Musk damaged Tesla’s brand in just a few months. Fixing it will likely take longer

Musk damaged Tesla’s brand in just a few months. Fixing it will likely take longer
US President Donald Trump and Tesla CEO Elon Musk speak to the press as they stand next to a Tesla Cybertruck on the South Portico of the White House on March 11, 2025 in Washington, DC. (AFP)
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Updated 24 April 2025

Musk damaged Tesla’s brand in just a few months. Fixing it will likely take longer

Musk damaged Tesla’s brand in just a few months. Fixing it will likely take longer
  • Sales have plunged for Tesla amid protests and boycotts over Musk’s embrace of far right-wing views
  • Profits have been sliced by two-thirds so far this year, and rivals from China, Europe and the US are pouncing

NEW YORK: Elon Musk has been called a Moonshot Master, the Edison of Our Age and the Architect of the Future, but he’s got a big problem at his car company and it’s not clear he can fix it: damage to its brand.
Sales have plunged for Tesla amid protests and boycotts over Musk’s embrace of far right-wing views. Profits have been sliced by two-thirds so far this year, and rivals from China, Europe and the US are pouncing.
On Tuesday came some relief as Musk announced in an earnings call with investors that he would be scaling back his government cost-cutting job in Washington to a “day or two per week” to focus more on his old job as Tesla’s boss.
Investors pushed up Tesla’s stock 5 percent Wednesday, though there are plenty of challenges ahead.
Who wants a Tesla?
Musk seemed to downplay the role that brand damage played in the drop in first-quarter sales on the investor call. Instead, he emphasized something more fleeting — an upgrade to Tesla’s best-selling Model Y that forced a shutdown of factories and pinched both supply and demand.
While financial analysts following the company have noted that potential buyers probably held back while waiting for the upgrade, hurting results, even the most bullish among them say the brand damage is real, and more worrisome.
“This is a full blown crisis,” said Wedbush Securities’ normally upbeat Dan Ives earlier this month. In a note to its clients, JP Morgan warned of “unprecedented brand damage.”
Musk’s take on the protests
Musk dismissed the protests against Tesla on the call as the work of people angry at his leadership of the Department of Government Efficiency because “those who are receiving the waste and fraud wish it to continue.”
But the protests in Europe, thousands of miles from Washington, came after Musk supported far-right politicians there. Angry Europeans hung Musk in effigy in Milan, projected an image of him doing a straight-arm salute on a Tesla factory in Berlin and put up posters in London urging people not to buy “Swasticars” from him.
Sales in Europe have gone into a free fall in the first three months of this year — down 39 percent. In Germany, sales plunged 62 percent.
Another worrying sign: On Tuesday, Tesla backed off its earlier promise that sales would recover this year after dropping in 2024 for the first time a dozen years. Tesla said the global trade situation was too uncertain and declined to repeat the forecast.
Here come the rivals
Meanwhile, Tesla’s competition is stealing its customers.
Among its fiercest rivals now is Chinese giant BYD. Earlier this year, the EV maker announced it had developed an electric battery that can charge within minutes. And Tesla’s European rivals have begun offering new models with advanced technology that is making them real Tesla alternatives just as popular opinion has turned against Musk.
Tesla’s share of the EV market in the US has dropped from two-thirds to less than half, according to Cox Automotive.
Pinning hopes on cybercabs
Another rival, Google parent Alphabet, is already ahead of Tesla in an area that Musk has promised will help remake his company: Cybercabs.
One of the highlights of Tesla’s call Tuesday was Musk sticking with his previous prediction that it will l aunch driverless cabs without steering wheels and pedals in Austin, Texas, in June, and in other cities soon after.
But Google’s service, called Waymo, already has logged millions of driverless cybercab trips in San Francisco, Phoenix, Los Angeles, and Austin as part of a partnership with ride-hailing leader Uber.
A driverless future for Tesla owners?
Musk also told analysts that this driverless capability will be available on the Tesla vehicles already on the road through software updates over the air, and put a timeline on it: “There will be millions of Teslas operating autonomously in the second half of the year.”
But he has made similar promises before, only to miss his deadlines, such as in April 2019 when he vowed full automation by the end of the next year. He repeated the prediction, moving up the date, several more times, in following years.
A big problem is federal investigators have not given the all-clear that Tesla vehicles can drive completely on their own safely. Among other probes, safety regulators are looking into Tesla’s so-called Full Self-Driving, which is only partial self-driving, for its tie to accidents in low-visibility conditions like when there is sun glare.
On the positive side
In competition with rivals in the US, Tesla currently has one clear advantage: It will get hurt by less by tariffs because most of its vehicles are built in the countries where they are sold, including those in its biggest market, the US
“Tariffs are still tough on a company where margins are still low, but we do have localized supply chains,” Musk said Tuesday. “That puts us in a strong position.”
The company also reconfirmed that a cheaper version of its best-selling vehicle, the Model Y sport utility vehicle, will be ready for customers in the first half of this year. That could help boost sales.
Another plus: The company had a blow out first quarter in its energy storage business. And Musk has promised to be producing 5,000 Optimus robots, another Tesla business, by the end of the year.
Pricey stock
Even after falling nearly 50 percent from its December highs, Tesla’s stock is still very richly valued based on the one yardstick that really matters in the long run: its earnings.
At 110 times its expected per share earnings this year, the stock is valued more than 25 times higher than General Motors. The average stock on in the S&P 500 index trades at less than 20 times earnings.
That leaves Tesla little margin for error if something goes wrong.


United Nations to cut 25 percent of its global peacekeeping force in response to US funding strains

Updated 12 sec ago

United Nations to cut 25 percent of its global peacekeeping force in response to US funding strains

United Nations to cut 25 percent of its global peacekeeping force in response to US funding strains
The United Nations will begin slashing its peacekeeping force and operations, forcing thousands of soldiers in the next several months to evacuate far-flung global hotspots as a result of the latest US funding cuts to the world body, a senior UN official said.
The official, who spoke on the condition of anonymity to discuss a private meeting, briefed reporters Wednesday on the 25 percent reduction in peacekeepers worldwide as the United States, the largest UN donor, makes changes to align with President Donald Trump’s “America First” vision.
Roughly 13,000 to 14,000 military and police personnel out of more than 50,000 peacekeepers deployed across nine global missions will be sent back to their home countries. The UN support office in Somalia will also be affected. The UN plans to reduce the peacekeeping force’s budget by approximately 15 percent for this year.
The countries where the UN has peacekeeping missions include Congo, the Central African Republic, South Sudan, Lebanon, Cyprus and Kosovo.
Each of the UN’s 193 member countries is legally obliged to pay its share toward peacekeeping. UN Secretary General Antonio Guterres has argued that with a budget “representing a tiny fraction of global military spending — around one half of one percent — UN peacekeeping remains one of the most effective and cost-effective tools to build international peace and security.”
The decision to institute a major overhaul of the peacekeeping force — known globally for their distinctive blue berets or helmets — followed a meeting Tuesday between Guterres and representatives from major donor countries, including Mike Waltz, the new US ambassador to the United Nations.
Waltz and other Trump administration officials have argued that the UN’s budget and agencies are bloated and redundant, pledging not to make any further contributions until the State Department has assessed the effectiveness of every single UN agency or program. Upon entering his second term in January, Trump ordered a review of the UN and other multilateral institutions, which has already resulted in cutting US ties from the UN cultural agency UNESCO, the World Health Organization and the top UN human rights body, while reassessing its funding for others.
At the UN, more than 60 offices, agencies and operations are facing 20 percent job cuts, part of Guterres’ reform effort and reaction to already announced Trump funding cuts.
In a television interview last week, Waltz said the US is focused on getting “the UN back to basics of promoting peace, enforcing peace, preventing wars.”
He added, “We have to cut out all of this other nonsense.”
UN peacekeeping operations have grown dramatically. At the end of the Cold War in the early 1990s, there were 11,000 UN peacekeepers. By 2014, there were 130,000 in 16 peacekeeping operations. Today, around 52,000 men and women serve in 11 conflict areas in Africa, Asia, Europe and the Middle East.
The US outlined that it would commit $680 million to nine of those peacekeeping efforts, a significant reduction from the $1 billion payment the US had made this time last year, the UN official said. That funding will be accessible for all active missions, especially those the US has taken special interest in, such as peacekeepers in Lebanon and the Democratic Republic of Congo.
Contributions from the US and China make up half of the UN’s peacekeeping budget. Another senior UN official, who also requested anonymity to discuss private talks, said China has indicated it will be paying its full contribution by the end of the year.

Irish presidential frontrunner attacks Dublin for failure to sanction Israel

Irish presidential frontrunner attacks Dublin for failure to sanction Israel
Updated 53 min 22 sec ago

Irish presidential frontrunner attacks Dublin for failure to sanction Israel

Irish presidential frontrunner attacks Dublin for failure to sanction Israel
  • Connolly leads in opinion polls before the October 24 vote
  • She urged Dublin not to buckle to pressure from big US companies by watering down the law and stopping just a trickle of trade in goods, not services

DUBLIN: The frontrunner to become Ireland’s next president has criticized the government for inaction on a planned law to impose sanctions on Israeli settlements in protest over Israel’s military campaign in Gaza.
Catherine Connolly, an independent leftwing lawmaker backed by the main opposition Sinn Fein party, urged Dublin not to buckle to pressure from big US companies by watering down the law and stopping just a trickle of trade in goods, not services.
She was speaking before US President Donald Trump said Israel and Hamas had reached a deal for a ceasefire in Gaza and a hostage release under his plan for ending the two-year-old war in the Palestinian enclave.
Ireland’s government has been fiercely critical of Israel’s offensive in Gaza against Hamas. But sources told Reuters the bill is set to be blunted, however, after lobbying by US businesses.
“We cannot allow the government to fail the Palestinian people on this,” she told Reuters, accusing the center-right governing coalition partners Fianna Fail and Fine Gael of “dragging their feet.”
“I will continue to press for the occupied territories bill to include services, as it was always intended,” Connolly said, calling any limitation to goods an “appalling capitulation to corporate interests” and an “unforgivable betrayal.”
Ireland’s president is largely a figurehead but can exercise influence over the government, having powers to refer proposed new laws to the supreme court to determine whether they are in line with the constitution, although this is rare.
Connolly leads in opinion polls before the October 24 vote.
Connolly’s comments were echoed by Frances Black, an independent member of the upper house of parliament who first brought forward the legislation to impose sanctions over Israeli settlements seven years ago.
“The government needs to be ... strong on this. They need to be courageous. It’s absolutely vital that we have goods and services on the bill,” Black told Reuters. “We need to match our words with action.
The Irish government declined to comment.
Ireland has been preparing to impose sanction over trade with Israeli settlements for a year, provoking criticism from Israel, international company lobby groups and threats of reprisal from US lawmakers.
Earlier this week, a group of US lawmakers wrote to Irish prime minister Micheál Martin, saying that passing the bill would damage US-Irish relations and impact American companies in Ireland.


Authorities charge man with sparking most destructive wildfire in LA’s history

Authorities charge man with sparking most destructive wildfire in LA’s history
Updated 09 October 2025

Authorities charge man with sparking most destructive wildfire in LA’s history

Authorities charge man with sparking most destructive wildfire in LA’s history
  • The fire, which left 12 dead in the hillside neighborhoods across Pacific Palisades and Malibu, was one of two blazes that broke out on Jan. 7
  • The fire killed more than 30 people in all and destroying over 17,000 homes and buildings while burning for days in Los Angeles County

LOS ANGELES: A 29-year-old man has been charged with sparking California’s deadly Palisades Fire, one of the most destructive wildfires in its history, authorities said Wednesday.
Federal officials said Jonathan Rinderknecht, who lived in the area, started a small fire on New Year’s Day that smoldered underground before reigniting nearly a week later and roaring through Pacific Palisades, home to many of Los Angeles’ rich and famous.
The fire, which left 12 dead in the hillside neighborhoods across Pacific Palisades and Malibu, was one of two blazes that broke out on Jan. 7, killing more than 30 people in all and destroying over 17,000 homes and buildings while burning for days in Los Angeles County.
Rinderknecht was arrested Tuesday in Florida and made his first court appearance Wednesday in Orlando on charges including malicious destruction by means of a fire, which carries a minimum sentence of five years in prison. Wearing shorts and a T-shirt while shackled at the ankles, he told a federal magistrate in a soft-spoken voice that he was not under the influence and did not have mental issues.
The judge set a hearing for Oct. 17 to consider bond and extradition proceedings. Messages seeking comment were left for Aziza Hawthorne, the federal assistant public defender assigned to represent Rinderknecht.
Los Angeles Fire Department Interim Fire Chief Ronnie Villanueva said the arrest was an important first step toward justice.
The department released a report Wednesday that found firefighters lacked enough resources and struggled to communicate clearly in the first 36 hours of the blaze, and that those challenges hampered their response during a critical time. The report said the department did not pre-deploy enough resources despite warnings of severe winds.
Suspect talked to authorities three weeks after the fire
Investigators said Wednesday that Rinderknecht was working as an Uber driver on New Year’s Eve, 2024. After dropping off a passenger in Pacific Palisades, he parked and walked up a trail. He took videos at a nearby hilltop area and listened to a rap song with a music video showing objects being lit on fire, prosecutors said. Shortly after midnight, he lit the fire, they alleged.
He fled the scene after starting the fire but returned to the trail to watch it burn, acting US Attorney Bill Essayli said.
“He left as soon as he saw the fire trucks were headed to the location. He turned around and went back up there. And he took some video and, and watched them fight the fire,” Essayli said.
Uber said in a statement that it worked with the US Bureau of Alcohol, Tobacco, Firearms and Explosives to determine the driver’s whereabouts around the time of the fire.
Rinderknecht also made several 911 calls to report the fire, according to a criminal complaint.
During an interview Jan. 24, Rinderknecht told investigators where the fire began, information not yet public and that he would not have known if he hadn’t witnessed it, the complaint said.
He lied about his location, claiming he was near the bottom of the hiking trail, Essayli said.
He was visibly anxious during that interview, according to the complaint. His efforts to call 911 and his question to ChatGPT about a cigarette lighting a fire indicated that he wanted to create a more innocent explanation for the fire’s start and to show he tried to assist with suppression, the complaint said.
A ‘holdover fire,’ and investigators say they found a lighter
Federal officials called the Palisades blaze a “holdover fire” from the Jan. 1 fire, which was not fully extinguished by firefighters. LA’s interim fire chief said such fires linger in root systems and can reach depths of 15 to 20 feet (4.6 to 6.1 meters), making them undetectable by thermal imaging cameras.
Investigators determined the initial blaze was likely lit by a lighter taken to vegetation or paper, according to the criminal complaint.
Investigators found a “barbecue-style” lighter in the glove compartment of Rinderknecht’s car on Jan. 24. It appeared to be the same lighter as one that was in his apartment on Dec. 31, based on a photo on his phone. He admitted to bringing a lighter with him when he walked up the hill, authorities said.
Federal prosecutors will need to prove beyond a reasonable doubt that the Palisades Fire grew from the blaze six days earlier, said Jerod Gunsberg, a California criminal defense attorney with experience in arson cases.
Fire department examines its own response
The department found that there was a delay in communicating evacuation orders to the public, resulting in spontaneous evacuations without traffic control that caused residents to block routes to the fire. The incident command had to be frequently relocated to escape the fire front, the report said.
The first evacuation orders came 40 minutes after some homes were already burning, reporting by The Associated Press has found.
The department could not effectively recall off-duty personnel, and some fire chiefs had limited experience with “managing an incident of such complexity,” the report said. Most firefighters worked for more than 36 hours without rest.
Second fire remains under investigation
The Eaton Fire broke out the same day in the community of Altadena, destroying more than 9,400 homes and killing 19 people. Investigators have not officially determined a cause, but the federal government sued utility Southern California Edison last month, alleging that its equipment sparked the fire.
An outside review released in September found that a lack of resources and outdated policies for sending emergency alerts led to delayed evacuation warnings.
The report commissioned by Los Angeles County supervisors said a series of weaknesses, including “outdated policies, inconsistent practices and communications vulnerabilities,” hampered the county’s response.


Australian former UFC fighter shot dead in Sydney

Australian former UFC fighter shot dead in Sydney
Updated 09 October 2025

Australian former UFC fighter shot dead in Sydney

Australian former UFC fighter shot dead in Sydney
  • Former UFC fighter Suman Mokhtarian was gunned down in a “brazen” shooting while on an early evening walk in Sydney, police said, months after surviving an attempt on his life

SYDNEY: Former UFC fighter Suman Mokhtarian was gunned down in a “brazen” shooting while on an early evening walk in Sydney, police said, months after surviving an attempt on his life.
The 33-year-old was shot dead in a “targeted” attack in Riverstone, a suburb in Sydney’s northwest, on Wednesday evening, New South Wales Police said.
A short time after the shooting two cars were found on fire in different locations, a hallmark of recent organized crime hits that have rattled the city.
“It’s very brazen and it’s a shame that this is happening in our community,” NSW Police superintendent Jason Joyce said.
“You’d want to think that in a residential area that people could wander the streets at that time of (early) night and be safe, but we do believe it’s a targeted attack,” he said.
Local media reported that Mokhtarian had survived an attempt on his life last February, when a gunman fired on him outside a gym in Sydney’s west.
He fought twice in the UFC, in 2018 and 2019, losing both times, before moving into coaching, according to ESPN.
He helped develop some of Australia’s top mixed martial arts prospects, the website said.
A local who only identified himself by his first name, Ben, said he was walking with his wife when he heard a gunshot.
“It was around then when we heard a bang as well and a lot of smoke went up in the air... that would have been the car,” he told The Sydney Morning Herald.
“There was a large commotion, a lot of people were just shocked because they’ve never witnessed anything like this.”
“The shooting happened with children literally riding bikes around the park.”
Neighbour Natalie, who also did not provide her last name, said she was out the front of her home with her children when the incident took place.
“I called the police straight away,” she told the national broadcaster ABC.
Natalie said she ran over to see if Mokhtarian was alive, but “he clearly wasn’t.”
“I could immediately tell he wasn’t alive, otherwise I would’ve tried to help him,” she said.
The killing came a day after police foiled a “kill team” bearing firearms, balaclavas, body-worn cameras and jerrycans on the way to a daycare center.
Police are investigating if the two incidents are linked.


Afghan Taliban foreign minister begins first India visit

Afghan Taliban foreign minister begins first India visit
Updated 09 October 2025

Afghan Taliban foreign minister begins first India visit

Afghan Taliban foreign minister begins first India visit
  • Neither side has disclosed the agenda, but analysts say trade and security are likely to be at the forefront, though India is unlikely, for now, to extend formal recognition to the Taliban government

NEW DELHI: Afghanistan’s UN-sanctioned foreign minister arrived in India on Thursday, the first visit by a top Taliban leader since they returned to power in 2021 following the withdrawal of US-led forces.
Amir Khan Muttaqi’s trip — made possible after the UN Security Council granted him a travel waiver — is expected to be closely watched by India’s arch-rival Pakistan, as New Delhi deepens its engagement with the Taliban government.
“We look forward to engaging discussions with him on bilateral relations and regional issues,” Indian foreign ministry spokesman Randhir Jaiswal said in a statement, offering Muttaqi a “warm welcome.”
Muttaqi, who met with India’s top career diplomat Vikram Misri in January in Dubai, is set to hold talks with Foreign Minister Subrahmanyam Jaishankar.
Neither side has disclosed the agenda, but analysts say trade and security are likely to be at the forefront — though India is unlikely, for now, to extend formal recognition to the Taliban government.
“New Delhi is eager to establish its influence in Kabul... and not be left behind by its arch-rivals, China and Pakistan,” International Crisis Group analyst Praveen Donthi told AFP.
Muttaqi’s visit follows meetings in Russia — the only country so far to have officially recognized the Taliban administration.
But while the Taliban are “seeking diplomatic recognition and legitimacy,” Donthi said, others noted that was some way off.
“India is not in a hurry to provide diplomatic recognition to the Taliban,” Rakesh Sood, India’s former ambassador to Kabul, told AFP.
India has long hosted tens of thousands of Afghans, many who fled the country after the Taliban returned to power.
Afghanistan’s embassy in New Delhi shut in 2023, although consulates in Mumbai and Hyderabad still operate limited services.
India says its mission in Kabul is limited to coordinating humanitarian aid.