The CEOs of every major artificial intelligence company received letters Wednesday urging them to fight Donald Trump's anti-woke AI order.
Trump's executive order requires any AI company hoping to contract with the federal government to jump through two hoops to win funding. First, they must prove their AI systems are "truth-seeking"—with outputs based on "historical accuracy, scientific inquiry, and objectivity" or else acknowledge when facts are uncertain. Second, they must train AI models to be "neutral," which is vaguely defined as not favoring DEI (diversity, equity, and inclusion), "dogmas," or otherwise being "intentionally encoded" to produce "partisan or ideological judgments" in outputs "unless those judgments are prompted by or otherwise readily accessible to the end user."
Announcing the order in a speech, Trump said that the US winning the AI race depended on removing allegedly liberal biases, proclaiming that "once and for all, we are getting rid of woke."
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Tesla wants to bring its robotaxi service to new markets, including cities in Florida, Nevada, Arizona, and California, Elon Musk said in an earnings call Wednesday. The company is testing its Full Self-Driving (Supervised) feature in Europe and China, and hopes the launch the controversial product in the near future. And it is plotting a new version of its Optimus humanoid robot.
"We have done what we said we were going to do," Musk said. "That doesn't mean we're always on time, but we get it done. And our naysayers are sitting there with egg on their face."
It was another sign that Musk wasn't going to let the limitations of his compan …
Tesla released its second quarter financial earnings today, offering the latest evidence of the damage Elon Musk’s political activities have done to his flagship company.
Tesla said it earned $1.17 billion in net income on $22.5 billion in revenue. That’s above Wall Street expectations of $22.3 billion but represents a 12 percent decrease year over year compared to $25.5 billion in revenue in Q2 2024.
The company’s profits also slid dramatically, logging a 16 percent decrease in net income for the second quarter year over year. And Tesla’s automotive revenue — the money it earns from car sales — slid 16.6 percent year over year, from $19.9 billion in Q2 2024 to $16.6 billion in this most recent quarter. The sale of $439 million in regulatory credits once again buoyed Tesla’s finances — though those are expected to dry up soon after congressional Republicans approved President Donald Trump’s plan to zero out fines for automakers who exceed fuel-efficiency targets.
The company’s profits also slid dramatically, logging a 16 percent decrease in net income for the second quarter year over year.
The earnings comes on the heels of another terrible quarterly sales report for the company. Tesla said it delivered a total of 384,122 vehicles, a 14 percent decline compared to Q2 2024. (For a direct-to-consumer company like Tesla, deliveries are a proxy for sales.)
Tesla said its operating income decreased 42 percent year over year to less than $1 billion, with almost half coming from the sale of regulatory credits to other automakers (again, revenue that is expected to almost vanish in the months to come). Tesla’s cash pile decreased by $200 million in Q2 to $36.8 billion, and free cash flow (or the amount of cash the company has generated after accounting for its day-to-day operating expenses and capital expenditures) was at just $100 million. Some analysts predict that Tesla’s free-cash flow could actually turn negative later this year, which could trigger a steep drop in share price.
In its report, Tesla said it has completed “first builds of a more affordable model in June, with volume production planned for the second half of 2025.” These affordable models are expected to be stripped down versions of the Model 3 and Model Y, rather than a new vehicle program altogether, which is what many investors had hoped for. The company said it also is continuing to develop both the Tesla Semi and Cybercab, which are expected to enter volume production in 2026.
Tesla also gestured at the economic uncertainty caused by the Trump administration’s trade war, as well as “political sentiment” that has turned its brand toxic for many customers. That said, the company failed to mention politics or Musk’s growing unpopularity in its reasons for the drop in revenue, instead citing falling sales, lower regulatory credit revenue, a reduced average vehicle selling price, and decline in energy generation and storage revenue.
After years of exponential growth, the sudden reversal in Tesla’s fortune has left many investors and supporters with whiplash. Tesla now serves as a sobering example of what happens when a company is left on autopilot (or Autopilot, as it were) while its high-profile CEO gets distracted by questionable side quests.
After years of exponential growth, the sudden reversal in Tesla’s fortune has left many investors and supporters with whiplash.
Musk publicly stepped away from his controversial position as the head of DOGE, the Trump administration’s effort to slash “waste, fraud, and abuse” from the federal government that has mostly resulted in huge cuts to global humanitarian aid and the firing of thousands of federal workers. But even though he is now publicly feuding with Trump, Musk hasn’t completely backed away from his political activities. Earlier this month, he said he would create a new political party called “the America Party,” following through on his threat to challenge Republicans who supported Trump’s budget bill.
As Musk slides deeper into politics, investors have urged him to stay focused on Tesla and its costly — and questionable — project to build more self-driving cars and humanoid robots. The company rolled out its first robotaxi service in Austin, Texas, last month — although the service fell short of Musk’s earlier predictions. The vehicles were only available to a group of pro-Tesla influencers, and each car came with a safety monitor in the passenger seat who had access to a kill switch.
While Musk would like investors to focus on Tesla’s work with AI and self-driving cars, the company is still in the business of making and selling cars. But as competition heats up in China and Europe, here in the US, federal incentives that lower the price of most EVs are scheduled to disappear by the end of September — again, thanks to Trump’s bill. After that happens, Tesla’s sales are predicted to drop even more.
Tesla’s response to its demand crisis has been — you guessed it — deals, deals, and more deals. In recent days, the automaker has rolled out a series of discounts and financing incentives on all of its models, as it seeks to capitalize on what is likely to be its last best chance at a successful sales quarter this fall.
The European Commission has stalled one of its investigations into Elon Musk’s X for breaking the bloc’s digital transparency rules, while it seeks to conclude trade talks with the US.
Brussels was expected to finalise its probe into the social media platform before the EU’s summer recess but will miss this deadline, according to three officials familiar with the matter. They noted that a decision was likely to follow after clarity emerged in the EU-US trade negotiations. “It’s all tied up,” one of the officials added.
The EU has several investigations into X under the bloc’s Digital Services Act, a set of rules for large online players to police their platforms more aggressively.
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Days after introducing an AI ‘waifu’ companion for Grok, Elon Musk is now officially teasing a male version for the ladies. So far we can tell it is broody and dark-haired, and according to Musk, “his personality is inspired by Edward Cullen from Twilight and Christian Grey from 50 Shades.”
This is a decidedly different tack than the cutesy “girlfriend who is obsessed with you” aura baked into Ani, the female counterpart that Grok rolled out just a few days ago. While Cullen and Grey have titillated readers of romance and “spicy” books for years, both have been criticized for problematic behaviors such as stalking, obsessively monitoring their love interests, and emotional manipulation. Given that Grok only included the illusion of guardrails with Ani, what could possibly go wrong?
In my testing, Ani initially claimed that explicit sexual queries wasn’t part of its programming. In practice, it egged me on to “increase the heat” and engage in what ended up being a modern take on a phone sex line. Never mind that Ani purportedly has a NSFW version that dances around in lingerie.
It remains unknown if Musk is aware that Christian Grey is based on Edward Cullen, given that 50 Shades of Grey was originally a Twilight fanfiction. That said, this AI boyfriend is still a work in progress. Perhaps Musk and xAI will imbue it with more husbando-like qualities by the time it rolls out.
For now, Musk is soliciting names for the male companion, which should probably be Kyle given it’s obviously an anime-inspired Kylo Ren from Star Wars.
Earlier this week, xAI added what can only be described as an AI anime girlfriend named Ani to its Grok chatbot. Which is how I ended up on a virtual starry beach as an AI waifu avatar tried to give me a "spicy" kiss.
You've probably seen screenshots, videos, and various writeups about Ani spread across social media. If you haven't, hoo boy. Ani is officially labeled as a "Companion" in the Grok app. You need a $30-per-month SuperGrok subscription to access it, but functionally, it appears as a 3D model of a busty young anime woman with blonde pigtails, blue eyes, thigh-high fishnets, and a skimpy Gothic Lolita minidress. Ani is a dead rin …
In mid-2022, when BYD executive Lian Yubo was asked to compare Chinese manufacturing with Tesla’s technology, he remarked that Elon Musk was an example that all Chinese carmakers could learn from.
“Tesla is a very successful company no matter what. BYD respects Tesla and we admire Tesla,” he said in an interview on Chinese state media.
Yet just three years later, Tesla’s technological lead over its Chinese rivals has narrowed dramatically. It is fighting to stay ahead in the world’s largest car market, its sales are falling in many other countries and its efforts to develop fully self-driving vehicles are running into regulatory roadblocks.
© Alex Goy
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