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  • Twitter under Musk? Most of the plans are a mystery

    Twitter under Musk? Most of the plans are a mystery

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    SAN FRANCISCO — A super app called X? A bot-free free speech haven? These are some of Elon Musk’s mysterious plans for Twitter, now that he may be buying the company after all.

    After months of squabbling over the fate of their bombshell $44 billion deal, the billionaire and the bird app are essentially back to square one — if a bit worse for wear as trust and goodwill has seemed to erode on both sides.

    Musk, the CEO of Tesla Motors and SpaceX and Twitter’s most high-profile user since former President Donald Trump was booted from it, has shared few concrete details about his plans for the social media platform. While he’s touted free speech and derided spam bots since agreeing to buy the company in April, what he actually wants to do about either is shrouded in mystery.

    He could own one of the world’s most powerful communications platforms with 237 million daily users in a matter of weeks, though the deal is not final. The lack of clear plans for the platform are raising concern among Twitter’s constituencies, ranging from users in conflict regions where it offers an information lifeline to the company’s own employees.

    “Both users and advertisers are — understandably — anxious about whether the move will fundamentally change the culture of the platform,” said Brooke Erin Duffy, a professor at Cornell University who studies social media. “And so, Musk will need to decide whether he wants to quash their concerns by retaining core features (the content moderation system, for instance) and keeping the company public — or whether he will undertake a full-scale overhaul.”

    Muddling things further, on Tuesday Musk tweeted that “Buying Twitter is an accelerant to creating X, the everything app,” without further explanation.

    Although Musk’s tweets and statements have been cryptic, technology analysts have speculated that Musk wants to re-create a version of China’s WeChat app that can do video chats, messaging, streaming, scan bar codes and make payments.

    He gave a little more detail during Tesla’s annual shareholder meeting in August, telling the crowd at a factory near Austin, Texas, that he uses Twitter frequently and knows the product well. “I think I’ve got a good sense of where to point the engineering team with Twitter to make it radically better,” he said.

    Handling payments for goods could be a key part of the app. Musk said he has a “grander vision” for what X.com, an online bank he started early in his career that eventually became part of PayPal, could have been.

    “Obviously that could be started from scratch, but I think Twitter would help accelerate that by three-to-five years,” Musk said at the August meeting. “So it’s kind of something that I thought would be quite useful for a long time. I know what to do.”

    For now, Twitter has immediate and pressing problems Musk will need to deal with if he takes ownership of the company. Its social media rivals are struggling with declining stock prices and some, like Snap, even announced layoffs. Government regulation and attracting younger users away from TikTok are also challenges. And Musk’s vision of a free speech haven has social media and content moderation experts, as well as digital and human rights advocates, concerned.

    “When this all started in the spring, we had indicators and a strong sense of what Musk might do with the platform,” said Angelo Carusone of Media Matters, a watchdog group that opposes the takeover. “Because of the lawsuit, we know who he’s been talking to, what he’s been saying and the types of far-right ideological decision makers he wants to put in place. To put it bluntly, the worst fears have been confirmed.”

    Twitter employees, under former CEO Jack Dorsey and his predecessors, have spent years working to tame the platform once called the “free-speech wing of the free-speech party” where hate and harassment abound into something where all are welcome and safe. While it’s far from perfect, critics worry Musk’s ownership will mean turning back the clock on years of this work.

    “Musk made it clear that he would roll back Twitter’s community standards and safety guidelines, reinstate Donald Trump along with scores of other accounts suspended for violence and abuse, and open the floodgates of disinformation,” Carusone said.

    The company, for instance, was an early adopter of the “report abuse” button in 2013, after U.K. member of parliament Stella Creasy received a barrage of rape and death threats on the platform, echoing the experiences of other women over the years.

    In subsequent years, Twitter continued to craft rules and invest in staff and technology to detect violent threats, harassment and misinformation that violates its policies. After evidence emerged that Russia used their platforms to try to interfere with the 2016 U.S. presidential election, social media companies also stepped up their efforts against political misinformation.

    The big question now is how far Musk, who describes himself as a “free-speech absolutist,” wants to ratchet back these systems — and whether users and advertisers will stick around if he does.

    Aiming to tamp down such worries, Musk said in May he wants Twitter to be “as broadly inclusive as possible ” where ideally, most of America is on it and talking — a far cry from the far-right playground his critics are warning against.

    And while Musk has hinted he’d consider reinstating Trump’s account, it’s not clear the former president, who has since launched his own social media platform, would return.

    Then there’s the matter of Twitter’s employees, who’ve been living with uncertainty, high- (and low-) profile departures and a potential owner who’s publicly derided them on their own platform. Musk has also targeted Twitter’s work-from home policy, having once called for the company’s headquarters to be turned into a “homeless shelter” because, he said, so few employees actually worked there.

    As a hyper-frequent Twitter user with over 100 million followers, Musk does know how to use the platform. During an all-hands staff meeting Musk attended in June, he said his goal was to make it “so compelling that you can’t live without it.” If he’s able to realize this, it could finally put Twitter in the big leagues of social media, with TikTok and Meta’s Facebook and Instagram, where users are counted in the billions, not mere millions.

    Of course, Musk is also well known for predictions that are delayed or may not come true, such as colonizing Mars or deploying a fleet of autonomous robotaxis.

    “This is not a car manufacturer where, good enough, all you have to do is beat General Motors. Sorry, that isn’t really that hard,” said David Kirsch, a professor of strategy and entrepreneurship at the University of Maryland who’s studied Twitter bots’ effect on Tesla’s stock price. “You are dealing here with all of these other companies (that) also have very sophisticated AI programs, very sophisticated PhD programmers…everyone is trying to crack this nut.”

    Krisher reported from Detroit.

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  • Elon Musk would lose 13.5 million Twitter followers if he scraps most spam accounts; Justin Bieber would lose 27.6 million, data finds

    Elon Musk would lose 13.5 million Twitter followers if he scraps most spam accounts; Justin Bieber would lose 27.6 million, data finds

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    Elon Musk would lose about 13.5 million Twitter followers, if he pushes through his plan to get rid of most spam accounts, according to data crunched by CodeClan, a Scottish digital skills academy.

    The Tesla Inc.
    TSLA,
    -3.84%

    CEO on Tuesday gave up a legal battle and agreed to pay $44 billion to take over the social-media company. Musk has said he wants less than 5% of Twitter
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    accounts to be spam.

    But Musk’s losses pale in comparison with singer Justin Bieber, who would lose 27.6 million of his 114.2 million followers, according to the data.

    Britney Spears would lose the highest percentage of fake followers out of the top 20 with some 48% of her 55.8 million followers being classified as fakes.

    See also: Elon Musk says Twitter will eventually be part of ‘X, the everything app’

    Former President Barack Obama would lose 19.3 million of his 131.9 million followers, the data shows.

    Among other high profile names; Katy Perry has about 23.3 million fakes among her 108.9 million followers, or 21.4% of the total; Rihanna has about 26.5 million fakes, or 24.9% of her 106.5 million followers; Lady Gaga has 10.9 million fakes in her roster of 84.7 million followers, for 12.9% of the total; Kim Kardashian has about 14 million fakes, or 19.4% of her 72.4 million followers, and Ellen DeGeneres has about 24.4 million fakes, equal to 31.5% of her 77.5 million followers.

    See now: Elon Musk’s legal battle with Twitter may be over, but his war with the SEC continues

    In the world of politics, Indian Prime Minister Narendra Modi has about 17.5 million fakes in his 78.8 million followers, equal to 22.2% of the total.

    CNN Breaking News has about 7.7 million fakes, or 12.2% of its 63.1 million followers. Bill Gates has about 14.3 million fakes, or 24.2% of his 58.9 million followers. And NASA has some 14.7 million fakes, or 26.8% of its 57.1 million followers.

    Twitter shares were slightly lower premarket, while Tesla was down 1.1%.

    Shares of Digital World Acquisition Corp.
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    +0.03%
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    the special-purpose acquisition company, or SPAC, buying the company behind former President Donald Trump’s Truth Social social-media company, was slightly higher premarket after falling more than 5% Tuesday in the wake of the Musk/Twitter news.

    The SPAC has fallen 67% in the year to date, while the S&P 500
    SPX,
    -1.28%

    has fallen 20%.

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  • Elon Musk’s plans for Twitter may take inspiration from Chinese super apps

    Elon Musk’s plans for Twitter may take inspiration from Chinese super apps

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    Elon Musk’s revived $44 billion deal to buy Twitter sparked fresh debate over what the billionaire will do with the service if he eventually owns it.

    On Tuesday, Musk tweeted that buying Twitter is an “accelerant to creating X, the everything app.” He did not provide further details.

    Musk may be hinting toward so-called “super apps” which are popular in China and other parts of Asia and pioneered by the likes of Chinese technology giant Tencent.

    Super apps is a term to describe an app that often acts as a one-stop shop for all your mobile needs. For example, you might order a taxi or food via the app and at the same time do payments and messaging. This eliminates the need to have multiple apps for different functions.

    Chinese app WeChat, run by Tencent, is the biggest super app in the world, with over a billion users.

    In WeChat, users can message people, do mobile banking, pay for things online or in store by scanning a barcode, play games, post videos, do online shopping, hail a car and many other things.

    When Musk talks about “the everything app,” he could be thinking about WeChat.

    The Tesla CEO has previously expressed admiration for WeChat calling the app “great” during a town hall with Twitter employees in June. Musk said there is no WeChat equivalent outside of China.

    “And I think that there’s a real opportunity to create that,” Musk told employees. “You basically live on WeChat in China because it’s so useful and so helpful to your daily life. And I think if we could achieve that, or even close to that with Twitter, it would be an immense success.”

    Musk said that he wants at least a billion people using Twitter, up from 237.8 million at the end of the second quarter.

    Tencent runs the ubiquitous Chinese messaging app WeChat. The company has a short form video feature with in the app and has began to monetize that through video ads in the feed. Tencent said such ads could become a “substantial” source of revenue in the future.

    Budrul Chukrut | Sopa Images | Lightrocket | Getty Images

    One of WeChat’s biggest features is WeChat Pay. This is a feature where users can scan a barcode in a store to pay via their mobile or they can send money to friends via the chat function. WeChat Pay can also be used for purchases online.

    Musk said during the town hall that he thinks that payments within Twitter would be an “interesting thing to do.”

    However, super apps like WeChat haven’t really taken off in a big way in Europe, the U.S. and other western markets.

    WeChat meanwhile is heavily censored in China, something Musk is unlikely to do with Twitter, given his past criticisms of the platform’s content moderation strategy which the billionaire feels has stifled free speech.

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  • EXPLAINER: What’s next in Musk’s epic battle with Twitter?

    EXPLAINER: What’s next in Musk’s epic battle with Twitter?

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    Elon Musk’s monthslong tussle with Twitter took another twist Tuesday when the Tesla billionaire seemed to return to where he started in April — offering to buy the company for $44 billion.

    But it’s not over yet. Twitter says it intends to close the deal at the agreed-upon price, but the two sides are still booked for an Oct. 17 trial in Delaware over Musk’s earlier attempts to terminate the deal.

    DOES ELON MUSK OWN TWITTER YET?

    No, he doesn’t own Twitter and it’s still not clear if or when he would take it over. What happened this week is that his lawyer sent a letter to Twitter saying Musk will complete the deal as long as he lines up the promised debt financing and provided that the Delaware Chancery Court drops Twitter’s lawsuit against him. But Twitter is unlikely to give up on its legal proceedings unless it confirms that the deal is for real this time and not a tactical gambit.

    WHAT HAPPENS NEXT?

    The judge presiding over the Delaware case hasn’t yet publicly weighed in on Musk’s new proposal, but what she says could determine the next steps.

    Twitter’s deposition of Musk — set to begin Thursday — and even the Oct. 17 trial itself could still go forward if Twitter isn’t assured that the deal is closing, said Ann Lipton, an associate law professor at Tulane University.

    “Twitter is not going to let that proceeding stop until it gets that 100% reassurance,” she said.

    But if the deal does go through, Lipton said Musk could be in charge of Twitter in a matter of days — however long it takes him and his co-investors to line up the cash.

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  • Elon Musk wants to move forward with his purchase of Twitter. Here’s how some Twitter users reacted.

    Elon Musk wants to move forward with his purchase of Twitter. Here’s how some Twitter users reacted.

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    Elon Musk sent a letter to Twitter
    TWTR,
    +22.24%

    indicating he intends to move forward with his original proposal that he acquire the company for $54.20 a share, according to a filing from the Securities and Exchange Commission.

    The Tesla Inc.
    TSLA,
    +2.90%

    CEO agreed to buy the social media company back in April for $44 billion, but in recent months said he wanted to terminate the deal, publicly citing concerns about bots on the platform. The two sides had been entrenched in a legal battle over the past few months, and a Delaware Chancery Court judge was scheduled to hear arguments on the case in October, a case Wedbush analyst Daniel Ives said Musk was “highly unlikely” to win.

    See also: College students who got low grades complained about their ‘dismissive’ professor. Then NYU fired him.

    Twitter users reacted to the news on Tuesday afternoon, many of them joking about a potential resolution to the seemingly never-ending Elon Musk Twitter saga.

    One Twitter user said she believes Musk will look to reinstate the account of former President Donald Trump, which was banned shortly after the attack on the Capitol on Jan. 6, 2021. Trump has claimed he won’t return to Twitter even if the Musk deal is executed, and he’ll continue to post on his platform, Truth Social.

    See also: Trump’s Facebook ban may end as soon as January 2023, Meta executive says

    “We’re doing a big platform right now, so I probably wouldn’t have any interest,” the former president said.

    Another user tweeted that supporters of the meme crypto dogecoin
    DOGEUSD,
    +1.11%

    are excited by Musk’s move to proceed with the deal. Musk has touted dogecoin on several occasions in the past few years.

    Similar to bitcoin, dogecoin is a peer-to-peer, open-source cryptocurrency. It trades under the ticker symbol “DOGE” and features the face of the shiba inu from the popular Doge meme as its logo. Dogecoin was up as much as 9.16% after the Bloomberg news was published.

    Musk has not publicly commented on the report, but one Twitter user pointed out that he tweeted about his satellite internet project Starlink after the news broke, but did not mention Twitter in any way.

    A report from The Wall Street Journal stated Musk’s legal team relayed the proposal to Twitter’s team “overnight Monday.”

    Shares of Tesla Inc. dipped after the news, and are now up just 1.31% during Tuesday’s trading. Shares of the EV maker were up as much as 5.65% on the day before the Musk news.

    See also: SPAC backing Trump’s Truth Social hit by news Musk is again offering to acquire Twitter at original price

    The news comes a few days after hundreds of text messages from Musk’s phone were made public as evidence in Twitter’s lawsuit.

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  • Twitter stock surges 22% after Elon Musk gives up bot battle and commits to $44 billion deal

    Twitter stock surges 22% after Elon Musk gives up bot battle and commits to $44 billion deal

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    Tesla Inc. Chief Executive Elon Musk now plans to close his proposed $44 billion deal for Twitter Inc., according to a Tuesday filing that arrived less than two weeks before a judge was scheduled to hear a case on the disputed acquisition.

    Musk’s lawyers sent a letter to Twitter’s management team indicating that he was proposing to move forward with the original acquisition terms late Monday, and that letter was released as a filing with the Securities and Exchange Commission Tuesday afternoon. A Twitter spokesperson later confirmed to MarketWatch that the company intended to proceed with the deal for $54.20 a share.

    Twitter
    TWTR,
    +22.24%

    shares jumped 22.2% to $52 in Tuesday’s session, after an hours-long trading halt that started after Bloomberg News first reported the move around noon Eastern time, suggesting a possible end to the legal saga between the two parties. The increase is the second best daily percentage gain on record for Twitter stock, behind only the 27.1% gain experienced when Musk disclosed his initial ownership stake in Twitter in April. Twitter was the best performing stock Tuesday in the S&P 500 index
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    +3.06%
    ,
    and is now up 20.3% on the year.

    The two sides have been locked in a legal battle for months, and a Delaware Chancery Court judge was expected to hear from both sides in a five-day trial slated to begin Oct. 17. The Wall Street Journal reported Tuesday that the Delaware judge asked the two sides to come up with a plan by the end of the day that could bring about an end to the litigation.

    “Musk could see the writing on the wall that he was going to lose the trial,” said Josh White, an assistant finance professor at Vanderbilt University, in an email to MarketWatch. “By doing this, he can save legal costs, time and ultimately losing in a very public trial.”

    See also: Here’s how Twitter’s users reacted to Musk agreeing to buy the platform

    Musk agreed in April to buy Twitter in a deal that valued the company at roughly $44 billion, but he later said that he was terminating the deal. The Tesla
    TSLA,
    +2.90%

    CEO cited concerns about bot activity on Twitter and said he believed the company’s management team wasn’t accurate in its public disclosures about the extent of spam activity on the platform.

    White noted that text messages released in conjunction with the case showed that Musk was aware of Twitter’s bot issue before going forward with his original deal offer, and he doubted that Musk would be able to show that “something really changed” after that point.

    “If he offered less than $54.20, Twitter might have proceeded with the trial, and he would be deposed,” White continued. “By offering the original price, he maximizes the chance that Twitter accepts and the trial ends. I expect Twitter’s board to accept the deal and for it to close rather quickly.”

    Wedbush analyst Daniel Ives agreed that the Tesla leader’s latest move marked a “clear sign that Musk recognized heading into Delaware Court that the chances of winning vs. Twitter board was highly unlikely and this $44 billion deal was going to be completed one way or another,” he wrote in a note to clients. “Being forced to do the deal after a long and ugly court battle in Delaware was not an ideal scenario and instead accepting this path and moving forward with the deal will save a massive legal headache.”

    Opinion: Twitter stood up to Elon Musk and won, but will it feel like a win once he owns it?

    Vanderbilt’s White noted that a deal at the original price would be a “big” win for Twitter shareholders.

    “The stock price of Snap
    SNAP,
    +8.42%

    and Twitter seemed to trade around the same price level before the offer,” he told MarketWatch. “Snap is now a ~$10 stock with a $17 billion market cap. So Twitter’s shareholders win by getting $54.20 rather than having the price drop to $10-20 per share.”

    Additionally, he deemed Delaware business law another winner: “This deal shows that even the richest man in the world cannot overcome well-written contracts enforced in a neutral and fair way by the Delaware courts.”

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  • Elon Musk offers to buy Twitter at original price days before trial: Sources

    Elon Musk offers to buy Twitter at original price days before trial: Sources

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    Elon Musk has reversed course and is again proposing to buy Twitter for $54.20 a share, according to sources familiar with the matter. A deal could happen as soon as Friday, the sources added.

    Twitter shares jumped as much as 15% on Tuesday after Bloomberg first reported on the Tesla CEO’s plans to go forth with his deal to acquire the company. The stock was halted after the report.

    A few weeks after Musk agreed to the deal earlier this year, valuing Twitter at $44 billion, he quickly tried to back out, officially informing the company in July of his intentions to terminate the agreement. Twitter sued Musk to force him to go through with the purchase. The two sides were scheduled to go to trial in Delaware Chancery Court on Oct. 17.

    Musk alleged that Twitter was misstating the number of “bots” on its service as one of the reasons he was reneging on the deal. He and his lawyers claimed the social media company was misleading investors by providing false numbers in corporate filings with the Securities and Exchange Commission.

    Twitter countered, however, that Musk’s assertions of fraud were incorrect and were based on a misunderstanding of the way the company tallies bots and fake accounts on its platform.

    Musk also alleged Twitter failed to provide him with the necessary data related to spam and bots, which Twitter denied.

    Twitter alleged Musk was looking for a reason to back out of the deal when the company’s shares dropped alongside a broader decline in the overall market.

    Although Musk sought to delay the trial date, Delaware Chancellor Kathaleen McCormick rejected his wish citing the potential for Twitter to incur “irreparable harm.” The chancellor did allow Musk and his attorneys to amend their counterclaim to include certain accusations made by Twitter’s former head of security in a separate whistleblower suit against the company.

    CNBC has learned that Musk could own Twitter within a matter of days and that all litigation would come to an end.

    In September, Twitter shareholders approved Musk’s original bid to purchase the company.

    Meanwhile, Tesla shares have dropped about $10 per share (about 4%) on the news so far Tuesday and are up about 2% for the day.

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  • Stocks making the biggest moves midday: Peloton, Tesla, Viasat, Wells Fargo, Box and more

    Stocks making the biggest moves midday: Peloton, Tesla, Viasat, Wells Fargo, Box and more

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    A Tesla electric vehicle at a supercharger station in Hawthorne, California, on Aug. 9, 2022.

    Patrick T. Fallon | AFP | Getty Images

    Check out the companies making the biggest moves midday Monday:

    Credit Suisse — Shares of Credit Suisse rose 1.7%, reversing an earlier slump that sent the stock to a record low, after the bank over the weekend made a series of calls to calm investor fears about its financial health. In addition, the cost to insure the bank’s debt against default jumped to a new high.

    Tesla — Tesla shares dropped 8.2% after the electric vehicle maker said it delivered 343,000 vehicles in the third quarter, less than analysts expected. However, Wall Street analysts were divided over the report.

    Peloton — Peloton shares rose more than 6% after the exercise-equipment company announced it will put bikes in all 5,400 Hilton-branded hotels in the U.S. Peloton is trying to engineer a turnaround and also said last week that its bikes, treadmills and other hardware would be sold in Dick’s Sporting Goods locations.

    Roblox — Shares of the gaming platform fell slightly after MoffettNathanson initiated coverage with an underperform rating. The Wall Street firm said it’s too soon to tell whether Roblox will ever meet its metaverse ambitions.

    Viasat — Viasat jumped 28% on Monday after striking a deal with L3Harris to sell its tactical data links business. The deal is for just under $2 billion, the companies announced. Viasat said it would use the cash to reduce its leverage and increase liquidity.

    Wells Fargo – Wells Fargo’s stock gained 3% after Goldman Sachs upgraded the bank to a buy rating from neutral and said investors are underappreciating its potential.

    Livent — The lithium company dropped about half a percent after Bank of America downgraded the stock to underperform from neutral, citing “limited upside.”

    DocuSign — DocuSign dropped slid 2.4% after being downgraded by Morgan Stanley to underweight from equal weight, citing pricing pressure.

    Myovant Sciences — The biopharmaceutical company jumped 36% after it rejected a bid by Sumitovant Biopharma, its largest shareholder, to buy the shares it doesn’t already own for $22.75 per share. Myovant, which said the offer significantly undervalues the company, said it is open to considering any improved proposal.

    Box — Box’s stock rallied 7% after Morgan Stanley boosted its price target, implying the cloud storage company could surge 39% from Friday’s close. The firm also upgraded the stock to overweight from equal weight, citing solid macro positioning, strong execution and a more favorable competitive landscape.

    Freshpet — Shares of Freshpet rose 7.6% after Barron’s reported the pet-food maker has hired bankers to explore a potential sale.

    LogicBio Therapeutics — Shares of the clinical-stage genetic company skyrocketed more than 644% after it announced it was being acquired by AstraZeneca for $2.07 per share. That price tag is a whopping 666% increase from LogicBio’s closing price of 27 cents per share.

    InterDigital — InterDigital’s stock rallied 16% after the research and development company raised its guidance for third-quarter 2022 total revenue a range of $112 million to $115 million, up from $96 million to $100 million.

    Fluor Corp. — Fluor rose more than 5% in midday trading. The company announced Monday it was awarded two reimbursable engineering, procurement and construction management contracts by BASF for work in China.

    Stanley Black & Decker — The tool maker’s stock jumped more than 4% after The Wall Street Journal reported that the company has eliminated about 1,000 jobs in an effort to cut about $200 million in costs.

    Energy stocks — Oil prices jumped, pushing energy stocks higher. Marathon Oil rallied 8%. APA Corp. and Devon Energy gained about 7% each. Diamondback Energy, Halliburton and ConocoPhillips were all up more than 6%.

    — CNBC’s Alex Harring, Samantha Subin, Carmen Reinicke, Yun Li, Tanaya Macheel and Jesse Pound contributed reporting.

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  • Tesla delivered 343,000 vehicles in the third quarter of 2022

    Tesla delivered 343,000 vehicles in the third quarter of 2022

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    A Tesla Model Y on display inside a Tesla store at the Westfield Culver City shopping mall in Culver City, California, U.S., on Thursday, April 14, 2022.

    Bing Guan | Bloomberg | Getty Images

    Electric vehicle makers Tesla just posted third-quarter vehicle production and delivery numbers for 2022. Here are the numbers:

    • Total deliveries Q3 2022: 343,000
    • Total production Q3 2022: 365,000

    Deliveries are the closest approximation of sales reported by Tesla, and they fell short of analysts’ expectations 364,660 vehicles, according to estimates compiled by FactSet-owned Street Account.

    Tesla also said in its report the company produced 19,935 of its higher priced Model S and X vehicles, and 345,988 of its more popular Model 3 and Y vehicles during Q3.

    Total production increased from the prior quarter of 2022, when Tesla said it made 258,580 vehicles.

    During the year-ago quarter, Tesla reported deliveries of 254,695 vehicles, and that it had produced 237,823 cars including just 8,941 Model S and X vehicles, which are the company’s more expensive sedan and SUV with falcon-wing doors, respectively.

    In the third quarter of 2022, Tesla faced soaring commodity prices, executive turnover (with the notable departure of AI leader Andrej Karpathy in July) and growing pains at its new factories in Germany and Texas.

    Tesla has not historically disclosed its vehicle production and delivery numbers by region.

    In July this year, Tesla had to suspend most of its Shanghai factory production temporarily to make upgrades to the plant. By the month of August, however, the company’s production and deliveries in China had rebounded, according to China Passenger Car Association data.

    In the U.S., at the end of the second quarter, Tesla laid off an entire AI office and made other headcount cuts. Musk also mandated that all Tesla employees should work at a Tesla office at least 40 hours per week, even if they were previously allowed to work remotely.

    After that, some employees were dismissed and others chose to resign, while those who returned to the office found over-crowded conditions that persisted through the third-quarter, making it hard to get work done normally at some of the companies facilities, including its first U.S. car factory in Fremont, California, and battery plant outside of Reno, Nevada.

    By September, executives speaking at an all-hands meeting with employees at the Nevada Gigafactory were celebrating new production records, and lauding employees’ hard work.

    As CNBC previously reported, Tesla execs said at that time August had been a record month for the Fremont factory in terms of production, and that Tesla’s relatively new factory in Austin, Texas, had hit a 1,000 cars per-week production rate on a seven day rolling basis, a promising milestone.

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  • Tesla robot slowly walks on stage at AI Day | CNN Business

    Tesla robot slowly walks on stage at AI Day | CNN Business

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    Washington, DC
    CNN
     — 

    Tesla revealed on Friday a prototype of a humanoid robot that it says could be a future product for the automaker.

    The robot, dubbed Optimus by Tesla, walked stiffly on stage at Tesla’s AI Day, slowly waved at the crowed and gestured with its hands for roughly one minute. Tesla CEO Elon Musk said that the robot was operating without a tether for the first time. Robotics developers often use tethers to support robots because they aren’t capable enough to walk without falling and damaging themselves.

    The Optimus’ abilities appear to significantly trail what robots from competitors like Hyundai-owned Boston Dynamics are capable of. Boston Dynamics robots have been seen doing back flips and performing sophisticated dance routines without a tether.

    “The robot can actually do a lot more than we just showed you,” Musk said at the event. “We just didn’t want it to fall on its face.”

    Tesla also showed videos of its robot performing simple tasks like carrying boxes and watering plants with a watering can.

    Musk claimed that if the robot was produced in mass volumes it would “probably” cost less than $20,000. Tesla maintains that Optimus’ advantage over competitors will be its ability to navigate independently using technology developed from Tesla’s driver-assistance system “Full Self Driving,” as well as cost savings from what it has learned about manufacturing from its automotive division. (Tesla’s “Full Self Driving” requires a human that is alert and attentive, ready to take over at any time, as it is not yet capable of fully driving itself.)

    Tesla has a history of aggressive price targets that it doesn’t ultimately reach. The Tesla Model 3 was long promised as a $35,000 vehicle, but could only very briefly be purchased for that price, and not directly on its website. The most affordable Tesla Model 3 now costs $46,990. When Tesla revealed the Cybertruck in 2019, its pick-up truck that remains unavailable for purchase today, it was said to cost $39,990, but the price has since been removed from Tesla’s website.

    Tesla AI Day is intended largely as a recruiting event to attract talented people to join the company.

    Musk claimed the robot could be transformative for civilization. The robot displayed Friday, despite its limitations compared to competitors, was significantly ahead of what Tesla revealed a year ago, when a person jumped on stage in a robot suit and danced around.

    “‘Last year was just a person in a robot suit,” Musk said before the robot walked on stage. “We’ve come a long way. Compared to that, it’s going to be very impressive.”

    Tesla is not the first automaker to develop a humanoid robot. Along with Hyundai’s Boston Dynamics, Honda worked on robots dubbed “Asimo” for nearly 20 years. In its final form, Asimo was a child-size humanoid robot capable of untethered walking, running, climbing and descending stairs, and manipulating objects with its fingers.

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  • Tesla robot walks, waves, but doesn’t show off complex tasks

    Tesla robot walks, waves, but doesn’t show off complex tasks

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    DETROIT — An early prototype of Tesla Inc.’s proposed Optimus humanoid robot slowly and awkwardly walked onto a stage, turned, and waved to a cheering crowd at the company’s artificial intelligence event Friday.

    But the basic tasks by the robot with exposed wires and electronics — as well as a later, next generation version that had to be carried onstage by three men — was a long way from CEO Elon Musk’s vision of a human-like robot that can change the world.

    Musk told the crowd, many of whom might be hired by Tesla, that the robot can do much more than the audience saw Friday. He said it is also delicate and “we just didn’t want it to fall on its face.”

    Musk suggested that the problem with flashy robot demonstrations is that the robots are “missing a brain” and don’t have the intelligence to navigate themselves, but he gave little evidence Friday that Optimus was any more intelligent than robots developed by other companies and researchers.

    The demo didn’t impress AI researcher Filip Piekniewski, who tweeted it was “next level cringeworthy” and a “complete and utter scam.” He said it would be “good to test falling, as this thing will be falling a lot.”

    “None of this is cutting edge,” tweeted robotics expert Cynthia Yeung. “Hire some PhDs and go to some robotics conferences @Tesla.”

    Yeung also questioned why Tesla opted for its robot to have a human-like hand with five fingers, noting “there’s a reason why” warehouse robots developed by startup firms use pinchers with two or three fingers.

    Musk said that Friday night was the first time the early robot walked onstage without a tether. Tesla’s goal, he said, is to make an “extremely capable” robot in high volumes — possibly millions of them — at a cost that could be less than a car, that he guessed would be less than $20,000.

    Tesla showed a video of the robot, which uses artificial intelligence that Tesla is testing in its “Full Self-Driving” vehicles, carrying boxes and placing a metal bar into what appeared to be a factory machine. But there was no live demonstration of the robot completing the tasks.

    Employees told the crowd in Palo Alto, California, as well as those watching via livestream, that they have been working on Optimus for six to eight months. People can probably buy an Optimus “within three to five years,” Musk said.

    Employees said Optimus robots would have four fingers and a thumb with a tendon-like system so they could have the dexterity of humans.

    The robot is backed by giant artificial intelligence computers that track millions of video frames from “Full Self-Driving” autos. Similar computers would be used to teach tasks to the robots, they said.

    Experts in the robotics field were skeptical that Tesla is anywhere near close to rolling out legions of human-like home robots that can do the “useful things” Musk wants them to do – say, make dinner, mow the lawn, keep watch on an aging grandmother.

    “When you’re trying to develop a robot that is both affordable and useful, a humanoid kind of shape and size is not necessarily the best way,” said Tom Ryden, executive director of the nonprofit startup incubator Mass Robotics.

    Tesla isn’t the first car company to experiment with humanoid robots.

    Honda more than two decades ago unveiled Asimo, which resembled a life-size space suit and was shown in a carefully-orchestrated demonstration to be able to pour liquid into a cup. Hyundai also owns a collection of humanoid and animal-like robots through its 2021 acquisition of robotics firm Boston Dynamics. Ford has partnered with Oregon startup Agility Robotics, which makes robots with two legs and two arms that can walk and lift packages.

    Ryden said carmakers’ research into humanoid robotics can potentially lead to machines that can walk, climb and get over obstacles, but impressive demos of the past haven’t led to an “actual use scenario” that lives up to the hype.

    “There’s a lot of learning that they’re getting from understanding the way humanoids function,” he said. “But in terms of directly having a humanoid as a product, I’m not sure that that’s going to be coming out anytime soon.”

    Critics also said years ago that Musk and Tesla wouldn’t be able to build a profitable new car company that used batteries for power rather than gasoline.

    Tesla is testing “Full Self-Driving” vehicles on public roads, but they have to be monitored by selected owners who must be ready to intervene at all times. The company says it has about 160,000 vehicles equipped with the test software on the road today.

    Critics have said the Teslas, which rely on cameras and powerful computers to drive by themselves, don’t have enough sensors to drive safely. Tesla’s less capable Autopilot driver-assist system, with the same camera sensors, is under investigation by U.S. safety regulators for braking for no reason and repeatedly running into emergency vehicles with flashing lights parked along freeways.

    In 2019, Musk promised a fleet of autonomous robotaxis would be in use by the end of 2020. They are still being tested.

    ————

    O’Brien reported from Providence, Rhode Island.

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  • Tesla’s AI Day is tonight. It may wow you — or end with a gaffe | CNN Business

    Tesla’s AI Day is tonight. It may wow you — or end with a gaffe | CNN Business

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    Washington, DC
    CNN Business
     — 

    Tesla

    (TSLA)
    will hold its second annual AI Day in Palo Alto, California, Friday evening. The six-hour event will include updates on Tesla

    (TSLA)
    ’s work in artificial intelligence, “Full Self-Driving,” its supercomputer “Dojo” and maybe a humanoid robot, according to invitations posted online by Tesla

    (TSLA)
    supporters. The event is expected to be live-streamed.

    Dojo is a supercomputer being designed to train AI systems to complete complex tasks like Tesla’s driver-assistance systems Autopilot and “Full Self-Driving,” which sometimes perform some driving tasks like steering and keeping up with traffic. Tesla’s previous AI Day included detailed technical explanations of the company’s work in a bid to attract leading engineers.

    Tesla CEO Elon Musk has claimed before that in the long run people will think of Tesla as an AI company, rather than a car company or energy company. He has said that Tesla AI may play a role in computers matching general human abilities, a huge milestone many experts say is decades away and perhaps unattainable. Musk, who has a long history of predictions, has said it may be reached in 2029.

    But more limited and easier to develop forms of artificial intelligence — like identifying emergency vehicles stopped on a highway — have proven to be a significant hurdle for the company as it pursues its dreams of self-driving cars. AI powers “Full Self-Driving,” but the system has faced criticism and backlash as it still requires driver intervention to prevent collisions and Musk’s deadlines for its capabilities slip year after year.

    And this summer Tesla’s director of artificial intelligence, Andrej Karpathy, exited the company, several months after it was announced he was taking a sabbatical.

    It’s not easy to predict what may or may not show up at any event helmed by Musk. Products heralded and talked about sometimes don’t perform as designed — like when Musk showed off the Tesla Cybertruck’s supposedly “unbreakable” windows, that promptly broke — and can’t even be bought years later. (Three years after the event Tesla sells a T-shirt that memorializes the broken window, but it has yet to sell a Cybertruck.)

    Musk has unquestionably disrupted entire industries with his work at Tesla and SpaceX. But he’s also earned a reputation for missing deadlines and overpromising.

    Last year’s AI Day “surprise,” for instance, was a Tesla “robot,” which was just a human dancing in a suit.

    Musk then claimed that the automaker is building a 5-foot-8, 125-pound humanoid robot, called Optimus or Tesla Bot and a prototype would likely be unveiled this year. It’s unclear if a prototype will be revealed Friday, but Musk tweeted Thursday that the event would include “cool hardware demos.”

    Tesla is also working on wheeled robots for manufacturing and autonomous logistics, according to a Tesla job posting for a senior humanoid mechatronics robotics architect.

    Musk claimed last year that the humanoid robot would have a profound impact on the economy. It would begin by working on boring, repetitive and dangerous tasks, he said.

    Tesla and Musk are not, of course, the first to bet on robots. Robots already handle many factory jobs, and companies like Boston Dynamics have worked for years to develop humanoid, animal-like, and other robots for industrial applications.

    Humanoid robots have long fascinated the public and earned a place in pop culture as powerful but sometimes dangerous. Tesla tapped into this when it posted on Instagram in a promotion for the event that, “if you can run faster than 5 mph, you’ll be fine.” The Tesla humanoid robot is planned to have a top speed of 5 mph, the automaker has said.

    But creating a humanoid robot that rivals a human’s abilities has proved incredibly difficult for robotics experts. Artificial intelligence has seen major advances yet trails the general abilities of a human toddler. Most robots in use today are restricted to simple tasks in basic environments like vacuuming a home or moving parts in a factory.

    Tesla would not be the first automaker to build a humanoid robot, either. Honda worked on a series of robots, known as Asimo, for nearly 20 years. The Japanese company shut down development of Asimo in 2018. Korean automaker Hyundai bought Boston Dynamics in 2020.

    Musk said Thursday that AI Day would be “highly technical” as it is meant for recruiting engineers to work on artificial intelligence, robotics and computer chips.

    “Engineers who understand what problems need to be solved will like what they see,” Musk tweeted Friday.

    Tesla did not respond to a request for comment.

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  • Tesla expected to show humanoid robot Optimus demo on Friday night at AI Day 2022

    Tesla expected to show humanoid robot Optimus demo on Friday night at AI Day 2022

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    Tesla CEO Elon Musk and leaders from the company’s AI and hardware teams are expected to speak at the company’s AI Day 2022, an engineer-recruiting event, which will be live-streamed on Friday starting around 5:00 p.m. in California. You can watch AI Day 2022 here.

    During the last AI Day in August 2021, Musk said Tesla was going to build a humanoid robot, which is referred to as either the Tesla Bot or Optimus today.

    “It’s intended to be friendly, of course, and navigate through a world of humans, and eliminate dangerous, repetitive and boring tasks,” Musk said at the time.

    Tesla didn’t have a hardware prototype to show last year and made the 2021 announcement with an actor dressed in a Tesla Bot body suit dancing on stage. The stunt drew sneers from critics and cheers from fans.

    This year, investors are expecting a real tech demonstration of the robot, along with updates on Tesla’s progress developing self-driving technology that can turn the company’s existing electric vehicles into robotaxis.

    Musk has been promising a truly self-driving Tesla since 2016 when he said a coast-to-coast demo would happen by the end of 2017. To-date the company has only released driver assistance systems that need to be constantly supervised by a human driver who remains attentive to the road and their car, ready to take over at any time.

    When Musk originally floated the humanoid robot concept at AI Day 2021, Musk said of Optimus, “It should be able to, ‘please go to the store and get me the following groceries,’ that kind of thing.”

    Later, Musk said that robots made by Tesla will one day be worth more than its cars, and that thousands of them would be put to work moving parts around the factories, where humans build cars and batteries.

    During Tesla’s 2021 fourth-quarter earnings call, Musk remarked: “If you think about the economy– the foundation of the economy is labor. Capital equipment is distilled labor. So what happens if you don’t actually have a labor shortage? I’m not sure what an economy even means at that point. That’s what Optimus is about, so very important.” 

    Tesla has a mixed record with automation.

    As Bernstein senior research analyst Toni Sacconaghi wrote in a September 30 note ahead of AI Day 2022, In 2018 Tesla “had mistakenly tried to hyper-automate its final assembly (i.e. putting parts into cars).” The result was that Musk soon admitted “excessive automation at Tesla was a mistake,” and “humans are underrated.”

    Tesla brought more people back to its manufacturing and assembly lines after that, but Sacconaghi writes that today Tesla is over-automating its customer service. Tesla owners generally find it difficult to get in touch with individual sales and service reps at Tesla, and are steered to conduct all possible resolution of complaints through Tesla’s mobile app.

    A long-time robotics engineer, Alexander Kernbaum, who now serves as interim director of robotics at the vaunted research and development non-profit SRI International, says whether Tesla impresses with its robotics update at AI Day or not, the company has the resources to develop something meaningful and has inspired new interest in the field.

    However, Kernbaum notes, when it comes to creating a robot that can make a difference in an car assembly plant, there’s really no need for Tesla to develop a bi-pedal robot. “Mobile robots will find uses,” he explains, “But mobility should be as simple as possible for a factory environment meaning wheels would be the way to go, not legs.”

    Robotic legs require a lot of power, for one thing, which would put strain on any battery Tesla develops for its robotics. Additionally, legged robots — like people — can trip and fall. Wheeled robots would not be as likely to tip over. The safety concern should be tantamount in a factory, Kernbaum suggests.

    Kernbaum believes Tesla would be best-served to focus on robotic hands. He said, “Hands are like the ultimate multi-tool. Dexterity and in-hand object manipulation are the grand 10-year challenges that will have an obvious impact on all precision manufacturing and on everything really.”

    AI Day 2022 will be the company’s first major event since former AI leader of Tesla Andrej Karpathy resigned. AI Day precedes Tesla’s third-quarter vehicle production and deliveries report which is expected within days.

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  • Weekend reads: What to expect now for home prices, stocks and bonds

    Weekend reads: What to expect now for home prices, stocks and bonds

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    This week Freddie Mac said the average interest rate on a 30-year mortgage loan in the U.S. had climbed to 6.70% from 6.29% the week before and 6.02% two weeks ago. The average rate a year ago was 3.01%.

    Would-be sellers who have low-rate mortgage loans are reluctant if it means they need to take out a new loan to fund their next home. Would-be buyers are forced out of the market, as the monthly principal and interest payment for a new 30-year loan, based on Freddie Mac’s figures, has increased 53% from a year ago.

    Home-sale contracts are being canceled at a record pace in some areas.

    But these factors could lead to a buyer’s market in 2023 if prices plunge. Here are the areas economists expect to see the largest home price declines.

    The strong dollar and the stock market

    Khaled Desouki/Agence France-Presse/Getty Images

    The dollar has strengthened as the Federal Reserve has taken the lead among central banks in raising interest rates. This is reverberating across the world, making it more costly for countries to make interest payments on dollar-denominated debt and increasing the cost of any commodity traded in dollars.

    The rising dollar lowers prices on imported goods for Americans and can also lower their international travel costs. But Michael Wilson, Morgan Stanley’s chief equity strategist, warns that earnings for the S&P 500
    SPX,
    -1.51%

    would decline as a direct result of the strong dollar and called the current foreign-exchange backdrop an “untenable situation” for the stock market.

    On the other hand: Companies are trying to blame weak earnings on the strong U.S. dollar, but that’s a lame excuse

    This is what happens when bearish sentiment runs high

    Michael Brush interviews David Baron, co-manager of the Baron Focused Growth Fund
    BFGFX,
    -0.76%
    ,
    who describes opportunities cropping up as institutional investors dump stocks. He also explains his winning long-term strategy, which has included a very long-term investment in Tesla Inc.
    TSLA,
    -1.10%
    .

    A a positive sign for the stock market: These 12 stocks have seen strong insider buying

    Time to buy bonds?

    When interest rates rise, bond prices fall. But it also means that if you have money to put to work, bond yields have become much more attractive.

    Khuram Chaudhry, a European equity quantitative strategist at JPMorgan in London, makes the case for buying bonds now.

    What about preferred stocks?

    Getty Images/iStockphoto

    Preferred stocks feature stated dividend yields and prices that move the same way bond prices do. That means prices for many issues are now heavily discounted to face value and that current yields are much higher than they were at the end of 2021. Here’s an in-depth guide on how to research preferred stocks and make your own selections.

    Related: 22 dividend stocks screened for quality and safety

    The problem with macro market projections

    Stanley Druckenmiller predicted a “hard landing” in 2023 for the U.S. economy while speaking at CNBC’s Delivering Alpha Investor Summit on Sept. 28.


    Bloomberg

    Stanley Druckenmiller predicted a U.S. recession in 2023 as a result of monetary policy tightening by the Federal Reserve. That may not be much of a stretch, considering that the U.S. economy contracted during the first half of 2022, according to revised GDP figures from the Bureau of Economic Analysis.

    But investors should be careful — macro forecasts often turn out to be incorrect, Mark Hulbert warns.

    More on stocks: It’s the worst September for stocks since 2008. What that means for October.

    Recessions and your retirement plans

    Getty Images

    Alessandra Malito has advice on how retirees and people planning for retirement can prepare for tough economic times.

    Also: Reset your retirement calculator now for today’s bleaker stock markets and make sure you’re still on track

    Investors tremble and a central bank scrambles

    The Bank of England’s headquarters.


    Agence France-Presse/Getty Images

    After the new U.K. government of Prime Minister Liz Truss announced a massive tax cut along with a new spending program to help counter rising fuel costs and new borrowing, the pound hit a new low against the dollar on Sept. 26 as investors and money managers panicked and sold-off U.K. government bonds. Steve Goldstein explains how and why the Bank of England came tot the rescue.

    A closer look at reverse mortgages

    Getty Images/iStockphoto

    Beth Pinsker digs deeply to explain how to use a reverse mortgage as a financial planning tool.

    Poking a little fun at Elon Musk

    Getty Images

    After Tesla CEO Elon Musk said the upcoming Cybertruck would be sufficiently waterproof to “serve briefly as a boat,” the San Francisco Bay Ferry offered this advice to patrons.

    Want more from MarketWatch? Sign up for this and other newsletters, and get the latest news, personal finance and investing advice.

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  • How Elon Musk upended Twitter and his own reputation in 6 months as CEO | CNN Business

    How Elon Musk upended Twitter and his own reputation in 6 months as CEO | CNN Business

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    New York
    CNN
     — 

    When Elon Musk first agreed to buy Twitter, he promised to make the company “better than ever,” with greater transparency, fewer bots, a stronger business and more of what he called “free speech.”

    But six months after Musk took control of Twitter, the future of the company and the platform have never been less certain.

    After acquiring the social media platform for $44 billion in late October, Musk reportedly now values Twitter at around $20 billion — and some who track the company believe even that estimate is likely high. Musk repeatedly warned that Twitter could be at risk of filing for bankruptcy only to claim he had brought it back from the brink thanks to his slashing costs, both by laying off 80% of Twitter’s staff and allegedly by failing to pay some of its bills, according to multiple lawsuits. But it’s not clear just how and when Musk might return Twitter to growth.

    He has antagonized journalists and news outlets that have long been central to the platform’s success, overseen policy changes that threaten to make Twitter less safe or reliable, made the platform less transparent to researchers and scared away many top advertisers. Musk’s primary plan to grow Twitter’s business through an overhauled subscription strategy has resulted in much chaos but only a limited number of actual subscriptions.

    In the process, Musk has also upended his own reputation. Once known by much of the public primarily for his innovative efforts to launch rockets and build electric cars, Musk has instead spent much of the past six months in the headlines for controversial policy and feature changes at Twitter, draconian cuts to staff resulting in frequent service disruptions, and briefly banning several prominent journalists. He’s also tweeted a long list of eccentric remarks from his personal Twitter account, including sharing conspiracy theories and publicly mocking a Twitter worker with a disability who was unsure whether he’d been laid off.

    “If he had done nothing except cut costs, then Twitter would have been okay,” said Leslie Miley, a former Twitter engineering manager who started its product safety and security team and left the company in 2015. He has since held roles at Google, Microsoft and the Obama Foundation. “If you had just let everyone go, treated them with respect, and just let the service run for two years, you probably would be okay.”

    Now, though, Miley said he expects Twitter will “eventually go down the road of MySpace.”

    “It’s going to take a little bit longer … [but] I think Twitter is on its way to irrelevance,” he said, “there is no strategy to acquire or retain users because you are offering them no value.”

    Twitter, which has slashed much of its public relations team under Musk, responded to CNN’s request for comment on this story with the auto-reply from its press email that it has used for weeks: a poop emoji.

    For years, what differentiated Twitter from other social platforms was that it served as a central hub for real-time news. It was a place for ordinary people to read and even engage in conversation with celebrities, business leaders and other newsmakers.

    Many of Musk’s recent moves at the platform threaten to undermine that purpose, not to mention the larger information ecosystem — and it’s not clear the efforts will improve the company’s business.

    “Twitter has never been perfect, it had a lot of problems but it was critical global infrastructure for information that Elon Musk is now systematically, frankly, vandalizing,” former Twitter chair of global news Vivian Schiller told CNN in a recent interview.

    Most recently, Musk removed the legacy blue check marks that verified the identities of prominent users, saying he would instead make the checks available only to those who pay $8 per month for Twitter Blue in the interest of “treating everyone equally.”

    “There shouldn’t be a different standard for celebrities,” Musk said in a tweet earlier this month.

    But the move may make it easier for bad actors to impersonate high-profile people and harder for users to trust the veracity and authenticity of information on the platform. What’s more, Musk then decided to sponsor the blue checks for certain celebrities, including Stephen King and LeBron James, in effect creating exactly the “different standard” for famous users he’d professed to want to avoid.

    Now, Musk says content from verified users will be promoted on the platform, potentially making it harder for users who can’t afford a subscription, or simply don’t want to pay Musk for one, to find an audience on the platform. And the new paid verification system won’t necessarily rid the platform of bots, an issue Musk spent months railing on while trying to get out of the acquisition deal last year, according to Filippo Menczer, a computer science professor at Indiana University and director of the Observatory on Social Media.

    “You can create fake accounts and pay $8 [for a blue check] … so if you are a well-funded bad actor, you can do more damage now than you could before,” Menczer said. “And if you are a reliable source and you’re not well-funded, your information will not be as visible as before.”

    Menczer added that the result could be “less free speech, because you’re drowning out the speech of regular people [with speech] by people who either have the technical skills or the money to manipulate the system.”

    Twitter’s move to charge users of its API will also make it harder for researchers to identify and warn the platform about inauthentic activity, Menczer said, and could disrupt other positive uses of the platform that contributed to its reputation as a news hub. Weather agencies, for example, have warned that the change could make it harder for them to release automated emergency weather alerts.

    Any social network lives or dies based on its ability to retain and attract users — and there’s real reason for Twitter to be worried.

    A number of users, celebrities and media organizations have said they plan to leave Twitter over Musk’s recent policy changes — which often appear to be made on a whim without any real principles.

    NPR, BBC and CBC left Twitter after opposing a controversial new “government-funded media” label that they say was misleading. CenterLink, a global nonprofit that represents hundreds of centers providing services to LGBTQ communities, said it would no longer use Twitter after the platform removed protections for transgender users from its hateful conduct policy. And some high-profile users, such as bullying activist Monica Lewinsky, have threatened to exit the platform over the blue check change, now that they may be at greater risk of impersonation on Twitter.

    There remain few alternatives that offer similar features and scale to Twitter, but a growing list of upstart competitors has emerged since Musk’s takeover. At least one large rival, Facebook-parent Meta, has also confirmed it’s working on a service that sounds a lot like Twitter.

    “Almost everything he said he was going to do, he has screwed up in any number of ways,” Miley said. “If it weren’t so damaging to people and organizations who have depended upon the platform, it would be funny. But it’s not actually funny because it has degraded people’s ability to communicate effectively.”

    All of the chaos has made it difficult to convince advertisers, which previously made up 90% of Twitter’s revenue, to rejoin the platform, after many halted spending in the wake of Musk’s takeover over concerns about increased hate speech, as well as confusion about layoffs and the platform’s future direction.

    Just 43% of Twitter’s top 1,000 advertisers as of September — the month before Musk’s takeover — were still advertising on the platform in April, according to data from market intelligence firm Sensor Tower.

    Musk, for his part, has said that Twitter’s usage has increased since his takeover and that advertisers are steadily returning to the platform. But because he took the company private, he is not obligated to make financial disclosures and followers of the company are left to take him at his word.

    Musk built his reputation by overhauling Tesla, helping to launch a widespread shift away from gas cars to electric vehicles and growing SpaceX into a space transport juggernaut. Now, he appears to be attempting a similar overhaul at Twitter — upending the tried-and-true digital advertising business in favor of a subscription model that no other social media platform has yet been able to find large scale success with.

    “I give him some credit for trying a different business model, I think the business model based on user data is quite abusive,” said Luigi Zingales, professor at the University of Chicago Booth School of Business, although Musk has also attempted to improve Twitter’s targeted advertising business.

    Some other tech companies have followed his lead in some places. Facebook-parent Meta copied Twitter by launching a paid verification option. And Meta, along with a number of other tech companies, have undergone multiple rounds of cost-cutting since last fall. Twitter appears to have given cover for some of these ideas, and other firms’ somewhat more principled approaches made them look better by comparison.

    For Twitter and Musk, the stakes for success are high: Musk’s relationships with banks and investors for future endeavors could hinge in part on his performance at the social media firm, which he took on billions of dollars in debt to purchase. Banks “will sit down and say, what kind of cred does this guy have? Will we find him making these shoot-from-the-lip sort of dictates that, in fact, throw our money down a hole?” said Columbia Business School management professor William Klepper.

    Any change to Musk’s reputation from his time leading Twitter could also ultimately have ripple effects for his broader business empire, causing potential investors, recruits and customers to think twice about betting on one of his companies. Tesla

    (TSLA)
    shareholders recently complained to the company’s board that Musk appears “overcommitted.”

    “His reputation has been diminished significantly with Twitter … and once you lose it, it’s very difficult to recover,” Klepper said. “It would be a good opportunity for [Musk] to rethink whether or not … he’s really leadership material.”

    Musk in December pledged to step down as Twitter CEO after millions of users voted in favor of his exit in a poll he posted to the platform. But for now, he remains “Chief Twit.”

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  • Elon Musk says he’s found a new CEO for Twitter | CNN Business

    Elon Musk says he’s found a new CEO for Twitter | CNN Business

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    New York
    CNN
     — 

    Elon Musk on Thursday said he’s found a new CEO to take over Twitter, months after he first promised to step back from the role.

    The new CEO will assume the role at Twitter Inc., which recently changed its name to X Corp., in the coming weeks, Musk said. He did not provide a name.

    “Excited to announce that I’ve a new CEO for X/Twitter. She will be starting in ~6 weeks!” Musk said in a tweet.

    Musk, who has had a chaotic reign as “Chief Twit” since buying the company in October, said he will become Twitter’s executive chair and chief technology officer, overseeing product, software and system operations.

    In December, Musk ran a poll on the platform asking users whether he should step back as Twitter’s CEO, which ended with the majority of users voting in the affirmative. Musk said he would abide by the results of the poll but later backtracked, saying he would hand over the role “as soon as I find someone foolish enough to take the job!” In February, he reiterated that he planned to find a replacement by the end of the year.

    Musk has faced criticism for a series of policy changes at Twitter, which often came without clear justification and raised concerns about the impact on Twitter’s users.

    He has also been attempting to convince advertisers to rejoin the platform, after many fled over concerns about hateful conduct on the platform, Twitter’s mass layoffs or questions about the company’s future. At the same time, he has been trying to sell users on a new paid subscription platform that includes the ability to pay for a blue verification check mark, but appears to have limited traction so far.

    Musk — who runs or is involved in numerous other companies, including Tesla

    (TSLA)
    — has also faced criticism from Tesla

    (TSLA)
    shareholders concerned that he is distracted by Twitter.

    Musk recently said that Twitter is now “trending to breakeven,” after previously saying it was at risk of bankruptcy. Now, the company’s new CEO will be tasked with trying to help turn around the struggling company and help Musk recoup some of the $44 billion spent acquiring the platform.

    Even as Musk prepares to step back from the CEO role, he will likely maintain significant control over the future direction of the company. After taking over the company in October, Musk cleared out the C-Suite, dissolved the board and became both the CEO and sole director of the platform.

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  • Elon Musk rebrands Twitter as X | CNN Business

    Elon Musk rebrands Twitter as X | CNN Business

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    New York
    CNN
     — 

    In a radical rebranding, Twitter owner Elon Musk has replaced Twitter’s iconic bird logo with X.

    Musk made the shock announcement of his plans early Sunday. By Monday morning US time, he tweeted that X.com now points to Twitter.com.

    “Interim X logo goes live later today,” he wrote, shortly before sharing a photo of Twitter’s headquarters lit up by a giant new X.

    The Twitter website now features the same logo, while the familiar blue bird is gone.

    Previously, Musk said he was bidding “adieu to the twitter brand and, gradually, all the birds.”

    Twitter

    (TWTR)
    , founded in 2006, has used its vivid, globally recognized blue bird emblem for more than a decade.

    The renaming could be seen as something of a brand overhaul “Hail Mary” for the company: Musk in recent months has repeatedly warned that Twitter, facing steep losses in ad revenue, was on the edge of bankruptcy.

    Increasing the pressure, earlier this month rival social media platform Threads launched from Facebook

    (FB)
    parent Meta. It surpassed 100 million user sign-ups in its first week.

    Twitter had 238 million active users prior to being taken private by Musk in October 2022.

    One of the world’s richest men, Musk was once best known for his innovative efforts through companies SpaceX and Tesla

    (TSLA)
    to launch rockets and build electric cars.

    Now, many of the headlines he makes are for his eccentric remarks on his personal Twitter account – often sharing conspiracy theories and getting into public spats on the social media platform.

    Musk overhauled the site after acquiring it for $44 billion in late October, then followed with mass layoffs, disputes over millions of dollars allegedly owed in severance and Musk’s note to employees that remaining at the company would mean “working long hours at high intensity.” He wrote: “Only exceptional performance will constitute a passing grade.”

    The upheaval prompted organizations, including the Anti-Defamation League, Free Press and GLAAD, to pressure brands to rethink advertising on Twitter.

    The groups pointed to the mass layoffs as a key factor in their thinking, citing fears that Musk’s cuts would make Twitter’s election-integrity policies effectively unenforceable, even if they technically remain active.

    Musk also began overseeing controversial policy changes which led to frequent service disruptions at Twitter and upended his own reputation in the process.

    In June, Musk named Linda Yaccarino, a former NBCUniversal marketing executive, CEO of the company.

    She commented on the name change on Twitter Sunday afternoon: “It’s an exceptionally rare thing – in life or in business – that you get a second chance to make another big impression. Twitter made one massive impression and changed the way we communicate. Now, X will go further, transforming the global town square.”

    As the new venture begins, it faces challenges. Musk recently disclosed that the platform still has a negative cash flow due to a 50% drop in advertising revenue and heavy debt loads.

    Criticizing the exit, or pause, of such Twitter advertisers as General Mills

    (GIS)
    , Macy’s

    (M)
    and some car companies that compete with Tesla, Musk has called himself a “free speech absolutist” and said he wanted to buy Twitter to bolster users’ ability to speak freely on the platform.

    Musk explained his approach to free speech by saying: “Is someone you don’t like allowed to say something you don’t like? And if that is the case, then we have free speech.”

    He added that Twitter would “be very reluctant to delete things” and that the platform would aim to allow all legal speech. Many users have worried that could mean a rise in hate speech.

    Meanwhile, the initial frenzy around rival Threads appears to have come back to earth, especially as it has been plagued with spam and lacks several user-friendly features Twitter, or, now X, offers.

    Adam Mosseri, who is overseeing the Threads launch for Meta, has hinted at plans to add features such as a desktop version of the app, a feed of only accounts a user follows and an edit button.

    Its ability to draw advertising support is, as yet, unproven.

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  • Dutch watchdog looking into alleged Tesla data breach | CNN Business

    Dutch watchdog looking into alleged Tesla data breach | CNN Business

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    Reuters
     — 

    The data protection watchdog for the Netherlands said on Friday it was aware of possible Tesla data protection breaches, but it was too early for further comment.

    Germany’s Handelsblatt reported on Thursday that Elon Musk’s Tesla had allegedly failed to adequately protect data from customers, employees and business partners, citing 100 gigabytes of confidential data leaked by a whistleblower.

    “We are aware of the Handelsblatt story and we are looking into it,” said a spokesperson for the AP data watchdog in the Netherlands, where Tesla’s European headquarters is located.

    They declined all comment on whether the agency might launch or have launched an investigation, citing policy. The Dutch agency was informed by its counterpart in the German state of Brandenberg.

    Handelsblatt said Tesla notified the Dutch authorities about the breach, but the AP spokesperson said they were not aware if the company had made any representations to the agency.

    Tesla was not immediately available for comment on Friday on the Handelsblatt report, which said customer data could be found “in abundance” in a data set labelled “Tesla Files”.

    The data protection office in Brandenburg, which is home to Tesla’s European gigafactory, described the data leak as “massive”.

    “I can’t remember such a scale,” Brandenburg data protection officer Dagmar Hartge said, adding that the case had been handed to the Dutch authorities who would be responsible if the allegations led to an enforcement action.

    The Dutch authorities has several weeks to decide whether to deal with the case as part of a European procedure, she added.

    The files include tables containing more than 100,000 names of former and current employees, including the social security number of Tesla CEO Musk, along with private email addresses, phone numbers, salaries of employees, bank details of customers and secret details from production, Handelsblatt reported.

    The breach would violate the GDPR, it said.

    If such a violation was proved, Tesla could be fined up to 4% of its annual sales, which could be 3.26 billion euros.

    German union IG Metall said the revelations were “disturbing” and called on Tesla to inform employees about all data protection violations and promote a culture in which staff could raise problems and grievances openly and without fear.

    “These revelations … fit with the picture that we have gained in just under two years,” said Dirk Schulze, IG Metall incoming district manager for Berlin, Brandenburg and Saxony.

    Handelsblatt quoted a lawyer for Tesla as saying a “disgruntled former employee” had abused their access as a service technician, adding that the company would take legal action against the individual it suspected of the leak.

    Citing the leaked files, the newspaper reported about thousands of customer complaints regarding the carmaker’s driver assistance systems with around 4,000 complaints on sudden acceleration or phantom braking.

    Last month, a Reuters report showed that groups of Tesla employees privately shared via an internal messaging system sometimes highly invasive videos and images recorded by customers’ car cameras between 2019 and 2022.

    This week, Facebook parent Meta was hit with a record 1.2 billion euro ($1.3 billion) fine by its lead European Union privacy regulator over its handling of user information and given five months to stop transferring user data to the U.S.

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  • Tesla smashed it last quarter but China’s BYD did even better | CNN Business

    Tesla smashed it last quarter but China’s BYD did even better | CNN Business

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    Hong Kong
    CNN
     — 

    BYD outpaced Tesla in the second quarter as the Chinese carmaker posted record sales of hybrid and electric vehicles.

    Between April and June, BYD

    (BYDDF)
    sold more than 700,000 vehicles, almost double the number sold in the same quarter last year and setting a new quarterly record.

    On Sunday, Tesla

    (TSLA)
    announced it had achieved its best quarterly results. The company produced nearly 480,000 vehicles and delivered over 466,000.

    In June, BYD, which is backed by Warren Buffett, sold a total of 253,046 new energy vehicles, up 89% from a year ago, according to a company filing released Sunday. It was the best monthly sales it has ever achieved. New energy vehicles include both battery powered EVs and plug-in hybrids.

    Tesla and BYD are among the bestselling EV makers in the world. BYD still lags behind Tesla globally in terms of pure EV sales. But in China, the Shenzhen-based company has raced ahead as the top brand.

    In May, BYD sold around 119,000 pure EVs, more than double from the same period last year.

    In comparison, Tesla’s Shanghai Gigafactory delivered 77,695 vehicles in May, up 142% from a year ago, according to the most recent statistics released by the China Association of Automobile Manufacturers.

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  • Elon Musk says Tesla is coming to India ‘as soon as humanly possible’ | CNN Business

    Elon Musk says Tesla is coming to India ‘as soon as humanly possible’ | CNN Business

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    Hong Kong
    CNN
     — 

    Tesla CEO Elon Musk said Tuesday the company is looking to invest in India “as soon as humanly possible,” following a meeting with Indian Prime Minister Narendra Modi in New York.

    “[Modi] really cares about India because he’s pushing us to make significant investments in India, which is something we intend to do. We are just trying to figure out the right timing,” Musk told reporters.

    “I am confident that Tesla will be in India and will do so as soon as humanly possible,” he said, without specifying a timeline. Musk said he tentatively plans to visit India next year.

    Musk’s push into the Indian market has been in the works for a long time. Back in 2017, the CEO said that Tesla

    (TSLA)
    was planning to sell cars in India as soon as that summer.

    But that plan has been delayed because of Tesla’s efforts to negotiate lower import duties with local government. Musk tweeted in 2021 that Tesla wanted to enter India, “but import duties are the highest in the world by far of any large country.”

    Tesla had sought to slash the duties, but the Indian government reportedly wants the company to make cars locally before considering any tax breaks, according to Reuters.

    On Tuesday, Musk said he had a “fantastic meeting” with the Modi and feels “incredibly excited about the future of India.”

    “[Modi] really wants to do the right thing for India. He wants to be open, he wants to be supportive to the companies. And obviously, at the same time, make sure that it accrues to India’s advantage,” Musk said.

    Tesla currently has one gigafactory in Asia, which is located in Shanghai. The Shanghai factory is Tesla’s biggest car manufacturing plant outside the United States and accounted for more than half of Tesla’s global deliveries in 2022.

    Last month, Musk said at an event that the company would likely pick a location for a new Tesla factory by the end of the year and that India was an interesting option, Reuters reported at the time.

    Both China and India have been trying to attract global EV investment and boost the EV industry.

    On Wednesday, China announced it would extend tax breaks for consumers buying new energy vehicles — which include battery electric cars, plug-in hybrids, and fuel-cell vehicles — through 2027, in its latest effort to boost sales and production in the world’s biggest EV market. The current policy allows purchase tax exemption on NEVs until the end of 2023.

    The tax break is estimated to reach 520 billion yuan ($72.3 billion) from 2024 to 2027, said Xu Hongcai, vice minister of finance, at a press conference in Beijing on Wednesday.

    The move follows a State Council meeting earlier this month, during which senior officials said they would study policies to promote NEV development and optimize tax exemption.

    From May 30 to June 1, Musk made his first visit to China since the pandemic and met a string of government officials to discuss EV development and Tesla’s operations in the country.

    He also visited the Shanghai gigafactory, thanking the workers and saying that they make the “highest quality” Tesla cars around the world, with the “most efficient production.”

    Before leaving, Musk also met Chen Jining, the Communist Party chief of Shanghai, who encouraged him to boost investment and operations and “bring more new products, new technologies and new services” to the city, according to a statement by the government.

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