Musk's Companies See Shifts Amidst Global Trade and Tech Developments
Elon Musk's various ventures, including SpaceX, xAI, and Starlink, were at the center of several international developments, ranging from trade deals and technology mergers to regulatory changes and geopolitical conflicts.
SpaceX was set to take over xAI, Musk's artificial intelligence startup known for its Grok chatbot, according to a memo from Musk posted on SpaceX's website. The deal aimed to create an "innovation engine" combining AI, rockets, space-based internet, and media under one roof, according to Musk. A source familiar with the deal valued xAI at $125 billion and SpaceX at $1 trillion, potentially making SpaceX the most valuable private company ever.
In other news involving Musk's technologies, Ukraine praised Musk for restricting Russian use of Starlink satellites. Mykhailo Fedorov, Ukraine's defense minister, hailed Musk as "a true champion of freedom and a true friend of the Ukrainian people," stating that Musk swiftly responded to reports of Russian drones using Starlink connectivity. Musk stated on X, "Looks like the steps we took to stop the unauthorised use of Starlink by Russia have worked." These restrictions followed reports linking the drones to deadly attacks in Ukraine.
Meanwhile, in the automotive sector, China banned hidden door handles on electric vehicles (EVs), a design popularized by Tesla. The new regulations required cars sold in China to have mechanical releases both inside and outside the vehicle. This decision followed scrutiny from safety watchdogs and reports of fatal crashes involving Xiaomi EVs where power failures were suspected of preventing doors from opening.
In other international news, the United States and India reached a trade agreement where the US would lower tariffs on goods from India to 18% from 25%, according to former US President Donald Trump. Trump stated on Truth Social that India would reduce trade barriers to zero and cease purchasing Russian oil. An additional 25% tariff penalty imposed for India's continued purchase of Russian oil would be dropped.
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