The company introduced a new dual-motor, all-wheel-drive Cybertruck priced at $59,990, making it the cheapest version of the model to date. Chief Executive Officer Elon Musk said the promotional price would be available for 10 days, though it remains unclear what the price will be afterward.

Tesla also reduced the price of its premium Cyberbeast variant to $99,990 from $114,990. The price adjustment suggests the company may be discontinuing its previously introduced “Luxe Package,” which bundled Supervised Full Self-Driving and complimentary access to Tesla’s Supercharger network.

The Cybertruck was initially positioned as a bold competitor to traditional pickups from legacy automakers. However, multiple recalls and quality control concerns have dampened consumer enthusiasm.

Tesla’s broader sales have slowed in recent quarters as competition intensifies and the company introduces fewer new models. The electric vehicle market has also softened following the expiration of the $7,500 federal EV tax credit.

Analysts warn that increasing the share of lower-priced vehicles could put pressure on profit margins unless Tesla offsets the impact through cost reductions or higher software and services revenue.

Musk has signaled a strategic pivot toward robotics and autonomous technology, recently announcing plans to end production of the Model S and Model X to free up factory space for humanoid robot development.

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According to reports from Bloomberg and Reuters, discussions remain at an early stage, but could eventually result in one or more companies folding into SpaceX. Bloomberg reported that one scenario under consideration would merge SpaceX and Tesla, while another would combine SpaceX with xAI, the artificial intelligence firm that owns Musk’s social media platform X.

Reuters reported that a SpaceX-xAI merger could take place ahead of SpaceX’s planned IPO, potentially bringing together Grok, the X platform, Starlink satellites, and SpaceX’s launch operations under a single corporate structure.

Neither SpaceX nor xAI has publicly commented on the talks. However, recent regulatory filings show that two new corporate entities — K2 Merger Sub Inc. and K2 Merger Sub 2 LLC — were registered in Nevada on January 21, suggesting preparations for multiple merger outcomes.

Analysts say each scenario carries strategic advantages. A SpaceX-xAI merger could support Musk’s ambition to place data centers in space, while a SpaceX-Tesla combination could align Tesla’s energy storage business with space-based computing infrastructure.

The potential consolidation also aligns with Musk’s recent efforts to share resources across his companies. In 2025, SpaceX invested $2 billion in xAI, according to The Wall Street Journal, while Tesla disclosed earlier this week that it had also invested $2 billion in the AI startup.

xAI acquired X last year in a deal valuing xAI at $80 billion and X at $33 billion. SpaceX, founded in 2002, was recently valued at approximately $800 billion during a secondary share sale, making it the most valuable private company in the United States.

The Financial Times previously reported that Musk is targeting a June IPO for SpaceX, though Musk’s timelines have historically been subject to change.

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The electric carmaker has already issued an over-the-air software update to correct the issue at no cost to vehicle owners, according to the NHTSA notice.

The recall follows another safety notice issued a day earlier for 12,963 Model 3 and Model Y vehicles over a defect in their battery pack components.

The latest recalls come as Tesla faces increasing regulatory scrutiny over vehicle safety, with several recalls this year related to software and hardware issues across its product line.

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According to data from Cox Automotive shared with Reuters, Tesla accounted for just 38% of EV sales in August, the first time its share has fallen below 40% since October 2017, when it was ramping up Model 3 production.

The decline underscores growing pressure on Tesla, which once commanded more than 80% of the U.S. EV market. While competitors are aggressively launching new models with incentives, Tesla has shifted its focus toward developing robotaxis and humanoid robots, delaying plans for cheaper cars.

Its last new vehicle, the Cybertruck, launched in 2023 but failed to replicate the success of the Model 3 sedan or the Model Y SUV. A refreshed Model Y was also underwhelming, with Tesla now facing a likely second consecutive year of sales decline.

Despite sales rising 7% in July and 3.1% in August, Tesla’s growth lagged behind the broader EV market, which grew 24% and 14% respectively in those months. Analysts warn that the looming expiration of federal EV tax credits at the end of September could further tighten margins.

Cox Automotive’s Stephanie Valdez Streaty said Tesla risks losing ground without new products. “When you don’t have fresh models, your share will start to decline,” she noted.

Adding to the challenges, CEO Elon Musk’s political associations have dented the brand, following his public split with former U.S. President Donald Trump.

Tesla’s board, meanwhile, has proposed a record-breaking $1 trillion pay package for Musk, tied to boosting the company’s valuation to $8.5 trillion over the next decade.

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The agreement, worth 22.8 trillion won, was announced on Monday and will run through 2033. Production will take place at Samsung’s upcoming semiconductor plant in Taylor, Texas, where Tesla’s AI6 chips—key to its self-driving technology—will be produced.

Tesla CEO Elon Musk confirmed the deal in a post on X, describing the agreement as “just the bare minimum,” and hinted that the final value of the partnership could be even greater.

Samsung’s stock jumped nearly 7% following the announcement, hitting its highest mark since September. Other South Korean tech firms, such as Soulbrain Co., also benefited, with shares soaring as much as 16%.

This deal marks Samsung’s most significant contract win since Executive Chairman Jay Y. Lee was cleared of all legal charges earlier in the year. The tech giant has been grappling with low demand and underutilization in its foundry division, which has faced mounting losses.

“Their foundry business has been loss-making and struggling with under-utilization, so this will help a lot,” said Vey-Sern Ling, managing director at Union Bancaire Privée in Singapore. “Tesla’s business may also help them to attract other customers.”

Production at the Taylor plant has been delayed until 2026 due to construction and logistical challenges.

Musk noted he would personally oversee aspects of the chip fabrication process to optimize performance, as Tesla ramps up efforts to deliver fully autonomous vehicles by 2026. Tesla currently uses Samsung’s AI4 chips, while Taiwan Semiconductor Manufacturing Company (TSMC) is developing the AI5 series.

The Samsung-Tesla deal comes amid intensifying competition in the semiconductor industry. Both Samsung and TSMC are racing to develop 2-nanometer fabrication technology, which is expected to define the next generation of AI chips.

While Tesla remains committed to a fast-paced chip development roadmap, the swift transition between chip generations has drawn criticism, especially from customers who purchased earlier Tesla models under the promise of full self-driving capabilities. Tesla stopped offering retrofit hardware upgrades in 2023, citing high costs and technical difficulties.

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Zeekr Challenges Tesla’s Dominance

TECH DIGEST- Chinese electric vehicle (EV) manufacturer Zeekr has made a bold claim, asserting that its new battery technology surpasses industry leaders like Tesla and BYD in charging speed. The company states its upgraded batteries can charge from 10% to 80% capacity in just 10.5 minutes using its ultra-fast charging stations.  

This significant advancement, set to be introduced in the upcoming 2025 007 sedan, is a game-changer for the EV industry. In comparison, Tesla’s Model 3 boasts a charging time of 15 minutes for approximately 175 miles of range.  

Industry experts have expressed both skepticism and optimism regarding Zeekr’s claims. While some believe the company’s vertical integration and substantial resources could enable such a breakthrough, others caution against premature judgment.

Zeekr’s parent company, Geely, a major automotive conglomerate with holdings in brands like Volvo and Lotus, provides a strong foundation for the EV startup. However, the company faces challenges in the global market, including recent tariff hikes imposed by the United States on Chinese-made EVs. As the EV industry continues to evolve rapidly, the competition for charging technology is intensifying. Zeekr’s announcement marks a significant development in this race, but the ultimate impact on the market remains to be seen.

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Tesla Inc. is bracing for significant job cuts, affecting over 6,000 employees across its operations in Texas and California, in line with CEO Elon Musk’s directive to slash the global workforce by more than 10%.

According to a report by Bloomberg, the cuts will heavily impact 2,688 workers in Austin, the city where Tesla’s headquarters and a major factory are located.

These reductions, outlined in a WARN notice filed with the Texas Workforce Commission, are scheduled to commence over a 14-day period starting June 14.

Simultaneously, Tesla intends to lay off 3,332 employees across various locations in California, as indicated by separate WARN notices filed in the state.

Before these layoffs, Tesla boasted a workforce of over 140,000 globally.

However, insiders familiar with the situation suggest that the actual number of affected individuals may exceed 20,000, given the company’s recent announcement of layoffs exceeding 10%.

At the end of last year, Tesla employed over 22,000 individuals in Austin alone. The production facility in Austin primarily focuses on manufacturing the Model Y and Cybertruck, although the specific breakdown of impacted roles, including factory positions, remains unclear.

Despite the announcement of workforce reductions, Tesla’s shares witnessed a 2% increase in New York trading at 3:18 p.m.

However, the stock’s performance throughout the year has been less favorable, with a 42% decline, marking it as the worst-performing stock in the S&P 500 Index.

The decision to cut jobs comes amidst a broader context of transformation and challenges within Tesla.

As the company navigates its shift towards Elon Musk’s vision of a robotaxi future, internal reorganization and strategic realignment are underway, reflecting Tesla’s ongoing evolution in the automotive industry landscape.

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Tech billionaire Elon Musk faces a major threat to his fortune as a Delaware court ruled that he will not get the $55 billion compensation package approved by Tesla’s Board of Directors.

The case against the payment to Musk was filed by Tesla shareholder Richard J. Tornetta on behalf of all company shareholders back in April 2023. Tornetta accused Musk and his board of breaching their fiduciary duties by awarding the billionaire a performance-based equity-compensation plan worth roughly $55 billion.

In the Post Trial Opinion written by Chancellor Kathleen St. Jude McCormick, who oversaw the case, the judge described the plan “as the largest potential compensation opportunity ever observed in public markets by multiple orders of magnitude.” The total amount would be “250 times larger than the contemporaneous median peer compensation plan,” she wrote.

In the ruling, McCormick wrote:“The process leading to the approval of Musk’s compensation plan was deeply flawed. Musk had extensive ties with the persons tasked with negotiating on Tesla’s behalf. He had a 15-year relationship with the compensation committee chair, Ira Ehrenpreis.

The other compensation committee member placed on the working group, Antonio Gracias, had business relationships with Musk dating back over 20 years, as well as the sort of personal relationship that had him vacationing with Musk’s family regularly.

“The working group included management members who were beholden to Musk, such as General Counsel Todd Maron who was Musk’s former divorce attorney and whose admiration for Musk moved him to tears during his deposition.

“Maron was a primary go-between Musk and the committee, and it is unclear on whose side Maron viewed himself. Yet many of the documents cited by the defendants as proof of a fair process were drafted by Maron.”

McCormick added that Musk and his team failed to meet its burden of “proving that the compensation plan was fair” during the five-day long trial.

In his first public reaction to the ruling on Wednesday, Musk in a post via his X handle suggested that incorporating Tesla in Delaware was a mistake.

“Never incorporate your company in the state of Delaware,” the billionaire posted.
In a separate post, he went further to say:

“I recommend incorporating in Nevada or Texas if you prefer shareholders to decide matters.”

Musk is also considering changing the state of incorporation of Tesla to another state as he created a poll asking his followers if he should do so.

“Should Tesla change its state of incorporation to Texas, home of its physical headquarters?” Musk asked in the poll.

The ruling leaves the future of Musk’s fortune in limbo. Worth some $51.1 billion, the options were one of his most valuable assets. Without them, his net worth would drop to $154.3 billion, making him the third-richest person in the world after spending most of the past couple of years as No. 1, according to the Bloomberg Billionaires Index.

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TECHDIGEST – Apple’s market capitalization soared past $3 trillion Friday, a historic milestone as the world’s largest company continues to grow larger thanks to resilient profits and product sales.

Shares of the iPhone maker jumped more than 1% to a fresh all-time high of $192 in morning trading and are now up nearly 55% this year.

Now valued at $3.02 trillion, Apple remains the only $3 trillion company in history, having briefly crossed the threshold in January 2022. Apple is nearly $500 billion more valuable than the next-largest company, Microsoft ($2.5 trillion market cap), while Saudi Aramco ($2.1 trillion), Alphabet ($1.5 trillion), Amazon ($1.3 trillion) and Nvidia ($1 trillion) round out the exclusive trillion-dollar club.

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Even after the meteoric rise, Apple can gain another 25% over the next 12 months, Citi analyst Atif Malik wrote in a Friday note, setting a $240 price target for the stock thanks to under-appreciated room for growth in profit margins. Apple would be worth $3.8 trillion should it meet Citi’s target. Apple is worth nearly as much as Tesla, Meta, Berkshire Hathaway, UnitedHealth and Visa—the sixth through tenth most valuable American companies—combined.

Forget $3 trillion, Apple could be worth $4 trillion by 2025, bullish Wedbush analyst Dan Ives wrote in a Wednesday note to clients. The company’s $3,499 headset set to release next year “is the first step in a broader strategy for Apple to build out a generative AI driven app ecosystem for its golden customer base,” Ives gushed.

Wedbush has a $220 price target for Apple stock, above consensus but below Citi’s $240 target, which is the highest of any Wall Street firm, according to Bloomberg.

Apple brought in $394 billion in sales and $100 billion in profit during its most recent fiscal year, making it the second-most profitable company in the world, trailing only Saudi Aramco.

Business news

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TECHDIGEST – Elon Musk has regained his spot as the world’s richest person after briefly losing it to the French tycoon behind luxury-goods powerhouse LVMH, Bernard Arnault.

The CEO of the French luxury brand, Louis Vuitton, dethroned the Tesla boss, pushing him to the number two spot for more than two months.

According to Bloomberg, a surge in Tesla stock has catapulted Musk back to the top of the Billionaires Index.

As of Monday, February 28, after the markets closed, Musk’s net worth was approximately $187.1 billion, surpassing Arnault’s $185.3 billion fortune.

Musk’s wealth was boosted nearly 70% surge in Tesla Inc.’s stock price this year, about 100% from its intraday low on January 6 as investors pile back into bets on riskier growth stocks amid signs of economic strength and a slower pace of Federal Reserve interest-rate increases.

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The company has also benefited from more demand for its electric vehicles after cutting prices on several models.

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