Tesla stock plunges as Musk’s feud with Trump over GOP tax bill spooks investors

Tesla stock plunges as Musk’s feud with Trump over GOP tax bill spooks investors
In the weeks after Trump was elected, Tesla shares soared, hitting an all-time high on Dec. 17. But they gave back those gains during Musk’s time as head of a government cost-cutting group as Tesla’s reputation took a hit. (Getty Images/AFP)
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Updated 06 June 2025

Tesla stock plunges as Musk’s feud with Trump over GOP tax bill spooks investors

Tesla stock plunges as Musk’s feud with Trump over GOP tax bill spooks investors
  • The drop on Thursday wiped out nearly $150 billion from Tesla’s market value

Shares of Elon Musk’s electric vehicle maker fell sharply Thursday as investors feared his dispute with President Donald Trump will hurt the company.
Tesla plunged closed down more than 14 percent as a disagreement over the US president’s budget bill turned nasty. After Musk said that Trump wouldn’t haven’t gotten elected without his help, Trump implied that he may turn the federal government against his companies, including Tesla and SpaceX.
“The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts,” Trump wrote on his social messaging service Truth Social. “I was always surprised that Biden didn’t do it!”
The drop on Thursday wiped out nearly $150 billion from Tesla’s market value, partially reversing a big runup in the eight weeks since Musk confirmed that Tesla would testing an autonomous, driverless “robotaxi” service in Austin, Texas, this month.
Investors fear Trump might not be in such a rush to usher in a future of self-driving cars in the US, and that could slam Tesla because so much of its future business depends on that.
“There is a fear that Trump is not going to play Mr. Nice Guy when in come to autonomous,” said Wedbush Securities analyst Dan Ives. “The whole goal of robotaxis is to have them 20 or 25 cities next year. If you start to heighten the regulatory environment, that could delay that path.”
Trump’s threat to cut government contracts seem targeted more to another of Musk’s businesses, SpaceX, his privately held rocket company that received billions of dollars to send astronauts and cargo to the International Space Station, provide launches and do other work for NASA. The company is currently racing to develop a mega rocket for the space agency to sent astronauts to moon next year.
A subsidiary of SpaceX, the satellite Internet company Starlink, appears to also have benefited from Musk’s once-close relationship with the president.
On a trip with Trump to the Middle East last month, Musk announced that had approved his satellite service for aviation and maritime use. Though its not clear how much politics has played a role, a string of other recent deals for the company in Bangladesh, Pakistan, India and elsewhere has come as Trump has threatened tariffs and sent diplomats scrambling to please the president.
One measure of SpaceX’s success: A private financing round followed by a private sale of shares recently reportedly valued it at $350 billion, up from an estimated $210 billion just a year ago. Tesla shares initially got a lift from his support of Trump. In the weeks after Trump was elected, Tesla shares soared, hitting an all-time high on Dec. 17. But they gave back those gains during Musk’s time as head of a government cost-cutting group as Tesla’s reputation took a hit. They’ve recently popped higher again after Musk vowed to focus much more on Tesla and its upcoming launch of driverless taxis.


As security tightens, migrants take more risks to reach EU

As security tightens, migrants take more risks to reach EU
Updated 5 sec ago

As security tightens, migrants take more risks to reach EU

As security tightens, migrants take more risks to reach EU
  • Experts say migrants are adapting to stricter EU measures at borders and becoming more reliant on smugglers and newer, often more dangerous routes

LONDON: The number of people arriving illegally in Europe has fallen in 2025, but experts warn that irregular migration will persist as conflict and economic hardship intensify and migrants forge new pathways to avoid tougher security measures.

Arrivals fell by 20 percent in the first six months of the year, continuing 2024’s downward trend, according to the EU’s border agency Frontex, which credited the drop to increased cooperation with transit countries.

Since 1 million people entered Europe irregularly during the so-called migrant crisis in 2015, the EU has taken an increasingly tough stance on illicit arrivals.

However, experts say migrants are adapting to stricter EU measures at borders and becoming more reliant on smugglers and newer, often more dangerous routes.

While overall numbers are down, arrivals have not decreased across every route to Europe, and new corridors have emerged as migrants and smugglers adapt. “As one route declines, others usually surge or re-emerge,” said Jennifer Vallentine, an expert at the Mixed Migration Center, a research organization.

Irregular crossings dropped to 240,000 in 2024 after surpassing 300,000 in 2022 and 2023 for the first time since 2016.

Amid the downward trend, a new Mediterranean Sea corridor between Libya and Greece has emerged, with more than 7,000 people arriving in Crete this year.

The Greek government has proposed a new law to criminalize illegal entry and impose a temporary ban on asylum applications.

“Harsh restrictions won’t stop the need and desire to migrate, and with irregular migration the only option for some, smuggler services will stay in demand,” said Vallentine.

The main irregular entry points across the Mediterranean and over the Greek-Turkish land border have remained consistent over the last decade.

But activity on specific routes has fluctuated as people try to avoid increasing surveillance and border controls, according to experts. The EU has sought to shutter access at key entry points, said Helena Hahn, an expert at the European Policy Center think tank.

The bloc has struck deals with Libya, Tunisia and Egypt, key departure points for crossing the Mediterranean, bolstering the countries’ border forces with speed boats and surveillance and offering cash in exchange for preventing illegal migration.

“Cooperation with North African countries has certainly played a role in reducing arrivals,” said Hahn.

Arrivals across the Central Mediterranean route from North Africa to Italy and Malta decreased by 58 percent from 2023 to 2024, which the International Organization for Migration attributed to more boats being stopped at sea and migrants returned to Libya and Algeria.

But the organization also said the EU-North Africa partnerships contribute to increased activity on the Atlantic Ocean route from West Africa to the Canary Islands.

The Central Mediterranean route emerged as the sea’s busiest after the EU struck a deal with Turkiye in 2016, paying Ankara €6 billion ($6.95 billion) to care for Syrians who had fled their country’s civil war.

Turkiye also agreed to “take any necessary measures” to block new illegal routes into the EU.

Over the last decade, Europe has spent billions on surveillance systems and detection equipment and has posted Frontex staff at its external and internal borders.

The Western Balkan Route that connects arrivals in Greece with Western Europe via an arduous journey through the Balkan states has been a target of these efforts and last year, Frontex reported detections of irregular crossings on the route had dropped by 78 percent from 2023.

But the IRC only recorded a 16 percent drop over the same time period, which the organization said suggests people are traveling more covertly to avoid detection. “There’s a lot of deterrence, but it just makes people take more dangerous routes,” said Martha Roussou, a senior advocacy adviser at the International Rescue Committee, a global humanitarian charity.

Migrants are paying smugglers higher fees and traveling more quickly by night, stopping less often to seek help, according to the IRC.

The EU is set to triple its spending on borders in the 2028-2034 Multiannual Financial Framework to €81 billion.

“(Europe’s) reactive approach fails to acknowledge migration as both inevitable and beneficial,” said Vallentine.

“Until regular and accessible pathways are established, we will continue to see irregular migration — and smuggling networks will continue to adapt to facilitate it.”


UK to prosecute 60 people for supporting banned pro-Palestine group

UK to prosecute 60 people for supporting banned pro-Palestine group
Updated 16 min 17 sec ago

UK to prosecute 60 people for supporting banned pro-Palestine group

UK to prosecute 60 people for supporting banned pro-Palestine group
  • More than 700 people have been arrested since it was banned as a terrorist group in early July, including 522 people arrested at a protest last weekend for displaying placards backing the group

LONDON: At least 60 people will be prosecuted for “showing support” for the recently proscribed Palestine Action group, in addition to three already charged, London’s Metropolitan Police said.

“We have put arrangements in place that will enable us to investigate and prosecute significant numbers each week if necessary,” the Met said in a statement.

More than 700 people have been arrested since it was banned as a terrorist group in early July, including 522 people arrested at a protest last weekend for displaying placards backing the group — thought to be the highest ever recorded number of detentions at a single protest in the UK capital.

“The decisions that we have announced today are the first significant numbers to come out of the recent protests, and many more can be expected in the next few weeks,” said Director of Public Prosecutions Stephen Parkinson.

“People should be clear about the real-life consequences for anyone choosing to support Palestine Action,” said Parkinson.

The first three people were charged earlier this month with offenses under the Terrorism Act for backing Palestine Action, after they were arrested at a July demonstration.

According to police, those charged for such offenses could face up to six months imprisonment, as well as other consequences.

“I am proud of how our police and CPS (prosecution) teams have worked so speedily together to overcome misguided attempts to overwhelm the justice system,” Met Police Commissioner Mark Rowley said. In a statement following the latest mass arrests, Interior Minister Yvette Cooper defended the Labour government’s decision, insisting: “UK national security and public safety must always be our top priority.”

“The assessments are very clear — this is not a nonviolent organization,” she added.

The government outlawed Palestine Action on July 7, days after it took responsibility for a break-in at an air force base in southern England that caused an estimated £7.0 million ($9.3 million) of damage to two aircraft.

The group said its activists were responding to Britain’s indirect military support for Israel amid the war in Gaza.

Britain’s Interior Ministry has insisted that Palestine Action was also suspected of other “serious attacks” that involved “violence, significant injuries and extensive criminal damage.”

Critics, including the UN, Amnesty International, and Greenpeace, have criticized the proscription as an overreach of the law and warned that the ensuing arrests threaten free speech.

The UK’s Liberal Democrat party said that it was “deeply concerned about the use of terrorism powers against peaceful protesters.”


UK must bring sick, injured children from Gaza ‘without delay,’ MPs say

UK must bring sick, injured children from Gaza ‘without delay,’ MPs say
Updated 16 August 2025

UK must bring sick, injured children from Gaza ‘without delay,’ MPs say

UK must bring sick, injured children from Gaza ‘without delay,’ MPs say
  • Remove barriers preventing evacuations immediately, urges group of 96 parliamentarians
  • Letter to senior ministers says medical, humanitarian catastrophe reaching ‘horrific proportions’

LONDON: The British government must bring sick and injured Palestinian children from Gaza to the UK “without delay,” a group of MPs has said.

The cross-party group of 96 parliamentarians made the appeal in a letter to senior government ministers, .

Children in the Palestinian enclave are at risk of imminent death, and any barriers preventing their evacuation to Britain must be removed, they said.

Responding to Gaza’s “decimated” healthcare system requires adequate funding and a detailed timeline for child evacuations, the MPs added.

UN children’s charity UNICEF has said that more than 50,000 Palestinian children have been killed or injured since the beginning of the Gaza war in late 2023.

The medical and humanitarian catastrophe in the enclave has reached “horrific proportions,” said the MPs’ letter, which was coordinated by Dr. Simon Opher, a Labour MP and GP.

Signatories to the letter, addressing the health, home, and foreign secretaries, said they were working with Medecins sans Frontieres to expedite the evacuation of injured and ill Palestinian children to Britain.

The children and their families must be allowed to claim asylum after their treatment is completed, the letter said.

The UK Home Office previously said that biometric checks would be carried out before Palestinian children and their carers travel to the UK, a decision that was questioned by the letter’s signatories.

Plans to evacuate seriously ill or injured children from Gaza were being carried out “at pace,” the government said earlier in August.

A spokesperson said: “We are accelerating plans to evacuate children from Gaza who require urgent medical care, including bringing them to the UK for specialist treatment where that is the best option.”

Several hundred Palestinian children are expected to be evacuated as part of the scheme.

Since late 2023, the UK has channeled funding toward the treatment of injured and seriously ill Palestinians in hospitals across the Middle East.

Liz Harding, of MSF’s UK branch, welcomed the MPs’ letter and called on the government to waive its biometric visa requirement.

Britain must “urgently act on its commitment by creating a dedicated, publicly funded pathway based on clinical need, not bureaucracy,” she added.


Zelensky braces for perilous Trump talks in Washington on Monday

Zelensky braces for perilous Trump talks in Washington on Monday
Updated 16 August 2025

Zelensky braces for perilous Trump talks in Washington on Monday

Zelensky braces for perilous Trump talks in Washington on Monday
  • War in Ukraine at critical diplomatic juncture
  • Trump wants rapid peace deal, not ceasefire
  • Putin gave no ground at talks in Alaska, Zelensky’s last trip to DC ended in disaster

LONDON/KYIV: Ukraine’s Volodymyr Zelensky flies to Washington on Monday under heavy US pressure to agree a swift end to Russia’s war in Ukraine but determined to defend Kyiv’s interests — without sparking a second Oval Office bust-up with Donald Trump.

The US president invited Zelensky to Washington after rolling out the red carpet for Vladimir Putin, Kyiv’s arch foe, at a summit in Alaska that shocked many in Ukraine, where hundreds of thousands have died since Russia’s 2022 invasion.

The Alaska talks failed to produce the ceasefire that Trump sought, and the US leader said on Saturday that he now wanted a rapid, full-fledged peace deal and that Kyiv should accept because “Russia is a very big power, and they’re not.”

The blunt rhetoric throws the onus squarely back on Zelensky, putting him in a perilous position as he returns to Washington for the first time since his talks with Trump in the Oval Office in February descended into acrimony.

The US president upbraided him in front of world media at the time, saying Zelensky did not “hold the cards” in negotiations and that what he described as Kyiv’s intransigence risked triggering World War Three.

Trump’s pursuit of a quick deal defies intense diplomacy by the European allies and Ukraine to convince him that a ceasefire should come first and not — as sought by the Kremlin — once a settlement is agreed.

A source familiar with the matter told Reuters that European leaders had also been invited to Monday’s meeting between Trump and Zelensky, though it was unclear who would actually attend.

Trump briefed Zelensky on his talks with Putin during a call on Saturday that lasted more than an hour and a half, the Ukrainian leader said. They were joined after an hour by European and NATO officials, he added.

“The impression is he wants a fast deal at any price,” a source familiar with the conversation said.

The source said Trump told Zelensky that Putin had offered to freeze the front lines elsewhere as part of a deal, if Ukraine fully withdrew its troops from the eastern Donetsk and Luhansk regions, something Zelensky said was not possible.

Trump and US envoy Steve Witkoff told the Ukrainian leader that Putin had said there could be no ceasefire before that happened, and that the Russian leader could pledge not to launch any new aggression against Ukraine as part of an agreement.

Kyiv has publicly dismissed the idea of withdrawing from internationally recognized Ukrainian land as part of a deal, and says the industrial Donetsk region serves as a fortress holding back Russian advances deeper into Ukraine.

Oleksandr Merezhko, head of the Ukrainian parliament’s foreign affairs committee, told Reuters by phone that Trump’s emphasis on a deal rather than a ceasefire carried great risks for Ukraine.

“In Putin’s view, a peace agreement means several dangerous things – Ukraine not joining NATO, his absurd demands for denazification and demilitarization, the Russian language and the Russian church,” he said.

Any such deal could be politically explosive inside Ukraine, Merezhko said, adding he was worried that Putin’s ostracism in the West had ended.

SECURITY GUARANTEES

Avoiding a repeat of the Oval Office row is critical for Zelensky to preserve relations with the US, which still provides military assistance and is the key source of intelligence on Russia’s military activity.

For Ukraine, robust guarantees to prevent any future Russian invasion are fundamental to any serious settlement.

Two sources familiar with the matter said Trump and the European leaders discussed potential security guarantees for Ukraine similar to the transatlantic NATO alliance’s mutual support pledge during their call. It says, in effect, that an attack on one is treated as an attack on all.

One of the two sources, who requested anonymity to discuss sensitive matters, said European leaders were seeking details on what kind of US role was envisaged.

Zelensky has repeatedly said a trilateral meeting with the Russian and US leaders is crucial to finding a way to end the full-scale war launched by Russia in February 2022.

Trump this week voiced the idea of such a meeting, saying it could happen if his talks in Alaska with Putin were successful.

“Ukraine emphasizes that key issues can be discussed at the level of leaders, and a trilateral format is suitable for this,” Zelensky wrote on social media on Saturday. Putin’s aide Yuri Ushakov told the Russian state news agency TASS a three-way summit had not been discussed in Alaska.


No more ‘acting’: Taliban mark fourth year in power by dropping interim titles 

No more ‘acting’: Taliban mark fourth year in power by dropping interim titles 
Updated 16 August 2025

No more ‘acting’: Taliban mark fourth year in power by dropping interim titles 

No more ‘acting’: Taliban mark fourth year in power by dropping interim titles 
  • Taliban formed a caretaker administration following 2021 takeover
  • Announcement indicates ‘no hope for major change’ in current form of government 

KABUL: Mullah Hibatullah Akhundzada, the supreme leader of the Taliban, has ordered his ministers to remove the “acting” designation from their titles, a move experts say indicates the establishment of a permanent Afghan government.

Weeks after the Taliban took control of Afghanistan in August 2021, the group formed a caretaker government consisting almost entirely of senior figures and without female representation, which has remained in place ever since.

As Afghanistan marks the fourth anniversary on Friday since the Taliban takeover of the country, the group’s reclusive chief, who rules largely from Kandahar, told his officials to stop using “caretaker” in their roles.

“All ministers and the cabinet of the Islamic Emirate should not use the word caretaker in their titles,” Akhundzada said in a statement.

When the Taliban first announced a caretaker administration it was framed as a temporary set-up before the country established an official and inclusive government that included women and members of Afghanistan’s diverse ethnic groups.

Afghans were expecting a voting system to establish a permanent government that would include their voices, whether it was in the form of elections or a “loya jirga,” a grand assembly traditionally held to reach a consensus on important political issues.

“But now that the supreme leader (has) instructed that the current government is official, from a legal perspective the supreme leader’s decree constitutes a law for the Taliban government, replacing the constitution,” Abdul Saboor Mubariz, board member of the Center for Strategic and Regional Studies in Kabul, told Arab News.

“The political implication of this decision could be that there is no hope for major change in the present form of government.”

The initial announcement of a caretaker government, he added, was in the hope of gaining official recognition by the international community. 

With the exception of Russia in July, no other nation has formally recognized Taliban rule since the group seized power in 2021.

“But now they (have) realized that no big progress has been made in that regard so they want to make the current government permanent,” Mubariz said. 

Naseer Ahmad Nawidy, a political science professor at Salam University in Kabul, said the removal of “caretaker” in ministerial titles could mean higher authority for Taliban officials.

“(It’s) something positive. The ministries in Kabul need to have (a) free hand and more authority in their relevant tasks considering the expertise required for each sector,” he told Arab News.

The Taliban also used the term initially to mean that “the ministers were only temporary and that the actual authority was only with the supreme leader in Kandahar,” Nawidy added.

“It also has another message to the executive officials: that no one should be above obeying and all decrees of the leader must be implemented without any questions,” he said.

“The new announcement is an indication that the Islamic Emirate wants to show that the government is fully established.”