Elon Musk pauses and appears down as he speaks throughout a press convention at SpaceX’s Starbase facility close to Boca Chica Village in South Texas on February 10, 2022.
Jim Watson | AFP | Getty Photos
In what’s been a very eventful yr for Elon Musk, this was a decidedly tough week.
Tesla’s inventory, which has misplaced nearly half its worth since peaking in November, dropped practically 6% within the final week, as traders continued to promote out of their tech holdings.
There are inside points at Tesla that are not serving to. This week, they had been tied to issues of safety with the corporate’s superior driver-assist methods.
Musk’s different large firm, SpaceX, fired a gaggle of workers who circulated an inside letter that reportedly denounced the CEO and founder as a “distraction and embarrassment.” In the meantime, the Federal Aviation Administration on Monday handed SpaceX’s Starship rocket program a protracted to-do listing earlier than it could obtain a launch license in Boca Chica, Texas.
Then there’s Twitter. Musk agreed to purchase the social media firm for $44 billion in April, however has since publicly trashed it, elevating all types of issues about whether or not the deal will really shut. On Thursday, Musk spoke to Twitter workers for the primary time in a video tackle that was extensively panned, based mostly on messages that confirmed up on the inner chat board.
This is what went down in Musk city this week.
Problematic information on driver-assist crashes
The NTSB launched this picture of a 2021 Tesla Mannequin 3 Lengthy Vary Twin Motor electrical automobile that was concerned in a deadly accident close to Miami that killed two folks on Sept. 13, 2021.
The National Highway Traffic Safety Administration said on Wednesday that Tesla vehicles accounted for nearly 70% of reported crashes involving advanced driver-assist systems since last June. Data provided by the U.S. safety agency said the electric cars were involved in 273 of the 392 accidents cited in the report, which included data from 11 automakers.
Still, the NHTSA said the data doesn’t have proper context and is only meant as a guide to quickly identify potential defect trends.
“I would advise caution before attempting to draw conclusions based only on the data that we’re releasing,” NHTSA Administrator Steven Cliff said during a media event. “In fact, the data alone may raise more questions than they answer.”
Tesla hikes prices across U.S. car models
Tesla Model 3
When Musk announced plans in June to cut 10% of Tesla’s workforce, the CEO said he had a “super bad feeling” about the economy. For consumers, those concerns are turning into sticker shock.
Tesla hiked prices for all car models in the U.S. this week as the auto industry continues to grapple with supply chain issues, inflation and economic uncertainty.
The company increased the price of its Model Y long-range version to $65,990 from $62,990, and raised the performance model by $2,000 to $69,990, according to its website. Electrek said the worth of the Mannequin S Twin Motor All-Wheel Drive elevated by about $5,000 to $104,990. The Mannequin X Twin Motor All-Wheel Drive Lengthy Vary went up by $6,000.
Tesla had beforehand delayed deliveries of among the long-range fashions within the U.S. by as much as a month.
FAA says SpaceX Starship program wants changes
The regulator issued a list of more than 75 environmental mitigation actions the company must complete before it can move forward with Starship flight tests. Included in the requirements are limitations on noise levels and how often SpaceX can close the public highway near the facility.
After the FAA’s decision, Musk said the company will have a Starship prototype rocket “ready to fly” by July. The company is aiming to reach orbit with the vehicle for the first time. But it first requires a launch license from the FAA, and the regulator’s required mitigations amount to a significant lift before the company can request one.
The good news for SpaceX is that the FAA has concluded its assessment, and is not requiring a more in-depth review.
SpaceX employees embarrassed by Musk
Musk’s plan to buy Twitter has worried policymakers around the world.
Joe Skipper | Reuters
An unknown number of SpaceX employees wrote and internally circulated a letter that was critical of Musk and his public behavior, describing him as “a frequent source of distraction and embarrassment,” according to media reports. CNBC reported Friday that at least five employees involved in the letter were fired as a result.
SpaceX President and COO Gwynne Shotwell, in a company-wide email obtained by CNBC, claimed the letter and process to solicit signors “upset many” employees, who she said felt “uncomfortable, intimidated, and bullied.”
“We have too much critical work to accomplish and no need for this kind of overreaching activism,” Shotwell wrote. “I am sorry for this distraction. Please stay focused on the SpaceX mission, and use your time at work to do your best work.”
Musk’s call with Twitter employees didn’t go well
Elon Musk twitter account is seen through Twitter logo in this illustration taken, April 25, 2022.
Dado Ruvic | Reuters
With Twitter’s stock price trading around $37, well below the $54.20 Musk agreed to pay for the company, investors and employees are justifiably concerned about what the future holds.
Musk’s all-hands meeting with Twitter staffers on Thursday seemed like an effort by the potential future owner to establish a sense of trust and transparency with the people who would be working for him.
But reactions on Slack following the meeting indicated employees were still left with questions and concerns, according to a person who saw the messages but asked not to be named as they were intended to be private.
While former CEO Jack Dorsey promised employees the option to work remote permanently, Musk has taken a very different approach with his companies, recently demanding that Tesla and SpaceX workers be in the office at least 40 hours a week.
Musk mentioned on the decision that he will not be as strict with Twitter workers, as a result of growing software program can extra simply be dealt with from afar whereas automobile manufacturing requires bodily presence.
However his reply did not seem to calm issues. His feedback additionally left some Twitter workers fearing for his or her jobs, based on the particular person acquainted. In addressing issues about potential layoffs, Musk mentioned Twitter must get right into a wholesome monetary state, however that “anybody who’s a major contributor has nothing to fret about,” based on the particular person.
In response, Twitter workers shared messages and memes towards the tip of the assembly riffing on the best way to model themselves as distinctive.
—CNBC’s Michael Wayland contributed to this report.
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