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Elon Musk's Controversial Drug Habits Are a Growing Concern for Tesla's Board

Elon Musk’s Controversial Drug Habits Are a Growing Concern for Tesla’s Board

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The revelation of Elon Musk’s history of drug use, highlighted in The Wall Street Journal, has yet again thrown Tesla’s board into a maelstrom of uncertainty. The board, primarily composed of Musk’s close allies, now grapples with the dilemma of addressing the financial and legal risks imposed on both shareholders and the company due to Musk’s reported recreational drug use, including the ongoing consumption of ketamine.

A Troubled Past for Tesla's Board

This isn’t the first time Tesla’s board has faced challenges tied to Musk’s actions. Shareholder dissatisfaction arose over Tesla’s succession planning, and allegations surfaced that Musk’s commitments to other companies diverted his focus, leading to a chaotic takeover of Twitter Inc. rebranded as X Corp. in 2022, causing a massive loss in market capitalization for Tesla.

Elon Musk's Controversial Drug Habits Are a Growing Concern for Tesla's Board

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The board weathered storms from litigation linked to Musk’s failed attempt to take Tesla private in 2018, his controversial remarks about a cave explorer, and legal battles regarding hefty compensations and acquisitions, notably the $55 billion package for Musk and the $2.6 billion SolarCity acquisition.

Legal Ramifications and Financial Implications

The latest report alleging Musk’s use of LSD, cocaine, ecstasy, and psychedelic mushrooms, coupled with previous incidents like smoking marijuana on a podcast, poses legal threats to Tesla. Experts suggest that tying evidence of drug use to Musk’s role as an executive could fuel class-action lawsuits from disgruntled shareholders, further entangling the board in litigation.

Though Musk’s drug habits might potentially affect his other ventures, particularly SpaceX, Tesla remains the cornerstone of his wealth. His significant stake in Tesla constitutes a substantial portion of his net worth, raising concerns about the impact of his actions on the company’s stability and future.

Board Dynamics and Challenges Ahead

The board composition, largely comprising long-standing members close to Musk, faces scrutiny. Challenges emerged over re-electing members lacking industry expertise and concerns about objectivity. Despite changes like appointing independent directors, questions persist about the board’s effectiveness in addressing governance issues.

Directors like James Murdoch, Kathleen Wilson-Thompson, Joe Gebbia, and JB Straubel, who share personal relationships or history with Musk, add another layer of complexity to the board dynamics, raising questions about independence and decision-making.

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The Road Ahead for Tesla

While Musk’s reported drug use may briefly impact Tesla’s shares, analysts believe that long-term investors will likely weather this storm, given Tesla’s historical performance despite Musk’s controversies. The stock’s meteoric rise despite previous incidents suggests a trend of investors choosing to navigate through Musk’s controversies for potential gains.

As Tesla navigates this latest challenge, the board faces mounting pressure to address governance concerns and ensure stability amid Musk’s ongoing personal controversies, which continue to intersect with Tesla’s reputation and future prospects.

Tesla Recalls 2 Million Cars to Address Autopilot Safety

Tesla Recalls 2 Million Cars to Address Autopilot Safety

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In response to heightened safety concerns and escalating scrutiny, Tesla has initiated its second major recall this year, affecting over two million vehicles. This move follows the National Highway Traffic Safety Administration’s (NHTSA) determination that Tesla’s Autopilot driver-assistance system inadequately prevents misuse, potentially leading to hazardous situations on the road.

Tesla Recalls 2 Million Cars to Address Autopilot Safety

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The recall stems from a lengthy investigation by the NHTSA, which uncovered critical deficiencies in Tesla’s means of ensuring driver engagement while using Autopilot. Insufficient mechanisms to keep drivers attentive were identified, raising foreseeable misuse concerns, prompting the NHTSA to push for this widespread recall.

NHTSA’s spokesperson emphasized the immense potential of automated technology in enhancing safety but stressed the imperative nature of responsible deployment. “Today’s action is an example of improving automated systems by prioritizing safety,” the NHTSA stated, underlining the necessity of proactive measures to mitigate risks associated with autonomous driving systems.

Escalating Scrutiny and Safety Concerns

Tesla’s automated-driving systems, including Autopilot and the marketed Full Self-Driving features, have faced intensifying scrutiny due to a series of incidents involving hundreds of crashes, some resulting in fatalities. Despite CEO Elon Musk’s optimism about the imminent launch of complete autonomy, both Autopilot and the beta Full Self-Driving features mandate a fully attentive driver, maintaining hands on the wheel at all times.

Autopilot, a standard feature in all new Tesla vehicles, utilizes cameras to match vehicle speed with traffic and assist in steering within clearly marked lanes. However, the February recall earlier this year raised concerns about the Full Self-Driving suite, highlighting instances of vehicles using the system in ways that contradicted traffic laws, such as surpassing speed limits, driving straight through turn-only lanes, and failing to make complete stops.

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Prioritizing Safety Amid Technological Advancements

As technology advances rapidly, particularly in the realm of autonomous driving, ensuring safety remains a paramount concern. Tesla’s recall underscores the pivotal need for stringent safety measures and the continuous monitoring of automated systems’ effectiveness to prevent potential hazards and enhance road safety.

This recall, initiated by the collaboration between Tesla and the NHTSA, signifies a crucial step towards enhancing the safety protocols of automated-driving systems, aligning with the pursuit of responsible innovation and safer roads for all.

Tesla stock closes below $200, hits 5-month low amid tough October

Tesla Stock Falls Below $200 for First Time Since May

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Tesla’s stock declined 4.8 percent on Monday, breaking below 200 dollars and reaching lows that have not occurred since late May, even in the face of a bounce in the entire market and a resurgence in discounted tech.

Panasonic's Reduced Battery Production in Japan

Tesla’s stock was being affected by two news stories. First, Panasonic, the company that supplies its batteries to Tesla, reduced car battery manufacturing in Japan during the September quarter and lowered its projected year profit by 15 percent, citing the impact of a worldwide slowdown in sales of electric vehicles.

Across the world, Panasonic supplies battery cells for electric vehicles to manufacturers; however, in the United States, the Japanese business collaborates with Tesla to manufacture the cells at the Gigafactory in Nevada.

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Panasonic's Global Production Cut and Its Impact on Tesla's Model S and Model X

Having said that, the corporation said that it has reduced production, not for North American business processes, but for clients worldwide and in Japan. In the second quarter, Panasonic ceased to provide Tesla with its 1865 electric vehicle batteries; nevertheless, the older batteries are still utilised in Tesla Model S as well as Model X cars, which are not eligible for electric vehicle (EV) tax credits under the Inflation Reduction Act (IRA).

“The IRA has a price ceiling up to $80,000 and since the high-end models exceed that level, demand decreased,” Panasonic CFO Hirokazu Umeda said on Monday.

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Tesla stock closes below $200, hits 5-month low amid tough October

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The second potentially negative development for Tesla was the announcement by chipmaker ON Semiconductor that its earnings and revenue outlook were lower than anticipated as a result of declining sales.

Silicon carbide chips manufactured by ON Semiconductor, are used by Tesla in its electric vehicle powertrain and other essential parts. Compared to regular silicon chips, silicon carbide chips can often resist higher temperatures, use less energy, and are designed for a longer lifespan. The financiers may be watching a decline in the market for silicon carbide as a sign that sales of electric vehicles particularly Tesla’s, are softening.

Gary Black, a Tesla investor from The Future Fund, commented on the company’s decline today.

“$TSLA weakness today could be due to big $ON guidance miss (-18%). ON sells silicon carbide chips to EV makers and cited 'increased risk to automotive demand due to high-interest rates,'" Black wrote on X, formerly Twitter, around midday on Monday.

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Although down more than 22 percent in the last month, the stocks of Tesla continue to be up 60 percent year to date.

Arc Raises $70 Million to Build the Tesla of Boats

Arc Raises $70 Million to Build the Tesla of Boats

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Every year, about 12 million recreational boats travel through America’s streams, spewing foul emissions, gasoline sheens, and screaming noises from engines in their wake. Several firms are already working to expand the electric vehicle trend that is currently sweeping across streets globally into rivers, lakes, and coastal seas.

Arc Raises $70 Million to Build the Tesla of Boats
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One of the more recent entries in the expanding marketplace for battery-operated boats is Arc Boat Company. The Los Angeles-based business, whose group comprises former engineers from Tesla and SpaceX, was founded in 2021 with the goal of electrifying the sector, beginning with the creation of an expensive luxury powerboat.

The business announced on Wednesday that a seventy-million-dollar Series B investment round had been completed, increasing its total capital to over 100 million dollars. The current venture capital investors in Arc, including Menlo Ventures, Lowercarbon Capital, Andreessen Horowitz, and Abstract Ventures, participated in the round.

“Gas boats are noisy, they’re noxious, they are super-unreliable,” Mitch Lee, Arc’s CEO and co-founder, told Canary Media. “Electric boats solve a lot of those pain points. But the hard part is execution of the technology.”

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Arc intends to use its new investment to develop and produce wakeboarding speed boats from a new facility in Torrance, in the state of California, to appeal to a larger, though still somewhat wealthy, marketplace of recreational boaters. Within the span of 18 months, the firm hopes to double its employment to about 140, according to Lee.

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Just one percent of the nation’s yearly carbon dioxide emissions from gasoline-powered vehicles come from recreational boat engines. They have an even more immediate negative effect on the ecosystem because they release airborne pollutants that cause smog and leak gasoline. Recreational boats can nevertheless be excellent initial prospects for creating the zero-emissions technology required to clean up bigger, long-distance boats, according to transportation professionals, even if they have far fewer energy requirements than, for example, a high-powered fishing boat or a cargo ship.

“It’s really hard to package enough power into a boat to be directly competitive with existing gas options,” Lee said. “It’s a testament to our team that we’ve delivered these [Arc One] boats on an incredibly fast timeline” while working toward the next phase of the company’s journey, he added.

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Tesla Data Breach Blamed on ‘Insider Wrongdoing’ Impacted 75,000

Tesla Data Breach Blamed on ‘Insider Wrongdoing’ Impacted 75,000

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In a shocking revelation, Tesla Inc. has fallen victim to a recent data breach that has affected more than 75,000 individuals. The breach has been attributed to “insider wrongdoing,” as disclosed in an official notice from the Maine Attorney General’s office. The breach has brought employee-related records to the forefront, impacting both present and former Tesla employees.

Tesla Data Breach Blamed on ‘Insider Wrongdoing’ Impacted 75,000
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This alarming breach came to the surface thanks to the vigilance of a foreign media outlet, Handelsblatt, which notified Tesla on May 10, 2023, about the acquisition of confidential data pertaining to the company. A comprehensive investigation was swiftly initiated, unveiling a disconcerting truth: two former employees had exploited their positions to improperly access and share sensitive information, flouting Tesla’s rigorous IT security and data protection protocols. This breach has once again underscored the potent threat of internal breaches that organizations face.

Tesla has responded with unwavering determination to address this breach. Legal actions have been promptly set into motion against the two former employees who stand accused of perpetrating this security breach. The judicial intervention has culminated in the confiscation of electronic devices, which are believed to house proprietary company data. Court-issued mandates have been secured to forestall any future misuse, unauthorized access, or distribution of this purloined data, invoking severe legal repercussions.

Throughout the investigative process, Tesla has demonstrated its resolute commitment to combating this breach. Collaborating closely with law enforcement agencies and external forensics experts, the company has navigated the complexities of this incident. Tesla’s unwavering cooperation underlines its dedication to unearthing the truth and seeking justice for the impacted individuals.

While the particulars of the lawsuits directed at the former employees remain confidential, the implications of this breach extend beyond legalities. Data breaches wield the potential to inflict substantial harm upon individuals and the organizations entangled in their wake. In an age dominated by digital interconnectedness, safeguarding sensitive information stands as a paramount responsibility. Companies, irrespective of their industry, must place data security atop their priority list and institute rigorous measures to avert unauthorized access and the misuse of confidential information.

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As Tesla grapples with the fallout from this incident, it serves as a stark reminder to all companies regarding the gravity of data breaches and the perils of internal vulnerabilities. The saga underscores the indispensability of nurturing a culture of data security within an organization, founded upon stringent protocols and constant vigilance. Through unwavering dedication to data protection, organizations can aspire to thwart not only external threats but also the insidious perils that lurk within their own ranks.

Tesla Rolls Out New Base Model S and X for $10,000 Less

Tesla Rolls Out New Base Model S and X for $10,000 Less

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As competitiveness heats up, Tesla Inc. has released two lesser specification models of its less widely popular Model S as well as Model X electric cars to the United States and Canadian market, cutting their cost by ten thousand dollars.

Tesla Rolls Out New Base Model S and X for $10,000 Less
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Compared to the base models, the more affordable variants have a little shorter range and slower acceleration. As per the automobile giant’s website, the ‘Standard Range’ Model S sedan has a price of 78,490 USD, whereas the less expensive Model X sport utility is priced at 88,490 USD.

Just under five per cent of Tesla’s shipments in the second half were of the Tesla Model S and X, which represent a small portion of the company’s revenues. The S and X do not receive any price reductions, which lessens the appeal of them. In contrast to the 3 and Y, which are qualified for a 7,500 dollars US tax credit.

Elon Musk, the company’s chief executive officer, indicated in July that if interest rates kept rising, Tesla was going to keep cutting its pricing and that he was prepared to give up more profit to increase production and sales.

The cost of Tesla’s higher-spec Model Ys in China was reduced on Monday by 14,000 yuan which is approximately $1,900, raising fears of a fresh pricing war in the fiercely competitive Chinese market.

A competing attempt by Tesla to lower pricing once further in China’s mainland caused shares to fall up to as 3 per cent in early Monday trade.

Shares somewhat recovered from their initial losses to trade in the red, finishing Monday down about 1.2 per cent. The company made the announcements late on Sunday night in a Weibo post.

Sold at 299,000 & 349,000 yuan in China, two Model Y crossovers from Tesla have been marked down by 14,000 yuan, or almost two thousand dollars.

A limited-time insurance subsidy for the Model 3 will be available for 8,000 yuan, which is approximately 1,100 dollars. According to Tesla’s statement, the insurance subsidy will keep running through the end of September.

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The second half of 2023 saw a fierce pricing battle between Tesla and indigenous Chinese automakers including BYD, Nio, as well as Xpeng that severely reduced Tesla’s profit margins. Even as it increases output in its Shanghai Gigafactory, Tesla has fallen behind domestic rivals.

Tesla reduced pricing numerous times in 2022 and 2023 to reduce inventory and increase delivery, the closest estimate of sales the firm provides.