Welcome back to the Elon Musk Podcast. This is a show where we discuss the critical Crossroads, The Shape, SpaceX, Tesla X, The Boring Company, and Neuralink and I'm your host, Will Walden. These are turbulent times at Tesla because the executive that overseas cyber truck manufacturing had recently left the company, marking another high profile departure under CEO Elon Musk's leadership.
Their exit was announced via a LinkedIn post celebrating his fifth anniversary with Tesla, a tenure that spans significant roles across various manufacturing facilities, including the Shanghai Gigafactory and also the Austin factory. Now Zoo's departure adds to a series of exits by senior management at Tesla, raising questions about the stability of its leadership.
His company grapples with challenges surrounding its latest vehicle, the Cyber Truck. Now, this electric pickup has been plagued with production issues, from its unconventional design to concerns about the quality of its assembly, suggesting deeper problems within Tesla's operations. The specific reasons behind Zhu's departure remain unclear, with no confirmation on whether he was laid off or left
voluntarily. His exit coincides with Tesla facing a string of manufacturing setbacks and public relations challenges, notably a recent recall involving every sold cyber truck in the US due to a serious flaw in the design of the accelerator pedal. Now, Tesla has also been undergoing broad organizational layoffs, impacting at least 10% of its workforce, with rumors suggesting the cuts could reach
up to 20%. These layoffs have spanned across several departments, most heavily affecting those involved with vehicle manufacturing and new product launches. Now, I missed these tumultuous times at Tesla. The head of product launches, Rich Auto, also departed, expressing dissatisfaction with the company's direction and a very candid LinkedIn post that was later removed.
And Otto's resignation reflects growing discontent among Tesla employees, exacerbated by recent firings and ongoing operational challenges. Now, Tesla's ambitious goals for the Cyber Truck have also seen setbacks in its execution. Despite achieving a production milestone of about 1000 units per week, numerous customers have reported significant quality issues, including unexpected coolant leaks and random shutdowns, further tarnishing Tesla's reputation.
Other executives have recently left Tesla, including Drill Baglino, former President, former Senior Vice President of Powertrain and Energy Engineering, and Martin Vicha, the Vice President of Investor Relations. These departures signal a potentially worrying trend of instability within Tesla's upper management ranks. Now, in response to these ongoing issues, Tesla has been pushing forward with his production goals.
Last month, the company reported meeting its target production rate for the cyber truck, although it remains to be seen whether these vehicles will meet customer expectations, especially for those willing to pay. Up to 1. $100,000 for the truck now. The repeated executive exits and persistent production problems suggest possible strategic misalignments with Tesla, especially as the company shifts focus towards autonomous driving technology under Musk's new direction.
This pivot raises questions about the future of Tesla's traditional electric vehicle manufacturing operations and also the $25,000 Tesla model, whatever it's going to be called now Jews Own words on LinkedIn reflects the mixed sentiment that's going on right now. They celebrated their achievements with Tesla Cybertruck program, but also marked an end to his journey with the company.
His leadership was crucial in ramping up production to a significant throughput, which makes his departure all the more impactful. The frequent leadership changes in layoffs are not just internal issues, but have started to affect Tesla's public image and also the stock price. Recent reports suggest a decline in Tesla stock value correlating with the company's layoffs and ongoing production issues.
But looking forward, Tesla's strategy remains under scrutiny as it navigates to these high profile exits and production challenges. The company's ability to stabilize its workforce and then execute on its manufacturing goals will be crucial to maintain investor confidence and customer satisfaction. And in light of these developments, Tesla's road ahead appears fraught with challenges.
The company must address both internal management issues and external production quality concerns to regain stability and ensure the success of its future projects, including the Cyber Truck. And as Tesla continues to navigate these turbulent times, we will be focusing on the Cyber Truck production. There may be systemic issues involved and the outcome of these efforts will likely have a lasting impact on Tesla's position in the EV market.
Could be sliding, which is time will tell with these things, With so many people being fired and executives leaving, it's a mass departure for Tesla now. The broader implications for the EV industry could impact supply chains and competitor strategies, and they'll also be influenced by how Tesla manages its current challenges. And ultimately, the departure of these executives and other key players in Tesla shows that there's struggles within the company.
Not everyone's on board with Elon's new direction or the change of direction when they think everything's going well. These issues, if not duress, could hinder Tesla's growth and its influence in the rapidly evolving EV sector. For now, Tesla's focus on ramping up production and resolving quality issues remains paramount. How the company overcomes its current hurdles will be crucial in determining its future trajectory and ability to
innovate. This podcast is brought to you by current Redefined your banking with current the future of personal finance. Manage your money smarter, faster, and on the go. No hidden fees, instant transaction alerts, and savings goals you can actually achieve. I've been using CURRENT for years and they were a great institution. If you'd like to get $50 by signing up to CURRENT, please follow the link in the show notes Join Current Today and Experience Banking that Keeps up
with you. Tesla has recently rehired some members of its previously disbanded supercharging team, including the North American director. Now this move comes weeks after Elon Musk abruptly dismissed nearly the entire group. The initial decision by Musk last month to reduce the team significantly surprised the electric vehicle industry, especially considering the Supercharger networks, critical role in Tesla's infrastructure and strategic partnerships with other automakers, and also with
the US government. Now, the unexpected layoffs affected close to 500 people, including key senior personnel such as Rebecca Tonucci, the senior director responsible for the supercharging network. This drastic change seemed to reflect Musk's broader strategy of streamlining operations, a method he has applied in various forms across his businesses. Now, the exact number of workers rehired after this calling has been disclosed. Not quite yet.
Among those being reinstated is Max de Zager, who returned to his role overseeing North American charging operations. His reinstatement marks a significant reversal of Musk's earlier decision. The scenario is not new to Tesla's history, as Musk had previously reversed major operational decisions under external pressures or strategic
reconsiderations. Attached to the Supercharging network is a fundamental aspect of its business model, offering rapid charging solutions essential for long distance travel by Tesla. Owners and also other EV owners. Initially, it's established in 2012, a long time ago. 12 years ago, the network has grown to include over 6200 charging stations globally. These stations are crucial for promoting the adoption of electric vehicles by alleviating
range anxiety. Now the network not only supports Tesla's own vehicles, but has also become integral to other manufacturers. Over the past year, Tesla has persuaded several large automakers to adopt its charging technology, which has begun to set a new standard in the industry. This integration across brands underscores the strategic importance of the supercharging
network. And despite the network's importance, Musk announced earlier that Tesla would slow down the expansion of new chargers, focusing instead on enhancing the reliability and service quality of their current facilities. Now, this statement followed shortly after the layoffs, suggesting a shift in the company's approach to infrastructure development. But days after signaling this slowdown, Musk committed to a pretty large investment in the supercharging network.
He pledged to. Spend over $500 million this year, half a billion dollars to expand and upgrade the network, a state that followed criticism from everybody in the industry. And what kind of layoff impacts would this have now?
The news of the layoffs in subsequent rehiring was discussed widely across social media platforms like X and on May 10th at Tesla, Charging Account acknowledged the patience of charging site hosts and suppliers amid these strategic changes, an acknowledgement reposted by Zagar indicating his active engagement in his returned role. Now Tesla's internal restructuring and Musk's decision making processes have previously seen similar patterns, so this goes back all the way to 2019.
He announced a significant reduction of Tesla's physical stores, only to reverse the decision after facing logistical and also legal challenges. Similarly, Musk's handling of business operations at Twitter followed A comparable narrative with abrupt layoffs followed by rehiring of some people. Now, in comparison to other charging networks, Tesla's Superchargers are noted for the reliability and the seamless
experience they offer. This network has set a high standard for what users can expect, contributing to Tesla's strong brand reputation among electric vehicle manufacturers, And the recent developments raise questions about the strategic direction that Tesla will pursue in the near future, particularly how it balances cost cutting measures with the need to maintain and expand a robust charging infrastructure.
Industry analysts continue to monitor these changes closely and the stock prices reflect this. Furthermore, competitors in the charging infrastructure sectors such as BP Pulse America have expressed their intent to expand their own networks aggressively due to Tesla's change. This could potentially challenge Tesla's dominance. If the company does not continue to innovate and invest in its Supercharger network, they could be left in the dust.
Now, Tesla's approach to managing its Supercharger network will be important in maintaining its competitive edge. The network's reliability and widespread availability have been key factors in Tesla's success supporting its customers needs and encouraging the shift to electric vehicles. The rehiring of key individuals signals a more measured approach to achieving efficiency and cost reduction without undermining the operational integrity of
Tesla's charging network. It also shows Musk capability to recalibrate his strategies in response to feedback and changing circumstances within this industry. Tesla's communications suggest a continued commitment to expanding and enhancing the Supercharger network now, not just enhancing the current ones, but expanding to new systems now. This includes ongoing projects and the assurance to test the owners that the expansion and functionality of the network remain a priority.
A lot of people bought their Teslas, not just for the vehicle. But the Supercharger network itself and the charging network is key to keeping sales going for Tesla. Range anxiety is a huge deal right now, and people don't want to be left with no battery in the middle of nowhere. The Supercharger networks evolution and its role in Tesla's business strategy are also emblematic of broader trends in the EV industry.
You can't just have a car, you need an infrastructure for that car for that vehicle to run on. It's crucial as the vehicle themselves. Tesla's ability to manage this aspect of its business will be critical as the market continues to grow and evolve. Now, as Tesla moves forward, the industry and the consumers will be watching them closely because if they make another mistake like this, it could hurt their sales. And that's not good.
Supercharger network, with its high visibility and importance to Tesla's brand, will undoubtedly continue to play a central role in this balance. Now, the decision to rehire many members of the Supercharger team, including a key executive, shows that it's an important part of Tesla's brand.
The network is important to the operational strategy and customer commitment for Tesla. It reflects the dynamic nature of decision making within Tesla by Elon Musk and the higher ups, and it highlights the company's continued focus of maintaining a leading edge in the EV market. They've also made a lot of people mad by doing this. This is a roller coaster ride for a lot of people, considering that they were hopefully expecting new Superchargers across the nation.
Jeff Bezos, Blue Origin is set to resume human space flights of its New Shepherd rocket on May 19th, marking a return to suborbital space travel after nearly two years. In this upcoming launch, designated NS-25 will lift off from West, TX and carry a six person crew. The event shows the Blue Origins, renewed engagement of space tourism and research missions followed a series of setbacks and rigorous safety reassessments.
Now the crew for NS-25 mission includes several notable figures such as Ed Dwight, who was the first black astronaut candidate in the US Despite his historical significance, this flight will be Dwight's first journey into space. Other crew members include Mason Angel, an investor with a focus on space and defense industries, and several other citizens with diverse backgrounds ranging from entrepreneurs to retired
professionals. This marks the 7th launch of a crewed mission for the New Shepherd vehicle and comes after a pause in operations due to a mishap during an uncrewed flight in 2022. The anomaly occurred approximately a minute after launch, leading to the loss of the rocket booster. Though the capsule safely parachuted back to Earth, the 2022 incident necessitated A thorough investigation by Blue Origin under the oversight of
the FAA. Findings from March 2023 revealed that the mishap was caused by excessive temperatures that led to catastrophic thermal damage to the BE 3:00 PM engine's nozzle. Now, after an extensive review and the implementation of 21 corrective actions as mandated by the FAA, Blue Origin managed to resume flights with a successful uncrewed mission in December of 2023. This mission carried 33 payloads to suborbital space and was crucial in providing the vehicle's readiness for renewed
passenger flights. Now Blue Origins Operational Pause allowed competitors like Virgin Galactic to advance their commercial Space Flight efforts unimpeded. Origin Galactic has continued to launch successful flights showing that there's a competitive nature going on right now with space tourism. Blue Origins New Shepherd rocket is fully reusable, designed for both cargo and crude mission. The rocket and its capsule are capable.
Of. Reaching the Karman line, it's about 62 miles above the Earth. It provides passengers with brief periods of weightlessness and stunning views of the planet against the backdrop of space. You can see the curve of the planet Earth from up there now. The flight profile for new Ship Bird missions is concise. The total experience lasting is approximately 11 minutes from launch to capsule touchdown. This quick journey provides an intense but fleeting astronaut
experience to his passengers. NS-25's upcoming flight will contribute to Blue Origins ongoing efforts to expand its role in space tourism alongside other major projects like the development of the new Glen Heavy lift rocket, the Blue Moon lunar Lander, and the Blue Ring maneuverable spacecraft. And the success of Blue Origins missions has broader implications for the commercial Space Flight industry, showing that they are reliable and there's safety in space travel
going forward. And each successful mission bolsters the company's reputation and the overall feasibility of commercial space tourism. Now, the return of crude flight is particularly significant for Blue Origin, given the high profile nature of past passengers such as Jeff Bezos himself, William Shatner and Michael Strahan. Now these missions have not only provided remarkable experiences, but have also served as high visibility endorsements of commercial space travel.
Now, Blue Origin has also been a part of significant research missions contributing to scientific studies and experiments in a microgravity environment. These missions provide valuable data that can be used to enhance our understanding of space and improve future technologies. The pricing strategy for Blue Origin space flights remains particularly opaque. Though the auction for the first
ever ticket reached $28 million. This high figure reflects both the novelty of the experience and limited availability of seats, which may decrease with increased flight frequency, and also competition from places like Virgin Galactic and now with SpaceX. You can do a full flight on a SpaceX rocket and a Crew Dragon capsule, where you will orbit
the Earth numerous times. And as Blue Origin prepares for the NS-25 mission, the success of this mission is crucial not just for Blue Origin, but also for validating the safety measures implemented after the 2022 anomaly. Following the NS-25, Blue Origin has plans for another suborbital tourism mission, indicating a regular more flights in the
future. Now this is pivotal for maintaining momentum and public interest in space tourism, and the competitive dynamics between Blue Origin, Virgin Galactic and also SpaceX are likely to intensify as all these companies streamline their operations and enhance their offerings. These rivalries are expected to drive innovations and possibly reduce costs, making space tourism more accessible to a
broader audience. And with NS-25 mission from Blue Origin, they aim to reclaim his position in a space tourism market has demonstrated his commitment to safety and innovation. This flight is not just a test of technological reliability, but also an opportunity to inspire the public and expand interest in space exploration. Tesla has rescinded job offers to prospective full time employees, signaling A continued trend in workforce reduction.
Now this decision is part of the electric vehicle manufacturer's strategy to cult over 10% of its staff as it braces for further growth challenges. These cuts also extend to revoking internship positions, adding to the significant job uncertainty within the company and according to information obtained from emails sent by Tesla and seen by Business Insider and myself, company communicated its decision to the affected candidates, the correspondent stated.
Tesla has made changes to its hiring paths. Unfortunately, the change impacts your future employment within the company. We regret to inform you that we have made the difficult decision to rescind your offer of employment with Tesla. This means that you will no longer be joining the company on the previously agreed start date. We understand the inconvenience this may cause. This was not an easy decision.
We will circulate your credentials internally should there be an opportunity for you to join the company in the future. Now, the process of job offer rescission has left many prospective employees in a precarious situation, particularly those who relocated or adjusted their personal circumstances in anticipation of starting their new roles. One individual shared their distress on social media, revealing the Tesla retracted their offer just two days before the scheduled start date.
That's after they had already moved to the United States under rework visa. This pattern of layoffs and rescinded job offers is not isolated, but part of a broader strategy outlined by Elon Musk. In April, he announced a reduction of more than 10% of Tesla's workforce following a disappointing first quarter where the company saw its first decline in deliveries in nearly four years.
The layoffs continued with additional rounds over recent weekends affecting diverse departments within the company. Reports from insiders confirm the Tesla employees have faced ongoing uncertainty, with layoffs notices stretching into the 5th consecutive week. Now the layoffs coincide with challenging market conditions for Tesla, including a decline in sales and increased competition, particularly from China and its electric vehicle market.
These factors have pressured the company to reassess its cost structures and operational strategies. And amid these corporate layoffs, Tesla also took steps to streamline its workforce by cutting numerous job postings from its website. Over the last month, more than 3400 job listings were removed, signalling a significant scaling
back and hiring initiatives. The internal disruptions are occurring alongside Tesla's broader operational challenges such as supply chain issues and external step backs like an arson attack in its Berlin factory. Now these problems have contributed to a slump in vehicle deliveries and overall market performance.
Despite these layoffs, Tesla is continuing to invest in some areas such as its Supercharger network and Elon Musk emphasized in a memo to employees quote, We have done a thorough review of the organization and made the difficult to decision to reduce our headcount by more than 10% globally. There's nothing I hate more, but it must be done. This will enable us to be lean, innovative and hungry for the
next growth phase cycle. High profile layoffs include senior executives and key department heads indicating a significant restructuring with Tesla. And these challenges and changes have raised concerns about the long term impact on the company's innovative capabilities and employee morale. Reports have noted that alongside the workforce reductions, Tesla is planning to increase its investments in autonomous driving technologies and its Supercharger network.
The shift suggests A strategic realignment focusing on. Core areas likely to drive future growth. The decision to rescind job offers and layoff employees has stirred discussions about Tesla's management practices and its approach to handling human resources during periods of
financial strain. Tesla's layoffs reflect broader trends in the tech and automotive industries, where companies are increasingly forced to make tough decisions about resource allocation and strategic focus in response to shifting market dynamics as Tesla retracts offers. Their actions are being closely monitored by industry analysts and investors who are keen to understand the implications of these moves on Tesla's financial health and competitive standing.
The recent layoffs and the rescinding of job offers have undoubtedly added to the stress and uncertainty faced by current and potential employees. These actions may have lasting effects on Tesla's employer brand and its ability to attract top talent in the future, and also its stock price. Looking forward though, Tesla's management will need to navigate these operational challenges while maintaining focus on
innovation and market expansion. How the company manages its workforce, aligns its resources with its long term business goals will be crucial for its sustainability and growth. The ongoing situation at Tesla is a reminder of how volatile the tech industry is, especially the EV industry, where rapid changes can significantly alter company strategies and employee lives. Within days, Tesla's recent workforce reductions and rescinded job offers show that the company's being cautious now.
They're not moving forward like they wanted to. They're letting people go, firing people. And while these decisions are aimed at stabilizing the company in a turbulent market, they also reflect the difficult balance between growth and efficiency that Tesla aims to achieve. Elon Musk has announced that Tesla's forthcoming software update for its self Driving FSD system will dramatically reduce the need for driver intervention by 5 to 10 Times Now.
This update is dubbed Supervised Full Self Driving. Version 12 point. Four, and it's part of a series of enhancements, the Leverage Tesla's all natural net architecture, which is no longer limited by computational power for training. Now the FSD 12.4 update is set to transition to internal release softly and shortly, and will be accessible to a select group of external beta testers
next week. Now, Musk has said that these advancements could mark a crucial stage in the development of autonomous driving tech, suggesting a significant leap for the improvements noted in the previous 12.3 version update. And beyond the immediate release, Musk has also shed light on 12.5, which is scheduled for release in late June.
This update promises further enhancements and is significant as it introduces single stack operational mode, eliminating separate processes during highway driving. Now, while these updates focus on improving the tech, Tesla has not publicly released detailed performance data for the FSD program. However, based on Musk's statements, the transition from 12.3 to 12.4 appears to be a major update in reducing the frequency of driver
interventions. Musk also touched upon the integration of FSD technology, the Tesla Cybertruck, indicating that the vehicle will receive its first FSD capabilities with the 12.5 update. This rollout is particularly noteworthy as it will be the first application of FSD in this unique version model, which features distinct hardware configurations such as a steer by wire system and different camera placements compared to other Tesla models.
Now, the Cybertruck has been available for around six months without the FSD feature. The upcoming update is expected to address this, aligning it with the other models in Tesla's line up that already benefit from this advanced driving technology. And the introduction of FSD to the Cybertruck represents an important test case for Tesla.
Successfully implementing the technology in this model could pave the way for future expansions in a different vehicle types, demonstrating Tesla's ability to adapt its autonomous driving technology across its product line. And another significant development from Tesla is the recent spring update for its vehicles. Initially thought to be exclusive to newer models with Ryzen processors, this update has been extended to older versions of Tesla's equipped with Intel Atom processors.
Now the Spring update version 2024 point 14.3 includes several new features and enhancements, such as a new user interface inspired by the Cyber Truck, full screen visualizations and updated media player controls. These features were first introduced in vehicles with Ryzen processors, but are now available to older models, addressing some disparities between different hardware generations within the Tesla
fleet. Now, despite the broader rollout, there are limitations to the features available on Intel Atom equipped vehicles. For instance, while these vehicles now have access to improve media player controls and driver visualizations, they do not support the new 3D parked visualizations that have been well received in Ryzen equipped
models. Tesla appears committed to continuing enhancements for its several models, and the company is exploring ways to optimize more sophisticated features for the less powerful Intel Atom processors, potentially involving simplified graphics or alternative implementation strategies to accommodate the hardware's limitations.
Now, the adaptation of advanced features across different platforms is a testament to test its ongoing efforts to enhance the user experience for all of its customers, regardless of the age of specifications of their vehicles.
And the wide-ranging updates across Tesla's lineup, from the FSD improvements in upcoming releases to the expanded features in the spring update show that the company's drive to push technology boundaries and innovation across its entire product line continue on. And as Tesla prepares to release these updates, we are going to now edit this out.
The success of these rollouts could influence the market's reception of autonomous driving technologies and Tesla's position in it. And with these developments, Tesla continues to solidify its reputation as a leader in both EV tech and autonomous driving AI technology, and the upcoming releases are poised to be a very significant usability and safety enhancement update, marking important milestones in Tesla's
journey. Now for Tesla owners, especially with older models, these updates provide reassurances that their vehicles remain competitive and capable and drivable, and they're also benefiting from the latest advancements in AI
technology. And as the release dates for these updates approach, it's expected to bring not only enhanced performance and new features, but also a new commitment by Tesla to improving the driving experience for all Tesla drivers, whether it's an older model or a brand new cyber truck. Oh, the accused, Anton Bueno and James Bueno, were arrested on Tuesday as 24 and 28, respectively, and they face charges including conspiracy to commit wire fraud, wire fraud and conspiracy to commit money
laundering. And if convicted, each brother could face up to 20 years in prison for each count, The indictment details that the alleged scheme began in December 2022. After months of planning, the brothers allegedly used their expertise to gain unauthorized access to quote pending private transactions on the Ethereum blockchain, manipulating these transactions to steal cryptocurrency from their victims.
And according to the Department of Justice, the brothers exploited a window of vulnerability in the blockchain that exists between the initiation of a transaction and its addition to the blockchain. This period involves the structuring of transactions into proposed blocks, which are then validated and added to the blockchain. And the brothers alleged that he set up a network of Ethereum validators using shell companies and foreign exchanges to conceal
their identities. This allowed them to manipulate the transaction process, reordering blocks to their advantage and recapturing the cryptocurrency intended for others. And when victims realized their funds have been stolen, they requested returns. But the brothers reportedly refused and took steps to hide their illicit gains. This included creating shell companies and using private cryptocurrency addresses and foreign exchanges that lack stringent Know Your Customer
Procedures or KYC. Their online search history indicated extensive research into the methods and risks associated with their scheme. They searched for terms such as how to wash crypto exchanges with no KYC, top crypto lawyers, money laundering statute of limitations and Does the United States extradite to quote foreign countries. Now, the scheme was uncovered by investigators who traced the
financial transactions. Thomas Fetterusso, Special Agent in Charge of the IRS New York Field Office, highlighted the role of both advanced technology and traditional investigative methods in cracking this case. The indictment's time coincides with the SE CS review of an Ethereum exchange trading fund or ETF. The alleged fund could impact the SE CS decision, with chair Gary Gensler expressing concerns about investor protection in the volatile cryptocurrency market.
Now, Deputy Attorney General Lisa Monaco described the theft as a technologically sophisticated, cutting edge scheme that the brothers executed swiftly after meticulous planning, and the IRS played a crucial role in unraveling this complex fraud. The prosecutors allege that the brothers use their specialized skills, their education at MIT to exploit Ethereum's transaction validation process.
This process involves structuring pending transactions into blocks and then validating them with the brothers, manipulating them for their own benefit. And the DOJ claims that the brothers actions exploited the system's vulnerabilities to gain unauthorized access and alter transactions, stealing cryptocurrency during the brief window before transactions were permanently recorded on the
blockchain. About 12 seconds altogether to steal all this money, and when confronted, the brothers allegedly took extensive measures to launder the stolen funds and cover their tracks. This included setting up multiple private cryptocurrency addresses and using foreign exchanges without KYC protocols to obscure the trail of their illicit activities. And the brothers efforts to hide their activities involved detailed preparations to evade
legal repercussions. They searched for legal advice and information on jurisdictions without extradition treaties with the US, demonstrating their awareness of their potential legal consequences. This indictment calls for the seizure of several bank accounts and personal property linked to the brothers, underscoring the scale of their alleged financial maneuvers designed to conceal their identities in the
ownership of these stolen funds. And the DO JS allegations for the first criminal charges of this kind mark a significant development in the enforcement of cryptocurrency regulations. The schemes, unprecedented in nature, underscores the challenges faced by authorities in policing the rapidly evolving
digital currency space. This case unfolding against the backdrop of the SC CS considerations on Ethereum ETFs, emphasizes an ongoing need for robust regulatory frameworks to protect investors and maintain the integrity of blockchain technologies. So these two educated brothers face severe legal consequences for ALLEGEDLY orchestrating a rapid and sophisticated cryptocurrency heist exploiting
the Ethereum blockchain. The case is significant because it has concerns about blockchain security and the need for stringent regulatory measures in the cryptocurrency industry. If you can steal this much in 12 seconds, well, you could steal anything in a little bit more time. Spacex's Starship program is set to undergo his fourth test flight in June, following a recent update from Elon Musk. Now, this announcement comes after the initial plan for a May
launch was adjusted. The delay gives SpaceX additional time to prepare and improve the rocket, which has seen rapid progress and ambitious scheduling in his development for the 4th test flight already. Now this 4th test is critical as SpaceX continues to refine its technologies and strategies toward achieving reliable and sustainable space travel to Mars. Now the Starship program involving the world's largest and most powerful rocket has been marked by its accelerated
testing schedule. After a static fire test of a newly assembled Starship earlier this week, the company moved the IFT 4 booster to the launchpad. And this new test follows a sequence of previous flights with the last one conducted of March indicating a significant reduction in turn around time between tests compared to earlier launches. Now Elon Musk has recently shared images of 2 upper stage starships as Spacex's facilities in Texas, hinting at the preparations for upcoming flights.
And the visible progress at the site suggests that SpaceX is not only testing but also simultaneously preparing multiple rockets which potentially could cover the 4th and 5th flight tests. This approach aims to streamline operations and expedite learning from each test.
Now the technical challenges of the Starship are numerous and complex, particularly concerning its super heavy boosting which has 33. Raptor engines previous flights have provided SpaceX with crucial data despite some ending and explosions, and for instance, the booster in the second test flight managed to separate from the second stage, but failed upon engine reignition and blew up.
Now the third test flight added some successful elements with the second stage achieving atmospheric RE entry, creating a spectacular visual display before destruction. And despite these fiery endings, each test provides valuable insights. And a high stress components like heat Shields, engine dynamics and critical other components for the development of a fully operational upper and
lower stage. Combined now, Elon Musk's strategy involves not just overcoming the technical hurdles, but also pushing the boundaries. Of what these tests can achieve. For example, he mentioned that the next test flight would aim to surpass previous thermal maximums, testing the spacecraft's endurance against intense heat during a reentry. Yeah, this is a crucial step for ensuring the vehicle's structural integrity and safety.
And apart from the immediate goals for the upcoming flights, SpaceX is continuously upgrading its fleet. The third visible rocket in recent images may also soon be tested, suggesting A brisk pace of development that could see multiple. Launches within a short period. Now. This rapid iteration cycle is part of Spacex's product timeline and it will accelerate
the development of space travel. Now, this scheduled test in June will mark the first time that SpaceX attemts 2 full stack Starship tests within the first half of this year. This frequency highlights the company's growing confidence and caabilities in managing such complex operation. It also underscores the imortance of each test in advancing the overall ability and performance of the Starship
system. Visual asects of the tests are also in focus with the booster's landing phase designed to provide not only critical data but also dramatic visuals that have become a hallmark of Spacex's testing regimen.
Now these visuals not only cativate the public but also serve as real time demonstration of the technology's caabilities, and SpaceX gathers data from all of this input and Boca Chica, Texas at Starbase. The preparations are ongoing for the upcoming Starship flight test, the site's evolution from calm to a storm of activity with safe digvity, infrastructure and operational advancements being implemented and in Boca Chica.
Rapid construction and modification of infrastructure are essential for supporting the enormous Starship and its complex needs. New ground support equipment and fueling system have been installed and this means that it will be a more effective and safe operation going forward. And the integration of new horizontal tanks for nitrogen and liquid oxygen is a notable upgrade, optimizing the layout of the tank farm for better operations.
The setup allows for more efficient fuel handling and storage, reducing risks and improving the reliability of supply during launches. Additionally, the infrastructure upgrades include advanced launch mount technology and vibration dampening systems essential for handling the immense stresses during liftoff. These improvements are crucial for ensuring the safety and success of every single launch from Boca Chica, but also cryogenic testing and
pressurization tests. These tests simulate actual flight conditions and are vital for verifying the readiness and robustness of the spacecraft in a support systems before launch. Bokuchika also extends the booster catch mechanism, which is a novel approach to aim at revolutionizing rocket reusability. This method shows the booster floating down from the sky and being caught by two gigantic arms. And it reduces the complexity and cost of launches by eliminating traditional landing
legs on SpaceX rockets. The rigorous pace of development and testing at Boca Chica is ambitious, and SpaceX continues to evolve the process every single day. Each test contributes to refining the spacecraft's design and enhancing performance, paving the way for future missions, including potential crude missions to the Moon with Artemis. Looking ahead, SpaceX is focused on not just the upcoming 4th flight test, but also on a
series of subsequent tests. These will incrementally push the boundaries of Starship and this will set the stage for more complex missions, including orbital flights and also interplanetary travel. Like I said before, the Artemis missions to our nearest neighbor, the Moon. This podcast is brought to you by CURRENT Redefined your Banking with Current The future of personal Finance. Manage your money smarter, faster, and on the go. No hidden fees, instant transaction alerts and savings
goals you can actually achieve. I've been using Current for years and they were a great institution. If you'd like to get $50 by signing up to Current, please follow the link in the show notes. Join Current Today and Experience banking that keeps up with You. Open AICEO Sam Altman is exploring an innovative concept to support those in financial need through what he terms as universal basic compute.
This idea extends the principle of universal basic income by providing a share of computational resources from AI systems like GT7 to individuals. Altman suggests that resources could be used directly, sold, or donated to causes such as Cancer Research, essentially redefining socioeconomic structures by making compute power a valuable asset.
Now the initiative stems from the broader realization of a IS increasing integration into daily life has potential to transform traditional economic models, and by owning a portion of a IS computational power, individuals would essentially hold a stake in the A is productivity. This shift could offer a new form of economic empowerment as AI technologies continue to advance. The Almed's commitment to exploring universal basic income
solutions is long standing. He initiated a Ubi experiment, 2016. They distributed monthly payments between 50 to $1000 to over 3000 participants. The outcomes of this project are expected to be published soon, providing insights into the practical effects of direct financial assistance without prerequisites. The concept of universal basic income has been tried in various
forms across different U.S. cities and states, often referred to as Generated guaranteed basic income, and these initiatives typically target individuals based on specific needs or social criteria rather than the general public. Now, while many of these programs have reported beneficial outcomes, they have also sparked debate, particularly among conservative groups who argue that they might deter workforce participation.
Recently, a controversy emerged in Texas, where the state Supreme Court halted a program aimed at providing $500 monthly to low income residents. In this decision shows that the contentious nature of unconditional transfer. Of. Cash programs and their perceived impact on traditional work ethics. Alman has not detailed the operational specifics of his proposed universal Basic compute concept.
Nonetheless, the proposal is likely to attract attention and discussion among both supporters and critics of Ubi, given this novel approach of leveraging a is economic potential. And beyond financial experiments, Altman's broader concerns with AI include the potential risks it poses, such as job displacement and even existential threats.
He advocates for international regulatory oversight to manage the risks associated with advanced AI systems, ensuring they're developed and deployed safely. GPT 4, the latest iteration of Open AI's models, has been described by Altman as posing no substantial danger. Currently, his focus remains on harnessing a IS capabilities responsibly while addressing societal concerns related to
privacy bias and governance. And Allman also heads Tools for Humanity, which offers the world Coin cryptocurrency in exchange for identity verification. This project is ongoing, and its interest is rethinking traditional economic interactions and providing new means of access to financial resources. Now, throughout his initiatives, Altman emphasizes the necessity of simple, respectful approaches to addressing poverty, critiquing existing government
programs as largely ineffective. And he champions the idea that direct financial assistance allows individuals to make better personal decisions and engage more freely with the market. Now, despite the potential benefits of Ubi, Altman acknowledges that simply providing money is not a pensea for all societal issues, but insists it could alleviate some challenges and improve individuals prospects for self advancement.
The concept of universal basic compute suggests a future where traditional monetary income could be supplemented or replaced by access to computational resources. Now I have a question here, if you don't have enough money to get by, how would you have enough money to make compute in some way? That's a question that I'm posing and how they would get this compute power to other
people. I'm not sure if Sam Altman and the rest of his of his crew at Open AI would provide the money or if the compute would be provided by the individual. It's up in the air right now. This model could provide a novel means for individuals to engage with and benefit from the digital economy, particularly as a is role in society expands.
Altman's ideas were shared during a recent interview on the All In podcast, where he also discussed the broader implications of AI on society, including concerns about its impact on employment and the ethical challenges it presents. His advocacy for Ubi is driven by a recognition of AI's transformative potential and the need to mitigate its disruptive
effects on the labor market. Studies initiated by Altman and his team since 2016 have explored these dynamics, affirming his belief in Ubi's viability. The Dialogue between Altman and MIT President Sally Kornbluth at MIT highlighted the excitement and challenges surrounding AI.
The conversation covered the ethical, privacy, and operational issues posed by AI. Sam is doing a basically a a media tour right now, and he's reflecting both the enthusiasm for and complexities of AI and the evolving technology.
Kornbluth expressed concerns about bias and privacy in AI systems, which Altman's response showed that there's efforts going on right now to align AI systems with human values, making it more lifelike, acknowledging that this will be a very difficult task now looking forward, Altman is optimistic about a is potential to contribute to society and scientific discovery and access global challenges such as energy sustainability and also climate change.
He believes that the most significant applications of AI lie in this ability to enhance human knowledge and capabilities. A recent study has highlighted the impact of Return to office, or RTO, mandates on senior staff departures in major tech firms like Microsoft, Apple, and also SpaceX and researchers from the University of Michigan and the University of Chicago. In lies 260 million resumes from people data labs to understand the effects of these policies on
employee retention. This analysis revealed A correlation between the implementation of RTO mandates and the departure of senior level employees. Many of these employees left their positions several months earlier than they might have otherwise, often moving to competitors. The still permitted full time remote work. Now, Microsoft's RTO policy, which took effect in April of 2022, required employees to be in the office at least three days a week.
This led to a more than 5% reduction in the share of senior employees as part of the overall workforce of the company, and Apple's approach was slightly more lenient, mandating just one day per week in the office. And despite this, the company saw a 4% decline in its senior employee workforce. Now, SpaceX adopted the strictest policy, eliminating remote work entirely, and as a result the company experienced a significant 15% drop in the share of senior employees.
CEOs often argue that in person work leads to higher productivity and consequently greater financial success for the company. However, the study challenges this assertion, suggesting that the loss of senior staff may counteract any potential productivity gains from RTO policies. Austin Wright, who's an assistant professor of public policy at the University of Chicago and co-author of the study, emphasized the value of
senior employees. He said senior employees and those that have been at a company for a long time possess invaluable human capital and tend to have elevated productivity levels, which they take with them when leaving the company. He also stated that they also represent a significant investment in terms of hiring
and training costs. Now, the study shows that the fact that Microsoft, Apple and SpaceX were not only among the first tech giants to end work from home policies introduced during the pandemic lockdowns, but also play a significant role in the tech industry. Together, they account for more than 2% of the overall tech workforce and generate 30% of
the industry's revenue. Now, Microsoft responded to the findings by telling the Washington Post that this internal data did not support the study's conclusions. The company also described labeling its hybrid work policy as an RTO mandate as inaccurate. Apple, on the other hand, dismissed the study's findings as drawing inaccurate
conclusions. SpaceX did not respond to requests for comment on the study, though a separate study from January suggested that the driving force behind RTO policies might be controlling in narcissistic bosses rather than actual productivity gains. This study indicated that companies did not see an increase in productivity after implementing RTO policies. Now, employee sentiment towards remote work remains strong, as evidenced by a recent survey of
over 8400 workers. The survey found that 63% of employees would be willing to take a pay cut to continue working remotely, or over 17% of these surveys said they would sacrifice up to 20% of their paycheck to work from home. And the departure of senior staff due to RTO mandates presents a significant challenge for tech companies. These employees often hold key knowledge and expertise, and their loss can disrupt business continuity and strategic
initiatives. Now, the study indicates that tech companies may need to reassess their RTO policies to retain top talent as the competition for skilled workers intensifies. Offering flexible work arrangements could be a crucial factor in attracting and retaining senior employees. Findings also suggest that companies should weigh the cost of implementing RTO mandates
against the potential benefits. While in person collaboration can enhance certain aspects of work, the loss of experienced employees may outweigh these benefits. The push for RTO has also raised broader questions about the future of work. And as remote work becomes increasingly feasible due to advances in technology, companies may need to adapt their new work models that prioritize employee preferences and productivity.
Additionally, the trend towards remote work has been accelerating in various industries, not just tech. This shift could lead to more widespread changes in workplace policies and norms affecting how businesses operate and also compete for talent. Ultimately, the study serves as a reminder that employee retention strategies must evolve in response to changing work environments in employee expectations and prioritizing flexibility and acknowledging
the value of remote work. Companies can better navigate the challenges of the modern workplace. And the study reveals that RTO mandates have led to significant senior staff departures at these major tech firms, potentially undermining productivity and increasing hiring and training costs. And as the debate over a remote blah blah blah. Tesla has recently rehired some members of its previously disbanded supercharging team, including the North American director.
Now this move comes weeks after Elon Musk abruptly dismissed nearly the entire group. The initial decision by Musk last month to reduce the team significantly surprised the electric vehicle industry, especially considering the Supercharger networks, critical role in Tesla's infrastructure and strategic partnerships with other automakers, and also with
the US government. Now, the unexpected layoffs affected close to 500 people, including key senior personnel such as Rebecca Tonucci, the senior director responsible for the supercharging network. This drastic change seemed to reflect Musk's broader strategy of streamlining operations, a method he has applied in various forms across his businesses. Now, the exact number of workers rehired after this calling has been disclosed. Not quite yet.
Among those being reinstated is Max de Zager, who returned to his role overseeing North American charging operations. His reinstatement marks a significant reversal of Musk's earlier decision. The scenario is not new to Tesla's history, as Musk had previously reversed major operational decisions under external pressures or strategic
reconsiderations. Attached to the supercharging network is a fundamental aspect of its business model, offering rapid charging solutions essential for long distance. Travel by Tesla owners and also other EV owners. Initially, it's established in 2012, a long time ago. 12 years ago, the network has grown to include over 6200 charging stations globally. These stations are crucial for promoting the adoption of electric vehicles by alleviating
range anxiety. Now the network not only supports Tesla's own vehicles, but it's also become integral to other manufacturers. Over the past year, Tesla has persuaded several large automakers to adopt its charging technology, which has begun to set a new standard in the industry. This integration across brands underscores the strategic importance of the supercharging
network. And despite the network's importance, Musk announced earlier that Tesla would slow down the expansion of new chargers, focusing instead on enhancing the reliability and service quality of their current facilities. Now, this statement followed shortly after the layoffs, suggesting a shift in the company's approach to infrastructure development. But days after signaling this slowdown, Musk committed to a pretty large investment in the supercharging network.
He pledged to. Spend over $500 million this year, half a billion dollars to expand and upgrade the network, a state that followed criticism from everybody in the industry. And what kind of layoff impacts would this have now?
The news of the layoffs in subsequent rehiring was discussed widely across social media platforms like X and on May 10th at Tesla, Charging Account acknowledged the patience of charging site hosts and suppliers amid these strategic changes, an acknowledgement reposted by Zeger indicating his active engagement in his returned role. Now, Tesla's internal restructuring and Musk's decision making processes have previously seen similar patterns, so this goes back all the way to 2019.
He announced a significant reduction of Tesla's physical stores, only to reverse the decision after facing logistical and also legal challenges. Similarly, Musk's handling of business operations at Twitter followed A comparable narrative with a rough layoffs followed by rehiring of some people. Now, in comparison to other charging networks, Tesla Superchargers are noted for the reliability and the seamless
experience they offer. This network has set a high standard for what users can expect. Contributing to Tesla's. Strong brand reputation among electric vehicle manufacturers and the recent developments raise questions about the strategic direction that Tesla will pursue in the near future, particularly how it balances cost cutting measures with the need to maintain and expand a
robust charging infrastructure. Industry analysts continue to monitor these changes closely and the stock prices reflect this. Furthermore, competitors in the charging infrastructure sectors such as BP Pulse America have expressed their intent to expand their own networks aggressively due to Tesla's change. This could potentially challenge Tesla's dominance. If the company does not continue to innovate and invest in its Supercharger network, they could
be left in the dust. Now, Tesla's approach to managing its Supercharger network will be important in maintaining its competitive edge. The network's reliability and widespread availability have been key factors in Tesla's success supporting its customers needs and encouraging the shift to electric vehicles. The rehiring of key individuals signals a more measured approach to achieving efficiency and cost reduction without undermining the operational integrity of Tesla's charging network.
It also shows Musk's capability to recalibrate his strategies in response to feedback and changing circumstances within this industry. Tesla's communications suggest a continued commitment to expanding and enhancing the Supercharger network now, not just enhancing the current ones, but expanding to new systems now. This includes ongoing projects and the assurance to test the owners that the expansion and functionality of the network
remain a priority. A lot of people bought their Teslas, not just for the vehicle. But the Supercharger network itself and the charging network is key to keeping sales going for Tesla. Range anxiety is a huge deal right now, and people don't want to be left with no battery in the middle of nowhere. The Supercharger networks evolution and its role in Tesla's business strategy are also emblematic of broader
trends in the EV industry. You can't just have a car, you need an infrastructure for that car for that vehicle to run on. It's crucial as the vehicle themselves. Tesla's ability to manage this aspect of its business will be critical as the market continues to grow and evolve. Now, as Tesla moves forward, the industry and the consumers will be watching them closely because if they make another mistake like this, it could hurt their sales.
And that's not good. Supercharger network, with its high visibility and importance to Tesla's brand, will undoubtedly continue to play a central role in this balance. Now, the decision to rehire many members of the Supercharger team, including a key executive, shows that it's an important part of Tesla's brand. The network is important to the operational strategy and customer commitment for Tesla.
It reflects the dynamic nature of decision making within Tesla by Elon Musk and the higher ups, and it highlights the company's continued focus of maintaining a leading edge in the EV market. They've also made a lot of people mad by doing this. This is a roller coaster ride for a lot of people, considering that they were hopefully expecting new Superchargers across the. Nation.