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BMW took the wraps of the Vision Neue Klasse electric vehicle at the IAA motor show in Munich, Germany. It underpins BMW’s big push into electric vehicles.

BMW

MUNICH, Germany — BMW and Mercedes are making their biggest push yet into electric cars in a bid to fend off rising competition from Chinese players and catch up with U.S. giant Tesla.

In the last few days, as part of the IAA Mobility motor show in Munich, Germany, the auto giants took the wraps off electric concept cars and new platforms for their future battery-powered vehicles.

European carmakers, which have been perceived to be behind Chinese companies like Warren Buffett-backed BYD and Elon Musk’s Tesla, have had to move quickly to show the market they’re ready to be major players in the electric era.

On Sunday, Mercedes-Benz unveiled its Concept CLA Class, an electric vehicle built on a new architecture that will underpin future battery cars from the German auto giant. The company said the concept car has a range of 750 kilometers (466 miles) as well as an ability to reach a range of 400 kilometers with just 15 minutes of charging.

Mercedes CEO Ola Kallenius talked up the car, calling it a “revolutionary development” for the German firm.

“With those efficiency numbers, that kind of range, that kind of fast charging, I am not aware of any vehicle, in that class that can match that,” Kallenius told CNBC’s Annette Weisbach on Sunday.

On Saturday, rival BMW showed off the “Vision Neue Klasse,” another electric concept car that highlights the company’s EV ambitions. Neue Klasse is BMW’s new architecture for its EVs. The first vehicles based on this platform are set to enter production in 2025.

“In only two years’ time, these cars will hit the road and with that, overall, we lead BMW to a new era of innovation and sustainability. That’s the purpose of our show here at the IAA,” BMW CEO Oliver Zipse told CNBC’s Arabile Gumede.

Zipse said BMW is going to double its EV sales this year. By the end of 2023, 15% of BMW’s global sales will be battery EVs, he added.

Mercedes and BMW’s dedicated EV platforms are a departure from previous architecture where they would adapt combustion engine or hybrid models and add batteries. This is the companies’ biggest push yet toward a new platform for the electric vehicle era.

Analysts said that Mercedes and BMW’s announcements are big steps but might leave them still lagging behind Tesla.

BMW CEO says Vision Neue Klasse concept car represents the dawn of a new era of innovation

“The new platforms at Mercedes and BMW showcase, for the first time, what the European OEMs [original equipment manufacturers] will be capable of. These cars are likely still a year away, but their specifications show that European OEMs will be able to create compelling products,” Daniel Roeska, senior research analyst at Bernstein Research, told CNBC via email.

Roeska said that these new platforms “will close a large portion of the gap” to Tesla and the Chinese players, “but not all the way.”

Price war in focus

BMW and Mercedes are wading further into an increasingly competitive electric vehicle market, broadly dominated by Tesla and various Chinese players.

Tesla commanded 20% of the global EV market in the second quarter, followed by 15% for BYD, according to Counterpoint Research.

And the competition has become more fierce thanks to a price war largely sparked by Tesla. The U.S. automaker began cutting prices in 2023, vowing to sacrifice margins in the short term for market share gain.

Mercedes and BMW both play in the premium segment of the market, where cars like Tesla’s Model S and Model X compete. As they prepare to release more EVs in the coming years, Mercedes maintains its focus is not on pushing large volumes.

“We are not pushing volume, we are focusing on value over volume,” Kallenius said.

Mercedes to release a 'little' G-Class in a 'few years,' CEO says

Meanwhile, Volkswagen’s strategy appears to be to release cars at various prices to capture different segments of the market.

The company announced Sunday that it will launch eleven new all-electric models by 2027, underscoring its EV push. In 2026, Volkswagen said it plans to launch the ID. 2all, an electric vehicle that will sell for less than 25,000 euros ($26,942).

The German auto giant showed off the ID. GTI Concept electric vehicle at the IAA show, and said a production version of the car is scheduled to hit the road in 2027.

Tesla, China dominate with tech in focus

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23andMe bankruptcy under congressional investigation for customer data

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23andMe bankruptcy under congressional investigation for customer data

Signage at 23andMe headquarters in Sunnyvale, California, U.S., on Wednesday, Jan. 27, 2021.

David Paul Morris | Bloomberg | Getty Images

The House Committee on Energy and Commerce is investigating 23andMe‘s decision to file for Chapter 11 bankruptcy protection and has expressed concern that its sensitive genetic data is “at risk of being compromised,” CNBC has learned.

Rep. Brett Guthrie, R-Ky., Rep. Gus Bilirakis, R-Fla., and Rep. Gary Palmer, R.-Ala., sent a letter to 23andMe’s interim CEO Joe Selsavage on Thursday requesting answers to a series of questions about its data and privacy practices by May 1.

The congressmen are the latest government officials to raise concerns about 23andMe’s commitment to data security, as the House Committee on Oversight and Government Reform and the Federal Trade Commission have sent the company similar letters in recent weeks.

23andMe exploded into the mainstream with its at-home DNA testing kits that gave customers insight into their family histories and genetic profiles. The company was once valued at a peak of $6 billion, but has since struggled to generate recurring revenue and establish a lucrative research and therapeutics businesses.

After filing for bankruptcy in in Missouri federal court in March, 23andMe’s assets, including its vast genetic database, are up for sale.

“With the lack of a federal comprehensive data privacy and security law, we write to express our great concern about the safety of Americans’ most sensitive personal information,” Guthrie, Bilirakis and Palmer wrote in the letter.

23andMe did not immediately respond to CNBC’s request for comment.

More CNBC health coverage

23andMe has been inundated with privacy concerns in recent years after hackers accessed the information of nearly 7 million customers in 2023. 

DNA data is particularly sensitive because each person’s sequence is unique, meaning it can never be fully anonymized, according to the National Human Genome Research Institute. If genetic data falls into the hands of bad actors, it could be used to facilitate identity theft, insurance fraud and other crimes.

The House Committee on Energy and Commerce has jurisdiction over issues involving data privacy. Guthrie serves as the chairman of the committee, Palmer serves as the chairman of the Subcommittee on Oversight and Investigations and Bilirakis serves as the chairman of the Subcommittee on Commerce, Manufacturing and Trade.

The congressmen said that while Americans’ health information is protected under legislation like the Health Insurance Portability and Accountability Act, or HIPAA, direct-to-consumer companies like 23andMe are typically not covered under that law. They said they feel “great concern” about the safety of the company’s customer data, especially given the uncertainty around the sale process.

23andMe has repeatedly said it will not change how it manages or protects consumer data throughout the transaction. Similarly, in a March release, the company said all potential buyers must agree to comply with its privacy policy and applicable law. 

“To constitute a qualified bid, potential buyers must, among other requirements, agree to comply with 23andMe’s consumer privacy policy and all applicable laws with respect to the treatment of customer data,” 23andMe said in the release.

23andMe customers can still delete their account and accompanying data through the company’s website. But Guthrie, Bilirakis and Palmer said there are reports that some users have had trouble doing so.

“Regardless of whether the company changes ownership, we want to ensure that customer access and deletion requests are being honored by 23andMe,” the congressmen wrote.

WATCH: The rise and fall of 23andMe

The rise and fall of 23andMe

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TSMC denies it’s talking to Intel about chipmaking joint venture

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TSMC denies it's talking to Intel about chipmaking joint venture

A motorcycle is seen near a building of the Taiwan Semiconductor Manufacturing Company (TSMC), which is a Taiwanese multinational semiconductor contract manufacturing and design company, in Hsinchu, Taiwan, on April 16, 2025.

Daniel Ceng | Anadolu | Getty Images

Taiwan Semiconductor Manufacturing Company denied reports that the semiconductor giant was in active discussions with Intel regarding a chipmaking joint venture.

“TSMC is not engaged in any discussion with other companies regarding any joint venture, technology licensing or technology,” CEO C.C. Wei said on the company’s first-quarter earnings call on Wednesday, dispelling rumors about a collaboration with Intel.

Intel and TSMC were said to have been looking to form a JV as recently as this month. On April 3, The Information reported that the two firms discussed a preliminary agreement to form a tie-up to operate Intel’s chip factories with TSMC owning a 21% stake.

Intel was not immediately available for comment when contacted by CNBC on Wei’s comments on Thursday. The company previously said it doesn’t comment on rumors, when asked by CNBC about the reported discussions.

Once the dominant chipmaker in the U.S., Intel has faced numerous challenges in recent years, losing ground to players like Nvidia, AMD, Qualcomm and Apple. Last year, Intel suffered its worst ever performance as a public company, with shares shedding 61% of their value.

TSMC’s denial of tie-up talks with Intel comes as President Donald Trump is pushing to address global trade imbalances and reshore manufacturing in the U.S. through tariffs. The Department of Commerce recently kicked off an investigation into semiconductor imports — a move that could result in new tariffs for the chip industry.

TSMC reported a profit beat for the first quarter thanks to a continued surge in demand for AI chips. However, the company contends with potential headwinds from Trump’s tariffs — which target Taiwan — and stricter export controls on TSMC clients Nvidia and AMD.

– CNBC’s Dylan Butts contributed to this report

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TSMC first-quarter profit tops estimates, rising 60%, but Trump trade policy threatens growth

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TSMC first-quarter profit tops estimates, rising 60%, but Trump trade policy threatens growth

A motorcycle is seen near a building of the Taiwan Semiconductor Manufacturing Company (TSMC), which is a Taiwanese multinational semiconductor contract manufacturing and design company, in Hsinchu, Taiwan, on April 16, 2025.

Daniel Ceng | Anadolu | Getty Images

Taiwan Semiconductor Manufacturing Company on Thursday beat profit expectations for the first quarter, thanks to a continued surge in demand for AI chips.

Here are TSMC’s first-quarter results versus LSEG consensus estimates:

  • Revenue: $839.25 billion New Taiwan dollars, vs. NT$835.13 billion expected
  • Net income: NT$361.56 billion, vs. NT$354.14 billion 

TSMC’s reported net income increased 60.3% from a year ago to NT$361.56 billion, while net revenue in the March quarter rose 41.6% from a year earlier to NT$839.25 billion.

The world’s largest contract chip manufacturer has benefited from the AI boom as it produces advanced processors for clients such American chip designer Nvidia.

However, the company faces headwinds from the trade policy of U.S. President Donald Trump, who has placed broad trade tariffs on Taiwan and stricter export controls on TSMC clients Nvidia and AMD.

Semiconductor export controls could also be expanded next month under the “AI diffusion rules” first proposed by the Biden administration, further restricting the sales of chipmakers that use TSMC foundries.

Taiwan currently faces a blanket 10% tariff from the Trump administration and that could rise to 32% after the President’s 90-day pause of his “reciprocal tariffs” ends unless it reaches a deal with the U.S.

As part of efforts to diversify its supply chains, TSMC has been investing billions in overseas facilities, though the lion’s share of its manufacturing remains in Taiwan.

In an apparent response to Trump’s trade policy, TSMC last month announced plans to invest an additional $100 billion in the U.S. on top of the $65 billion it has committed to three plants in the U.S.

On Monday, AMD said it would soon manufacture processor chips at one of the new Arizona-based TSMC facilities, marking the first time that its chips will be manufactured in the U.S.

The same day, Nvidia announced that it has already started production of its Blackwell chips at TSMC’s Arizona plants. It plans to produce up to half a trillion dollars of AI infrastructure in the U.S. over the next four years through partners, including TSMC.

Taiwan-listed shares of TSMC were down about 0.4%. Shares have lost about 20% so far this year.

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