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.”
Samsung launched the Galaxy Z Fold6 at its Galaxy Unpacked event in Paris. The tech giant said the foldable device is thinner and lighter than its predecessor.
Arjun Kharpal | CNBC
Samsung will unveil a thinner version of its flagship foldable smartphone at a launch likely set to take place next month, as it battles Chinese rivals to deliver the slimmest devices to the market.
Folding phones, which have a single screen that can fold in half, came in focus when Samsung first launched such a device in 2019. But Chinese players, in particular Honor and Oppo, have since aggressively released foldables that are thinner and lighter than Samsung’s offerings.
Why are slim foldables important?
“With foldables, thinness has become more critical than ever because people aren’t prepared to accept the compromise for a thicker and heavier phone to get the real estate that a folding phone can deliver,” Ben Wood, chief analyst at CCS Insight, told CNBC on Thursday.
Honor, Oppo and other Chinese players have used their slim designs to differentiate themselves from Samsung.
Let’s look at a comparison: Samsung’s last foldable from 2024, the Galaxy Z Fold6, is 12.1 millimeter ~(0.48 inches) thick when folded and weighs 239 grams (8.43 oz). Oppo’s Find N5, which was released earlier this year, is 8.93 millimeters thick when closed and weighs 229 grams. The Honor Magic V3, which was launched last year, is 9.2 millimeters when folded and weighs 226 grams.
“Samsung needs to step up” in foldables, Wood said.
And that’s what the South Korean tech giant is planning to do at its upcoming launch, which is likely to take place next month.
“The newest Galaxy Z series is the thinnest, lightest and most advanced foldable yet – meticulously crafted and built to last,” Samsung said in a preview blog post about the phone earlier this month.
But the competition is not letting up. Honor is planning a launch on July 2 in China for its latest folding phone, the Magic V5.
“The interesting thing for Samsung, if they can approach the thinness that Honor has achieved it is will be a significant step up from predecessor, it will be a tangible step up in design,” Wood said.
Despite these advances by way of foldables, the market for the devices has not been as exciting as many had hoped.
CCS Insight said that foldables will account for just 2% of the overall smartphone market this year. Thinner phones may be one way to address the sluggish market, but consumer preferences would also need to change.
“There is a chance that by delivering much thinner foldables that are more akin to the traditional monoblock phone, it will provide an opportunity to turn consumer heads and get them to revisit the idea of having a folding device,” Wood said.
“However, I would caution foldables do remain problematic because in many cases consumers struggle to see why they need a folding device.”
Although the market remains small for foldables compared to traditional smartphones, noted analyst Ming-Chi Kuo of TF International Securities on Wednesday said Apple — which has been notably absent from this product line-up — plans to make a folding iPhone starting next year.
Google suffered a setback Thursday after an advisor to the European Union’s top court recommended it dismiss the tech giant’s appeal against a record 4.1-billion-euro ($4.7 billion) antitrust fine.
“In her Opinion delivered today, Advocate General Kokott proposes that the Court of Justice dismiss Google’s appeal and, therefore, uphold the judgment of the General Court,” the Luxembourg-based ECJ said in a press release Thursday.
The fine relates to a long-running antitrust case surrounding Google’s Android operating system.
In 2018, the European Commission slapped Google with the record-breaking penalty on the grounds that it abused Android’s mobile dominance to give unfair advantage to its own apps via pre-installation deals with smartphone makers. The Commission is the executive body of the EU.
Google said it was “disappointed” with the ECJ advocate general’s verdict, adding it “would discourage investment in open platforms and harm Android users, partners and app developers.”
“Android has created more choice for everyone and supports thousands of successful businesses in Europe and around the world,” a spokesperson for the company told CNBC via email.
Though the advocate general’s proposal is non-binding, judges tend to follow four out of five such non-binding opinions. The ECJ is expected to deliver a final ruling in the coming months.
A SpaceX Starship is seen in Boca Chica, Texas in 2023.
Patrick T. Fallon | Afp | Getty Images
A SpaceX Starship rocket on Wednesday exploded at the Starbase facility in Texas during routine testing in preparation for a launch flight, according to local authorities and live stream footage.
The rocket “experienced a major anomaly while on a test stand at Starbase” at 11 p.m. local time, SpaceX said on social media, noting “a safety clear area around the site was maintained throughout the operation and all personnel are safe and accounted for.”
Local authorities said that Starship “suffered a catastrophic failure and exploded,” with no injuries reported at the time of writing and an investigation is now underway. Live stream footage of Starbase showed the rocket burst into flame, shooting a large fireball into the sky.
Another Starship launch was expected to take place by the end of this month.
It’s been a tempestuous ride for Elon Musk’s mammoth Starship, after three flight launch attempts devolved in fiery glory and air-traffic stopping debris this year to date. Notably, the rocket model has taken off successfully in previous instances, but its vast scale — standing 120 meters (394 feet) tall when factoring in the Super Heavy booster — has raised concerns over its overall reliability and requirements for orbital refueling once in flight.
Yet Musk has clinched his hopes on Starship as the key vehicle for both NASA’s third and fourth Artemis missions — part of a broader plan to return humans to the Moon — due to take place over 2027-2028. The rocket is also set to play a role in launching the Starlab private space station in the transition to commercial space orbiting labs once the International Space Station retires after 2030.
Critically, Starship is also central to Musk’s — and former ally U.S. President Donald Trump’s — broader ambitions to colonize Mars. The rocket is set to ferry Optimus robots to the red planet by the end of 2026, with Musk in March saying, “If those landings go well, then human landings may start as soon as 2029, although 2031 is more likely.”