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Lakers on the road

Prior to the start of the Sixers’ homestand against the Lakers the other day, Paris Olympics teammates Joel Embiid and Anthony Davis shared some laughs in the sidelines. Perhaps they were exchanging pleasantries about the current state of their fitness; the former was about to miss his 12th straight game and 33rd overall in the 2024-25 season, while the latter, seemingly healthier of late, was a mere night removed from posting a dominant 42-23 performance.

As things developed, Davis was out of the match for good after burning rubber for just 10 seconds short of 10 minutes due to an abdominal strain. By that time, the Lakers had already seen their double-digit advantage whittled down to three points. And without him, they had little to no chance of clinging to it. Forget that the Sixers were missing six warm bodies, Embiid and fellow starter Paul George included. From their vantage point, they were simply giving up too much sans their leading scorer and defensive anchor.

True enough, the Sixers made the most of the grand opportunity Davis’ absence provided them. With reigning Most Improved Player awardee Tyrese Maxey putting on a clinic, they posted a whopping 48 markers in the second quarter to claim a lead that would subsequently balloon to as much as 25. So dominant were they in the middle periods that the final canto was reduced to an afterthought. The Lakers had no chance, not with a flawed roster even at full strength, and not with 40-year-old LeBron James able to summon the required energy only in spurts.

The Sixers would go on to claim victory by 14, extending a modest winning run to three games and staying within striking distance of a play-in slot. For the snakebitten red, white, and blue, there was more good news; Embiid’s convalescence appeared to be progressing well, with a return to action coming sooner rather than later. Then again, projecting when the former Michael Jordan Trophy holder would suit up has become a crapshoot. Not for nothing has he missed 400 out of 846 outings since being taken third overall in the 2014 draft. In the meantime, they will have to keep relying on Maxey to keep them afloat.

As for the Lakers, some trepidation is in store; they’re keeping their fingers crossed Davis’ reevaluation in a week will provide positive results. In the interim, they’ll be facing the Wizards, Knicks, and Clippers. How they’ll fare is anybody’s guess, especially since they’re decidedly below par on the road. In other words, it’ll be the same old, same old for them as they head into the trade deadline — believing they’re contenders when they’re actually not, or not yet.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and human resources management, corporate communications, and business development.

White House revokes spending freeze in the face of legal challenges

STOCK PHOTO | Image from Rawpixel

WASHINGTON — President Donald J. Trump’s administration appeared to abandon its proposed freeze on hundreds of billions of dollars in aid on Wednesday in the face of legal setbacks and widespread opposition, though officials said they still planned to cut funds for activities opposed by Mr. Trump.

In a whip-saw reversal to a policy unveiled with little explanation late on Monday, the White House budget office told federal agencies it was rescinding a memo that had ordered the pause in grant and loan payments.

The new order came shortly before a federal court hearing on a lawsuit filed by Democratic state attorneys general trying to stop the freeze. A White House official said the reversal was an attempt to short-circuit legal challenges.

US District Judge John McConnell nonetheless went ahead with the hearing, where he said he was inclined to temporarily block the administration’s aid freeze, though he did not immediately do so.

At the virtual hearing from Providence, Rhode Island, Mr. McConnell, an appointee of Democratic President Barack Obama, said the states have convinced him that the “inappropriate effects” of the now-rescinded funding freeze directive “are going to continue and that hasn’t changed based on comments by the president’s press secretary.”

The administration had said the freeze was intended to provide time to review and halt funds to programs that Mr. Trump has sought to quash since returning to office, such as efforts to promote diversity and green energy and much foreign aid.

“We are merely looking at big parts of the bureaucracy where there has been waste and abuse,” Mr. Trump said at the White House.

The freeze had already been blocked temporarily by another federal judge in Washington, who is handling a different legal challenge filed by several advocacy groups.

The reversal is the latest head-spinning move for a president who has pushed boundaries since taking office on Jan. 20. He has halted wide swaths of foreign aid, pardoned supporters who attacked US Capitol police and offered buyouts to thin the ranks of civil-service workers.

GUANTANAMO PLAN
At the White House, Mr. Trump said he would order 30,000 beds prepared at the Guantanamo Bay, Cuba military prison to handle migrants being deported as part of his immigration crackdown.

The White House said Mr. Trump would target pro-Palestinian student protesters for deportation as well by revoking their student visas, in a sign that people who are in the country legally could be targeted for their political views. Mr. Trump has been a vocal supporter of Israel during its war with Hamas.

Democrats in Congress say Mr. Trump has repeatedly broken the law since returning to power, but his Republican allies have shown little interest so far in defying him.

The Republican-controlled Senate has confirmed all of his appointees so far, even Defense Secretary Pete Hegseth who squeaked by in a 51-50 vote after facing accusations of sexual assault and alcohol abuse. Mr. Hegseth has moved aggressively to implement Mr. Trump’s agenda by banning transgender troops and diversity programs.

On Wednesday, he revoked security protections for Mark Milley, who served as the top US military official during Mr. Trump’s first 2017-2021 term in office before emerging as a prominent critic.

In a confirmation hearing on Wednesday, Mr. Trump’s pick for health secretary, Robert F. Kennedy, Jr., came under attack for his anti-vaccine views. But most Republicans at the hearing appeared to support him.

Mr. Trump’s pick for Commerce Secretary, Howard Lutnick, faced a largely friendly reception from lawmakers as he echoed the president’s support for tariffs and his complaints about Canada’s trade practices.

REPUBLICANS DEFEND SPENDING FREEZE
Republican lawmakers said they were unfazed by Mr. Trump’s attempt to freeze federal aid, even though that would undercut Congress’ control over the $6.75-trillion federal budget.

“I, for one, am glad to have a president in the White House who is delivering on his promise to get our fiscal house in order,” said Tom Emmer, the No. 3 Republican in the House of Representatives, at a retreat in Miami.

Medical payments that had been disrupted by Mr. Trump’s freeze had resumed on Wednesday, according to an association of state agencies.

However, the payment system for housing authorities was still not functioning, said Democratic Senator Patty Murray.

High-ranking Republicans and Democrats in Congress who oversee federal budgets and spending on Wednesday applauded the Trump administration’s reversal.

Senate Appropriations Committee Chair Susan Collins, a Republican, said in a statement that “while it is not unusual for incoming administrations to review federal programs and policies, this memo was overreaching and created unnecessary confusion and consternation.”

Ms. Murray said the Trump administration, “through a combination of sheer incompetence, cruel intentions and a willful disregard of the law, caused real harm and chaos for millions over the span of the last 48 hours.” — Reuters

American Airlines jet and helicopter collide, crash into Washington’s Potomac River

Image by Andy Choinski from Pixabay

WASHINGTON — An American Airlines regional passenger jet and a US Army Black Hawk helicopter crashed into the Potomac River after a midair collision near Reagan Washington National Airport on Wednesday night, officials said.

The Washington Post, citing sources, said multiple bodies had been pulled from the water. No survivors had so far been found, the newspaper reported. Senator Ted Cruz of Texas said on social media that “we know there are fatalities,” though he did not say how many.

American Airlines confirmed that 64 people were aboard the jet — including 60 passengers and four crew members. Three soldiers were aboard the helicopter, a US official said.

Some friends, family and relatives of passengers gathered at Reagan Washington National seeking more information.

One woman told an airport official, “I don’t know if she got on there or not,” in apparent reference to a passenger on the crashed jet. She then collapsed in tears.

The US Army said in a statement that it could “confirm that the aircraft involved in tonight’s incident was an Army UH-60 helicopter out of Fort Belvoir, Virginia. We are working with local officials and will provide additional information once it becomes available.”

There has not been a fatal US passenger airplane accident since February 2009, but a series of near-miss incidents in recent years have raised serious safety concerns.

A web camera shot from the Kennedy Center in Washington showed an explosion mid-air across the Potomac about 9:47 p.m. (0247 GMT) with an aircraft in flames falling rapidly.

The US Federal Aviation Administration (FAA) said a PSA Airlines CRJ700 regional jet collided midair with the helicopter while on approach to Reagan.

PSA was operating Flight 5342 for American Airlines, which had departed from Wichita, Kansas, according to the FAA.

Police said multiple agencies were involved in a search and rescue operation in the Potomac River, which borders the airport.

Dozens of police, ambulance and rescue units, some ferrying boats, staged along the river and raced to positions along the tarmac of Reagan airport. Live TV images showed several boats in the water, flashing blue and red lights.

The airport said late on Wednesday that all takeoffs and landings had been halted as emergency personnel responded to an aircraft incident.

US President Donald J. Trump said in a statement that he had been “fully briefed on the terrible accident which just took place at Reagan National Airport.”

“May God bless their souls,” he added. “Thank you for the incredible work being done by our first responders. I am monitoring the situation and will provide more details as they arise.”

The National Transportation Safety Board said it was gathering more information on the incident.

American Airlines said on social media that it was “aware of reports that American Eagle flight 5342, operated by PSA, with service from Wichita, Kansas (ICT) to Washington Reagan National Airport (DCA) has been involved in an incident.”

American Airlines said it would provide more information as it became available to the company.

Over the last two years, a series of near-miss incidents have raised concerns about US aviation safety and the strain on understaffed air-traffic-control operations.

FAA Administrator Mike Whitaker stepped down on Jan. 20 and the Trump administration has not named a replacement — or even disclosed who is running the agency on an interim basis.

The last deadly major crash involving a commercial airliner in the US was in 2009, when all 49 people aboard a Colgan Air flight died when the plane crashed in New York state. One person also died on the ground. — Reuters

France, Germany, others urge EC to protect elections in Europe from foreign interference

RAWPIXEL

BRUSSELS — France, Germany, and 10 other European Union (EU) countries want the European Commission (EC) to use its powers under the Digital Services Act to protect the integrity of European elections from foreign interference, a letter signed by the 12 countries showed.

In the letter, European affairs ministers from France, Germany, the Netherlands, Belgium, Cyprus, Croatia, the Czech Republic, Denmark, Greece, Romania, Slovenia and Spain asked the commission to deliver on promises to create a dedicated EU body to counter foreign information manipulation and interference.

“The escalating threats of foreign interference and disruptive interventions in public debates during key electoral events represent a direct challenge to our stability and sovereignty,” the letter, seen by Reuters, said.

“Recent incidents demand urgent and united action to defend forthcoming elections in the EU,” it said.

EU diplomats said the letter was referring to interference mainly by Russia and China, but also other cases.

Germany faces snap elections on Feb. 23 and has set up a task force to head off any foreign state attempts to influence the vote after warning of Russian-sponsored espionage and sabotage.

Last week Elon Musk, the owner of the social media platform X, appeared at Germany’s far-right Alternative for Germany election campaign event to support the party for the second time in as many weeks.

In December, the commission opened an investigation against social media firm TikTok, owned by China’s ByteDance, over its suspected failure to limit election interference in the Romanian presidential vote in November.

Government officials in Poland, which has presidential elections in May, have warned Russia was recruiting Poles to influence the election.

“We urge the Commission to lead by fully leveraging the powers granted under the Digital Services Act (DSA),” the letter said.

Under the DSA, large internet platforms like X, Facebook, TikTok and others must moderate and remove harmful content like hate speech, racism or xenophobia. If they do not, the commission can impose fines of up to 6% of their worldwide annual turnover. — Reuters

Risk of violence escalates in Myanmar’s civil war as junta flags elections

RAWPIXEL

BANGKOK — Four years after seizing power in a dawn coup that ousted an elected civilian government, Myanmar’s embattled ruling generals are making their most concerted effort to gain legitimacy — by pushing to hold another election.

In the last two months, the junta has outlined plans to neighbors for an election in 2025, released the results of a census conducted to prepare voters lists, and announced in state media that it is working to ensure “stability” for the polls.

Together, these moves amount to the most serious declaration of intent by Myanmar’s junta to hold an election since it toppled the government of Aung San Suu Kyi on Feb. 1, 2021, but they come amid a grinding civil war where the military has steadily lost ground nationwide.

With many forces opposing the junta and the election, tensions are set to rise ahead of the ballot, which brings the risk of more violence as both sides push to increase their control of territory, according to eight people, including analysts, rebels, and diplomatic sources.

A date for the election has not been announced, but with voting in only about half the country, dozens of opposition groups banned and only pre-vetted, pro-military parties in the race, the exercise has already been derided as a sham by critics.

The junta was able to conduct a full, on-ground census only in 145 of the country’s 330 townships, according to the census report published in December. The generals are currently planning to hold the election in only 160-170 of the townships towards the end of the year, according to a source with knowledge of discussions in Naypyidaw, the capital.

“They want to go ahead,” the source said, asking not to be named because of the sensitivity of the matter, adding that the junta would look to stabilize those areas ahead of the polls.

A junta spokesman did not respond to calls seeking comment.

An armed opposition, comprising established ethnic armies and new resistance groups formed since the coup, have wrested chunks of territory from the junta, driving it out of border areas and increasingly hemming the territory it controls into the central lowlands.

“This will inevitably escalate the conflict to an unprecedented level,” said Ye Myo Hein, a Myanmar analyst at the United States Institute of Peace, of the upcoming election.

Myanmar is currently in a state of emergency that is set to expire by the end of January, and speculation is mounting whether the junta will declare another six-month extension or instead announce the election date ahead of the coup anniversary.

‘BLOODBATH’
The National Unity Government (NUG), a shadow underground administration comprising remnants of Ms. Suu Kyi’s political party, the National League for Democracy, and other anti-junta groups, has put together a 12-point plan to oppose the vote, according to an internal document seen by Reuters.

A key element of the plan is to not allow the junta to hold elections in regions controlled by resistance forces, including by advocating to local communities, blocking the election commission and closer cooperation with other armed groups.

NUG spokesman Kyaw Zaw did not comment on the document or the plan but said that military operations against the junta would continue unabated.

“But we will not instruct our people, our defense forces to target the civilians,” he told Reuters.

The specter of escalating violence looms large over the election exercise, with the armed opposition poised to undermine the junta’s efforts to gain legitimacy through the ballot, according to two diplomatic sources with knowledge of the situation in Myanmar and three analysts.

“There is a very real danger these elections could turn into a bloodbath if revolutionary forces decide to attack polling stations, election officials and party candidates,” said David Mathieson, an independent analyst tracking Myanmar, describing possible efforts by anti-junta groups to disrupt the elections.

Members of two major rebel groups – the Karen National Union and the Karenni Nationalities Defense Force — said they were opposed to the elections and would continue military operations.

“The election is one of the factors that will push us to do things much faster,” a Karenni commander told Reuters, asking not to be named.

The lives of millions in Myanmar, already ensnared in a widening conflict that has decimated the economy, are on the line.

By this summer, about 15 million people in the country will face acute levels of food insecurity, or food deprivation that threatens lives or livelihoods, Reuters reported in December, revealing a crisis that has largely gone under the radar.

At a meeting this month, countries from the regional bloc ASEAN told the junta that its plan to hold an election should not be its priority, instead urging it to start dialogue and end hostilities immediately. — Reuters

EC proposes bans on aluminum, video game consoles in new Russia sanctions

RAWPIXEL

BRUSSELS — The European Commission (EC) proposed banning imports of Russian primary aluminum imports and restricting sales of video game consoles to Russia in a 16th package of sanctions over its invasion of Ukraine, a document seen by Reuters showed.

The proposal was circulated to member states on Tuesday with discussions due to start on Wednesday afternoon. The restrictions also include measures to crack down on circumvention of the Group of Seven (G7)nations’ price cap on Russian oil.

Imports of primary aluminum generate significant revenues for Russia, thereby enabling the continuation of its war, the document said.

The ban would include aluminum alloys and have a one-year phase-in period, the proposal said, with “necessary” imports of 275,000 metric tons (MT) exempt for this period.

The 27-member bloc imported nearly 330,000 metric tons of Russian primary aluminum and alloys for the January to November period last year, according to Trade Data Monitor. The full 2024 figure has not been published yet. In 2023, the European Union (EU) imported more than 500,000 (MT) from Russia.

JOYSTICKS AND XBOX
Sales to Russia of video game consoles and other entertainment tools like flight simulators and joysticks will also be restricted as they could be used as controllers for drones.

This week, the EU’s foreign policy chief Kaja Kallas said Russia was “really being creative” in finding alternative equipment for its military.

“Even elements like the consoles for the video games, because apparently these are the ones that they operate the drones with,” Ms. Kallas said.

That would impact sales of consoles like Microsoft’s Xbox, Nintendo’s Switch, and Sony Playstation.

The proposal also adds 50 new entities and individuals. The list was not shared by EU diplomats but they said it includes some Russian regional banks.

About 75 ships, mainly energy tankers, could be included in addition to the 79 vessels listed already, the diplomats said.

Regarding oil, the Commission wants to impose new restrictions on “software related to oil and gas exploration” and will introduce “a transaction ban” to include ports and locks and airports in Russia used to transfer drones, missiles or used to circumvent the G7 nations oil price cap.

“That includes access to facilities of the listed ports and locks and airports and the provision of any services to vessels or aircrafts. Appropriate exemptions are included,” the document said.

The plan also extends the phase-in period on the Russian diamond ban from third countries from March until September this year. From September, diamond sellers to the G7 nations must use a blockchain-based tracing mechanism to prove the stones are of non-Russian origin.

The Commission decided not to ban Russian liquefied natural gas despite a push by some member states, owing to fears of not finding sufficient alternatives in time. — Reuters

Child rights advocates defend Teenage Pregnancy Prevention Bill

Child advocacy groups defend the controversial Teenage Pregnancy Prevention Bill, citing various misinformation propagated against the bill.

They also call on the Senate and President Ferdinand R. Marcos Jr. to review the substitute bill submitted by Senator Risa Hontiveros on Thursday, January 23.

Resource Person: Au Quilala, Deputy Executive Director of Philippine Legislators’ Committee on Population and Development

Interview by Edg Adrian A. Eva
Edited by Jayson John D. Marinas

Philippines president plans to meet Trump to discuss immigration policy

REUTERS

MANILA — Philippine President Ferdinand Marcos Jr said on Thursday he plans to meet with U.S. President Donald Trump to discuss various issues including immigration, in an effort to influence policy he said could impact a large number of Filipinos in the United States.

“We will see how we can influence policymaking in terms of immigration,” Mr. Marcos said without saying when that meeting would take place.

Speaking to reporters on various topics, Mr. Marcos also said he would return a Typhon missile system to the United States if China ceased what he said was aggressive and coercive behavior and its claiming of territory in the South China Sea.

China has strongly opposed the U.S. deployment of the missile system for exercises in the Philippines, a defence ally of Washington, and has repeatedly called for its withdrawal.

“I don’t understand the comments on the Typhon missile system. We don’t make any comments on their missile systems and their missile systems are a thousand times more powerful than what we have,” Mr. Marcos said.

“Let’s make a deal with China: stop claiming our territory, stop harassing our fishermen and let them have a living, stop ramming our boats, stop water cannoning our people, stop firing lasers at us and stop your aggressive and coercive behaviour and I’ll return the Typhon missiles,” he said.

Beijing, which claims sovereignty over most of the South China Sea, has repeatedly accused Philippine vessels of encroachment on its territory. Bilateral ties are at their worst in years after repeated confrontations and heated diplomatic rows.

The Chinese embassy in Manila did not immediately respond to a request for comment on the president’s remarks.

The Typhon missile system was deployed by U.S. forces to the Philippines in April last year as part of their Balikatan or “shoulder-to-shoulder” military exercises, and has since stayed in the country.

Reuters reported last week the launchers were redeployed to a new location in the Philippines, which officials decline to disclose. — Reuters

SoftBank in talks to invest up to $25 billion into OpenAI, says source

SoftBank is in talks to invest up to $25 billion in ChatGPT owner OpenAI, according to a person familiar with the matter, as the Japanese conglomerate continues to expand into the sector.

SoftBank could invest $15 billion to $25 billion directly into Microsoft-backed OpenAI, some of which may be used to pay for OpenAI’s commitment to Stargate, the person said.

Stargate is a joint venture by Oracle, OpenAI and SoftBank, that plans to invest up to $500 billion to help the United States stay ahead of China and other rivals in the global AI race.

SoftBank’s investment would be on top of the $15 billion it has already committed to Stargate, the person said, adding the talks are at an early stage.

The latest OpenAI investment talks were reported by the Financial Times earlier on Thursday.

Tech news website The Information reported previously that SoftBank was planning to invest a total $40 billion into Stargate and OpenAI and had begun talks to borrow up to $18.5 billion in financing, backed by its publicly-listed assets.

The Stargate venture was announced by U.S. President Donald Trump, SoftBank CEO Masayoshi Son, OpenAI CEO Sam Altman and Oracle Chairman Larry Ellison at the White House last week.

However, since then, a little-known startup from China, DeepSeek, has upended markets with a free artificial intelligence assistant it said was developed cheaply using lower-cost chips and less data than U.S. rivals.

SoftBank’s share price surged on news of the Stargate project but has fallen more than 12% since the Deepseek-induced selloff began.

Its shares were down around 1% in morning trading on Thursday.

SoftBank CEO Son’s plan to take a large stake in OpenAI and meet its Stargate commitments has been vetted by senior executives and the board at OpenAI, the Financial Times reported. Last year, SoftBank took a $1.5 billion stake in OpenAI.

OpenAI was valued at $157 billion in its last funding round, cementing its status as one of the most valuable private companies in the world.

OpenAI and SoftBank did not respond to Reuters’ requests for comment. – Reuters

India orders probe into Kumbh festival stampede that killed dozens

STOCK PHOTO | Image by jorono from Pixabay

PRAYAGRAJ, India – Indian authorities have ordered a probe into the stampede at the Maha Kumbh Mela Hindu festival that killed dozens of devotees on Wednesday as millions gathered for a “holy dip” in sacred river waters as part of the six-week event, said officials.

Police said 30 people were killed in the crush at the world’s biggest gathering of humanity and 90 were injured, but sources told Reuters the death toll was nearly 40.

Some witnesses spoke of a huge push towards the rivers that caused devotees to fall on each other, while others said closure of routes to the water brought the dense crowd to a standstill and caused people to collapse due to suffocation.

“The government has decided that a judicial inquiry of the incident will be done. For this, we have formed a three-member judicial commission,” Uttar Pradesh state Chief Minister Yogi Adityanath told reporters late on Wednesday.

“The judicial commission will look into the entire matter and submit its report to the state government within a time limit,” he said.

More than 76 million people took a dip at the confluence of three sacred rivers in Prayagraj in the northern state of Uttar Pradesh until 8 p.m. (1430 GMT) on Wednesday alone, officials said.

Nearly 280 million people have attended the festival since it began two weeks ago, including federal ministers, industrialists, and celebrities.

The Hindu festival – held every 12 years – is expected to draw some 400 million devotees in 2025, officials estimate. The Haj pilgrimage in Saudi Arabia, in comparison, drew 1.8 million people last year.

Devout Hindus believe that taking a dip at the confluence of three sacred rivers – the Ganga, Yamuna, and mythical Saraswati – absolves them of sins and brings salvation from the cycle of birth and death.

Opposition leaders have blamed the stampede on mismanagement and urged the government to improve festival arrangements, while local media said on Thursday that better crowd planning was needed to prevent such incidents.

“There is much scope for improving crowd management at the Kumbh,” the Hindustan Times newspaper said in an editorial.

“There is no doubt that more personnel have to be deployed, and better planning is needed – using both ground resources and modern technology,” it said, adding that a repeat of the tragedy must be prevented at the three ‘royal dips’ scheduled in coming weeks.

While devotees take ‘holy dips’ everyday, there are specific dates when the practice is considered particularly sacred and is called a ‘royal’ dip – Wednesday was one such day and three more are scheduled before the festival ends. – Reuters

Tesla commits to cheaper cars in first half, sees autonomous vehicles ‘in the wild’ in June

MILAN CSIZMADIA-UNSPLASH

Tesla said it was on track to roll out new, cheaper electric vehicle models in the first half of 2025 and would start testing a paid autonomous car service in June, enthusing investors and overshadowing quarterly results that fell short of Wall Street expectations on Wednesday.

Tesla’s market value has soared with the election of U.S. President Donald Trump, who is a close ally of CEO Elon Musk. But the electric car company posted a dip in deliveries last year, raising pressure for it to roll out lower-priced models as well as the autonomous vehicles and software that Mr. Musk says underpin its financial future.

Shares rose 4% as Tesla said it was cutting costs and working on the new vehicles.

“Teslas will be in the wild, with no one in them, in June, in Austin,” Mr. Musk said on a call with analysts and investors, adding that it would proceed cautiously to ensure the safety of passengers and the general public.

He did not provide details on how the paid service would work.

Tesla’s driver assistance software, known as full self-driving, or FSD, will see unsupervised tests in other states, including California, this year as well, he said.

Mr. Musk also did not give new details on his affordable vehicle plans, including their pricing, size and specifications.

Tesla is trying to make cars for less, and it said the average cost of materials and labor for building its cars had hit its lowest level ever in the fourth quarter, driven by lower raw material costs. Reuters calculations showed the cost of making Teslas had fallen to about $33,000 from nearly $39,000 two years earlier.

Tesla has a history of delivering products late and the company’s recommitment to delivering the new vehicles in the first half of the year was positive, said Thomas Martin, senior portfolio manager at Tesla shareholder Globalt Investments, who was also encouraged by its reduced costs.

“They’ve been able to execute on the cost side and get that down. Their ability to do that in the fourth quarter definitely cushioned the blow,” he added.

Tesla last year abandoned plans to build a cheaper vehicle platform for the mass market, often called the Model 2, Reuters exclusively reported in April.

Instead, Mr. Musk said the company will use its current electric vehicle platform and production lines to produce more affordable models this year.

Commercial-scale production of a robotaxi was planned for 2026 at its Texas factory, Tesla said.

“People are reading into the results that FSD and robotaxi are potentially on the cards in the next couple of years,” said Will Rhind, CEO of global ETF issuer GraniteShares. Musk, however, said that computers in some older Teslas would have to be upgraded for full self-driving.

Tesla has used cheap financing to pump up EV demand, a strategy analysts had predicted would erode automotive profit margins in future quarters as the company absorbs the impact of high interest rates.

Tesla’s fourth-quarter profit margin from vehicle sales, excluding regulatory credits, fell to 13.59% from 17.05% in the prior three-month period, according to Reuters calculations. Wall Street had expected the figure to be 16.2%, according to 23 analysts polled by Visible Alpha.

Revenue was $25.71 billion for the October-December quarter, compared with estimates of $27.27 billion, according to estimates compiled by LSEG. Adjusted earnings per share stood at 73 cents, below the 76 cents analysts had estimated.

The EV pioneer’s annual deliveries dropped for the first time last year, due to higher borrowing costs and intense competition.

Rivals such as China’s BYD, as well as European manufacturers BMW and Volkswagen have launched new cheaper models to capture market share.

Tesla said it expected the vehicle business to return to growth this year, after a small drop in 2024. Musk had said late last year he expected vehicle sales to grow 20% to 30% in 2025, a forecast the company did not repeat in its results announcement.

Mr. Trump has vowed to impose this year a range of tariffs on imports from Mexico, Canada, Europe and other U.S. trading partners – a move that could disrupt supply chains and raise costs for automakers such as Tesla.

Tesla CFO Vaibhav Taneja said tariffs, if imposed, would affect Tesla’s business and profitability as it still relies on overseas suppliers.

Garrett Nelson, an analyst at CFRA Research, said prospects of self-driving were encouraging investors. A forecast for a 50% jump in deployments at the energy storage unit, which builds systems to make the electricity grid more resilient, was positive, too, he said. – Reuters

Trump orders agencies to scrub ‘gender ideology’ from contracts, websites

US PRESIDENT-ELECT Donald J. Trump is set to assume office on Jan. 20, 2025. — REUTERS

The Trump administration ordered federal agencies to scrub mentions of “gender ideology” in contracts, job descriptions and social media accounts in line with an executive order forcing the government to recognize only two sexes.

A memo issued Wednesday by the U.S. Office of Personnel Management gives guidance on carrying out an executive order by President Donald Trump requiring federal agencies to “recognize women are biologically female, and men are biologically male.”

The actions are part of a broader attack by Mr. Trump on diversity, equity and inclusion programs that has drawn criticism from rights advocates who fear that it rolls back progress America has made in embracing these values.

Mr. Trump said last week funds will not be used to promote “gender ideology,” a loose term often used by conservative groups to reference any ideology that promotes non-traditional views on sex and gender. Rights activists view the term as an anti-LGBTQ trope and dehumanizing.

The Trump administration will also seek to limit the scope of a major victory for transgender rights under a 2020 U.S. Supreme Court ruling in which the high court found civil rights protections against discrimination “on the basis of sex” applied to sexuality and gender identity.

Agencies must review all job descriptions and place on leave any employee “whose position description involves inculcating or promoting gender ideology,” according to the memo.

 

Agencies are required to scrub web sites and social media accounts that promote gender ideology. It also directed that “intimate spaces” designated for men or women “are designated by biological sex and not gender identity.”

Mr. Trump on Tuesday ordered an end to all federal funding or support for healthcare that aids the transition of transgender youth after an earlier order banning transgender people from the armed forces.

The Department of Government Efficiency (DOGE) said in a post on X on Wednesday that 85 Diversity, Equity, Inclusion and Accessibility-related contracts totaling around $1 billion at several departments and bodies had been terminated. It did not provide a breakdown of the sums.

DOGE did not immediately respond to a Reuters request for more details. – Reuters

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