Regardless of not being eligible to run for president himself, Tesla (TSLA) CEO Elon Musk is likely one of the names that stood out this election season.
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Though Musk’s political leanings weren’t an absolute secret to those that used his social media platform X (previously generally known as Twitter), his full-on endorsement of Trump after the try on his life on July 13 created a platform for the 2 that may turn out to be mutually useful in the long term.
However politics apart, Elon’s picture as a technological mogul fascinates many and leaves them questioning about his subsequent transfer. Nonetheless, as a person who parrots the gospel of synthetic intelligence, he can also turn out to be the sufferer of his personal creation.
The rumors aren’t true: No, Elon’s Tesla didn’t purchase Ford.
Regardless of strongly believing within the energy of computer-generated synthetic intelligence, Elon Musk and a number of other different corporations and public figures often is the victims of a narrative from an AI-generated rumor mill that has been garnering consideration on social media.
The most important rumor revolves round Tesla’s rumored acquisition of the Ford Motor Firm. Ford (F) has confirmed to native newspapers and publications such because the Houston Chronicle and MySA that that is removed from the reality.
“We do not have a lot to say right here aside from the story’s completely false,” Ford spokesperson Ian Thibodeau informed MySA in an announcement.
In accordance with the San Antonio-area publication, the rumors began on Nov. 7, when an AI-generated video on YouTube claimed that the transaction occurred. Nonetheless, the video failed to offer any proof of the deal happening, because the AI-generated voice solely parrotted easy details about Tesla, its CEO, and Ford all through the video.
Comparable AI-generated movies have additionally unfold rumors of false Tesla acquisitions and product launches on YouTube and different social media websites like TikTok.
In a single video on TikTok, so-called $13,000 “Tesla Houses” had been touted as a housing answer concocted by Elon Musk. In one other video on YouTube, Tesla is falsely revealed to have acquired multinational automaker Chrysler, Jeep, and Dodge father or mother model Stellantis (STLA) .
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Elon’s newfound energy and accountability
With Trump filling the seat within the Oval Workplace come election day, Musk’s affect as one among Trump’s closest allies can profit many Tesla shareholders.
In a notice revealed on Nov. 11, Tesla bull and Wedbush analyst Dan Ives elevated his value goal on Tesla inventory from $300 to $400. Additionally they wrote that a Trump White Home may very well be a “gamechanger for the autonomous and AI story for Tesla and Musk over the approaching years,” particularly since Tesla sees itself as an AI and robotics firm than an automaker.
“We estimate the AI and autonomous alternative is value $1 trillion alone for Tesla and we absolutely count on beneath a Trump White Home, these key initiatives will now get quick tracked because the federal regulatory spiderweb that Musk & Co. have encountered over the previous few years round FSD/autonomous clears considerably beneath a brand new Trump period,” Ives wrote.
“In essence, Musk made a strategic and large wager on a Trump White Home win that shall be generally known as a “wager for the ages” for TSLA bulls as now Tesla and Musk are set to reap the advantages from a brand new friendlier regulatory period within the Beltway forward.”
Associated: Ford’s newest EV plan is a stunning letdown to its loyal staff
Ford’s tattered path to profitability
As for Ford, the EV market has been a dropping sport for its CEO Jim Farley.
The Blue Oval not too long ago knowledgeable its suppliers and plant officers that it’s going to briefly cease constructing new models of its F-150 Lightning electrical pickup truck from Nov. 15 till January 6.
In an announcement to the publication, Ford cited lower-than-expected demand for the Lightning as its cause for the shutdown.
“We proceed to regulate manufacturing for an optimum mixture of gross sales progress and profitability,” Ford stated.
Regardless of calling it an “space of energy” that he “would not commerce for any of our rivals,” the shutdown comes as Farley introduced that Ford’s EV division, recognized internally as Ford Mannequin e, misplaced $1.2 billion in EBIT throughout its Q3 2024 earnings name. This quantity is predicted to complete about $5 billion by the top of the 12 months.
Although the destructive numbers symbolize an enchancment, Farley emphasised that Ford is making an attempt to outlive amidst tougher and harsher market circumstances.
“In our residence market within the U.S., no OEM is immune,” Farley stated. “Since Q1 of final 12 months, EV volumes have grown 35% whereas revenues in complete are flat at $14 billion. Which means the progress on quantity has been absolutely offset by costs.”
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