Ghislaine Maxwell and Elon Musk attend the 2014 Vanity Fair Oscar Party Hosted By Graydon Carter on March 2, 2014 in West Hollywood, California.
Kevin Mazur | vf14 | Wireimage | Getty Images
A federal judge ruled Wednesday that the U.S. Virgin Islands can serve a subpoena for Elon Musk to his electric car company Tesla, as part of the government’s lawsuit against JPMorgan Chase over the bank’s ties to dead sexual trafficker Jeffrey Epstein.
The ruling came days after lawyers for the USVI government told Judge Jed Rakoff they had been unable to serve the Tesla CEO personally with the subpoena demanding documents related to Epstein and JPMorgan.
The Virgin Islands is suing JPMorgan in U.S. District Court in Manhattan for allegedly enabling and financially benefiting from Epstein’s sex trafficking of young women. The late financier and sex criminal had been a customer of the bank from 1998 through 2013. JPMorgan denies any wrongdoing.
On April 28, the USVI issued a subpoena to Musk because of suspicion that Epstein “may have referred or attempted to refer” Musk as a client to JPMorgan, according to a court filing Monday.
That subpoena demands that Musk turn over any documents showing communication involving him, JPMorgan and Epstein, as well as “all Documents reflecting or regarding Epstein’s involvement in human trafficking and/or his procurement of girls or women for consensual sex.”
CNBC Politics
Read more of CNBC’s politics coverage:
The USVI said in a court filing Monday that an investigative firm it had retained had been unable to locate Musk to serve him in person with the subpoena, as is the norm.
The filing also said that a lawyer for Musk did not reply to a request that the attorney accept the subpoena for his client.
Rakoff, in his order Wednesday, authorized the USVI to “arrange alternative service of its Subpoena to Produce Documents by serving Elon Musk via service upon Tesla Inc.’s registered agent.”
Musk didn’t immediately respond to a request for comment.
The USVI also has issued similar subpoenas for documents related to Epstein and JPMorgan to Google co-founders Larry Page and Sergey Brin, former Disney executive Michael Ovitz, Hyatt Hotels executive chairman Thomas Pritzker and Mort Zuckerman, the billionaire real estate investor.
JPMorgan CEO Jamie Dimon is scheduled to be deposed on May 26 for the lawsuit and for a related suit against the bank by a woman who says Epstein sexually abused her.
Muks in a tweet Monday night had blasted the idea of that he be given a subpoena in the case.
“This is idiotic on so many levels,” Musk wrote on Twitter, which he bought and took private last year.
“That cretin never advised me on anything whatsoever,” he wrote, referring to Epstein.
“The notion that I would need or listen to financial advice from a dumb crook is absurd,” Musk added. “JPM let Tesla down ten years ago, despite having Tesla’s global commercial banking business, which we then withdrew. I have never forgiven them.”
In 2018, Epstein told The New York Times he had been advising Musk after the Securities and Exchange Commission opened a probe into Musk’s comments about taking Tesla private. A Tesla spokesperson told The Times, “It is incorrect to say that Epstein ever advised Elon on anything.”
Epstein killed himself in August 2019, a month after federal authorities arrested him on an indictment charging him with child sex trafficking. He had previously pleaded guilty in 2008 to a Florida state charge of soliciting sex from an underage girl.
Before his fall from grace, Epstein and his former girlfriend Ghislaine Maxwell, socialized with many rich and powerful people, among them former presidents Donald Trump and Bill Clinton, as well as Britain’s Prince Andrew, the brother of King Charles III.
Maxwell, a British socialite, was convicted in late 2021 in federal court in Manhattan of procuring underage girls to be sexually abused by Epstein. Maxwell was sentenced in June 2022 to 20 years in prison.
Musk in July 2020 replied to a Twitter post that showed him posing for a photo next to a smiling Maxwell.
“Don’t know Ghislaine at all,” Musk wrote. “She photobombed me once at a Vanity Fair party several years ago. Real question is why VF invited her in the first place.”
The New York Times, in a 2022 article detailing that photo, reported that a Vanity Fair staff member who had stood next to both Maxwell and Musk at the party said that “the pair chatted.”
“Ms. Maxwell asked Mr. Musk if there were a way to remove oneself from the internet and encouraged Mr. Musk to destroy the internet; Mr. Musk demurred,” The Times reported, citing the staffer, who shared contemporaneous notes of the encounter.
“Ms. Maxwell then asked Mr. Musk why aliens hadn’t yet made contact with humanity, to which Mr. Musk replied that all civilizations eventually end — including Maxwell’s hypothetical alien one — and raised the possibility that humans are living in a simulation.”
Apple is losing market share in China due to declining iPhone shipments, supply chain analyst Ming-Chi Kuo wrote in a report on Friday. The stock slid 2.4%.
“Apple has adopted a cautious stance when discussing 2025 iPhone production plans with key suppliers,” Kuo, an analyst at TF Securities, wrote in the post. He added that despite the expected launch of the new iPhone SE 4, shipments are expected to decline 6% year over year for the first half of 2025.
Kuo expects Apple’s market share to continue to slide, as two of the coming iPhones are so thin that they likely will only support eSIM, which the Chinese market currently does not promote.
“These two models could face shipping momentum challenges unless their design is modified,” he wrote.
Kuo wrote that in December, overall smartphone shipments in China were flat from a year earlier, but iPhone shipments dropped 10% to 12%.
There is also “no evidence” that Apple Intelligence, the company’s on-device artificial intelligence offering, is driving hardware upgrades or services revenue, according to Kuo. He wrote that the feature “has not boosted iPhone replacement demand,” according to a supply chain survey he conducted, and added that in his view, the feature’s appeal “has significantly declined compared to cloud-based AI services, which have advanced rapidly in subsequent months.”
Apple’s estimated iPhone shipments total about 220 million units for 2024 and between about 220 million and 225 million for this year, Kuo wrote. That is “below the market consensus of 240 million or more,” he wrote.
Apple did not immediately respond to CNBC’s request for comment.
Amazon said it is halting some of its diversity and inclusion initiatives, joining a growing list of major corporations that have made similar moves in the face of increasing public and legal scrutiny.
In a Dec. 16 internal note to staffers that was obtained by CNBC, Candi Castleberry, Amazon’s VP of inclusive experiences and technology, said the company was in the process of “winding down outdated programs and materials” as part of a broader review of hundreds of initiatives.
“Rather than have individual groups build programs, we are focusing on programs with proven outcomes — and we also aim to foster a more truly inclusive culture,” Castleberry wrote in the note, which was first reported by Bloomberg.
Castleberry’s memo doesn’t say which programs the company is dropping as a result of its review. The company typically releases annual data on the racial and gender makeup of its workforce, and it also operates Black, LGBTQ+, indigenous and veteran employee resource groups, among others.
In 2020, Amazon set a goal of doubling the number of Black employees in vice president and director roles. It announced the same goal in 2021 and also pledged to hire 30% more Black employees for product manager, engineer and other corporate roles.
Meta on Friday made a similar retreat from its diversity, equity and inclusion initiatives. The social media company said it’s ending its approach of considering qualified candidates from underrepresented groups for open roles and its equity and inclusion training programs. The decision drew backlash from Meta employees, including one staffer who wrote, “If you don’t stand by your principles when things get difficult, they aren’t values. They’re hobbies.”
Amazon, which is the nation’s second-largest private employer behind Walmart, also recently made changes to its “Our Positions” webpage, which lays out the company’s stance on a variety of policy issues. Previously, there were separate sections dedicated to “Equity for Black people,” “Diversity, equity and inclusion” and “LGBTQ+ rights,” according to records from the Internet Archive’s Wayback Machine.
The current webpage has streamlined those sections into a single paragraph. The section says that Amazon believes in creating a diverse and inclusive company and that inequitable treatment of anyone is unacceptable. The Information earlier reported the changes.
Amazon spokesperson Kelly Nantel told CNBC in a statement: “We update this page from time to time to ensure that it reflects updates we’ve made to various programs and positions.”
Read the full memo from Amazon’s Castleberry:
Team,
As we head toward the end of the year, I want to give another update on the work we’ve been doing around representation and inclusion.
As a large, global company that operates in different countries and industries, we serve hundreds of millions of customers from a range of backgrounds and globally diverse communities. To serve them effectively, we need millions of employees and partners that reflect our customers and communities. We strive to be representative of those customers and build a culture that’s inclusive for everyone.
In the last few years we took a new approach, reviewing hundreds of programs across the company, using science to evaluate their effectiveness, impact, and ROI — identifying the ones we believed should continue. Each one of these addresses a specific disparity, and is designed to end when that disparity is eliminated. In parallel, we worked to unify employee groups together under one umbrella, and build programs that are open to all. Rather than have individual groups build programs, we are focusing on programs with proven outcomes — and we also aim to foster a more truly inclusive culture. You can read more about this on our Together at Amazon page on A to Z.
This approach — where we move away from programs that were separate from our existing processes, and instead integrating our work into existing processes so they become durable — is the evolution to “built in” and “born inclusive,” instead of “bolted on.” As part of this evolution, we’ve been winding down outdated programs and materials, and we’re aiming to complete that by the end of 2024. We also know there will always be individuals or teams who continue to do well-intentioned things that don’t align with our company-wide approach, and we might not always see those right away. But we’ll keep at it.
We’ll continue to share ongoing updates, and appreciate your hard work in driving this progress. We believe this is important work, so we’ll keep investing in programs that help us reflect those audiences, help employees grow, thrive, and connect, and we remain dedicated to delivering inclusive experiences for customers, employees, and communities around the world.
New Tesla Model 3 vehicles on a truck at a logistics drop zone in Seattle, Washington, on Aug. 22, 2024.
M. Scott Brauer | Bloomberg | Getty Images
Tesla is voluntarily recalling about 239,000 of its electric vehicles in the U.S. to fix an issue that can cause its rearview cameras to fail, the company disclosed in filings posted Friday to the National Highway Traffic Safety Administration’s website.
“A rearview camera that does not display an image reduces the driver’s rear view, increasing the risk of a crash,” Tesla wrote in a letter to the regulator. The recall applies to Tesla’s 2024-2025 Model 3 and Model S sedans, and to its 2023-2025 Model X and Model Y SUVs.
The company also said in the acknowledgement letter that it has already “released an over-the-air (OTA) software update, free of charge” that can fix some of the vehicles’ camera issues.
In 2024, Tesla issued 16 recalls in the U.S. that applied to 5.14 million of its EVs, according to NHTSA data. The recall remedies included a mix of over-the-air software updates and parts replacements. More than 40% of last year’s recalls pertained to issues with the newest vehicle in the company’s lineup, the Cybertruck, an angular steel pickup that Tesla began delivering to customers in late 2023.
Regarding the latest recall, the company said it had received 887 warranty claims and dozens of field reports but told the NHTSA that it was not aware of any injurious, fatal or other collisions resulting from the rearview camera failures.
Other customers with vehicles that “experienced a circuit board failure or stress that may lead to a circuit board failure,” which cause the backup camera failures, can have their vehicles’ computers replaced by Tesla, free of charge, the company said.
Tesla did not immediately respond to CNBC’s request for comment.