions it as a formidable player, challenging established giants like Tesla and paving the way for a more electrified future.

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Tesla shares plunge 15% in one day – X goes off -line and Space X test flight explodes

Tesla shares down 50%

Tesla’s sell-off on Wall Street intensified on Monday, with shares of the electric vehicle maker plunging a whopping 15%, marking their worst trading day on the market since September 2020

On Friday, Tesla wrapped up a seventh straight week of losses, its longest losing streak since debuting on the Nasdaq in 2010. The stock has fallen every week since CEO Elon Musk went to Washington, D.C., to take on a major role in the Trump ‘2’ White House.

Since peaking at $479.86 on 17th December 2024 Tesla shares have lost more than 50% of their value, wiping out upward of $800 billion in market cap. Monday 10th March 2025 marked the stock’s seventh worst day on record.

Tesla 3 month share chart as of close 10th March 2025 – down a total of 50% and 15% in one day

Tesla 3 month share chart as of close 10th March 2025 – down a total of 50% and 15% in one day

Tesla led a broader slump in U.S. equities, with the Nasdaq tumbling almost 4%, its steepest decline since 2022.

During an interview on Monday 10th March 2025, Musk was reportedly asked how he manages to run his businesses while fulfilling his role in the Trump White House. He reportedly said he’s doing so – ‘with great difficulty’.

In addition to Tesla’s troubles, Musk’s social network X experienced several outages throughout the day on Monday 10th March 2025, and his company SpaceX is investigating two explosions in a row that occurred during test flights of its massive Starship rocket.

Elon Musk is also reported as saying that he expects to remain in the Trump administration for another year. He posted on X that ‘It will be fine long-term’, referencing Tesla’s steep stock price decline.

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Tesla shares have declined every week since Elon Musk joined team Trump

Tesla in the red

For seven consecutive weeks since Elon Musk travelled to Washington to join the Trump administration, shares in his automaker have declined, closing on Friday at $270.48.

This marks the longest losing streak for Tesla in its 15 years as a public company.

Tesla shares concluded the week a decline of over 10%, reaching their lowest level since 5th November 2024, U.S. Election Day, when they closed at $251.44.

Since their peak at $480 on 17th December 2024, Tesla has lost over $800 billion in market capitalisation.

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Tesla’s market cap falls below $1 trillion

Tesla

Tesla shares sank 8% on Tuesday 25th February 2025 and have now lost most of their gains that followed President Donald Trump’s election victory in November 2024.

The stock has plunged 25% this year, while the Nasdaq is down 1.5%.

It was also reported on that the company’s long-awaited upgrade of its partially automated driving system in China left owners unimpressed.

Tesla 3-month chart as of 25th February 2025

Tesla 3-month chart as of 25th February 2025

Bump to slump?

The ‘Trump Bump’ – a term referring to the surge in stocks and other assets, such as cryptocurrency, following Donald Trump’s election and inauguration seems to have plateaued.

This is most evident in Tesla shares, which plummeted Tuesday 25th February 2025, wiping out most of the post-election gains linked to CEO Elon Musk’s association with Trump.

Concerns about Tesla pertain to the company’s and Musk’s significant amount of time spent in Washington, D.C.

Investors are increasingly worried about impact of Trump’s tariffs on the economy. A U.S. Conference Board survey indicated pessimism regarding job availability, business conditions, and future income, along with heightened expectations for inflation in 2025.

The 10-year Treasury yield, considered an indicator of growth expectations, declined on this news. Stocks continued to fall. If this trend does not reverse soon, we could be facing a ‘Trump Slump.’

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Musk’s xAI releases new Grok 3 AI

xAI Grok AI

Elon Musk’s AI company, xAI, has recently released its latest AI model, Grok 3.

This new AI model is designed to be significantly more powerful and capable than its predecessor, Grok 2.
  • Enhanced Capabilities: Grok 3 boasts 10 times more computing power than Grok 2 and has been trained on an expanded dataset, including court case filings.
  • Reasoning Models: Grok 3 includes reasoning models that can carefully analyze and fact-check information before providing responses. This helps in avoiding common pitfalls of AI models.
  • Benchmark Performance: Grok 3 has outperformed other leading AI models, including OpenAI’s GPT-4o and DeepSeek’s R1, on various benchmarks such as AIME (math questions) and GPQA (physics, biology, chemistry problems).
  • New Features: The Grok app now includes a ‘DeepSearch’ feature that scans the internet and xAI’s social network, X, to provide summarised responses to user queries.
  • Subscription Plans: xAI has introduced a new subscription plan called SuperGrok, which offers additional reasoning capabilities and unlimited image generation.

Grok 3 is being hailed as the ‘smartest AI on Earth’ by Musk, and it’s expected to have a significant impact on various industries.

Definition

Grok is a neologism (a newly coined word or expression), referenced by Robert A. Heinlein for his 1961 science fiction novel Stranger in a Strange Land. It means to understand something so deeply that you become one with it.

Grok is a term used in computer programming to mean to ‘profoundly understand something‘, such as a system, a language, or an algorithm.

Less woke

Grok, the company previously reportedly said, is modelled on ‘The Hitchhiker’s Guide to the Galaxy’. 

It is supposed to have ‘a bit of wit, a rebellious streak’ and it should answer the ‘spicy questions’ that other AI might dodge, according to a statement from xAI.

I wonder if it has been modelled on Elon Musk?

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Musk is everywhere!

Elon Musk

Elon Musk is the world’s richest person and the leader of Tesla, SpaceX, X, The Boring Company, x.AI, and Neuralink.

He is also the co-founder of PayPal and Zip2 and now the co-leader of DOGE – of U.S. Department of Government Efficiency and also recently led a group of investors in a bid to acquire OpenAI.

From a business perspective, Musk’s achievements are undeniable and even astonishing. The companies he leads are not only market leaders but also pioneers in their respective fields – consider how Tesla initiated the electric vehicle industry or how SpaceX successfully commercialised spaceflight.

Paradoxically, achieving success on a broad scale can have adverse effects. Investors appear to be increasingly concerned that Musk, despite his business acumen, is becoming distracted.

Tesla shares have declined over the past five trading days, dropping more than 6% on Tuesday 11th February 2025 as Chinese competitor BYD seems to be surpassing the company in AI-enabled autonomous driving.

If hands-free driving becomes a reality at Tesla, it could allow Musk to engage in other ventures without negatively impacting the company’s shares.

What you need to know today

BYD is a Tesla threat – but this is Elon Musk we’re talking about

Tesla shares fell 6.3% Tuesday 11th February 2025 after Chinese EV maker BYD said it will integrate DeepSeek into its autonomous driving technology and offer it in nearly all its vehicles.

There are also concerns over Musk’s distractions, such as his bid for OpenAI and his role at the ‘DOGE’ – Department of Government Efficiency in the White House.

Tesla’s stock price has fallen over 16% in the past five trading days

Tesla’s stock price has fallen over 16% in the past five trading days (5-day chart as of 11th February 2025)
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China’s electric vehicle boom is becoming increasingly focused on hybrids

Hybrid vehicle

Hybrid-powered vehicles are becoming more popular than battery-only ones in China, according to latest full-year reports, even as consumers move away from fossil-fuel-only cars.

Market leader BYD reported that well over half of the 4.3 million passenger cars it sold in 2024 were hybrid-powered, marking a significant reversal from 2023.

Chinese electric car start-ups that have exclusively sold battery-powered vehicles generally delivered fewer cars in 2024 compared companies that also offered hybrid models.

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Tesla shares climb to record high – boosted by Trump election victory

Tesla EV

Tesla shares soared to an all-time high on Wednesday exceeding their previous record set in 2021, driven by a post-election rally and heightened enthusiasm Wall Street for Elon Musk’s electric vehicle company.

The stock increased to an intraday high of $415, exceeding its previous peak by 50 cents and closed above its highest finish of $409.97 recorded on 4th November 2021.

Tesla’s market has increased reportedly increased by around 69% this year, with nearly all of those gains occurring after Trump’s election victory early last month. The stock’s 38% rally in represented its monthly performance since January 2023 and ranks as the 10th best on record.

Reportedly according to Federal Election Commission filings, Musk invested $277 million into a pro-Trump campaign effort and transformed his support for the Republican nominee into a full-time job in the lead-up to the election. He financed an operation in swing states to register voters and utilised his social media platform, to promote his chosen candidate, often disseminating misinformation.

The world’s wealthiest individual, whose net worth has increased to over $360 billion, is poised to head the Trump administration’s ‘Department of Government Efficiency,’ DOGE – together with former Republican presidential candidate Vivek Ramaswamy.

The newly formed DOGE will be tasked with culling government bureaucracy by streamlining and junking departments.

Musk’s role may grant him authority over the budgets and staffing of federal agencies, well as the capability to advocate for the removal of inconvenient regulations. During a Tesla earnings call in October, Musk reportedly stated intention to leverage his influence with Trump to create ‘Federal approval for autonomous vehicles.’ At present, approvals are at the state level.

Is business now openly running he U.S. government?

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Trump rumour to relax U.S. vehicle self-driving rules pushes Tesla stock higher

Autonomous driving

Tesla shares enjoyed a Trump pump on Monday 18th November 2024 after reports that President-elect Donald Trump’s team intend to prioritise a federal framework for regulating autonomous vehicles within the U.S. Department of Transportation.

Elon Musk was a prominent advocate in the business sector for Trump’s re-election campaign leading up to this month’s elections.

Recently, Trump appointed Musk and former Republican presidential candidate Vivek Ramaswamy to head the newly established Department of Government Efficiency.

Tesla 5-year share price chart

Tesla 5-year share price chart

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Trump announces the new ‘Department of Government Efficiency’- DOGE – Dogecoin climbs over 150% on the news

DOGE

The purchase of Meme coins is often viewed as indicators of retail interest and the willingness to take risks in the cryptocurrency market. Increased activity in meme coins typically signals that retail investors are engaging and are inclined to speculate more aggressively on the risk spectrum.

Trump initially proposed the concept of an efficiency commission in September 2024. Since that time, Musk -who has previously referred to himself as the ‘Dogefather’ – is known for making public statements about the meme coin that affect its value, has posted on his social media platform X, referring to the commission as the ‘Department of Government Efficiency’ or ‘D.O.G.E.‘

Dogecoin’s relevance surged in 2021 due to Elon Musk’s endorsement and the continuous hype on social media, which became a significant catalyst for the cryptocurrency. In May of that year, Musk’s tweets propelled Dogecoin to its peak value around 67 cents, according to market analysis. However, his reference to Dogecoin as ‘a hustle’, caused its value to plummet.

Recently, Dogecoin’s value increased following the post-election announcement by President-elect Donald Trump about the establishment of the ‘Department of Government Efficiency‘, which he acronymized as ‘DOGE’ in his statement.

Elon Musk, CEO of Tesla, and Vivek Ramaswamy, the former Republican presidential candidate and co-founder of Strive Asset Management, have been appointed to lead this department.

According to Trump’s statement, their role will be instrumental in his administration’s efforts to dismantle government bureaucracy, reduce unnecessary regulations, eliminate wasteful spending, and reorganise federal agencies.

It’s time for D.O.G.E.

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Elon Musk wants to make Tesla a $25 trillion company by 2040

Autonomous vehicle

Elon Musk’s Vision for Tesla’s Trillion Dollar Future

Elon Musk, the visionary CEO of Tesla, has consistently set ambitious goals for the company. Among his most audacious claims is that Tesla could potentially become a multi trillion-dollar company and even reach a valuation of $25 trillion, largely driven by the deployment of robotaxis.

Robotaxi vision

Tesla’s robotaxi concept is centred around autonomous vehicles that can operate as self-driving taxis. These vehicles are equipped with Tesla’s Full Self-Driving (FSD) technology, which Musk believes will revolutionize transportation. By transforming Tesla cars into autonomous ride-sharing vehicles, the company could generate significant revenue without increasing the number of cars sold.

Projections

Musk’s financial projections are based on the immense potential of the robotaxi market

  1. Revenue Generation: Each Tesla vehicle could earn substantial income as a robotaxi. If Tesla owners opt into the robotaxi network, Tesla could take a share of the revenue generated from these rides.
  2. Cost Efficiency: Autonomous driving reduces the need for human drivers, leading to lower operational costs. This efficiency could make robotaxis more affordable for users and highly profitable for Tesla.
  3. Reduced pollution: will help meet green energy goals.
  4. Market Penetration: As autonomous technology matures, the adoption of robotaxis could grow rapidly, capturing a significant share of the global transportation market.

Market potential

The global ride-hailing market is already valued at hundreds of billions of dollars, and with the introduction of autonomous vehicles, this market is expected to expand further. Tesla’s early entry and continuous advancements in FSD technology position it to be a dominant player in this space.

Challenges

While the potential is enormous, there are several challenges and scepticism surrounding Musk’s projections

  1. Regulatory Hurdles: Autonomous vehicles must navigate a complex regulatory landscape. Approval processes and safety standards vary by region, which could delay widespread adoption.
  2. Technical Milestones: Achieving full autonomy is a significant technical challenge. Tesla’s FSD technology is still in development, and perfecting it for widespread use requires overcoming numerous technical obstacles.
  3. Market Competition: Tesla is not the only player in the autonomous vehicle market. Competitors like Waymo, Cruise, and traditional automakers are also investing heavily in autonomous technology.

Conclusion

Elon Musk’s vision of making Tesla a trillion-dollar and eventually a $25 trillion company through robotaxis is both bold and captivating. The success of this vision hinges on the successful deployment and adoption of autonomous driving technology. While there are significant challenges to overcome, Musk’s track record of defying odds and achieving groundbreaking innovations keeps the possibility within the realm of achievable dreams.

The future of transportation, as envisioned by Musk, could fundamentally reshape how we move and how Tesla thrives as a pioneer in autonomous mobility.

Tesla’s future does seem promising with the introduction of Optimus, their humanoid robot, as well as their advancements in solar energy and battery technology.

The future looks very bright for Tesla.

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Nasdaq hits new all-time high – Tesla enjoys another great day

Nasdaq index at new high!

The Nasdaq Composite climbed to an all-time high on Friday 25th October 2024, boosted by BIG tech stocks.

The tech-heavy index rose 0.56% to 18,518.61

The tech-heavy Nasdaq Composite index rose 0.56% to 18,518.61

Tech stocks boosted the market ahead of their upcoming earnings. Nvidia added 0.8%, and shares of Meta Platforms, Amazon and Microsoft were also higher.

Some analysts are suggesting it may be time to short Amazon and Apple as they head into earnings season? Let’s see.

Tesla helped boost the Nasdaq as its stock climbed to close at a 13-month high, sustaining its rally post-earnings.

Tesla enjoyed its best market day since 2013, the stock rose more than 3% on Friday 25th October 2024, closing at its highest since September 2023.

Tesla 5-day stock chart as of 25th October 2024

Tesla 5-day stock chart as of 25th October 2024
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Tesla beats earnings forecast in third quarter 2024

Tesla


Tesla shares climbed 12% in extended trading after the company’s third-quarter earnings beat Wall Street estimates, following a long slump.

However, Tesla’s revenue for that period, up 8% year on year, marginally missed expectations. “Vehicle growth” will hit up to 20%-30% next year, said CEO Elon Musk, thanks to “lower cost vehicles” and the “advent of autonomy.” Apparently, this was presented as a ‘best guess’.

Profit margins reportedly received a boost from $739 million in automotive regulatory credit revenue during the quarter. Automakers must acquire a certain number of regulatory credits annually. Those unable to meet the requirement can buy credits from companies like Tesla, which has a surplus due to its exclusive production of electric vehicles.

Automotive revenue reportedly rose 2% to $20 billion, up from $19.63 billion in the same quarter the previous year, and has remained roughly stable since late 2022. Energy generation and storage revenue reportedly surged 52% to $2.38 billion, while services and other revenue, which includes income from non-warranty Tesla vehicle repairs, increased by 29% to $2.79 billion.

Tesla quarterly revenues by business section

Tesla quarterly revenues by business section

Tesla share price and close and ‘after hours’ trading 23rd October 2024 (09:15 BST)

Tesla share price and close and ‘after hours’ trading 23rd October 2024 (09:15 BST)

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Tesla shares dropped 9% on Friday 11th October 2024 after Cybercab Robotaxi event disappointed investors

Elon Musk's Sci-Fi vision

Tesla’s stock declined on Friday 11th October 2024 following the electric vehicle maker’s highly anticipated robotaxi event, which left investors unimpressed

£60 billion was wiped off Tesla market cap

CEO Elon Musk showcased the Cybercab concept vehicle, announcing that it would be available for purchase at a price below $30,000.

Analysts reportedly commented that the event did not emphasise any immediate opportunities for Tesla, focusing instead on Musk’s long-term vision for fully autonomous driving.

At the ‘We, Robot’ event on Thursday 10th October 2024, CEO Elon Musk presented the Cybercab, a sleek, silver two-seater without steering wheels or pedals, underscoring his company’s goal to develop a fleet of self-driving vehicles and robots.

Musk expressed his hope for Tesla to start producing the Cybercab by 2027, though he did not specify the manufacturing locations. He reiterated that the Tesla Cybercab would be sold for less than $30,000.

Furthermore, he anticipated that Tesla’s Model 3 and Model Y electric vehicles would feature ‘unsupervised FSD’ operational in Texas and California by next year. FSD, standing for Full Self-Driving, is Tesla’s advanced driver assistance system, currently available in a supervised format.

Investors and analysts were underwhelmed by the event. Tesla shares fell.

Tesla one year chart as of 11th October 2024

Tesla one year chart as of 11th October 2024

Elon Musk’s wealth

Elon Musk is projected to become the world’s first trillionaire by 2027, as per a recent report by Informa Connect Academy. Among global billionaires, Musk is nearest to reaching the 13-figure threshold, with his wealth continuing to increase.

Bloomberg Billionaire Index

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Tesla misses delivery estimates – stock drops

Tesla EV

Tesla posted its third-quarter vehicle production and deliveries report on Wednesday 2nd October 2024 – the stock fell 3.7%.

Total deliveries Q3 2024: 462,890 – Total production Q3 2024: 469,796

Analysts had projected Tesla would deliver 463,310 vehicles by the end of September 2024. However, other sources indicated a larger shortfall; the average analyst predictions were at 469,828 vehicles, while an independent researcher known as ‘Troy Teslike,‘ popular among Tesla enthusiasts, estimated 472,000 deliveries for the quarter.

Comparatively, Tesla reported 435,059 deliveries and 430,488 EVs produced in the same period last year. In the previous quarter, the company achieved 443,956 deliveries and produced 410,831 vehicles.

In the U.S., competitors such as Rivian are advancing, and traditional automakers like Ford and General Motors are increasing their electric vehicle sales, albeit scaling back earlier electrification targets.

Ford announced a 12% increase in EV sales for the third quarter, totaling 23,509 vehicles on Wednesday 2nd October 2024.

General Motors reported a 60% rise in EV sales for the same quarter compared to the previous year, with 32,100 units sold, which represents 4.9% of its total sales volume.

Tesla’s reputation in the U.S. has faced challenges, partly due to CEO Elon Musk’s controversial actions, including endorsing former President Donald Trump and disseminating what has reportedly been described by the White House as ‘racist hate“, along with alleged misinformation about immigration and election fraud on X, his social media platform.

Despite these issues, Tesla remains the leading seller of battery electric vehicles in the U.S., with Hyundai trailing significantly behind.

Tesla -year chart as of 2nd October 2024

Tesla -year chart as of 2nd October 2024
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U.S. stocks recovery attempt fizzles out

Fizzle

Stocks closed lower on Wednesday 7th August 2024, failing to fully recover from Monday’s sell-off.

The Dow Jones Industrial Average dropped 234 points to 38763.45. The S&P 500 fell to 5199.50, while the Nasdaq Composite closed at 16195.81.

During the day, the Dow had surged around 480 points, the S&P 500 had climbed 1.73%, and the Nasdaq had risen over 2%.

Dow Jones one day chart 7th August 2024

Dow Jones one day chart 7th August 2024

S&P 500 one day chart 7th August 2024

S&P 500 one day chart 7th August 2024

Nasdaq Composite one day chart 7th August 2024

Nasdaq Composite one day chart 7th August 2024

However, a downturn in Nvidia and other major tech stocks, after an initial rise, led to a significant drop in the afternoon. Nvidia retracted by 5.1%, Super Micro Computer plummeted 20.1% following its fiscal Q4 earnings missing analyst predictions, Tesla fell 4.4%, and Meta Platforms decreased by 1%.

Nvidia one day chart 7th August 2024

Nvidia one day chart 7th August 2024

One month chart Super Micro Computer 7th August 2024

One month chart Super Micro Computer 7th August 2024

Nvidia one day chart 7th August 2024

Nvidia one day chart 7th August 2024

The U.S.10-year Treasury yield continued to rise, increasing by about six basis points to 3.95%, returning to its level before the disappointing job figures last Friday, which had sparked concerns of an economic slowdown.

The Volatility Index (CBOE), the so called ‘fear gauge‘ was trading at around 29, having dropped to as low as 22 earlier in the day. This sharp decrease from Monday 5th August 2024 suggests that investor fears are subsiding, however, they remain higher than at the beginning of the month.

The Volatility Index (CBOE) on 7th August 2024

The Volatility Index (CBOE) on 7th August 2024
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$1 trillion rout as Markets punishes tech stocks

Stocks drop

The seven most valuable U.S. tech companies experienced a combined loss of $1 trillion in market value at the start of Monday’s trading session – 5th August 2024

The Nasdaq declined over 3% following its sharpest three-week drop in two years.

Nvidia’s shares fell approximately 6%, while Apple’s dropped more than 4%.

On Monday, as the U.S. markets commenced trading, the market capitalization of the largest tech companies plummeted by about $1 trillion, exacerbating a decline that pushed the Nasdaq into correction territory the previous week.

Markets go up and markets go down

In early trade Nvidia’s market cap decreased by over $300 billion, but it swiftly regained about half of that loss. The chipmaker’s shares ultimately closed down 6.4%, equating to a $168 billion loss. Apple and Amazon saw their valuations fall by $224 billion and $109 billion at market open. Apple’s market cap finished 4.8% lower, a $162 billion decrease. Amazon’s valuation fell by 4.1% at closing, a $72 billion reduction.

Including significant drops in Meta, Microsoft, Alphabet, and Tesla, the top seven tech giants saw a $995 billion loss in market value in the initial moments of trading, although they did recover somewhat as the day went on.

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U.S. stocks slip as Nasdaq tumbles for worst day since 2022 – Tesla and Alphabet fall

Stocks in the red

Stocks sold off Wednesday 24th July 2024, blighted by underwhelming reports from Tesla and Alphabet – leading the Nasdaq Composite and the S&P 500 to post their worst sessions since 2022.

The S&P 500 index dropped to closing at 5427, while the tech-heavy Nasdaq slid around 3.65% to end at 17342. The Dow Jones Industrial Average shed 504 points closing at 39853.

Nasdaq Comp one day chart 24th July 2024

Nasdaq Comp one day chart 24th July 2024

Shares of Google parent company Alphabet fell 5% for their biggest one-day drop since 31st January, when they dropped 7.5%. Although Alphabet reported good numbers, YouTube advertising revenue came in below the consensus estimate causing share to dip.

Alphabet one day chart 24th July 2024

Tesla shares declined around 12% – their worst day since 2020 – on weaker-than-expected results and a 7% year-on-year drop in auto revenue.

Tesla one day chart 24th July 2024

Nasdaq Comp one day chart 24th July 2024
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Tesla shares fall after weaker-than-expected results

Tesla stock

Tesla’s shares dropped in U.S. pre-market trading following the electric car maker’s Q2 earnings report, which fell short of expectations.

The company saw a 7% year-on-year decrease in automotive revenue for the June 2024 quarter, down to $19.9 billion, and a decline in its ‘adjusted’ earnings margin.

Investors are divided on Tesla’s stock, with some concerned that the core car business is struggling, while others remain optimistic about Musk’s vision for autonomous driving.

Tesla continues to lead in U.S. electric vehicle sales, yet it’s facing declining market share as competitors emerge, partly due to its older range on offer and Elon Musk’s occasional controversial public statements.

Attention has shifted to other aspects of Tesla’s narrative, such as the anticipated introduction of a new mass-market vehicle to refresh its vehicle lineup. Musk reportedly re-affirmed that Tesla plans to launch an ‘affordable’ car in the upcoming year.

Tesla 3-year share price chart as at: 23rd July 2024

Tesla 3 year share price chart as at: 23rd July 2024

The earnings also highlighted his robotaxi vision. Musk shared his ‘expectation’ of a future where Tesla owners could allow their vehicles to operate in an Uber-like ride-hailing environment, with the cars driving autonomously.

And then we have the prospect for the greatly hyped arrival of Tesla’s humanoid robot due in 2025.

As we all know – Musk does much more than EVs.