Elon Musk might use Tesla to fund new xAI venture

The Street
The Street
  • 3 months ago
TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and how Elon Musk might fund his newest venture.

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Transcript
00:00I'm Conway Gittins reporting from the New York Stock Exchange.
00:03Here's what we're watching on the street today.
00:05Tech stocks led an earnings-induced nosedive across Wall Street on Wednesday.
00:09The Nasdaq plunged 654 points in its biggest one-day loss since 2022.
00:16Google Parent Alphabet was the main culprit after mixed quarterly results.
00:20But tech was not the only earnings disappointment.
00:23Visa missed quarterly sales forecasts as high credit card fees dampened consumer spending.
00:29In other news, Elon Musk, one of the world's richest people on the planet, is seeking investment
00:34advice from you for his latest project.
00:37In a poll posted on where else but X, Musk asked, quote, should Tesla invest $5 billion
00:43into X.A.I., assuming the valuation is set by several credible outside investors?
00:49His idea of taking money away from Tesla to focus on his new artificial intelligence company
00:54came off as tone deaf.
00:57Musk's main revenue generator, Tesla, is admittedly facing slower sales growth this
01:01year, and its latest earnings report hit with a thud.
01:05While total second-quarter sales beat forecast, automotive revenue dropped 7 percent from
01:10a year ago.
01:11The decline would have been worse without recent price cuts, discounts and incentives.
01:16Meanwhile, profits plunged more than 40 percent from a year ago, marking the fourth straight
01:21quarter of disappointing earnings.
01:24by erasing more than one-tenth of Tesla's market value in a single day.
01:29That's a loss of over $100 billion in stock market wealth.
01:33Musk is known for juggling several things at once as CEO of Tesla, SpaceX, Starlink,
01:39the Boring Company, X and now X.A.I., and his companies often make money off one another.
01:46That'll do it for your daily briefing from the New York Stock Exchange.
01:48I'm Conway Gittins with The Street.
01:53Thanks for watching.

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