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David Sacks, U.S. President Donald Trump’s “AI and Crypto Czar”, speaks to President Trump as he signs a series of executive orders in the Oval Office of the White House on Jan. 23, 2025 in Washington, DC.

Anna Moneymaker | Getty Images

The Trump-tech alliance is showing its first real sign of distress. And it’s because of crypto.

President Donald Trump counted on crypto execs and investors for a hefty portion of his 2024 campaign funds. He promised to reward them handsomely if elected by slashing regulations and by turning the U.S. into “the crypto capital of the planet and the bitcoin superpower of the world.”

The president got off to a quick start, signing an executive order calling for the establishment of a working group on digital assets and pardoning Silk Road creator Ross Ulbricht. The SEC also dropped its years-long probe into Coinbase.

While those moves were lauded by the most vocal techies who backed Trump’s candidacy, over the weekend the president took it a step too far in their view. In a post on Truth Social on Sunday, Trump announced the creation of a strategic crypto reserve for the U.S. that would include not just bitcoin but several other digital currencies — etherXRP,  Solana’s SOL token and Cardano’s ADA.

For the most part, Trump’s crypto backers all wanted a strategic bitcoin reserve. Such a move would entail using cash to buy bitcoin, which is widely viewed by crypto enthusiasts as a smart way to deploy capital into a decentralized currency that’s an alternative to hard money. As Coinbase CEO Brian Armstrong wrote on X, bitcoin offers a “clear story as successor to gold.”

By going well beyond bitcoin, the critics say, Trump would be using U.S. taxpayer money to buy much riskier assets that have unproven value and have the potential to bolster the net worth of a select few investors who own the coins. That’s all the more problematic to those who want to axe government spending by trillions of dollars, in support of Elon Musk’s cost-cutting mission at the so-called Department of Government Efficiency.

“Taxation is theft,” wrote Joe Lonsdale, founder of venture firm 8VC and a vocal Trump supporter, in a post on X. “It should be kept to a minimum. It’s wrong to steal my money for grift on the left; it’s also wrong to tax me for crypto bro schemes.”

David Sacks, the venture capitalist who was tapped by Trump to be the “White House AI and crypto czar,” took exception to Lonsdale’s comment, suggesting it’s premature to jump to any conclusions. Sacks and Lonsdale are part of the same conservative circle in the tech world, with Musk and Peter Thiel at the center.

“Nobody announced a tax or a spending program,” Sacks wrote, in response to Lonsdale’s post. “Maybe you should wait to find out what’s actually being proposed.”

The White House didn’t respond to a request for comment.

Trump announces U.S. strategic crypto reserve including bitcoin, solana, XRP and more

But Lonsdale was far from alone.

Naval Ravikant, a longtime tech investor and early crypto evangelist, wrote after the announcement that, “The US taxpayer should not be exit liquidity for cryptocurrencies that are decentralized in name only.” And Vinny Lingham, creator of blockchain startup Civic and a big crypto influencer, wrote, “Call me old fashioned but I don’t think the government should be pumping our crypto bags with taxpayer money while we are running a near $2trn deficit.”

Agreement across the industry

A major Trump supporter and big name in crypto joined the chorus on Monday. Billionaire bitcoin investor Tyler Winklevoss, who wrote just before the November election that you should vote for Trump “if you care about the future of crypto, free speech, justice, liberty, and democracy,” came out against the president’s crypto reserve plan.

“I have nothing against XRP, SOL, or ADA but I do not think they are suitable for a Strategic Reserve,” Winklevoss wrote. “Only one digital asset in the world right now meets the bar and that digital asset is bitcoin.”

David Marcus, the former head of Facebook’s failed crypto project, suggested that the majority of his peers in the crypto community have the same view.

“Most—if not all—of the non-conflicted industry leaders are agreeing about this,” Marcus wrote, in reposting Winklevoss’ comment.

Marcus, who’s now CEO of payments infrastructure startup Lightspark, declared in July that he was “crossing the Rubicon” and shifting his support to Trump and away from Democrats.

Anthony Pompliano, a loud pro-Trump voice in crypto investing, committed over 1,500 words in his newsletter on Monday to the topic. He says Trump is willing to propose an agenda of buying risky tokens on behalf of the U.S. because the wrong people got to him.

“We watched crypto projects, lobbyists, and special interest groups co-opt the President of the United States,” Pompliano wrote. “They told the President that any crypto-related reserve should hold tokens that were ‘made in America.’ This pitch was the perfect trap for a President who ran on the America First agenda.”

Some of the wrath online was directed specifically at Sacks, who touted and backed various cryptocurrencies as a VC prior to joining the Trump administration, and whose firm, Craft Ventures, is an investor in crypto index fund manager Bitwise.

A cartoon image of US President-elect Donald Trump with cryptocurrency tokens, depicted in front of the White House to mark his inauguration, displayed at a Coinhero store in Hong Kong, China, on Monday, Jan. 20, 2025. 

Paul Yeung | Bloomberg | Getty Images

Sacks wrote in a post on X that he sold all of his crypto, including bitcoin, ether and SOL, before taking on his new role and “will provide an update at the end of the ethics process.”

By late afternoon Monday, crypto prices had staged a dramatic reversal from their weekend rally that followed Trump’s announcement. Bitcoin fell about 9%, while ether slid 15%. XRP and SOL dropped even more.

The slide appeared tied to President Trump’s confirmation of forthcoming tariffs, which hammered risky assets across the board and sent the Nasdaq down almost 3% at the close of trading.

There were some voices in crypto who were less willing to publicly slam Trump’s reserve plan.

Michael Saylor, the chairman of Strategy, which has effectively emerged as a bitcoin proxy due to its roughly $43 billion stash, told CNBC on Monday that he wasn’t surprised about Trump’s decision to include additional cryptocurrencies.

“There’s no way to interpret this other than this is bullish for bitcoin and bullish for the entire U.S. crypto industry,” Saylor said. “I believe the best thing for the country is to move forward with an enlightened progressive policy toward digital assets.”

Jonathan Jachym, global head of policy and government relations at Kraken, told CNBC that the crypto exchange is “encouraged to see that announcement” and that it shows the president is “staying true to commitments.”

Even among the skeptics, Trump doesn’t appear to be losing broader support for his agenda just because of this one announcement. Backers like Lonsdale have been quick to post about other matters, complimenting actions taken by Defense Secretary Pete Hegseth and Trump for pressuring Mexican drug cartels.

But coming just six weeks into Trump’s second administration, the reaction shows how quickly the outrage machine can activate when a proposal touches the nerve of a critical group of supporters. The debate adds interest to Trump’s first White House Crypto Summit on Friday, when investors will eagerly be awaiting more details.

As Sacks wrote on March 2, in his first post about the announcement of the strategic reserve, “More to come at the Summit.”

WATCH: U.S. needs ‘enlightened, progressive’ crypto policy

Digital assets pose $100 trillion opportunity for the U.S., says Michael Saylor

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Waymo poaches top Tesla audio engineer

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Waymo poaches top Tesla audio engineer

Waymo has poached a top Tesla audio engineer to lead the In-car Audio and Infotainment experience inside its autonomous vehicles.

Tesla and Waymo have a sort of rivalry as they are both working toward deploying autonomous driving systems.

Earlier this year, there was a little back and forth about having the biggest service area in Austin, even though the competition was sort of unfair since Waymo has been opreating a true level 4 autonmous driving system in the Texas capital while Tesla’s Robotaxi system is still being supervised by employees inside the vehicles.

But the competition is also for talent.

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Last year, Waymo hired Tesla’s head of vehicle programs and the company has continued to hire some vehicle engineers and technicians since.

Now, we learn that Waymo has poached ­Nikhil ­Satish, a top audio engineer from Tesla.

He announced on LinkedIn last week:

I’m happy to share that I’m starting a new position as Technical Leader of Audio Systems at Waymo!

Satish already had an extensive career in audio engineering with NVIDIA and Amazon before joining Tesla in 2021.

At Tesla, Satish led the audio engineering of the Cybertruck, which has been praised for its audio system.

The company even noted it yesterday:

More recently, he also led audio engineering on Tesla’s semi truck and humanoid robot programs, according to his LinkedIn profile.

Now, he will be the technical lead for in-car audio and infotainment experience at Waymo.

While Waymo’s core technology is autonomous driving, the audio and video experience is expected to be increasingly important as passengers can put their attention toward other things than driving.

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GM’s feeling the heat after the US pulled the plug on the $7,500 EV tax credit

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GM's feeling the heat after the US pulled the plug on the ,500 EV tax credit

GM is suddenly shaking up electric vehicle production plans after issuing a stark warning. The automaker warned that new US policy changes, including killing off the $7,500 EV tax credit, will cost it at least $1.6 billion.

GM shifts plans as the EV tax credit expires

Although GM set another record by delivering 66,501 electric vehicles in the third quarter, it’s bracing for a much different market over the next few months.

In an SEC filing on Tuesday, GM said that “following recent US Government changes, including the termination of certain consumer tax incentives for EV purchases and the reduction in the stringency of emissions regulations, we expect the adoption rate of EVs to slow.”

Although it didn’t reveal specifics, GM said the policy changes “have caused us to reassess our EV capacity and manufacturing footprint.”

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The changes do not impact Chevy, GMC, and Cadillac electric vehicles currently in production, and GM expects they will remain available for buyers.

The “strategic realignment” will cost it at least $1.6 billion. GM said $1.2 billion of the charges will be non-cash as it adjusts EV capacity. The other $400 million is primarily due to contract cancellation fees and “commercial settlements associated with EV-related investments,” according to GM’s filing. That will have a cash impact.

Chevy-Equinox-EV-tax-credit
2025 Chevy Equinox EV LT (Source: GM)

GM is also reassessing investments in battery manufacturing. The company said discussions are still ongoing, adding that it’s “reasonably possible” it will absorb additional costs due to the changes.

The charges, which were approved by the board on October 7, will be included in GM’s third-quarter earnings. We will learn more when GM reports Q3 earnings results next week on October 21.

Cadillac-Optiq-EV-tax-credit
Cadillac Optiq EV (Source: Cadillac)

Although GM and crosstown rival Ford were planning to launch programs designed to extend the $7,500 EV credit, both have since abandoned those plans. Instead, GM will provide about $6,000 of its own cash for a limited time to support EV leasing.

Electrek’s Take

Through the first nine months of 2025, GM sold 144,688 EVs, more than double the amount it sold in the same period last year.

The Chevy Equinox EV has been GM’s biggest hit, ranking as the third best-selling EV behind the Tesla Model Y and Model 3. Cadillac was the leading EV luxury brand in Q3 with three of the top 10 most popular models in the segment: the Lyriq (#2), Optiq (#5), and Vistiq (#6).

GMC is on pace for its best year ever, with the new Sierra EV rolling out and demand for the Hummer EV picking up. With the $7,500 EV tax credit now expired, GM, like most automakers, is preparing for slower EV adoption in the US.

The policy changes, including dropping the $7,500 tax credit, will only put the US further behind China, South Korea, and others leading the global push for electric vehicles.

We should learn more about GM’s updated EV production plans next week when it reports Q3 earnings on October 21. Check back for updates.

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Flying electric boat to showcase cutting commute times in half in Washington D.C.

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Flying electric boat to showcase cutting commute times in half in Washington D.C.

What if your morning commute didn’t involve gridlock on the 395 or the Orange Line crawl, but instead meant silently flying over the Potomac River at 30 knots? That’s exactly what Stockholm-based Candela is bringing to Washington D.C. this week with the U.S. demo debut of its flying electric boats.

While it doesn’t appear to be a permanent route nor make use of the company’s latest flagship commercial vessel, the P-12 shuttle, the demonstration set up near the Swedish embassy will illustrate just how effective the alternative commuting method truly is.

Starting October 17th, Candela will be showcasing media test rides on the Potomac using its C-8 flying vessel to demonstrate how its revolutionary electric hydrofoil ferry – the Candela P-12 – could transform city commutes. With wings hidden beneath the water and a high-tech flight controller regulating the ride, the P-12 lifts out of the water and literally flies above the surface, reducing drag by 80% and gliding without creating a wake.

The demonstration underscores how this level of speed and efficiency could actually change how people move around the D.C. metro area. A typical commute from Georgetown to Reagan Airport? By car, that’s around 20 minutes. On public transit, 37. On the P-12? Just six minutes. Similarly, a water ride from Alexandria to The Wharf would be a quick and quiet 10-minute journey – likely faster than your rideshare app can even find a driver during rush hour.

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The Candela P-12 is more than just a speedy commuter; it’s also quiet, clean, and surprisingly comfortable. Its computer-controlled hydrofoils make for a ride that’s smooth enough to prevent seasickness, and the onboard C-POD electric motor hums along with no noise or vibration. With no slamming into waves and no diesel fumes to choke on, the whole thing feels more like riding a luxury train than a boat.

And while this might sound like the kind of futuristic tech you’ll hear about once and never again, Candela is already proving this model works. In Stockholm, the P-12 has already been integrated into the city’s public transport system, where it’s cut some routes’ travel times in half and delivered a quieter, cheaper, and greener commute. Similar projects are in the works for Lake Tahoe, Mumbai, Thailand, and Saudi Arabia – with more than 40 boats already on order, making it the best-selling electric passenger vessel in the world.

Candela says operating costs are about 60% lower than diesel-powered vessels, which puts them in line with land-based mass transit options like buses. In cities like D.C., where shoreline erosion and speed restrictions limit traditional ferries, the P-12’s wake-free cruising means it can get exemptions and run at high speeds even in no-wake zones. That opens up a whole new layer of transport.

“We’re not merely replacing diesel ferries — we’re enabling a new layer of transport by utilizing the underused waterways,” said Gustav Hasselskog, Candela’s founder and CEO. “We’re already in discussions with several U.S. companies that see the potential of using flying electric vessels to bypass congestion.”

The Washington D.C. demo is timed to coincide with the Swedish Green Transition Summit, a forum focused on sustainable innovation, and will run through October 23rd from a launch site adjacent to the Swedish Embassy. It’s part marketing, part diplomacy, and part real-world proof of concept that urban waterborne transit doesn’t have to be slow, loud, or dirty.

For a city surrounded by rivers and plagued by congestion, Candela’s pitch is clear: don’t pave more roads – just fly over the water. If the P-12 delivers in D.C. the way it has in Sweden, this could be the start of an entirely new commute for many more U.S. cities.

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