Tesla's China Approval and Paramount's CEO Ousting | Bloomberg Technology

Tesla's FSD Approval in China

• Tesla received tentative approval for its Full Self-Driving (FSD) system in China, leading to a significant rise in its stock price.
• The approval includes a partnership with Baidu for income mapping and an agreement on data privacy, allowing Tesla to move forward with FSD in China.
• Tesla's partnership with Baidu for mapping and navigation services highlights the importance of collaborating with Chinese companies to offer advanced driver assistance systems in China.
• Despite the progress, experts clarify that Tesla's FSD is still a driver assistance system and not a fully autonomous vehicle as Musk has portrayed.
• Tesla's FSD approval in China could bring incremental revenue, especially considering the company's recent challenges in maintaining its market share against local competitors like BYD.

Elon Musk's Strategic Approach

• Elon Musk's recent meeting with the Chinese Premier in Beijing played a crucial role in securing the approval.
• Elon Musk's visit to China demonstrates his skill in navigating geopolitics and the power dynamics between countries.
• Tesla was the first international foreign car company allowed to operate in China without a joint venture, a significant win for Musk.
• The construction of Tesla's plant in China was completed in record time, allowing the company to maintain operations during the pandemic when other plants faced difficulties.
• Elon Musk's strategic approach of engaging with both the U.S. and China aims to secure a foothold in both markets and maintain Tesla's competitive edge in the rapidly evolving electric vehicle industry.

U.S. Regulatory Developments

• U.S. auto safety regulators are investigating Ford's BlueCruise assistance driver feature after two fatal crashes involving the technology.
• The Supreme Court rejected Elon Musk's appeal over the Twitter sitter, upholding the agreement he signed in 2018 that he now claims violates his constitutional free-speech rights.

Apple's iPad Updates

• Apple is set to release new versions of the iPad, including the iPad Pro, iPad Air, and a new Pencil stylus and keyboard kit.
• The iPad Pro will receive the biggest upgrade, featuring an LED display and the M3 chip.
• The iPad Air will get the M2 chip and a larger 12.9-inch screen option.
• The Magic Keyboard will receive a new aluminum frame, making the iPad Pro more laptop-like.

Paramount Global's Challenges

• Paramount's traditional TV business is facing challenges due to the decline of advertising and the shift towards streaming services, while its streaming business continues to lose money.
• Paramount's board is considering removing CEO Bob Bakish due to the weakening of the Elephant deal and backlash from nonvoting shareholders.

Sofi's Earnings Report

• Sofi's earnings report showed strong performance, but the company's second-quarter forecast fell below expectations, raising concerns among investors.
• The company reported a 54% year-over-year growth in its combined tech platform financial services business, despite flat revenue.
• The company achieved its second consecutive quarter of positive EPS and a 60% growth in tangible book value per share.
• The company provided full-year guidance above its previous guidance, indicating a positive overall outlook.
• Lending will be down sequentially in Q2 due to a conservative view on lending, while tech platform financial services revenue will have strong year-over-year and sequential growth with continued profitability.
• The company raised capital through a convertible note issuance, allowing it to redeem a preferred security with a higher interest rate, resulting in cost savings.
• The company also bought back an existing convertible trading below face value, which was accretive to book value.
• The company's strategy is to create a one-stop shop for financial services needs, offering various products such as home loans, student loans, checking and savings, investing, insurance, and small to medium business loan generation.
• The company is taking a conservative view on the U.S. economy, expecting unemployment to exceed 5% and interest rate cuts to be limited.
• The company is moving away from the student loan refinance trademark to focus on building a diversified business that allows for selective growth and conservative choices.

WeWork's Bankruptcy Exit

• WeWork has reached a deal to exit bankruptcy, but former CEO Adam Neumann is not involved.

European Markets

• European markets closed with Atos up 18% due to potential government intervention, while SES and Intel are considering reviving merger discussions.

China's ETF Trading

• China's top asset managers are preparing to begin trading ETFs in Hong Kong, with some offering fee waivers to attract investors.

Campus Alternative Education

• Founders Fund, an investment firm, has invested $23 million in Campus, an online alternative to community colleges that aims to tackle student loan debt and provide affordable, high-quality education.
• Campus offers courses at a lower cost compared to traditional colleges and provides students with laptops, internet access, and coaching support to ensure their success.
• Founders Fund focuses on investing in exceptional founders with innovative ideas rather than specific categories or industries.
• Campus allows adjunct professors to teach online in addition to their on-campus jobs, offering a higher wage compared to the national average.