Tesla and SpaceX CEO Elon Musk speaks with former president Donald Trump during a campaign event at the Butler Farm Show, Saturday, Oct. 5, 2024, in Butler, Pa.
Jabin Botsford | The Washington Post | Getty Images
On a forum Tesla uses to solicit investor questions online in advance of its earnings calls, dozens of inquiries poured in from retail shareholders about Elon Musk’s politics, his incendiary commentary on X, and his efforts to get Trump back in the White House.
“Elon Musk has the right to express his political views, but his public activism seems at odds with his responsibility as CEO to protect shareholder value,” an anonymous retail investor wrote on the forum. “How does Tesla address this, and can it confirm Musk’s actions are not harming sales or growth?”
The comment received 168 upvotes. Another question, which received 527 upvotes, asked if Tesla’s board is doing anything to ensure Musk’s “political engagement doesn’t detract from Tesla’s core mission and protects shareholder value and brand integrity.”
Third-quarter results are scheduled to hit after the close of regular trading Wednesday.
Musk, the world’s richest person, is concurrently the CEO of Tesla and defense contractor SpaceX and the owner of social network X. He also started a company, xAI, in 2023 to develop artificial intelligence products outside Tesla, and he’s the founder of brain computer interface company Neuralink and tunneling venture The Boring Co.
Adding to what Musk has called his “17 jobs,” he has also floated the idea to Trump that he should form a “government efficiency commission” to cut spending and slash regulations. Trump has promised to do it and to let Musk effectively lead it.
In his effort to try to push the Republican nominee and ex-president past the finish line in a deadlocked race, Musk embarked on a speaking tour in Pennsylvania to drive voter registration. He called the state the “linchpin” in this election, and Saturday he said he would randomly award $1 million a day to registered voters who sign a petition for his pro-Trump PAC.
While Musk has attracted plenty of media scrutiny for his political views, they’ve rarely been discussed at company shareholder meetings or in Wall Street analysts’ notes.
According to analyst notes compiled by FactSet, which doesn’t include all sell-side firms, the topic of Trump and the election has been almost absent from the discussion.
The financial impact of Musk’s politics can be hard to quantify.
But at least one venture capitalist and Tesla bull, Deepwater Asset Management’s Gene Munster, has given it a shot.
Munster wrote in a note on Oct. 5 that Musk’s heightened “political commentary” in the past four months “may have reduced deliveries by 5-10k during the quarter.” Munster said that means the company’s U.S. numbers would have been 4% higher and total numbers almost 2% higher “if not for the political dynamic.”
Tesla didn’t immediately respond to a request for comment.
Brand consultancy Interbrand, which has been running a Best Global Brands study for 25 years, found that Tesla’s brand value declined 9% this year. Tesla fell in the rankings to the 12th spot, behind automakers Toyota, Mercedes Benz and BMW,which all cracked the top 10.
“Most car manufacturers are grappling with the shift to EVs, and although Tesla was born in that territory, its changing focus is causing market confusion about the strategies it is executing,” Interband Global CEO Gonzalo Brujo said in an email to CNBC. “This has not been helped by recent introductions, like the truck falling short as competitors deliver better cars.”
The top five brands ranked by Interbrand were all tech companies that compete with Tesla for talent and, in some cases, on products: Apple, Microsoft, Amazon, Google and Samsung.
Tesla’s vehicle lineup is full of models that have been around for years, including the still popular Model 3 sedans and Model Y SUV. And the company has been asking investors to focus on its plans for dedicated robotaxis, driverless software, humanoid robots and supercomputers, instead of its core automotive business.
Brujo said Musk’s antics could represent a major distraction from all of that.
“A CEO or brand aligning with anything political is taking a risk,” he wrote. “It can be polarizing, and the business or brand could risk losing customers as a result.”
Tesla shares are down 14% for the year due to an 18% slide in October. The Nasdaq is about flat for the month and up almost 22% this year.
The Freetrade application on a smartphone and desktop PC.
Freetrade
LONDON — Freetrade, a British rival to popular stock trading app Robinhood, said Thursday that it’s been acquired by online investing platform IG Group.
The deal values Freetrade at £160 million ($195 million) — a 29% discount to its last valuation. The startup said that it would continue to operate as a commercially standalone entity under its own brand.
Founded in 2016, Freetrade garnered popularity among mainly younger, more inexperienced traders in the U.K. with its zero-commission trading platform.
The app initially began by offering equities but later expanded to roll out trading in exchange-traded funds, savings products and government bonds.
In pandemic times, Freetrade was riding high on a retail trader frenzy. The app benefited heavily from GameStop “short squeeze” in early 2021, when traders on a Reddit forum for retail investors piled into the stock and caused it to rally in price.
Short-selling refers to the practice of an investor borrowing an asset and then selling it on the open market with the expectation of repurchasing it for less money in future for a profit.
However, worsening macroeconomic conditions in 2022 and 2023 hit Covid high-fliers like Freetrade hard — and in 2023, Freetrade completed a crowdfunding round at a valuation of £225 million down 65% from the £650 million it was worth previously.
Viktor Nebehaj, CEO and co-founder of Freetrade, described the takeover as a “transformative deal that recognizes the significant value that Freetrade has created.”
“Together with IG Group’s significant resources and backing, this is an exciting opportunity to accelerate our growth and delivery of new products and features,” he added.
Freetrade said the transaction is subject to customary closing conditions including regulatory approvals, adding that it expects it will close the deal later this year.
US President Joe Biden, left, and Antony Blinken, US secretary of state, speak on the ceasefire deal between Israel and Hamas, in the Cross Hall of the White House in Washington, DC, US, on Wednesday, Jan. 15, 2025. Israel and Hamas agreed to a ceasefire deal, bringing at least a temporary halt to the war in Gaza that has killed tens of thousands of people in the last 15 months and touched off broader turmoil across the Middle East.
Aaron Schwartz | Sipa | Bloomberg | Getty Images
The Biden administration on Thursday announced an executive order on cybersecurity that imposes new standards for companies selling to the U.S. government and calls for greater disclosure from software providers.
The White House is looking to put in place new rules “to strengthen America’s digital foundations,” Anne Neuberger, deputy national security advisor for cybersecurity and emerging technology, said in a briefing with reporters on Wednesday.
Cyberattacks have caused an increasing number of disruptions inside federal agencies and companies in recent years.
Attackers have pulled off ransomware attacks at Change Healthcare, the operator of the Colonial Pipeline and the Ascension health care system. And Microsoft said in 2023 that Chinese attackers had broken into U.S. government officials’ email accounts, prompting a critical federal report and a series of changes at the software maker.
Companies selling software to the U.S. government will have to demonstrate that their development practices are secure, according to a statement. There will be “evidence that we post on a government website for all software users to benefit from,” Neuberger said.
The General Services Administration will have to make policy that makes cloud providers provide information to clients on how to operate securely.
Companies selling products and services to the U.S. government must adhere to a new set of security practices as a result of the executive order.
Last week the White House announced the U.S. Cyber Trust Mark label to help consumers evaluate internet-connected devices. The executive order states that the U.S. government will only purchase such products if they carry the label, starting in 2027.
The order also directs the National Institute for Standards and Technology to come up with guidance for handling software updates. In late 2020, hackers gained access to Microsoft and U.S. Defense Department systems by targeting updates to SolarWinds‘ Orion software.
It’s not clear if President-elect Donald Trump’s new administration will uphold the executive order. Biden’s cybersecurity officials have not met with those who will take up the work for Trump.
“We haven’t discussed, but we are very happy to, as soon as the incoming cyber team is named, of course, have any discussions during this final transition period,” Neuberger said.
A logo of Taiwan Semiconductor Manufacturing Company (TSMC) is seen during the TSMC global RnD Center opening ceremony in Hsinchu on July 28, 2023. (Photo by Amber Wang / AFP)
Here are TSMC’s fourth-quarter results versus LSEG consensus estimates:
Net revenue: 868.46 billion New Taiwan dollars ($26.36 billion), vs. NT$850.08 billion expected
Net income: NT$374.68 billion, vs. NT$366.61 billion expected
TSMC profit rose 57% from a year earlier to a record high, while revenue jumped 38.8%. The firm had forecast fourth-quarter revenue between $26.1 billion and $26.9 billion.
As the world’s largest contract chip manufacturer TSMC produces advanced processors for clients such as Nvidia and Apple and has benefited from the megatrend in favor of AI.
TSMC’s high-performance computing division, which encompasses artificial intelligence and 5G applications, drove sales in the fourth quarter, contributing 53% of revenue. That HPC revenue was up 19% from the previous quarter.
“The surging demand for AI chips has exceeded expectations in Q4,” Brady Wang, associate director at Counterpoint Research told CNBC, adding that revenue was also bolstered by demand for the advanced chips in Apple’s latest iPhone 16 model.
The Taiwan-based company first released its December revenue last week, bringing its annual total to NT$ 2.9 trillion — a record-breaking year in sales since the company went public in 1994.
“We observed robust AI related demand from our customers throughout 2024,” Wendell Huang, chief financial officer and vice president at TSMC, said in an earnings call on Thursday, adding that revenue from AI accelerator products accounted for “close to a mid-teens percentage” of total revenue in 2024.
“Even after more than tripling in 2024, we forecast our revenue from AI accelerators to double in 2025 as a strong surge in AI-related demand continues as a key enabler of AI applications,” Huang added.
However, TSMC may face some headwinds in 2025 from U.S. restrictions on advanced semiconductor shipments to China and uncertainty surrounding the trade policy of President-elect Donald Trump.
TSMC Chairman and CEO C.C. Wei said the company will not attend Trump’s inauguration as its philosophy is to keep a low profile, Reuters reported.
Trump, who will assume office next week, has threatened to impose broad tariffs on imports and has previously accused Taiwan of “stealing” the U.S. chip business. .
Still, Counterpoint’s Wang forecasts 2025 to be another strong year for TSMC, with significant revenue growth fueled by strong and expanding demand for AI applications, both in diversity and volume.
Taiwan-listed shares of TSMC gained 81% in 2024 and were trading 3.75% higher on Thursday.
Stocks of European semiconductor companies trading on the Euronext Amsterdam Stock Exchange rose Thursday, with ASML up 3.5%, ASM International gaining 3.75% and Besi rising 5.1%.