Latest news with #DepartmentofGovernmentEfficiencyprogram
Engadget
02-07-2025
- Automotive
- Engadget
Tesla deliveries drop 14 percent amid Musk backlash
Tesla says it delivered 384,122 electric vehicles in the April-June timeframe, which is a 14 percent drop compared with the same period in 2024. It's also the second quarter in a row that sales have fallen year-over-year (YoY). The company produced 410,244 vehicles in Q2, which is very close to the 410,831 it made during the equivalent period last year. However, the company delivered more vehicles (443,956) than it produced in Q2 2024. That's not the case this time. The number of vehicle deliveries in Q2 2025 plummeted by nearly 60,000 YoY. The line has been trending downwards for a while now. The company saw a dip in annual deliveries for the first time in 2024. For the first quarter of 2025, Tesla reported 336,681 deliveries, which is a drop of 13 percent from the same three-month period in 2024. Multiple reports over the last several months suggested that Tesla sales had been falling in several markets . CEO Elon Musk reportedly fired Tesla's head of manufacturing and operations, Omead Afshar, last week as the numbers continued to sink. Various factors have played a hand in Tesla's declining sales numbers. For one thing, the company (which is focusing more on autonomous driving efforts such as the Robotaxi ) is facing tougher competition, particularly from Chinese manufacturers that are making less-expensive models. And then there's the Musk factor. So much of Tesla's success has been pegged to the public persona of its chief executive. But there's been a significant backlash against Musk in recent years, particularly after he became a major financial backer and advisor to President Donald Trump during the 2024 election campaign. After Trump's inauguration, Musk became the head of the administration's Department of Government Efficiency program, adopting a similar slash-and-burn approach to cost-cutting within the government to the one he undertook at X. Musk formally left his government role in May . In recent weeks, Musk has become an ardent critic of the Trump administration's major tax and spending bill. The proposed legislation — which is no longer officially called The One Big Beautiful Bill Act — passed the Senate on Tuesday and is set for another House vote. The bill includes provisions that could harm Musk's businesses, such as removing incentives for consumers to buy EVs. Trump has threatened to end contracts that Musk's companies have with the government amid a spat between the two men.
Yahoo
08-03-2025
- Business
- Yahoo
Why the iShares Bitcoin Trust ETF Plunged in February
Shares of the iShares Bitcoin Trust ETF (NASDAQ: IBIT) fell 17% in February, according to data from S&P Global Market Intelligence. The BlackRock exchange-traded fund essentially tracks the price of Bitcoin. Like most assets considered risky, the Bitcoin ETF plunged in February, as investors grew skittish over the economy. Those fears were prompted by plunging consumer-sentiment readings, as President Trump threatened tariffs on several countries and large-scale federal layoffs led to fears of an upcoming recession. Bitcoin evangelists have touted its possibilities as a store of value in the event other currencies lose value due to inflation. However, as has been the case in recent market history, the cryptocurrency has really behaved more like a volatile technology stock. In 2022, when inflation shot up, one might have thought Bitcoin would remain resilient as a hedge, as some had believed it would. However, the price actually plunged, just like many other stocks in various sectors, before recovering. The crypto also entered February near all-time highs just over $100,000, with a big bump coming after the November election. President Trump had promised to de-regulate the cryptocurrency industry and make America the "Bitcoin capital of the world." He had also vowed to create a Strategic Bitcoin Reserve. However, the digital token, like many stocks that shot up in the aftermath of the election, soon fell back to earth, as economic uncertainty erased the post-election bump. Tariff fears emerged throughout February, as the administration announced a one-month delay on tariffs on Mexico, Canada, and China set for Feb. 1. Through February, the prospect of tariffs and federal layoffs under the Department of Government Efficiency program ramped up as the deadline drew near, causing several highly negative consumer sentiment readings. The threatened tariffs actually did go into effect on March 4, although on Thursday, the administration soon carved out another one-month delay for certain goods covered under the 2020 U.S.-Mexico-Canada trade agreement. All the uncertainty combined to make investors fear an economic downturn in late February, and therefore flee risk assets, Bitcoin included. It appears Trump is at least making good on one of his promises: to create a Strategic Bitcoin Reserve, or at least in part. On Thursday, David Sacks, the administration's "crypto czar," announced that the president had signed an executive order creating the strategic reserve. However, it won't be funded via new purchases by the government but will rather be formed by retaining the roughly 200,000 bitcoins the government had already seized in criminal and civil proceedings. Sacks pointed out that the government had previously sold off $366 million of seized Bitcoin, and those holdings would have been worth $17 billion today had the government held on to them. He also said the executive order allows for the Treasury and Commerce departments to buy additional Bitcoin in "budget-neutral ways," which likely means without directly using taxpayer funds. Bitcoin evangelists may have been expecting more following the election, as many likely hoped the government would actually purchase the cryptocurrency on a regular basis, increasing market demand. Notably, it remained near its year-to-date lows, even after Sacks' announcement. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $292,207!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $45,326!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $480,568!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon.*Stock Advisor returns as of March 3, 2025 Billy Duberstein and/or his clients have positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy. Why the iShares Bitcoin Trust ETF Plunged in February was originally published by The Motley Fool Sign in to access your portfolio
