Tesla CEO and X owner Elon Musk speaks during an unveiling event for Tesla products in Los Angeles, California, U.S. October 10, 2024
Source: Tesla | Youtube
Tesla CEO Elon Musk, already the world’s richest person, added another $26 billion in paper wealth on Thursday after his company’s stock had its biggest rally since 2013.
Musk is now worth about $269 billion, according to Forbes, putting him more than $50 billion ahead of good friend and former Tesla board member Larry Ellison, who remains the largest shareholder in Oracle.
Musk controls close to 13% of Tesla’s outstanding shares, accounting for the bulk of his net worth, though he also owns a big chunk of SpaceX, which is valued on the private markets at over $200 billion. Additionally, he’s the controlling owner of X, formerly Twitter, and artificial intelligence startup xAI.
Musk’s wealth could be even higher depending on the outcome of a shareholder lawsuit surrounding his 2018 pay package that’s winding its way through court.
The pop on Thursday followed Tesla’s better-than-expected earnings report late Wednesday and Musk’s comments on the call suggesting that “vehicle growth” will be 20% to 30% next year. Tesla shares soared 22% at the close, their second-biggest gain since the company’s IPO in 2010.
Prior to the earnings announcement, Tesla shares had been slumping and were headed for their worst month since January. But the stock erased its loss for the year and is now up 5% in 2024, compared to the Nasdaq’s 23% gain.
Tesla reported earnings per share of 72 cents, topping the average analyst estimate of 58 cents. Profit was boosted by $739 million in revenue for environmental regulatory credits and $326 million in revenue from FSD, the company’s Full Self-Driving Supervised system.
Musk spent much of the earnings call touting what he promises will be Tesla’s autonomous future, including a ride-hailing service that he says will open to the public as early as next year in Texas and California. Two weeks earlier, Tesla held its long-awaited robotaxi event, showcasing the concept of its Cybercab.
However, while Alphabet’s Waymo has been operating a commercial driverless service to the public since June, Tesla has consistently missed its own projections for getting a product to market. The company still doesn’t produce or sell cars that are safe to use without a human at the wheel, ready to steer or brake at all times.
And while Musk unveiled both a heavy-duty Semi truck and a Roadster refresh in 2017, the Roadster design is still not finalized, and the company is only in “pilot production” with the Semi.
One topic Musk didn’t address on Wednesday’s call was his campaigning and hefty spending in support of Donald Trump.
Since publicly endorsing Trump shortly after the first assassination attempt on the former president in July, Musk has stepped up his rhetoric, most notably on X, and has contributed tens of millions of dollars to a political action committee that’s supporting the Republican nominee.
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
Musk has been campaigning in the critical swing state of Pennsylvania, which he’s called the “linchpin” in this election. Over the weekend, he said he would randomly award $1 million a day to registered voters who sign a petition for his pro-Trump PAC in an effort to get his fans in battleground states to the polls.
The U.S. Department of Justice has warned the PAC that Musk’s voter sweepstakes may violate federal election law, a source familiar with the matter told NBC News on Wednesday.
Ahead of the earnings call, many investors had questions about Musk’s political activities.
“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 a forum that Tesla uses to solicit investor questions. “How does Tesla address this, and can it confirm Musk’s actions are not harming sales or growth?”
The comment had received 168 upvotes prior to the call. Another question, which had 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.”
In a post on X earlier this week, Musk wrote, “I think this election is existential to the United States.”
Apple on Tuesday sent invites to the media and analysts for a launch event at its campus on September 9 at 10 A.M pacific time.
The tagline on the invite is: “Awe dropping.”
Apple is expected to release new iPhones, as it usually does in September. This year’s model would be the iPhone 17. It also often announces new Apple Watch models in September.
While Apple’s launch events used to be held live, with executives demonstrating features on stage, since 2020 they have been pre-recorded videos. Apple said it would stream the event on its website.
Analysts expect Apple to release a lineup of new phones with updated processors and specs, including a new slim version that trades battery life and cameras for a light weight and design.
Meta CEO Mark Zuckerberg tries on Orion AR glasses at the Meta Connect annual event at the company’s headquarters in Menlo Park, California, on Sept. 25, 2024.
Manuel Orbegozo | Reuters
Since losing her 15-year-old son Riley to suicide following a sextortion scheme through Meta’s Messenger app, Mary Rodee has worked with advocacy groups to push for stronger protections for children online.
“I hold them solely responsible,” Rodee said about Meta in an interview with CNBC. “They have a responsibility for the safety of their users.”
Rodee is among a number of parents who are increasingly critical of organizations that are supposed to help children stay safe but accept money from Meta and other social media companies. Among these groups is the National Parent Teacher Association.
The National PTA is a nonprofit with more than 20,000 chapters and nearly 4 million members across the country that works with schools and families to advocate for children. The group’s website says its members “share a commitment to improving the education, health and safety of all children.”
A report published Tuesday by tech watchdog organization Tech Transparency Project alleges the group’s relationship with Meta “gives a sheen of expert approval” to the social media company’s “efforts to keep young users engaged on its platforms.” The report claims that Meta’s tactics are used to counter concerns that services like Instagram can be harmful to teens in an attempt to shape the public narrative.
“As Meta has come under growing pressure over its impact on kids and their well-being, the company has responded with a range of tactics to influence the public debate,” TTP wrote.
Meta has sponsored the National PTA for years, while the education advocacy group has promoted the company’s child safety initiatives without always noting its financial ties, TTP found.
The National PTA and Meta, the parent company of Facebook and Instagram, have worked together since at least 2010. Meta’s presence is listed in the group’s events and social media posts.
“It’s unforgivable,” said Rodee of Canton, New York. “I just can’t get over these groups that convince themselves that there’s not blood on their hands, that this money is clean.”
Both Meta and the National PTA declined to share how much the social media company has contributed to the group.
“We’re proud to partner with expert organizations to educate parents about our safety tools and protections for teens, as many other tech companies do,” a Meta spokesperson told CNBC in a statement.
In a statement to CNBC, the National PTA said that it doesn’t endorse any social media platform and it accepts sponsorship from Meta to have a “seat at the table” and to be a “strong, clear voice for parents and children.”
“Our collaboration with Meta provides an opportunity to help inform families about safety on its apps and the available tools (e.g., parental controls, age-gated features) and resources (e.g., parent’s guides, online safety centers),” the National PTA said in its statement.
Mary Rodee lost her 15-year-old son Riley to suicide following a sextortion scheme through Meta’s Messenger app.
Mary Rodee
Meta worked with the National PTA in 2017 to help roll out Messenger Kids, a chat app for children under 13 that the company said was developed in consultation with parent and safety groups, TTP wrote in its report. Facebook became a founding sponsor of the PTA Connected initiative the following year in 2018, the National PTA said in its statement to CNBC.
The National PTA can often be seen supporting Meta products on its Instagram account. For example, a post shared in June shows a group of PTA members at a digital safety workshop in front of a poster with Meta and the National PTA’s logo.
Riley, Rodee’s son, was a victim of sextortion on Meta’s platforms. Sextortion is the act of threatening to expose sexually compromising information unless certain demands are met. He was blackmailed by a person posing as a teenage girl on Facebook Messenger, Rodee said.
The fake account demanded Riley pay $3,500. He then took his own life, Rodee said. Sextortion schemes like this are on the rise across social media. The U.S. Department of Homeland Security received more than 3,000 sextortion tips in 2022, according to the Justice Department.
The Federal Trade Commission accused Meta in 2023 of misleading parents about their ability to control who their children communicate with on the Messenger Kids app. Meta has denied wrongdoing and is challenging both the FTC’s proposed restrictions and the constitutionality of the agency’s process.
A federal master complaint filed in March 2024 in California by school districts and local governments as part of a multi-district lawsuit against major social media companies alleges that platforms like Instagram and Facebook were intentionally designed to be addictive to young users. The complaint names the National PTA as one of the organizations Meta uses to reach children in schools.
“While Instagram may try to characterize this work as helpful to addressing youth mental health problems, they were more candid in other documents about using this as a strategy to get more teen users,” the filing states. “The goal of the parents plan was to get ‘parents to think, my kids are on social media, and my FAVORITE app for them to be on is Instagram, bar none.'”
In September 2024, Meta announced Instagram Teen Accounts, which gives users between 13 and 17 certain safeguards on the app. The release announcing the accounts included a quote from National PTA President Yvonne Johnson, without disclosing that Meta was a national sponsor of the organization.
“Given that parents today are grappling with the benefits and challenges of the internet and digital media for their teens, our association applauds Meta for launching Instagram Teen Accounts,” Johnson said in the release.
Instagram’s Teen Accounts feature has received mixed responses when it comes to how effectively it protects kids. Some users still saw inappropriate content on Instagram, according to a report from ParentsTogether.
“This strategy of telling parents that these products are safer than they really are puts kids in danger,” said Shelby Knox, online safety campaign director at ParentsTogether.
The Meta spokesperson said that Teen Accounts give protections to limit who can contact teens on Instagram.
Other parent groups like Smartphone Free Childhood U.S. and Parents for Safe Online Spaces have reached out to the National PTA to voice their concern of accepting money from social media companies that they say are dangerous to their children.
The National PTA’s other sponsors also include Google, YouTube, TikTok and Discord.
In 2024, TikTok gave the National PTA more than $300,000 for programs about teens and social media, even as the platform itself faced mounting criticism over its impact on teens.
The PTA is just one example of Meta’s strategy, according to the TTP report. Meta also created Trust, Transparency & Control Labs, also known as TTC Labs, in 2017. The organization works to collaborate on safety efforts.
While TTC Labs is clearly labeled as a Meta creation, TTC has produced reports on Instagram Teen Accounts and Horizon Worlds. Meta has cited these reports as evidence of its commitment to child safety.
Meta and other social media platforms have been blamed for causing harm to children.
A bipartisan group of 42 attorneys general sued Meta in 2023, alleging features on Facebook and Instagram are addictive and are aimed at kids and teens.
In July, Meta said it eliminated 600,000 profiles linked to predatory behavior and enhanced direct messaging protections on Instagram.
“PTAs in schools are trusted organizations, so their support of companies that are using people and children for profit is just unforgivable,” Rodee said.
If you are having suicidal thoughts or are in distress, contact the Suicide & Crisis Lifeline at 988 for support and assistance from a trained counselor.
EchoStar stock roared more than 75% higher on Tuesday after AT&T said it agreed to purchase certain wireless spectrum licenses from the telecom company for about $23 billion in an all-cash deal.
The sale will add about 50 megahertz of mid-band and low-band spectrum to AT&T’s network, with the licenses covering more than 400 markets across the U.S., AT&T said. The deal is expected to close in mid-2026, pending regulatory approval.
EchoStar said in a regulatory filing that the transaction is part of the company’s “ongoing efforts to resolve the Federal Communications Commission’s inquiries.”
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FCC Chairman Brendan Carr wrote in a May letter addressed to EchoStar cofounder and Chairman Charlie Ergen that the agency’s staff would investigate the company’s compliance with federal requirements to build a 5G network.
The letter followed complaints from Elon Musk‘s SpaceX that EchoStar had left “valuable mid-band spectrum chronically underused,” and the FCC should take steps to let “new satellite entrants” put it to use.
SpaceX owns Starlink, which provides internet service through a constellation of low Earth orbit satellites.
As part of Tuesday’s announcement, AT&T and EchoStar also agreed to expand their network services agreement, enabling EchoStar to operate as a hybrid mobile network operator providing wireless service under the Boost Mobile brand.
“EchoStar and Boost Mobile have met all of the FCC’s network buildout milestones,” Ergen said in a statement. “However, this spectrum sale to AT&T and hybrid MNO agreement are critical steps toward resolving the FCC’s spectrum utilization concerns.”
AT&T CEO John Stankey told CNBC that the deal is “a win all the way around.”
“It’s a fantastic opportunity to see more services put together the way customers want to buy them together,” Stankey said in an interview on “Squawk Box.” “And as a result of that, I think ultimately regulators are going to look at this and say it’s very, very attractive.”