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Tag: Tesla

  • TikTok faces a ban in the US, Tesla profits drop and healthcare data leaks | TechCrunch

    TikTok faces a ban in the US, Tesla profits drop and healthcare data leaks | TechCrunch

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    Welcome, folks, to Week in Review (WiR), TechCrunch’s regular newsletter covering this week’s noteworthy happenings in tech.

    TikTok’s fate in the U.S. looks uncertain after President Joe Biden signed a bill that included a deadline for ByteDance, TikTok’s parent company, to divest itself of TikTok within nine months or face a ban on distributing it in the U.S. Ivan writes about how the impact of TikTok bans in other countries could signal what’s to come stateside.

    Meanwhile, fallout from the Change Healthcare hack continues. Change, a subsidiary of health insurance giant UnitedHealth, confirmed this week that the ransomware attack targeting it earlier this year resulted in a huge theft of Americans’ private health info, possibly covering “a substantial proportion” of Americans.

    And Tesla profits dropped 55% as the EV company contends with increased pressure from hybrid carmakers. The automaker’s growth plan is centered around mysterious cheaper EVs scheduled to launch next year — as well as perhaps a robotaxi. But a recall on the Cybertruck for faulty accelerator pedals certainly won’t help in the interim.

    Lots else happened. We recap it all in this edition of WiR — but first, a reminder to sign up to receive the WiR newsletter in your inbox every Saturday.

    News

    Amazon grocery plan: Amazon launched a new unlimited grocery delivery subscription in the U.S. The plan, which costs $9.99 per month for Amazon Prime users, comes with free deliveries for grocery orders over $35 across Amazon Fresh, Whole Foods Market and other local grocery retailers.

    California drones grounded: In more Amazon news, the tech giant confirmed that it’s ending Prime Air drone delivery operations in Lockeford, California. The Central California town of 3,500 was the company’s second U.S. drone delivery site after College Station, Texas; Amazon didn’t offer any details around the setback.

    Fisker plans layoffs: Fisker says it’s planning more layoffs less than two months after cutting 15% of its workforce, as the EV startup scrambles to raise cash to stay alive. Fisker expects to seek bankruptcy protection within the next 30 days if it can’t come up with the money.

    Stripe expansion: Among a slew of other announcements at its Sessions conference in San Francisco, Stripe said that it’ll be de-coupling payments from the rest of its financial services stack. Given that Stripe previously required businesses to be payments customers in order to use any of its other products, that’s a big change.

    Analysis

    Rabbit hands onBrian writes about the R1, the first gizmo from AI startup R1. The $199 price point, touchscreen and funky aesthetic from storied design firm Teenage Engineering make the R1 far more accessible than Humane’s Ai Pin, he concludes.

    Lab-grown diamonds: Pascal, an Andreessen Horowitz-backed startup, claims it can make high-end jewelry accessible by using lab-grown diamonds chemically and physically akin to natural diamonds but that cost one-twentieth of the price.

    AI poetry: An experiment called the Poetry Camera — an actual, physical camera — combines open source technology with playful design and artistic vision. Instead of merely capturing images, the Poetry Camera arranges thought-provoking, AI-generated stanzas based on the visuals it encounters.

    Rippling deep dive: Connie interviewed Parker Conrad, the CEO of workforce management startup Rippling, on the company’s new $200 million funding round, new San Francisco lease (the second biggest to be signed in the city this year) and more.

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    Kyle Wiggers

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  • Tesla Autopilot Was Uniquely Risky—and May Still Be

    Tesla Autopilot Was Uniquely Risky—and May Still Be

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    A federal report published today found that Tesla’s Autopilot system was involved in at least 13 fatal crashes in which drivers misused the system in ways the automaker should have foreseen—and done more to prevent. Not only that, but the report called out Tesla as an “industry outlier” because its driver assistance features lacked some of the basic precautions taken by its competitors. Now regulators are questioning whether a Tesla Autopilot update designed to fix these basic design issues and prevent fatal incidents has gone far enough.

    These fatal crashes killed 14 people and injured 49, according to data collected and published by the National Highway Traffic Safety Administration, the federal road-safety regulator in the US.

    At least half of the 109 “frontal plane” crashes closely examined by government engineers—those in which a Tesla crashed into a vehicle or obstacle directly in its path—involved hazards visible five seconds or more before impact. That’s enough time that an attentive driver should have been able to prevent or at least avoid the worst of the impact, government engineers concluded.

    In one such crash, a March 2023 incident in North Carolina, a Model Y traveling at highway speed struck a teenager while he was exiting a school bus. The teen was airlifted to a hospital to treat his serious injuries. The NHTSA concluded that “both the bus and the pedestrian would have been visible to an attentive driver and allowed the driver to avoid or minimize the severity of this crash.”

    Government engineers wrote that, throughout their investigation, they “observed a trend of avoidable crashes involving hazards that would have been visible to an attentive driver.”

    Tesla, which disbanded its public affairs department in 2021, did not respond to a request for comment.

    Damningly, the report called Tesla “an industry outlier” in its approach to automated driving systems. Unlike other automotive companies, the report says, Tesla let Autopilot operate in situations it wasn’t designed to, and failed to pair it with a driver engagement system that required its users to pay attention to the road.

    Regulators concluded that even the Autopilot product name was a problem, encouraging drivers to rely on the system rather than collaborate with it. Automotive competitors often use “assist,” “sense,” or “team” language, the report stated, specifically because these systems aren’t designed to fully drive themselves.

    Last year, California state regulators accused Tesla of falsely advertising its Autopilot and Full Self-Driving systems, alleging that Tesla misled consumers into believing the cars could drive themselves. In a filing, Tesla said that the state’s failure to object to the Autopilot branding for years constituted an implicit approval of the carmaker’s advertising strategy.

    The NHTSA’s investigation also concluded that, compared to competitors’ products, Autopilot was resistant when drivers tried to steer their vehicles themselves—a design, the agency wrote in its summary of an almost two-year investigation into Autopilot, that discourages drivers from participating in the work of driving.

    A New Autopilot Probe

    These crashes occurred before Tesla recalled and updated its Autopilot software via an over-the-air update earlier this year. But along with closing this investigation, regulators have also opened a fresh probe into whether the Tesla updates, pushed in February, did enough to prevent drivers from misusing Autopilot, from misunderstanding when the feature was actually in use, or from using it in places where it is not designed to operate.

    The review comes after a Washington state driver last week said his Tesla Model S was on Autopilot—while he was using his phone—when the vehicle struck and killed a motorcyclist.

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    Aarian Marshall

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  • U.S. probing whether major Tesla Autopilot recall went far enough

    U.S. probing whether major Tesla Autopilot recall went far enough

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    Detroit — The government’s auto safety agency is investigating whether last year’s recall of Tesla’s Autopilot driving system did enough to make sure drivers pay attention to the road.

    The National Highway Traffic Safety Administration says in documents posted on its website Friday that it has concerns about the December recall of more than 2 million vehicles, nearly all the vehicles that Tesla had sold at the time.

    The agency pushed the company to conduct the recall after a two-year investigation into Autopilot’s driver monitoring system, which measures torque on the steering wheel from a driver’s hands.

    The fix involves an online software update to increase warnings to drivers. But the agency said in documents that it’s found evidence of crashes after the fix and that Tesla added updates that weren’t part of the recall.

    “This investigation will consider why these updates were not part of the recall or otherwise determined to remedy a defect that poses an unreasonable safety risk,” the agency wrote.

    A message was left early Friday seeking comment from Tesla.

    The new recall probe includes Models Y, X, S, 3 and Cybertruck vehicles in the U.S. that have Autopilot systems manufactured in the 2012 and 2024 model years, the NHTSA said.

    The NHTSA also said Friday it is concerns that the “Autopilot” name “may lead drivers to believe that the automation has greater capabilities than it does and invite drivers to overly trust the automation.”

    The agency said Tesla reported 20 crashes that apparently happened after the recall remedy was sent out. The agency has required Tesla and other automakers to report crashes involving partially and fully automated driving systems.

    The NHTSA said it will evaluate the recall, including the “prominence and scope” of Autopilot’s controls to address misuse, confusion and use in environments that the system isn’t designed to handle.

    It also said Tesla has stated that owners can decide whether they want to opt into parts of the recall remedy and that it lets drivers reverse parts of it.

    Safety advocates have long expressed concern that Autopilot, which can keep a vehicle in its lane and a distance from objects in front of it, wasn’t designed to operate on roads other than limited access highways.

    The investigation comes just a week after a Tesla that may have been operating on Autopilot hit and killed a motorcyclist near Seattle, raising questions about whether a recent recall went far enough to ensure Tesla drivers using Autopilot pay attention to the road.

    After the April 19 crash in a suburban area about 15 miles northeast of the city, the driver of a 2022 Tesla Model S told a Washington State Patrol trooper that he was using Autopilot and looked at his cellphone while the Tesla was moving.

    “The next thing he knew there was a bang and the vehicle lurched forward as it accelerated and collided with the motorcycle in front of him,” the trooper wrote in a probable-cause document.

    The 56-year-old driver was arrested for investigation of vehicular homicide “based on the admitted inattention to driving, while on Autopilot mode, and the distraction of the cell phone while moving forward, putting trust in the machine to drive for him,” the affidavit said.

    The Tesla driver told the trooper he was driving home from having lunch when the crash occurred at about 3:45 p.m.

    The motorcyclist, Jeffrey Nissen, 28, of Stanwood, Washington, was under the car and pronounced dead at the scene, authorities reported.

    Authorities said they haven’t yet independently verified whether Autopilot was in use at the time of the crash.

    The Associated Press reported shortly after the recall that experts said it relied on technology that may not work.

    Tesla, the leading manufacturer of EVs, reluctantly agreed to the recall last year after NHTSA found that the driver monitoring system was defective and required a fix.

    The system sends alerts to drivers if it fails to detect torque from hands on the steering wheel, a system that experts describe as ineffective.

    Government documents filed by Tesla say the online software change will increase warnings and alerts to drivers to keep their hands on the steering wheel. It also may limit the areas where the most commonly used versions of Autopilot can be used, though that wasn’t entirely clear in Tesla’s documents.

    The NHTSA began its investigation in 2021, after receiving 11 reports that Teslas that were using the partially automated system crashed into parked emergency vehicles. Since 2016, the agency has sent investigators to at least 35 crashes in which Teslas that were suspected of operating on a partially automated driving system hit parked emergency vehicles, motorcyclists or tractor trailers that crossed in the vehicles’ paths, causing a total of 17 deaths.

    Research conducted by NHTSA, the National Transportation Safety Board and other investigators shows that merely measuring torque on the steering wheel doesn’t ensure that drivers are paying sufficient attention. Experts say night-vision cameras are needed to watch drivers’ eyes to ensure they’re looking at the road.

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  • Colorado lawmakers’ latest police oversight bill would protect whistleblowers from retaliation

    Colorado lawmakers’ latest police oversight bill would protect whistleblowers from retaliation

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    Former Edgewater police officer McKinzie Rees hopes to serve and protect again, but first she must get her name removed from a so-called “bad cops list” maintained by the Colorado Attorney General’s Office. It landed there, she said, as retaliation after she reported sexual assaults by a supervising sergeant.

    That sergeant went on to work for another police department until this year, when he pleaded guilty to unlawful sexual contact and misconduct and was sentenced, more than four years after the assaults and retaliation against Rees.

    She testified to the state’s House Judiciary Committee this week that, even after her attacker was exposed, her complaint about still being listed as a problem police officer “is falling on deaf ears every time.”

    Rees’ testimony, echoed by other frontline police officers from Colorado Springs and Denver about retaliation they faced after reporting misconduct, is driving state lawmakers’ latest effort at police oversight. Fresh legislation would require investigations of all alleged misconduct and increase protection for whistleblowers.

    But the bill, titled “Law Enforcement Misconduct,” faces resistance from police chiefs, sheriffs, district attorneys and the Fraternal Order of Police who contend it would complicate police work and lead to unnecessary prosecutions.

    While state leaders “are committed to addressing police misconduct,” the requirement that all allegations must be investigated could create “a caustic culture” within police agencies, said Colorado Department of Public Safety executive director Stan Hilkey in testimony to lawmakers during a hearing Tuesday.

    “This bill is harmful to the mission of public safety,” Hilkey said, raising concerns it would lead to police “watching each other … instead of going out and responding to and preventing crime.”

    The legislation, House Bill 1460, won approval on a 6-5 vote in the House Judiciary Committee. It would require investigations of all alleged misconduct by police, correctional officers and others who enforce the law in Colorado. Officers who report misconduct would gain the ability to file lawsuits if complaints aren’t investigated or they face retaliation.

    Key elements under discussion include a provision bolstering the attorney general’s power to add and remove names from the Police Officer Standards and Training database, which bars future employment, and to compel police agencies to provide information for managing that list.

    Other provisions would require longer retention of police records and prohibit government agencies from charging fees for making unedited police body-worn camera videos available for public scrutiny.

    Investigating all alleged misconduct is projected to cost millions of dollars as state agencies face increased workloads, requiring more employees in some agencies, and increased litigation and liability expenses.

    Lawmakers sponsoring the bill have agreed to remove a provision that would have established a new misdemeanor crime for officers who fail to report misconduct by their peers.

    But the increased protection for whistleblowers is essential, said Rep. Leslie Herod, a Denver Democrat, in an interview.

    “People need those protections now. This would ensure good officers can be good officers and bad officers who cover up for bad officers no longer can be on the force,” said Herod, who introduced the legislation on April 17.

    Most police officers “do great work,” sponsor says

    The bill would build on police accountability laws passed following the 2020 Minneapolis police murder of George Floyd, which sparked street protests, Herod said.

    “We still have more work to do. There’s no one-shot bill that will fix police accountability in the state,” she said.

    “The majority of police officers in Colorado do great work. We need to make sure we have protections in place when that doesn’t happen. This is just as important as any other issue we are debating in Colorado.”

    The late-in-the-session legislation would affect the 246 police agencies and 12,000 sworn officers around Colorado. It began when Rees and other police whistleblowers who had faced retaliation approached lawmakers.

    For Rees, 30, who now supports herself by pet-sitting, the feeling of still being punished — and prevented from continuing a career she worked toward since childhood — “is horrible,” said in an interview.

    “There should always be checks and balances,” she said. “It is exhausting trying to figure this out. You just get this runaround. There’s no way out.”

    Rees told lawmakers that she reported two sexual assaults in 2019 by the sergeant to colleagues, seeking protection under internal agency protocols and as a whistleblower under existing state laws.

    “Instead, I got served the ultimate sentence of no protection,” she said.

    This year, after his dismissal from the Black Hawk Police Department, former Edgewater police Sgt. Nathan Geerdes, who was indicted by a grand jury in 2022 on four counts of unlawful sexual contact and one count of witness retaliation, pleaded guilty to unlawful sexual contact, first-degree official misconduct and forgery as part of a plea deal. He was sentenced in Jefferson County District Court to four years of probation.

    Edgewater police officer Ed McCallin also testified, describing the retaliation he faced after he became aware “that a senior officer had sexually assaulted a junior officer” — referring to Rees — and then “weaponized” the state’s database against her.

    “I was asked to cover that up by my police chief,” he said. “I was threatened with internal investigations twice” and “had to meet with a city council member to save my job for doing the right thing.”

    When he went to the Fraternal Order of Police for guidance in the case, McCallin said, a contract attorney advised him “to look the other way.”

    “We just need more time,” sheriff says

    Colorado law enforcement group leaders and police advocates said their main concern was that they weren’t consulted by sponsors of this legislation.

    “We just need more time to dive into this,” Arapahoe County Sheriff Tyler Brown, representing the County Sheriffs of Colorado, told lawmakers.

    Herod acknowledged “miscalculation” in not consulting with law enforcement brass in advance.

    She and co-sponsor Rep. Jennifer Bacon, a Denver Democrat serving as vice chair of the House Judiciary Committee, said they lined up meetings this week to hash out language and amendments before the bill advances.

    Rep. Mike Weissman, who chairs the committee, agreed that support from law enforcement leaders would be crucial but added that he understood the “guardedness” of the bill sponsors, “given how these issues can go in this building.”

    District attorneys from Jefferson and El Paso counties objected to the proposed requirement that every misconduct claim must be investigated, saying it would create conflicts in carrying out their professional duties.

    Several lawmakers raised concerns about language in the bill, such as “unlawful behavior.” Rep. Matt Soper, a Delta Republican, said a police officer who was sexually assaulted and chose not to report the crime “could become caught up in the system” for failing to report misconduct. Or police who might have to make an illegal U-turn while chasing a suspect, hypothetically, would have to be investigated, he said.

    But the lawmakers broadly supported the efforts aimed at making sure the Attorney General’s Office manages the database of police transgressors properly.

    The committee’s bill supporters said the compelling testimony from the Edgewater officers and other whistleblowers persuaded them that there’s an undeniable problem to address.

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    Bruce Finley

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  • Nearly 3,000 Tesla workers in Fremont, Palo Alto to be laid off in June

    Nearly 3,000 Tesla workers in Fremont, Palo Alto to be laid off in June

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    Tesla announces plan for more affordable cars


    Tesla announces layoffs and plan to make more affordable vehicles

    04:02

    Documents filed by Tesla with the state of California show nearly 3,000 workers in Fremont and Palo Alto will be among the mass layoffs announced by the electric automaker earlier this month.

    Tesla told the state Employment Development Department that 2,267 workers at Tesla’s Fremont factory and other Fremont locations would lose their jobs, while another 486 workers at several Palo Alto sites would also be laid off. 

    The Worker Adjustment and Retraining Notification (WARN) notices filed also show that another 515 workers will be laid off at Testa facilities in the San Joaquin County city of Lathrop and 64 people will lose their jobs in Burbank.

    In a leaked memo to Tesla staff last week, CEO Elon Musk said the company “made the difficult decision to reduce our headcount by more than 10% globally.” Word of the leaked memo was first reported by the electric vehicle website Electrek

    “There is nothing I hate more, but it must be done,” Musk wrote in the memo. “This will enable us to be lean, innovative and hungry for the next growth phase cycle.”  

    As of December 2023, Tesla had more than 140,000 employees, which means at least 14,000 could be out of a job by the end of this year.  

    On Tuesday, Tesla also announced plans to lay off nearly  2,700 workers at its factory in Austin, Texas. The layoffs in California and Texas were scheduled to begin on June 14. 

    The news of the Austin layoffs came on the same day the automaker’s earnings report showed first-quarter profit plummeted 55% to $1.13 billion, compared to $2.51 billion from January to March last year. Tesla blames the slump partly on EV sales being “under pressure as many carmakers prioritize hybrids over EVs.” Company execs also said phasing in an updated version of the Model 3 sedan at its Fremont factory and plant shutdowns due to shipping diversions in the Red Sea also played a role in the weak earnings.  

    Earlier this month, Tesla reported a sharp drop in first-quarter sales as the EV market competition increased worldwide and the price cuts the company enacted months ago failed to entice more buyers  

    In another black eye for the company, Tesla said on April 19 that it was recalling nearly 4,000 Cybertrucks because of a faulty accelerator pedal.

    Despite the spate of bad news, Tesla announced during its earnings call it plans to launch new, more affordable vehicle models in the second half of 2025. Investors cheered the announcement and shares of Tesla jumped 12% on Wednesday on the NASDAQ.

    Associated Press contributed to this report.

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    Carlos Castañeda

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  • Elon Musk insists Tesla isn’t a car company as sales falter

    Elon Musk insists Tesla isn’t a car company as sales falter

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    If you don’t like what’s being said, change the conversation. That’s advice Mad Men’s Don Draper once gave. And it appears Tesla (TSLA) CEO Elon Musk is taking it.

    By the numbers, Tesla painted a dismal picture through its latest quarterly results. But the stock told a different story: excitement. New models are on the way, Musk said. And beyond that, Tesla will prosper as a pioneer in autonomous ridesharing. Shares jumped following the earnings release, and the momentum carried over into morning trading Wednesday as the stock surged as much as 14%.

    As Tesla car sales faltered, Musk delivered an optimistic pivot: Tesla isn’t a car company.

    Sales fell 9% from a year ago in the most recent quarter, the first drop in four years. Operating profit tumbled more than 50% from the same period last year. Guidance, too, was a drag, as executives foresee “notably lower volume.”

    But the market loved Tesla reassuring the world that, actually, cheaper cars are coming. As Jefferies analysts said in a note after the report, “first impression for us is CEO Musk appeasing the market by accelerating new product launches.”

    And Musk on the earnings call emphasized over and over again that investors shouldn’t view Tesla as an automaker but rather as a digital platform akin to Uber (UBER) and Airbnb (ABNB) for an autonomous fleet.

    During the call, when VP of vehicle engineering Lars Moravy dodged a question about the specific timeline for a mass market $25,000 vehicle, Musk interjected to say that more details will come at Tesla’s August 8 robotaxi unveiling. But he added his patented visionary flourish: “The way to think of Tesla is almost entirely in terms of solving autonomy, and being able to turn on that autonomy for a gigantic fleet.”

    But there’s a tension in Musk’s auspicious goal-setting. Call it market dissonance. Musk is enthusiastically trying to convince shareholders that Tesla can leapfrog dedicated autonomous car companies like Alphabet’s (GOOG, GOOGL) Waymo and swiftly “solve autonomy,” even as the market flashes strong signals that investors want Tesla to deliver cheaper EV’s.

    “If somebody doesn’t believe that Tesla is going to solve autonomy, I think they should not be an investor in the company,” CEO Elon Musk said on the earnings call Tuesday, (AP Photo/Jae C. Hong, File) (ASSOCIATED PRESS)

    As Citi analysts wrote in a note after earnings, “We like Tesla’s product pivot that appears to prioritize speed and launch/redesign on existing capacity.”

    But in his shift of focus, Musk is de-emphasizing the thing people are clamoring for, moving on to Tesla’s next big thing, and shifting the valuation goalposts and ultimate vision for the company.

    Musk elaborated later on the call: “We should be thought of as an AI robotics company. If you value Tesla as just an auto company — it’s just the wrong framework. If you ask the wrong question, then the right answer is impossible.”

    He went on to encourage the autonomous non-believers to get lost.

    “If somebody doesn’t believe that Tesla is going to solve autonomy, I think they should not be an investor in the company. And we will. And we are.”

    Even as Tesla’s quarter jolted the stock, market observers expressed some skepticism over the company’s ambitious plans. “Commitment to robotaxi is unwavering, still without providing clarity on timeframe and business model,” the Jefferies note said.

    A note from UBS analysts referring to Tesla’s Full Self-Driving technology, or FSD, was even more critical. “We don’t doubt that FSD is making progress, but TSLA has talked up autonomy before, and we are skeptical that TSLA will have a ‘cyber-cab’ or ride-hailing service this decade,” analysts at UBS wrote after earnings.

    Musk sees the day Tesla switches on unsupervised full self-driving as possibly “the biggest asset value appreciation in history.” That day might be farther than Musk hopes, and it may never arrive. But saying so is its own kind of value appreciation.

    If your company isn’t making enough money from the products it sells, it can be helpful to change the idea of what success looks like.

    Hamza Shaban is a reporter for Yahoo Finance covering markets and the economy. Follow Hamza on Twitter @hshaban.

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  • Tesla profits plunge as it grapples with slumping electric vehicle sales

    Tesla profits plunge as it grapples with slumping electric vehicle sales

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    Electric vehicle incentives | On Your Side


    Electric vehicle incentives | On Your Side

    02:41

    Mounting competition in the stuttering electric vehicle market is taking the juice out of Tesla. 

    The automaker’s first-quarter profit plummeted 55% as falling global sales and price cuts sliced into the EV maker’s revenue and earnings. The company said Tuesday it made $1.13 billion in profit from January through March, compared with $2.51 billion in the same period a year ago. Revenue was $21.3 billion, down 9% from last year, the company said.

    Tesla executives blamed the dip partly on EV sales being “under pressure as many carmakers prioritize hybrids over EVs.”

    The weak earnings report landed on the same day Tesla announced it plans to lay off nearly 2,700 workers at its factory in Austin, Texas. The layoffs will happen during a two-week period starting June 14, according to a layoff notice. Tesla said last week that it’s planning to lay off more than 10% of its roughly 140,000 workers globally.

    Tesla didn’t immediately respond to a request for comment. 

    The latest financial results continue what has been tough stretch for Tesla this year. The company said earlier this month that it delivered 386,810 vehicles in the first quarter, almost 9% below the 423,000 it delivered in the year-ago period. Tesla blamed the decline partly on phasing in an updated version of the Model 3 sedan at its Fremont, California factory. 

    Plant shutdowns due to shipping diversions in the Red Sea and an arson attack that knocked out power to its German factory also curtailed deliveries, according to Tesla. 

    In another black eye for the company, Tesla said on April 19 that it is recalling nearly 4,000 Cybertrucks because of a faulty accelerator pedal. 


    Tesla recalls cybertrucks

    00:36

    Tesla is facing increasing competition overseas and in the U.S. as automakers race to introduce new, and more affordable, EV models. Between 2018 and 2020, Tesla accounted for 80% of EV sales in the U.S., but that figure fell to 55% in 2023, according to Cox Automotive.

    Although the pace of EV sales has dipped this year, the longer term forecast shows continued global growth. Automakers around the world will sell about 17 million EVs this year, up from 14 million last year, according to a recent estimate from the International Energy Agency (IEA). 

    “Electric cars accounted for around 18% of all cars sold in 2023, up from 14% in 2022 and only 2% five years earlier, in 2018,” the IEA said. “These trends indicate that growth remains robust as electric car markets mature.”

    And Tesla investors took heart Tuesday from Tesla vowing to accelerate its introduction of a low-cost vehicle, boosting the company’s shares in after-hours trading. 

    —The Associated Press contributed to this report.

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  • Tesla launches new Model 3 Performance variant to rev up demand | TechCrunch

    Tesla launches new Model 3 Performance variant to rev up demand | TechCrunch

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    Tesla has officially revealed a new Performance variant of the recently refreshed Model 3 sedan as the company looks to fight off receding demand.

    The new version of the Model 3, which starts at $52,990, has a new active damping system and adaptive suspension for better handling and comfort, 296 miles of battery range and can travel from 0 to 60 miles per hour in 2.9 seconds with 510 horsepower on offer.

    Compared to the previous Model 3 Performance, the new version has 32% more peak power and 16% more peak torque, and 5% less drag. It does all this while consuming less energy than its predecessor, according to Tesla. That’s thanks in part to a new-generation drive unit and a rear diffuser and spoiler. The front and rear ends of the car have also benefited from a slight face-lift, separating it from the other versions of the newly tweaked Model 3 revealed last year.

    The Model 3 Performance still carries with it the wholesale changes made with that recent refresh. That means there’s an ambient light bar wrapping around the cabin interior, better sound dampening and upgraded materials throughout, a stalk-less steering wheel and a new touchscreen display.

    Tesla is launching the new Model 3 Performance at a time when the company is coming off one of its worst quarters for deliveries in recent memory, having dropped 20% compared to the fourth quarter of 2023. The impact of that disappointing first quarter is set to be revealed Tuesday when the company publishes its financial results after the market closes.

    The company is also just one week removed from announcing sweeping layoffs of more than 10% of its global workforce, with the cuts affecting seemingly all corners of the company.

    Orders placed Tuesday, at least at the time of publication, show an estimated delivery window of May/June 2024 in North America.

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    Sean O’Kane

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  • Tesla earnings week spotlights price cuts, Elon’s ‘balls to the wall’ autonomy push | TechCrunch

    Tesla earnings week spotlights price cuts, Elon’s ‘balls to the wall’ autonomy push | TechCrunch

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    As Tesla gears up to report what will likely be unimpressive financial results for the first quarter on Tuesday, the company is making more moves to go “balls to the wall for autonomy,” as CEO Elon Musk put it last week in a post on X

    Over the weekend, Tesla dropped the price of its Full Self-Driving (FSD) advanced driver assistance system to $8,000, down from $12,000. That price cut is in addition to last week’s drop of the FSD monthly subscription to $99, from $199. The push to get FSD into more cars could be a bid to collect more data as Tesla works to boost the neural networks that will power fuller-scale autonomy. FSD today can perform many driving tasks in cities and on highways, but still requires a human to remain alert with their hands on the wheel in case the system requires a takeover. 

    Tesla faces narrowing profits as it places a major and expensive bet on autonomous driving technology. Last week, Tesla laid off 10% of its staff in a move to reduce costs in preparation for the company’s “next growth phase,” per an email Musk sent to all employees. 

    Earlier this month, Musk abruptly announced on X that Tesla was pausing the development of its $25,000 electric vehicle in favor of a robotaxi that he promised to reveal in August. Sources within Tesla have confirmed to TechCrunch that they didn’t have prior warning from Musk on this sudden shift, and that internal restructurings reflect a new ethos that puts robotaxi development at front and center. 

    All of this is happening as Tesla zigzags on its EV pricing strategy. 

    Last week, Tesla ditched EV inventory price discounts, but over the weekend slashed prices on Model 3 and Model Ys by as much as $2,000 in the U.S., China and Germany. As we saw during the first quarter of 2023, those price cuts are taking their toll on Tesla’s income and margins

    Tesla is scheduled to report earnings after markets close April 23. Musk has previously said that without autonomy, Tesla is “basically worth zero.” 

    The company will need to convince investors tomorrow that its shift in priority to autonomous vehicles is a silver lining in the cloud of declining margins, rather than just smoke and mirrors. 

    Since Musk laid off staff and announced that Tesla would be going hard on autonomy, Tesla’s share price has dropped almost 10%. Shares have fallen over 42% since the start of the year.

    What to expect at Tesla’s Q1 2024 earnings

    Tesla’s lower first-quarter delivery figures combined with price cuts are ingredients for a smaller profit pie. And analysts seem to agree. 

    Analysts polled by Yahoo Finance expect a profit of $0.48 per share on 20.94 billion in revenue. As a reminder, Tesla generated $25.17 billion revenue in Q4 and $23.3 billion in the first quarter of 2023. 

    Tesla delivered 386,810 vehicles in the first quarter of 2024, down 20% from the 484,507 it delivered in the final quarter of 2023. It’s worth noting that this wasn’t just a quarter over quarter blip. Tesla delivered fewer cars than the first quarter of 2023 — the first year-over-year drop in sales in three years.

    Tesla’s Q4 results showed a company already grappling with shrinking profit margins due to its price cutting strategy, rising costs of its Cybertruck production launch and other R&D expenses. 

    The automaker reported net income, on a GAAP basis, of $7.9 billion in the fourth quarter — an outsized number caused by a one-time non-cash tax benefit of $5.9 billion. The company’s operating income and its earnings on an adjusted basis provided a clearer picture of its financial performance.

    Tesla reported operating income of $2.06 billion in the fourth quarter, a 47% decrease from the same year-ago period. On an adjusted basis, the company earned $3.9 billion, a 27% drop from the same period last year.

    The question is whether Tesla can prevent that profit pie from shrinking to profit muffin. 

    Since Tesla reported its Q1 2024 production and delivery numbers, the company has continued to pull various financial levers aimed at attracting new buyers and inducing existing customers to pay for FSD — all while reducing costs and maintaining profit margins. 

    Those opposing goals coupled with Musk’s “wartime CEO mode” status are bound to make the Q1 earnings call entertaining. Beyond that potential theater, there are pressing long-term questions about how Tesla delivers on autonomy and if it will be enough to convince investors that it can still lead and innovate. 

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    Rebecca Bellan

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  • We Tested the BYD Seal—the Car That Explains Why Tesla Just Cut Its Prices

    We Tested the BYD Seal—the Car That Explains Why Tesla Just Cut Its Prices

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    A compact, family-size car, the BYD Seal is unapologetically aimed at taking on the Tesla Model 3. That said, it’s bigger than the American in every dimension, most notably in both length (4,800 millimeters versus 4,694 millimeters for the Model 3) and wheelbase (2,920 millimeters versus 2,875 millimeters). The result is a roomier car with interior space similar to that of a vehicle in a class above.

    Sleek, and with a Model 3–beating drag coefficient of just 0.219 Cd, the Seal is the production version of the Ocean-X concept from 2021. That concept is where BYD revealed the eplatform 3.0 that underpins all of its current cars.

    Better Blades

    As we wrote about in our review of the BYD Atto 3, the company’s patented “blade battery” pack design aims to set it apart from other manufacturers. It’s a key component of the Seal’s platform and arranges lithium iron-phosphate (LFP) batteries in a bladelike design.

    BYD claims its use of LFP as the cathode material makes for a safer battery than conventional lithium-ion alternatives. It also boasts of improved thermal stability and a higher energy density than its rivals. The Blade design also means that puncture damage to the battery pack in a collision is less likely to cause thermal runaway and the potential for fire, BYD says.

    Also featured in the Seal is what BYD claims to be the world’s first 8-in-1 electric powertrain system, with an overall efficiency of 89 percent. This combines the drive motor, inverter, transmission, onboard charger, AC/DC, power distribution unit, vehicle control unit, and battery management system. The platform is also capable of 800-volt charging (like Kia and Hyundai), but while in other EVs this often means the possibility for ultrafast DC charging, the Seal is limited to a middling 150 kW.

    There’s also a direct heating and cooling system for the battery, which increases thermal efficiency by up to a claimed 20 percent. BYD also says improved thermal efficiency can mean a 20 percent improvement to range in cold weather, too.

    Interestingly, the Seal’s blade battery forms an integral part of the Seal’s eplatform 3.0 architecture and allows for a cell-to-body (CTB) construction, where the battery pack itself is incorporated within the vehicle structure, improving rigidity.

    CTB means that the batteries are no longer a dead weight in the car, and now form part of the load-bearing structure, with the top of the battery pack effectively being the floor of the car. This means torsional rigidity can be 40,500 Nm/degree, which is about the level of a luxury car.

    Refined Ride

    Low-speed ride quality can be a touch lacking, but once up to speed the Seal is fun to drive.

    PHOTOGRAPH: BYD

    All this translates into good handling with a comfortable, somewhat refined ride at speed. Those fairly conventional but not unattractive looks are somewhat beguiling, since there’s 50/50 weight distribution and double wishbone suspension at the front to give a sporty setup.

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    Mark Andrews

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  • Tesla layoffs, Cybertruck recalls and Serve Robotics goes public | TechCrunch

    Tesla layoffs, Cybertruck recalls and Serve Robotics goes public | TechCrunch

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    Welcome back to TechCrunch Mobility — your central hub for news and insights on the future of transportation. Sign up here — just click TechCrunch Mobility — to receive the newsletter every weekend in your inbox. Subscribe for free.

    Tesla is back in the news cycle and our crystal ball says it’s one of those long-term affairs. The week kicked off with layoffs — about 10% of its more than 140,000-person workforce — and CEO Elon Musk declaring he was going “balls to the wall” on autonomy. It ended with a Cybertruck recall. Cool cool.

    There’s lots more in the newsletter than just Tesla — although before we move on, do check out Sean O’Kane’s scoop about the company’s 1,800-mile Tesla Semi charging corridor program. Read on to catch up on Serve Robotics’ public market debut, a week of highs and lows for Waymo, and more.

    Let’s go! 

    A little bird

    While much of our focus is on startups and Silicon Valley, we do have some little birds in Washington, D.C.

    A little bird told us recently that federal regulators are getting close to publishing a Notice of Proposed Rulemaking on autonomous vehicle regulations, which would be the first set of federal guardrails proposed for the industry.

    Our source said the Federal Motor Carrier Safety Administration (FMCSA), which regulates commercial vehicles in the U.S., should have a proposal out by this summer, fall at the latest. We’re told that the federal ruling on AVs will likely establish a minimum safety standard for AVs to operate on public roads but that state governments could enforce stricter regulations within their own borders. We’ve been hearing about discussions and plans around federal AV regulations for years now. Have we finally started to make headway? We shall see. 

    Got a tip for us? Email Kirsten Korosec at kirsten.korosec@techcrunch.com, Sean O’Kane at sean.okane@techcrunch.com or Rebecca Bellan at rebecca.bellan@techcrunch.com. If you prefer to remain anonymousclick here to contact us, which includes SecureDrop (instructions here) and various encrypted messaging apps.

    Deal of the week

    money the station

    Serve Robotics, the Nvidia- and Uber-backed sidewalk robot delivery company, hit the public markets this week via a reverse merger. Serve expects its public debut to bring in around $40 million in gross proceeds, funding that will go toward R&D for future robots, manufacturing of new robots, geographic expansion and more.

    Serve’s goal is to increase its fleet from the 100 robots deployed today around Los Angeles to 2,000 robots across multiple U.S. cities by the end of 2025, via a partnership with Uber Eats. Serve has huge revenue ambitions, with plans to generate between $60 million and $80 million in annual revenue by that same deadline. In 2023, Serve brought in $207,545 in revenue at a loss of $1.5 million.

    FWIW, Uber and Nvidia are still shareholders, but their shares in the company are decreasing with this debut. Pre-IPO, Uber and Nvidia held a 16.6% stake and 14.3% stake, respectively. Once the offering closes, those stakes will change to 11.5% and 10.1%, per regulatory filings.

    Serve’s share price was $4 at market open on Thursday, and it closed that day at around $3.

    Other deals that got my attention …

    Found Energy, a startup that uses waste aluminum to generate heat and hydrogen, raised a $12 million seed round, but Tim De Chant’s story on the company is about so much more.

    Getir, a Turkish delivery company that was once worth $12 billion, is reportedly weighing asset sales and exits from non-core markets as investors put the pressure on to cut losses.

    Swtch Energy, a company building EV charging solutions for apartment buildings, raised $27.2 million in a Series B to expand its charging network and boost the tech behind its charging and energy management solutions. Blue Earth Capital led the round with participation from Alantra’s Energy Transition Fund Klima, Active Impact Investments and GIGA Investments Corp.

    Notable reads and other tidbits

    ADAS

    Mobileye has secured orders to ship 46 million of its EyeQ6 Light ADAS chips over the next few years to automakers. Multiple models launching this year will feature the chip, which promises to deliver improved sensing of wet roads, detection of and reaction to objects at a greater distance, and better ability to read key text phrases on road signs. TechCrunch had the chance to dig into this, and our main takeaways are that automakers will probably love this chip because it’s more powerful than Mobileye’s last chip, but it’s the same price.

    Autonomous vehicles

    Waymo has begun initial data collection and mapping in Atlanta, the company’s latest geographic win. The Alphabet-owned company didn’t say whether it plans to launch in the Georgian city or any other city it is mapping in, such as Washington, D.C., and Buffalo. Aside from San Francisco, Waymo has launched commercial robotaxi services in Los Angeles and Phoenix, with Austin planned for the end of this year.

    But with ups, come downs. Six Waymo vehicles also got caught blocking traffic to an on-ramp in San Francisco. The vehicles were caught between a construction zone and the on-ramp and had to pull over to await rescue. A spokesperson told TechCrunch that while Waymo does have the green light to go fully driverless on freeways in San Francisco, the company has not yet pulled the driver out.

    Electric vehicles, charging & batteries

    General Motors launched a home EV charger and vehicle-to-home (V2H) kit that lets a home pull energy from an EV battery in the event of a blackout. Customers in California, Florida, Texas, Michigan and New York can purchase today.

    Gogoro, the two-wheeler battery-swapping company, and TSMC, a global semiconductor company, are partnering to introduce 15 GoStations across Taiwan that use 100% clean energy. They’ll also be launching Gogoro’s scooter-sharing service in TSMC’s headquarter city, Hsinchu, and expanding the charging network in the city.

    TeslaCrunch

    We’ve been all over Tesla this week, so let’s dive in.

    The week started out with company-wide layoffs that affected at least 10% of the entire 140,000-person organization, with some teams seeing 20% of their staff gutted. Two high-profile executives departed Tesla as well: Drew Baglino, Tesla’s SVP of Powertrain and Energy, and Rohan Patel, VP of Public Policy and Business Development. Patel told TechCrunch he left because of “[b]ig overall changes” at the company that he declined to specify. In an email sent to the company, CEO Elon Musk said the cuts were necessary to increase productivity and prepare for Tesla’s “next phase of growth.”

    (Psssst! Don’t want to read about Tesla layoffs and what comes next? You can watch about it instead.)

    Many of those who were cut, sources say, were high performers who just happened to be working on lower-priority projects. Sources at Tesla also told TechCrunch the company made the cuts because it expects poor first-quarter earnings. Deliveries were subpar, and all those price cuts last year that continued early into 2024 likely had an effect on Tesla’s margins. Deliveries were down in Q1 year-over-year, despite the $200,000 Tesla spent on advertising on X, per our reporting.

    Which might be why Tesla ditched its EV inventory price discounts this week. On X, Musk said this move was in line with Tesla’s strategy to “streamline the whole Tesla sales and delivery system.”

    These changes in general, and the layoffs in particular, are made more stark by Tesla’s proxy statement that calls on the board to reinstate Musk’s $56 billion payout, which a Delaware judge earlier this year voided. In a huff, Musk threatened to reincorporate Tesla in Texas instead, and it appears that plan will also be put to the board soon.

    Meanwhile, on the charging front, Tesla is moving forward with its plan to build an electric big rig charging corridor stretching from Texas to California, despite being snubbed by a lucrative federal funding program that’s part of Biden’s Bipartisan Infrastructure law.

    Tesla this week also had to recall the 3,878 Cybertrucks that it has delivered to customers to date over faulty accelerator pedals that can get stuck. I know what you’re thinking. Finally we know how many Cybertrucks Tesla delivered.

    This week’s wheels

    I’ve been in a handful of new vehicles and I’m eager to share my thoughts, but we’re also running out of space this week. In the coming issues, we’ll have some takes on electric bikes, the 2024 Lexus LC 500h, the 2024 Mercedes-Benz eSprinter and more.

    See y’all next week!

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    Kirsten Korosec

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  • Tesla makes its controversial Full Self-Driving software cheaper by $4,000

    Tesla makes its controversial Full Self-Driving software cheaper by $4,000

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    Tesla has reduced the price of its Full Self-Driving software in the US and Canada. Per a post from the company on X, it now costs $8,000 in the US (or $11,000 for buyers in Canada) to add the so-called Full Self-Driving (FSD) Capability. This is down from $12,000 ($16,000 CAD), according to Electrek, which also reports that Tesla has discontinued the $6,000 Enhanced Autopilot option. Current owners with that package can upgrade to FSD for $2,000.

    Tesla’s driver assistance features have been under scrutiny from regulators for years, and despite the name, Full Self-Driving isn’t meant to fully take over for a human driver at this stage. On its website, Tesla notes that current FSD features “require active driver supervision and do not make the vehicle autonomous.” In March, the company reportedly introduced a mandate requiring its staff to give buyers a demonstration of FSD before they’re able to take home their new cars, so they can see what the software has to offer.

    The latest price drop comes a few days after Tesla slashed the monthly cost of its subscription for FSD — which it has recently been referring to as Full Self-Driving (Supervised). The subscription, which previously cost $199/month, now goes for $99/month. Tesla also cut the starting prices of its Model Y, X and S vehicles this weekend by $2,000 each. Earlier this month, Tesla reported that its vehicle deliveries for Q1 2024 fell short of expectations, with an eight percent drop year-over-year.

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    Cheyenne MacDonald

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  • A Complete History of Elon Musk’s Fascination with the Magic Number 420

    A Complete History of Elon Musk’s Fascination with the Magic Number 420

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    Elon Musk attends the premiere of “Lola” at Regency Bruin Theatre on Feb. 3, 2024 in Los Angeles, California. Frazer Harrison/Getty Images

    It’s April 20, the unofficial holiday in cannabis culture dedicated to advocating for the legalization of marijuana. The date is strongly associated with Elon Musk, as the Tesla (TSLA) and SpaceX CEO frequently made references to the number 420 in tweets and interviews in recent years—sometimes in a humorous manner but other times completely serious. Here is a look back at Musk’s well-documented fascination with the magic number over the years.

    Proposing taking Tesla private at $420 a share

    In August 2018, Musk famously tweeted that he was considering taking Tesla private at $420 per share—a significant premium over Tesla’s stock price at the time—and claimed he had “funding secured.” This tweet eventually landed him in legal trouble with the Securities and Exchange Commission for potential market manipulation, a charge he later settled. 

    During a trial of the case in January 2023, the Tesla CEO testified that his choice of the $420 price point was not a joke but a well thought-out business decision. “There is some karma around 420 although I should question if that is good or bad karma at this point,” he told the attorney representing a group of Tesla shareholders.

    Joe Rogan Podcast appearance and Twitter bio update

    A month after his controversial Tesla tweet rattled Wall Street, Musk was invited as a guest on the Joe Rogan Experience podcast. He got so comfortable in the setting that at one point he was seen puffing a joint on camera. For a brief period after the podcast aired, Musk changed his Twitter bio to read “420” before reverting it to its original state that read “Engineer.”

    The incidents sparked widespread discussion about the significance of the number 420. Musk had previously expressed his views on marijuana legalization, suggesting that he’s not opposed to its use.

    Embedding the number in Tesla products

    Musk has displayed a tendency to incorporate the number 420 into his company’s products whenever he can. In October 2020, he announced on Twitter that Tesla would drop the price of its Model S sedan from about $72,000 to $69,420—a nod at another of his favorite numbers, 69.

    Musk also initially targeted a 420-mile driving range for Tesla’s Model S Plaid, a high-end version of the Model S. But at the vehicle’s launch in June 2021, its window sticker said 405 miles, and the final EPA-rated range was slightly lower than 396 miles. 

    Last year, Musk suggested in a Twitter conversation that he wanted to name an important version of Tesla’s FSD (Full Self-Driving) software Beta 11.420.

    Pricing SpaceX at $420 a share during fundraising

    In early 2021, SpaceX raised $850 million in a private equity funding round that valued the space company at $76 billion. The company reportedly sold shares at $419.99 apiece, just one cent below its CEO’s lucky number.

    Launching Starship’s maiden test flight on 4/20

    In Musk’s eye, April 20 is also a lucky date for rocket launchesOn this day last year, Musk watched SpaceX test launch a prototype of Starship from the company’s test ground in Boca Chica, Texas. It was the first attempted orbital flight of Starship.

    Acquiring Twitter for $54.20 a share 

    In October 2023, Musk acquired Twitter, now X, for $54.20 per share in a transaction that valued the social media company at $44 billion, about 25 percent higher than its market value at the time. Musk at one point attempted to walk away from the deal, but a federal judge eventually nudged him into going through with it eventually.

    Random “420” tweets 

    Sometime Musk just appeared to want to compose 420-themed tweets for no obvious reasons. In April of last year, he posted that the “final date for removing [Twitter’s] legacy blue checks is 4/20.” Earlier this year, he replied to a post about Tesla’s EV market share being 4.20 percent at the end of 2023 by noting, “I was born 69 days after 4/20.” Here are a few other examples:

    A Complete History of Elon Musk’s Fascination with the Magic Number 420

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    Sissi Cao

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  • As electric car sales slump, Tesla shares relinquish a year’s worth of gains

    As electric car sales slump, Tesla shares relinquish a year’s worth of gains

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    Tesla shares on Thursday dipped below $150 a piece, relinquishing a year’s worth of gains as the automaker struggles with decelerating electric vehicle sales and mounting competition. 

    Continuing a dismal year for Tesla investors, the stock on Thursday fell $5.52, or 3.5%, to close at $149.93, leaving shares down more than 39% this year. The stock last traded at the $150 level in January 2023. 

    Tesla sales plummeted last quarter as competition increased and EV sales slow. The company said it delivered roughly 387,000 vehicles from January through March, undershooting analyst forecasts and nearly 9% below the 423,000 it sold in the year-ago period. 

    With Tesla hitting a soft patch, news surfaced this week that the company plans to cut at least 10% of its global workforce in a bid to cut costs. “There is nothing I hate more, but it must be done,” Tesla CEO Elon Musk wrote in a memo to staff. “This will enable us to be lean, innovative and hungry for the next growth phase cycle.” 

    Tesla on April 23 is expected to report a drop in first-quarter earnings, and Wall Street will be looking for answers on the company’s conference call. Tesla is also under pressure to deliver on its previous pledge to roll out a more affordable EV, dubbed the Model 2, amid reports the project is delayed.

    “We need to hear the rational for the cost-cutting, the strategy going forward, product roadmap and an overall vision from Musk, otherwise many investors might head for the elevators during this category 5 perfect storm of weak demand that Tesla is seeing globally in 2024,” Wedbush Securities analysts said in a report. 

    Electric vehicle sales rose only 2.7% to just over 268,000 in the first quarter, down from the 47% jump that fueled record sales in 2023, according to CBS News Detroit


    Electric vehicle sales down in the U.S.

    01:49

    For Musk, the timing of the planned layoffs of thousands of workers is awkward. Tesla also filed this week to have shareholders vote again on a controversial $56 billion compensation package awarded to Musk for 2018. A Delaware judge voided the pay arrangement in January after lawyers for shareholders argued that Musk had set the terms in sham negotiations with directors beholden to him. 

    In a proxy filing on Wednesday, Tesla also stated it would hold a vote on moving its state of incorporation to Texas from Delaware. Tesla is set to hold its annual shareholders meeting on June 13.

    —The Associated Press contributed to this report.

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  • 4/15: Prime Time with John Dickerson

    4/15: Prime Time with John Dickerson

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    4/15: Prime Time with John Dickerson – CBS News


    Watch CBS News



    John Dickerson reports on the start of the criminal trial of Donald Trump, Israel’s possible plans after an attack from Iran, and a billion-dollar investment in microchip manufacturing in the U.S.

    Be the first to know

    Get browser notifications for breaking news, live events, and exclusive reporting.


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  • TechCrunch Mobility: Cruise robotaxis return and Ford’s BlueCruise comes under scrutiny | TechCrunch

    TechCrunch Mobility: Cruise robotaxis return and Ford’s BlueCruise comes under scrutiny | TechCrunch

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    Welcome back tTechCrunch Mobility — your central hub for news and insights on the future of transportation. Sign up here — just click TechCrunch Mobility — to receive the newsletter every weekend in your inbox. Subscribe for free.

    It was another wild week in the world of transportation, particularly in the EV startup and automated driving industries. Sure, Cruise got our attention by announcing a return of sorts. But there’s a lot more to read about, including Indian ride-hailing giant Ola exiting the U.K., Australia and New Zealand; a feature on a New York–based startup that wants to bring curbside EV charging to lamppostsUber Eats launching a TikTok-like video feature; and contract manufacturer Magna piloting humanoid robots developed by Sanctuary AI.

    Oh, one more thing — reporter Rebecca Bellan is back! I know readers missed her, so show her a bit of love by sending her some tips at rebecca.bellan@techcrunch.com.

    Let’s go! 

    A little bird

    Founders, investors, engineers, policy wonks and others tell us things. And we’re here to pass along the verifiable information that those little birds have shared with us.

    Got a tip for us? Email Kirsten Korosec at kirsten.korosec@techcrunch.com, Sean O’Kane at sean.okane@techcrunch.com or Rebecca Bellan at rebecca.bellan@techcrunch.com. If you prefer to remain anonymousclick here to contact us, which includes SecureDrop (instructions here) and various encrypted messaging apps.

    Deal of the week

    money the station

    Just a bunch of deals this week!

    Basemark, a Finnish company that developed AR and computer vision software used by automakers, raised €22 million ($23.6 million) in a Series B round led by ETF Partners. Other backers include Finnish Industry Investment, Constructor Capital, Business Finland, the European Innovation Council and private investors.

    Bumper, an automotive fintech startup sector, raised £2 million in a Series B extension round that included backing from Suzuki Global Ventures and Marubeni Ventures.

    Carrar, an Israeli startup that provides battery modules and thermal management systems for EVs, raised $5.3 million in a Series A round that included new investors Salida B.V., OurCrowd, and NextGear, as well as current backers Gentherm, NextLeap Ventures, Dive Digital and others.

    Exoes, a French-based startup that developed battery cooling technology for EVs, raised €35 million ($37.5 million) from BpiFrance and Meridiam Green Impact Growth Fund.

    HysetCo SAS, a startup that rents hydrogen-powered EVs to taxi drivers in Paris, raised nearly €200 million ($218 million) in a round led by Hy24. Raise Impact and Eiffel Investment Group also participated.

    Yoshi Mobility, a Nashville-based startup that developed an app to offer drivers preventative maintenance, virtual vehicle inspections and electric vehicle charging, raised $26 million in a Series C round led by General Motors Ventures. Bridgestone Americas, Universal Motors Agencies and Shikra Limited also participated.

    Notable reads and other tidbits

    ADAS

    The National Transportation Safety Board (NTSB) said the driver of a Ford Mustang Mach-E who crashed into a stationary car in Texas in February was using the hands-free driver-assistance system known as BlueCruise. This is the first known fatality resulting from a crash involving the use of BlueCruise. The NTSB announcement came a day after the safety board announced it’s probing a second fatal crash near Philadelphia where Ford’s driver-assistance system may have been active.

    Autonomous vehicles

    GM’s self-driving car subsidiary Cruise is back. Sort of. The company is redeploying robotaxis, but not in its home city of San Francisco. Instead, Cruise is setting up shop in Phoenix and all of its autonomous vehicles will be driven manually by employees. Here’s the odd part: Cruise says it will be creating maps and gathering road information in Phoenix, a city where it has had a presence (and has driven autonomously) since at least 2020. That means it has mapped these roads before.

    Going all the way back to mapping has me a bit confused. Is this theater or does Cruise see a need to restart its entire process due to concerns about the underlying technology?

    Cruise has also petitioned California regulators to reinstate its permits to operate in San Francisco. Will we see the company mapping its hometown yet again, or will it jump back in with a robotaxi service?

    Meanwhile, Waymo officially launched paid rides in Los Angeles this week. We previously reported on California regulators’ approval of the Alphabet-owned company to charge for its robotaxi service in the city. The service is starting out small and will build based on demand and performance metrics, a Waymo spokesperson told TechCrunch.

    Electric vehicles, charging & batteries

    Elon Musk’s decision to green-light a robotaxi over an affordable EV might cost the company its lead, TC reporter Tim De Chant writes.

    Exponent Energy, the Indian battery-tech company that claims to have developed 15-minute charging technology, has partnered with auto manufacturer Omega Seiki Mobility to deliver a passenger three-wheel EV with those rapid-charging capabilities.

    Faraday Future is now grappling with two internal whistleblowers. Both former employees have filed lawsuits claiming the troubled EV company has been lying about some of the few sales it has announced to date. They also claim founder Jia Yueting has “weaponized” the EV startup’s HR department to retaliate against anyone who speaks up about these alleged misrepresentations.

    Lucid Motors delivered more EVs in the first quarter of 2024 than it has in any other quarter, though it set the record by a very slim margin.

    Tesla dropped the monthly subscription price of its “Supervised FSD” (formerly known as “FSD Beta”) to $99, down from $199, in a bid to get more dollars and data from drivers.

    Ride-hail

    Lyft and Uber said they will pause on their planned exit from Minneapolis after city officials decided to delay the start of a driver pay raise by a couple of months.

    Miscellaneous

    Check out this deep dive into Neural Concept, a company that’s using AI to help engineers make more aerodynamic vehicles for racing, automotive and aerospace industries.

    This week’s wheels

    Image Credits: Kirsten Korosec

    I’m back in a Mercedes EV, this time a 2024 Mercedes EQE 350 4MATIC. The model retails at $77,900, not including the destination fee. The version I drove came in at $97,615, due to all sorts of options, like a 10-degree rear axle steering system, head-up display, air suspension, AMG exterior and a $1,250 driver-assistance system.

    There are a number of improvements from the previous model year, including a new braking system, a heat pump to help improve driving efficiency in winter conditions, a 20-mile improvement in battery range, 20-inch wheels, power opening port door for charging and a better user interface (in my opinion) on the central infotainment.

    What I really wanted to try was the advanced driver-assistance system, and specifically the automatic lane change feature, which I had yet to test.

    Within the infotainment center, the driver can choose either “manual” or “automatic” lane change options. When the automatic feature is selected and the ADAS is on, the vehicle will make automatic lane changes without driver input. Here’s how it works. I was driving in the right lane on the highway with ADAS engaged. As the car approached slower traffic, an arrow appeared on the instrument cluster (see photo), the system turned my indicator on and then made the lane change. This can be overridden by holding the steering wheel and keeping it in the lane.

    My thoughts? The system worked seamlessly and I could see using it on occasion. The question is whether drivers want to cede that kind of control.

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    Kirsten Korosec

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  • Ford looks to convert Tesla owners with ‘Conquest Bonus Cash,’ offering $1,500 rebates for F-150 Lightning and Mustang Mach-E electric vehicles

    Ford looks to convert Tesla owners with ‘Conquest Bonus Cash,’ offering $1,500 rebates for F-150 Lightning and Mustang Mach-E electric vehicles

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    The market for electric vehicles has slowed down recently, and Ford is taking aim at the top EV maker, offering a special rebate to lure Tesla owners.

    A new Ford incentive dubbed the “Tesla Competitive Conquest Bonus Cash” offers existing Tesla owners an additional $1,500 off the price of a new Ford F-150 Lightning electric pickup truck, Ford Authority reported on Thursday.

    A Ford source confirmed the rebate to Yahoo Finance, which added that it also applies to the Mustang Mach-E electric SUV and runs through July 8 for both 2024 and 2023 model years. In addition, Tesla owners don’t have to trade in their EVs to claim the cash, and only have to prove ownership, the report said.

    Ford told Business Insider the “Conquest” bonus was launched on April 3. A representative for Tesla didn’t immediately respond the Fortune’s request for comment.

    Ford’s rebate for Tesla owners comes as the Michigan automaker recently cut the price on certain trims of the F-150 Lightning, which has a starting sticker price of just under $50,000. Meanwhile, the Mustang Mach-E starts at just under $40,000.

    To be sure, Ford hasn’t just singled out Tesla owners with its rebates. Ford Authority reported earlier that it has also targeted Chevy and Dodge owners as well as Jeep owners.

    But the latest moves add more price pressure on the EV market, which had already seen Tesla unleash a wave of earlier cuts with consumer demand for EVs overall waning in favor of hybrid models. Rivals like China’s BYD have responded with their own cuts.

    Amid demand issues and rising competition, Tesla stock has plunged more than 30% year to date, raising alarm bells on Wall Street—even among once-staunch supporters.

    Wedbush Securities tech analyst Dan Ives, who has been a Tesla bull since he started covering the company in 2018, warned in a Thursday research note that Elon Musk and company are going through a “Category 5 demand storm” in the EV market. 

    He said Tesla is currently stuck between “two waves of growth”—the first led by spiking high-end EV sales, and a second, which should come from mass-market EVs and robo-taxis. But despite this narrative, “patience is starting to wear very thin among investors,” Ives said.

    That comes after Reuters reported last week that Tesla had abandoned plans to build a mass-market, sub-$30,000 EV called the Model 2. Musk responded to the report in a post on X, saying simply that “Reuters is lying (again),” without clarifying.

    Separately, Bank of America analysts said in a Wednesday research note that demand issues and rising inventories mean Tesla might be forced to cut prices yet again for its EV models unless it’s able to tap into a new market, and that could lead to “mounting profit pressure.”

    “The introduction of a low-priced model (Model 2) remains far away (2026). This leaves pricing as the main lever to stimulate demand (which we note has not worked very well so far),” they wrote.

    Subscribe to the Eye on AI newsletter to stay abreast of how AI is shaping the future of business. Sign up for free.

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    Jason Ma

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  • Tesla settles lawsuit over fatal crash involving driving software

    Tesla settles lawsuit over fatal crash involving driving software

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    Tesla has settled a lawsuit brought by the family of a Silicon Valley engineer who died in a crash while relying on the company’s semi-autonomous driving software.

    The amount Tesla paid to settle the case was not disclosed in court documents filed Monday, just a day before the trial stemming from the 2018 crash on a San Francisco Bay Area highway was scheduled to begin. In a court filing requesting to keep the sum private, Tesla said it agreed to settle the case in order to “end years of litigation.”

    Shares of Tesla Inc., down 30% this year, slipped 1% before the market opened Tuesday.

    The family of Walter Huang filed a negligence and wrongful death lawsuit in 2019 seeking to hold Tesla — and, by extension, its CEO Elon Musk — liable for repeatedly exaggerating the capabilities of Tesla’s self-driving car technology. They claimed the technology, dubbed Autopilot, was promoted in egregious ways that caused vehicle owners to believe they didn’t have to remain vigilant while they were behind the wheel.

    Evidence indicated that Huang was playing a video game on his iPhone when he crashed into a concrete highway barrier on March 23, 2018.

    After dropping his son off at preschool, Huang activated the Autopilot feature on his Model X for his commute to his job at Apple. But less than 20 minutes later, Autopilot veered the vehicle out of its lane and began to accelerate before barreling into a barrier located at a perilous intersection on a busy highway in Mountain View, California. The Model X was still traveling at more than 70 miles per hour (110 kilometers per hour).

    Huang, 38, died at the gruesome scene, leaving behind his wife and two children, now 12 and 9 years old.

    The case was just one of about a dozen scattered across the U.S. raising questions about whether Musk’s boasts about the effectiveness of Tesla’s autonomous technology fosters a misguided faith the technology, The company also has an optional feature it calls Full Self Driving. The U.S. Justice Department also opened an inquiry last year into how Tesla and Musk promote its autonomous technology, according to regulatory filings that didn’t provide many details about the nature of the probe.

    Tesla, which is based in Austin, Texas, prevailed last year in a Southern California trial focused on whether misperceptions about Tesla’s Autopilot feature contributed to a driver in a 2019 crash involving one of the company’s cars.

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    The Associated Press

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  • TechCrunch Mobility: Apple layoffs, an EV price reckoning and another Tesla robotaxi promise | TechCrunch

    TechCrunch Mobility: Apple layoffs, an EV price reckoning and another Tesla robotaxi promise | TechCrunch

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    Welcome back tTechCrunch Mobility — your central hub for news and insights on the future of transportation. Sign up here — just click TechCrunch Mobility — to receive the newsletter every weekend in your inbox. Subscribe for free.

    Automakers reported auto sales for Q1 and, welp, turns out that pricing sure does matter if you want to sell EVs. Who would have thought? A recent survey by Edmunds comes to a similar conclusion (at least for American buyers), finding a big gap between what consumers want and what is actually available on the market.

    Here’s the crux. According to the Edmunds survey, 47% say they are seeking an EV purchase below $40,000, and 22% are interested in EVs priced below the $30,000 threshold. Today, there are no new EVs priced below $30,000 and only four below the $40,000 mark. The average price of an EV in 2023 was $61,702, while all other vehicles stood at $47,450.

    This mismatch of realities is squeezing automakers as they try to move inventory by slashing prices. This downward pressure has forced automakers like Ford to delay future EV launches and put more resources toward hybrids. Even Tesla, a bellwether in the EV world, fell well below analysts’ expectations with deliveries down 20% from Q4 2023. Meanwhile, EV upstart Rivian posted tepid results.

    What’s the answer? Well, over at Tesla, it seems the solution is twofold: slash prices again and try to capture revenue through sales of its Full Self-Driving software that costs $12,000 and is currently being offered in a free one-month trial to all customers.

    OK, folks, let’s jump into the rest of the news!

    A little bird

    Founders, investors, engineers, policy wonks and others tell us things. And we’re here to pass along the verifiable information that those little birds have shared with us.

    This week, a little bird tipped us on the closure of Ghost Autonomy, which had raised upward of $220 million and recently partnered with OpenAI. A couple of calls, emails and a fresh posting on the company’s website confirmed the tip. About 100 people were affected.

    As I noted in my article, Ghost has pivoted a few times since it was founded in 2017. When I asked founder and CEO John Hayes what happened, he said the company had completed a highway driving product and was moving in urban environments through what he described as “last-mile delivery.”

    “Ultimately, the years required to bring the product to market could not be financed,” he wrote to me in an email.

    Got a tip for us? Email Kirsten Korosec at kirsten.korosec@techcrunch.com or Sean O’Kane sean.okane@techcrunch.com. If you prefer to remain anonymousclick here to contact us, which includes SecureDrop (instructions here) and various encrypted messaging apps.

    Deal of the week

    money the station

    Startup founders, listen up — a new fund just closed. Get your slide decks ready.

    Maniv, the Israel and now NYC-based VC firm, raised a $140 million fund with plans to stick to its early-stage investment strategy of backing startups at the intersection between mobility, transportation and energy.

    As I noted in my longer feature, the firm’s approach has evolved a bit by expanding geographically and diversifying its investor base. The firm has also largely stopped using the once trendy umbrella term “mobility” (often leaving it out of its original name Maniv Mobility) and has opted instead to talk about deep tech, decarbonization and digitization of the transportation sector.

    Investors in the fund are no longer dominated by automakers and Tier 1 suppliers. Instead, Maniv has opened up to a broader swath of strategic and institutional financial investors, including BNP Paribas Personal Finance and the venture arms of Shell and Enterprise Mobility.

    The Maniv III fund also includes return investors Valeo and Jaguar Land Rover venture arm InMotion Ventures. Toyota Motor Corp.’s Woven Capital, vehicle leasing company Arval, transportation infrastructure giant Ferrovial, the industrial manufacturing firm ITT Inc., fleet payments business WEX and an unnamed European insurance company also participated in the fund.

    Other deals that got my attention …

    Alsym Energy, a Massachusetts-based startup developing nonflammable battery chemistry, raised $78 million in a Series C round led by General Catalyst and Tata, the Indian conglomerate, with participation from Drads Capital, Thomvest and Thrive Capital.

    BlaBlaCar, the French carpooling and bus ticketing company, secured a €100 million revolving credit facility ($108 million at today’s exchange rate).

    Notable reads and other tidbits

    Autonomous vehicles

    Waymo and Uber expanded on an ongoing partnership that will affect Uber Eats’ customers in the metro Phoenix area. Now when folks order a burrito or a pizza or some other treat through Uber Eats, they may have their meals delivered by a Waymo vehicle. The tie-up will begin with select merchants in Chandler, Tempe and Mesa, including restaurants like Princess Pita, Filiberto’s and BoSa Donuts.

    Electric vehicles, charging & batteries

    Apple is laying off 614 employees in California after abandoning its electric car project. According to the WARN notice posted by the California EDD, most of the affected employees were working at buildings related to its canceled car project, while others were working at a facility for its next-generation screen development, Bloomberg reported.

    Canoo finally reported its Q4 and full-year earnings. Tucked inside the regulatory filing is a nugget regarding the use of CEO Tony Aquila’s private jet — just one of many expenses that illustrates the gap between spending and revenue at the EV startup. Tl;dr: Canoo spent double its annual revenue on the CEO’s private jet in 2023.

    Faraday Future narrowly avoided an eviction from its Los Angeles headquarters. The company reached an agreement with the owner of the building, Rexford Industrial, to stay at the facility as long as it meets a few conditions. If Faraday violates any of the terms, Rexford has the right to trigger a 48-hour demand for payment and can boot the startup if it doesn’t pay up. If Faraday Future makes its payments, it can stay in the building until September 2025 when the lease expires.

    The National Highway Traffic Safety Administration opened a third investigation into Fisker’s Ocean SUV, this time centered on problems getting the doors to open.

    Tesla is reportedly abandoning its plan to build a lower-cost EV thought to cost around $25,000, according to Reuters, despite that vehicle’s status as a pivotal product for the company’s overall growth. Apparently, Tesla will instead focus on a planned robotaxi that is being built on the same small EV platform that was also supposed to power the lower-cost vehicle. This is where it gets a bit silly. Just hours after Tesla CEO Elon Musk said Reuters was lying, he posted on X that the Tesla robotaxi would be revealed August 8. Go figure.

    This week’s wheels

    This week’s wheels is taking a one-week hiatus while I enjoy a bit of vacation time. But don’t worry, it’s back next week and I have a few vehicles lined up, including the Mercedes-Benz EQE 350 4Matic sedan, a Lexus LC500 hybrid and a Mercedes eSprinter. Plus, some e-bikes will soon be in the mix.

    What vehicles — including the two-wheeled variety — are you interested in reading about? I’ll put them on my list.

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    Kirsten Korosec

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  • Tesla will unveil a robotaxi on April 8, according to Musk

    Tesla will unveil a robotaxi on April 8, according to Musk

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    Tesla is introducing a robotaxi on August 8, Elon Musk has announced on X a few hours after Reuters published a report that the automaker is scrapping its plans to produce a low-cost EV. Reuters also said that Musk’s directive was to “go all in” on robotaxis built on the company’s small-vehicle platform. Tesla has been promising a more affordable EV with prices expected to start at $25,000 for years, and Musk said as recently as this January that he’s optimistic the model will arrive in the second half of 2025. In response to the report, the Tesla chief tweeted that “Reuters is lying (again).”

    He didn’t clarify which part of the report was a lie, but considering he confirmed that Tesla is unveiling a robotaxi, he likely meant the news organization’s claim that the company pulled the plug on a more affordable EV. At the moment, Tesla’s cheapest vehicle is the Model 3, but its prices start at $39,000. It’ll be interesting to see how the company will make a robotaxi work with its camera-only system — it dropped radar and other sensors, which robotaxi companies like Waymo use extensively, from its driver assistance technologies a few years ago.

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    Mariella Moon

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