Tag: Tesla

Elon Musk Plans to Launch AI Startup to Compete with OpenAI

by Blockchain News

According to recent reports, Elon Musk is planning to launch an AI startup to compete with OpenAI, one of the most popular generative AI companies that he co-founded in 2015. Musk is reportedly assembling a team of AI researchers and engineers for the new venture and is in talks with existing investors from SpaceX and Tesla for investment. The new AI startup will place Musk among other tech giants, such as Google and Microsoft, in the race to build next-gen AI.

The alleged findings complement recent reports that Musk has been procuring nearly 10,000 graphics processing units to power Twitter’s AI initiatives. In addition, Musk has incorporated a company named X (X.AI) and changed the name of Twitter to “X Corp” in company filings as part of his plans to create an “everything app” under the “X” brand.

However, it is worth noting that Musk and more than 2,600 tech leaders and researchers signed an open letter urging a temporary pause on further AI development on March 30, citing “profound risks to society and humanity.”

Meanwhile, Amazon Web Services (AWS) has launched the Bedrock initiative to allow its users to build generative AI from foundation models. This move by AWS is another sign that tech companies are heavily investing in AI and trying to develop their own AI capabilities.

In conclusion, Elon Musk is reportedly launching an AI startup to compete with OpenAI, and is in talks with existing investors from SpaceX and Tesla for investment in the new venture. Musk’s recent incorporation of X (X.AI) and his plans to create an “everything app” under the “X” brand suggest that he is making significant investments in AI. Additionally, AWS’s Bedrock initiative highlights the ongoing efforts by tech companies to develop their own AI capabilities. While AI holds enormous potential for advancing society, it is crucial that the development of this technology is done in a responsible and ethical manner to minimize potential risks to society and humanity.

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Tesla’s $140 Million Bitcoin Loss Shows the Risk of Crypto Holdings

by Blockchain News

The electric car maker Tesla announced on January 31 that it had incurred a gross impairment loss of $204 million for the year 2022 on its holdings of Bitcoin (BTC). This information was included in a filing that was submitted to the United States Securities and Exchange Commission. During the same time period, Tesla reported a gain of $64 million from changing BTC into fiat money at different periods during the year. Nevertheless, the company’s cryptocurrency trading activities resulted in a net loss of $140 million for the year.

The filing provided more explanation about the effect that fluctuating cryptocurrency values have on Tesla’s bottom line:

“According to the relevant accounting standards, digital assets are categorised as intangible assets with an indefinitely long life. In light of this, if their fair values drop below our carrying values for such assets at any time after their acquisition, we will be required to recognise impairment charges. On the other hand, we are not permitted to make any upward revisions for any market price increases until we actually sell the asset in question. Even if there is a rise in the total market value of these assets, the possibility exists that these charges may have a negative effect on our profitability in the periods in which such impairments occur for any digital assets that are held now or in the future.”

Tesla made an investment in Bitcoin amounting to $1.5 billion during the first quarter of 2021. Elon Musk, the company’s creator, had only just made the announcement that the electric car maker will begin taking Bitcoin payments from customers located in the United States.

Just a few short months later, the decision was reversed because Musk stated the necessity for “confirmation of decent (at least 50 percent) clean energy consumption by [Bitcoin miners with favourable future trend” before the business would once again accept the method of payment. According to recent reports, Tesla liquidated around 75% of its bitcoin holdings during the second quarter of 2022.

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Twitter Sued Amid Musk’s Plans to Lay Off 50% of Employees

by Blockchain News

Elon Musk might be the new owner of the social media giant, Twitter Inc, but he sure isn’t getting off on the right footing.

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The company has recently been sued through a class action lawsuit that seeks to prohibit the firm from laying off over 50% of its staff as planned.

 

Rumors of impending staff retrenchment have always been a major fear since the negotiations leading to the completion of the $44 billion company. According to several reports, Musk started firing the projected 3700 staff on Friday, a move that has drawn criticism from observers across the board.

The class action lawsuit was filed by Shannon Liss-Riordan, the attorney who also took Elon Musk and his electric automaker offshoot, Tesla Inc to court back in June when 10% of the workforce was laid off at the time. Though Liss-Riordan lost the suit at the time, she is confident that Musk cannot continue to thump his feet on the law everywhere he goes.

“We filed this lawsuit tonight in an attempt the make sure that employees are aware that they should not sign away their rights and that they have an avenue for pursuing their rights,” Shannon Liss-Riordan said in an interview.

Specifically, Elon Musk is being accused of breaking both California and Federal laws as the federal Worker Adjustment and Retraining Notification Act (WARN) Act demands that large companies be expected to give a 60-day notification in the case of a layoff. 

The lawsuit, filed in San Francisco demands that Musk and Twitter do the right thing while also preventing staff from signing documents that will make them give up their rights in civil litigation against the company.

As the renowned advocate of Dogecoin (DOGE), the prospect of the lawsuit as well as the rocky start to his tenure as owner of Twitter with ad customers pulling off the platform, the memecoin has derailed on its growth path, dropping by 4.37% to $0.1244, the only coin in the top 10 with a loss over the past 24 hours.

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Twitter Sued Amid Musk’s Plans to Lay Off 50% of Employees

by Blockchain News

Elon Musk might be the new owner of the social media giant, Twitter Inc, but he sure isn’t getting off on the right footing.

LAWSUIT2.jpg

The company has recently been sued through a class action lawsuit that seeks to prohibit the firm from laying off over 50% of its staff as planned.

 

Rumors of impending staff retrenchment have always been a major fear since the negotiations leading to the completion of the $44 billion company. According to several reports, Musk started firing the projected 3700 staff on Friday, a move that has drawn criticism from observers across the board.

The class action lawsuit was filed by Shannon Liss-Riordan, the attorney who also took Elon Musk and his electric automaker offshoot, Tesla Inc to court back in June when 10% of the workforce was laid off at the time. Though Liss-Riordan lost the suit at the time, she is confident that Musk cannot continue to thump his feet on the law everywhere he goes.

“We filed this lawsuit tonight in an attempt the make sure that employees are aware that they should not sign away their rights and that they have an avenue for pursuing their rights,” Shannon Liss-Riordan said in an interview.

Specifically, Elon Musk is being accused of breaking both California and Federal laws as the federal Worker Adjustment and Retraining Notification Act (WARN) Act demands that large companies be expected to give a 60-day notification in the case of a layoff. 

The lawsuit, filed in San Francisco demands that Musk and Twitter do the right thing while also preventing staff from signing documents that will make them give up their rights in civil litigation against the company.

As the renowned advocate of Dogecoin (DOGE), the prospect of the lawsuit as well as the rocky start to his tenure as owner of Twitter with ad customers pulling off the platform, the memecoin has derailed on its growth path, dropping by 4.37% to $0.1244, the only coin in the top 10 with a loss over the past 24 hours.

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Tesla Launches Cyberwhistle by Accepting Dogecoin for Payment

by Blockchain News

American electric vehicle manufacturer Tesla has launched a new product called Cyberwhistle by accepting Dogecoin for payment, according to CEO Elon Musk.

The futuristic Cybertruck inspires the Cyberwhistle whistle. It is specially made of medical-grade stainless steel and polished. The back of the whistle has reserved holes, which can be worn with a string by yourself, creating a unique style accessory with great collection value.

Elon Musk wrote on his official Twitter:

“Blow the whistle! We are working on making the whistle sound much louder.”

Dogecoin, an altcoin cryptocurrency founded in 2013 based on the popular Doge meme, is one of the more colourful coins on the cryptocurrency spectrum.

This product is expected to ship within 4 to 6 weeks. Tesla requires buyers to pay only in Dogecoin (DOGE). The price tag at the time of publication is 1,000 DOGE, including tax and shipping.

According to data from CoinMarketCap, at the time of writing, the meme cryptocurrency has gained about 0.29% over the past 24 hours and is currently ranked 10th by market cap with a market cap of $$8,022,656,050.

The token was trading at $0.06047. One Cyberwhistle would be worth around $60 at current prices.

Tesla said that no other payment methods are accepted for the item and that Dogecoin is the only cryptocurrency currently accepted for specific items.

Therefore, the buyer needs a Dogecoin wallet to pay and ensure the correct amount and address. Due to the privacy of cryptocurrency transfers, the company is not responsible for reversals or refunds.

As a strong advocate of Dogecoin (DOGE) and other Shiba Inu-themed meme coins, his post propelled Dogecoin to an all-time high of 67 cents last May.

Musk tweeted “Dog Daddy on SNL on May 8” and announced that he would be hosting “The Saturday Night Show” as “Dog Daddy.” The tweet rekindled positive investor sentiment towards Dogecoin, and the meme-based cryptocurrency quickly surging more than 30%.

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Tesla Earns $64m Profits from Selling 75% of BTC Holdings

by Blockchain News

Electric car manufacturer Tesla (TSLA) announced it earned a profit of $64 million from the sale of 75% of its BTC holdings, despite a $170 million impairment loss through the second quarter of 2022.

According to the statistics of “BitcoinTreasuries”, Tesla currently holds 10,800 bitcoins (current price is about $237 million), which is still the second largest listed company in the United States, followed by MicroStrategy.

Previously, Tesla announced that it had sold $936 million worth of its Bitcoins or 75% of its holdings in the second quarter. The company reported the revelation in its earnings report last Wednesday.

The company added $936 million worth of cash sales to its balance sheet to increase its cash flow in response to China’s lockdown due to COVID-19.

The company may increase or decrease its digital asset holdings over time, according to the SEC filing:

“As with any investment and consistent with how we manage fiat-based cash and cash equivalent accounts, we may increase or decrease our holdings of digital assets at any time based on the needs of the business and on our view of the market and environmental conditions. “

This should not be taken as some verdict on Bitcoin. Tesla’s CEO Elon Musk added that Tesla is open to increasing its crypto holdings in the future.

In addition, in the filing, Tesla earned $2.27 per share in the second quarter on revenue of $16.93 billion. Although profitability was down compared to the first quarter, it was up from a year ago.

Tesla also raised its capital project spending plan for this year and the next two years by about $1 billion, which the company said is expected to reach between $6 billion and $8 billion a year in the next few years.

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Tesla Sold 75% Bitcoin Holdings in Q2, Worth $936m

by Blockchain News

Electric car manuficaor Tesla (TSLA) announced that it sold $936 million worth of its Bitcoins or 75% of its holdings in the second quarter. The company reported the revelation in its earnings report on Wednesday.

“As of the end of Q2, we have converted approximately 75% of our Bitcoin purchases into fiat currency,” Tesla stated in its second-quarter earnings report announced on Wednesday. The firm added the sales worth $936 million in cash to its balance sheet.

Musk commented in the earnings call on Wednesday: “The reason we sold a bunch of our bitcoin holdings was that we were uncertain as to when the Covid lockdowns in China would alleviate, so it was important for us to maximize our cash position. This should not be taken as some verdict on bitcoin,” he added that “Tesla is open to increasing its crypto holdings in the future.”

Tesla ended the second quarter with Bitcoin holdings worth $218 million, down from $2 billion in the past three quarters.

The fair market value of Tesla’s Bitcoin holdings reached $2.48 billion in the first quarter of last year and ended the year at about $2 billion. While the company did not mention what price it sold its Bitcoins or show the size of its impairment, Bitcoin began the second quarter this year at around $46,000 and ended below $19,000.

The firm held an estimate of 42,000 Bitcoins at the start of the second quarter. The sales of 75% of those BTCs worth $936 million means that Tesla’s average selling price was about $29,000 per Bitcoin.

Bitcoin ended the second quarter at a trading price of about $18,700. This means Tesla avoided a significant impairment charge on its holdings by selling earlier in the quarter.

In February of last year, Tesla announced a purchase of $1.5 billion worth of the cryptocurrency using its balance sheet capital. In March last year, the company announced that it would soon accept the most popular and largest cryptocurrency as a mode of payment for purchases of its electric vehicles. The announcement sent the prices of most cryptocurrencies substantially higher and cemented Musk as a de facto crypto leader.

In April 2021, Tesla sold $272 million of its Bitcoin holdings during Q1 to demonstrate to users that the crypto is a good investment. The firm said that the sales of Bitcoins contributed $101 million toward its bottom line (profitability) and accounted for a reduction in the company’s operating expenses.

For the company, Bitcoin has proven to be a good place to put some cash that is not being used for daily operation and be able to get some return on it.

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Elon Musk Sued by Twitter Investors for Delayed Disclosure

by Blockchain News

Twitter investors are out for Elon Musk, the Chief Executive Officer of electric auto manufacturer Tesla Inc for causing them some punitive damages.

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According to The Guardian and multiple sources, the group of investors said Elon Musk saved himself about $156 million for failing to disclose that he had purchased more than 5% of Twitter shares by March 14.

The investors said Musk continued to acquire the social media giant’s shares and, by so doing, profited from a relatively low price before finally announcing the acquisitions in early April.

The investors are led by Virginia resident William Heresniak who noted that “By delaying his disclosure of his stake in Twitter, Musk engaged in market manipulation and bought the Twitter stock at an artificially low price.”

The lawsuit was filed in San Francisco, and William and his fellow investors wish for the case to be classified as a Class Action. They are demanding an undisclosed amount of money in compensation for all punitive and compensatory damages.

The Elon Musk acquisition of Twitter is currently being dragged on for a long as the billionaire said he wants the company to provide proof that spambots do not exceed 5% of the social media’s total user base. In the lawsuit filing, the investors said the company’s proposed acquisition is currently under “major peril” since the Tesla shares that Musk pledged as collateral to acquire the firm has slumped from $1,000 when the deal was unveiled to $709 at the time of writing.

Musk, however, is still very committed to the acquisition as he reportedly secured a new $6.25 billion equity funding earlier this week. This complements the growing contributions from Venture Capital firms, including Sequoia Capital and Binance and aligns with Musk’s commitment to championing freedom of speech on the social media platform.

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Twitter Responds to Elon Musk’s Takeover Bid With ‘The Rights Plan’

by Blockchain News

In the latest twist of events between Tesla’s boss Elon Musk and microblogging platform Twitter, Twitter’s board of directors, in reply to Musk’s attempt to buy over the platform and take it private in a $43 billion bid, have jointly agreed to activate the Rights Plan.

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Last Friday, the announcement disclosed details to the US Securities and Exchange Commission.

Informally referred to as the ‘Poison Pill’, The Rights Plan is a strategy companies deploy against an aggressive takeover. It has been around for decades, and it’s known to work. The strategy is deployed to wade off Musk’s unsolicited takeover bid.

The approach becomes effective when an individual or entity, in this case, Musk, acquires more than a 15% stake in a deal not approved by the board, forcing Twitter, without authorisation from it, to flood the market with its shares. Hence permitting shareholders to acquire more shares at a discount as well as neutralising his shares and keeping the board in control against an unsolicited takeover. The plan is expected to last until April 14, 2023.

The approach deployed by the board will lower the chances of an individual or entity securing command over the platform via open market accumulation without paying all shareholders a control premium. Also, allowing the board enough time to make an informed decision in the forum’s interest. The board also noted that the strategy does not stop it from considering future bids as long as it is in the best interest of the firm and its shareholders.

Options open to Musk

The Tesla boss is reportedly in discussions with other investors to support and partner with his $43 billion bid to acquire the microblogging platform. He could collaborate with Silver Lake Partners – an international equity outfit that focuses on investment in technology.

Musk could also acquire the platform through a “proxy fight”, a situation whereby the company’s shareholders vote to maintain or evict the board’s current directors. Musk can also approach the court to contest the board’s plan, but success via this route is not guaranteed as no court has overturned the poison pill in three decades.

Some of Twitter’s investors, including Saudi Prince Alwaleed bin Talal, have already voiced their displeasure about Musk’s proposal, and the takeover attempt has further been waded off as Vanguard Group has increased its stake to 10.2% of Twitter, a higher stake than Musk’s and the firm is possibly not going to sanction the Dogecoin lover’s takeover attempt.

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Bitcoin (BTC) $ 25,799.91 3.79%
Ethereum (ETH) $ 1,815.51 3.05%
Litecoin (LTC) $ 87.48 6.38%
Bitcoin Cash (BCH) $ 109.40 3.74%