Elon Musk might use Tesla to fund new xAI venture
TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and how Elon Musk might fund his newest venture.
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00:00I'm Conway Gittins reporting from the New York Stock Exchange.
00:03Here's what we're watching on the street today.
00:05Tech stocks led an earnings-induced nosedive across Wall Street on Wednesday.
00:09The Nasdaq plunged 654 points in its biggest one-day loss since 2022.
00:16Google Parent Alphabet was the main culprit after mixed quarterly results.
00:20But tech was not the only earnings disappointment.
00:23Visa missed quarterly sales forecasts as high credit card fees dampened consumer spending.
00:29In other news, Elon Musk, one of the world's richest people on the planet, is seeking investment
00:34advice from you for his latest project.
00:37In a poll posted on where else but X, Musk asked, quote, should Tesla invest $5 billion
00:43into X.A.I., assuming the valuation is set by several credible outside investors?
00:49His idea of taking money away from Tesla to focus on his new artificial intelligence company
00:54came off as tone deaf.
00:57Musk's main revenue generator, Tesla, is admittedly facing slower sales growth this
01:01year, and its latest earnings report hit with a thud.
01:05While total second-quarter sales beat forecast, automotive revenue dropped 7 percent from
01:10a year ago.
01:11The decline would have been worse without recent price cuts, discounts and incentives.
01:16Meanwhile, profits plunged more than 40 percent from a year ago, marking the fourth straight
01:21quarter of disappointing earnings.
01:24by erasing more than one-tenth of Tesla's market value in a single day.
01:29That's a loss of over $100 billion in stock market wealth.
01:33Musk is known for juggling several things at once as CEO of Tesla, SpaceX, Starlink,
01:39the Boring Company, X and now X.A.I., and his companies often make money off one another.
01:46That'll do it for your daily briefing from the New York Stock Exchange.
01:48I'm Conway Gittins with The Street.
01:53Thanks for watching.