tech

Rani Molla5/30/25

JPM: Trump’s pending legislation threatens more than half of Tesla’s profits

Trump’s “big, beautiful bill” could take a big, beautiful bite out of Tesla’s bottom line, or about 52% of the electric vehicle company’s 2024 EBIT, according to a report today from JPMorgan analyst Ryan Brinkman.

The legislation would get rid of the $7,500 federal tax credit EV buyers receive, resulting in a $1.2 billion (19% of its EBIT) headwind for the company thanks to lower demand and margins. Additionally, the legislation would outlaw the California Air Resources Board’s ZEV program, which furnishes Tesla with regulatory credits. Without them, Tesla would have posted a loss last quarter. Brinkman estimates that would add an additional $2 billion hit (33% of EBIT).

“Tesla appears to have the most to lose from the shifting regulatory backdrop,” Brinkman wrote. Of course, Tesla’s shares aren’t trading on fundamentals.

“This looks dead and Tesla shares were up,” Brinkman said, referring to both of the credits on a webinar for his report today. “The stock market is completely oblivious to this development.”

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Google TPU 8i chip

Google shares jump on new TPU 8 chips, enterprise agent platform, and partnership with Nvidia

The raft of announcements from Google’s Cloud Next ’26 event sent shares up in early trading.

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How Elon Musk has shifted SpaceX’s goals ahead of its IPO

The New York Times took a close look at how Elon Musk is reshaping SpaceX’s priorities ahead of its highly anticipated, potentially record-breaking IPO — and what that could mean for the company and its investors.

As the NYT’s Ryan Mac noted in the article, “Shifting aims before an I.P.O. would be unthinkable for most corporate leaders, who tend to focus on their core businesses and try to project steadiness to potential investors.”

But Musk, who is also the ever-unpredictable CEO of Tesla, doesn’t follow typical playbooks. Here’s a quick look at how SpaceX’s goals have changed:

Musk’s SpaceX Goals Shift Ahead of Its I.P.O.

Musk’s SpaceX Goals Shift Ahead of Its I.P.O.

But Musk, who is also the ever-unpredictable CEO of Tesla, doesn’t follow typical playbooks. Here’s a quick look at how SpaceX’s goals have changed:

tech

SpaceX seals right to buy coding startup Cursor for $60 billion

SpaceX said today that it’s “working closely together” with fast-growing coding startup Cursor “to create the world’s best coding and knowledge work AI.” The post also said SpaceX would have the right to acquire Cursor later this year or make the startup “pay $10 billion for our work together.” The New York Times, citing people familiar with the matter, previously reported that the companies had agreed to an acquisition.

The news comes as SpaceX prepares for a blockbuster IPO and doubles down on AI, with a growing — if still fully aspirational — focus on space-based data infrastructure and computing.

Last month, when SpaceX hired two senior leaders from Cursor, CEO Elon Musk noted that xAI, which SpaceX acquired earlier this year, “was not built right first time around, so is being rebuilt from the foundations up.”

ChatGPT Images 2.0 sample aliens

OpenAI releases new image generation model with complex capabilities

ChatGPT Images 2.0 marks a big leap forward in image generation as OpenAI seeks to distinguish its features from Anthropic’s Claude.

Tesla delivery miss puts margins and cash flow in focus

Tesla reports first-quarter earnings Wednesday.

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