Long known to be a bit of a cynic in regards to artificial intelligence, SpaceX and Tesla CEO Elon Musk decided to do what he does best and put his wealth to good use.Along with Y Combinator president Sam Altman, LinkedIn co-founder Reid Hoffman, and Musk’s PayPal co-founder Peter Thiel, Musk hopes that this donation will to allow OpenAI to function freely without worrying about generating a financial return.In the company’s eyes, this fact alone is paramount to it prioritizing a “good outcome” over its own “self-interest.”“As a non-profit, our aim is to build value for everyone rather than shareholders,” OpenAI representatives said in a press release.“Researchers will be strongly encouraged to publish their work, whether as papers, blog posts, or code, and our patents (if any) will be shared with the world.We’ll freely collaborate with others across many institutions and expect to work with companies to research and deploy new technologies.”Despite the $1 billion pledge and celebrity affiliation, it isn’t completely obvious exactly how OpenAI intends to build value or collaborate outside of just plain research.“It’s hard to fathom how much human-level AI could benefit society, and it’s equally hard to imagine how much it could damage society if built or used incorrectly.”In addition to the founders, OpenAI plans on initially functioning with nine world-class research engineers and scientists, headlined by research director and Google Brain Team alum Ilya Sutskever.
A "performance" version of the Tesla Model 3 is due to arrive next year, founder Elon Musk has revealed.Focus now is on getting out of Model 3 production hell."While there's no mention of what differences a performance version would have over the standard Model 3, Electrek says it expects it to come with the regular car's 310-mile battery pack along with "a dual motor all-wheel-drive system".The event also saw the confirmation of prices for the company's first mass-production saloon with The Verge reporting the entry-level Model 3 will go on the market for $35,000 (£27,000) while a version with a longer battery life will be priced at $44,000 (£34,000).UK prices have yet to be announced and more details are expected when Tesla ramps up deliveries later this year.Musk revealed the first production in July and it bares a striking resemblance to both the concept version and Tesla's range-topping Model S saloon.
Tesla founder Elon Musk has confirmed that production of the new Model 3 electric saloon will be completed "on Friday".Vehicle production should jump from 100 units in August to 1,500 in September, with Tesla hoping to produce 20,000 cars per month by December.Despite its smaller and more compact proportions to Tesla's flagship Model S saloon, recent spy shots of the company's entry-level car show it bears a striking resemblance to its larger sibling.Customers will be able to spec their Model 3 in blue, black, red or silver, although more colours are expected to be announced closer to the car's launch.While some expressed disappointment at the lack of a conventional speedometer on the dashboard, Musk tweeted to disgruntled fans that they "won't care" about the minimalistic cabin, implying the rest of the car will be worth it.With the seats down, the car's cargo bay will stretch from the back of the front seats to the end of the boot, opening up around 66ins of room.
It doesn't seem like there are any other cars on the market right now that have as many easter eggs as Tesla's cars do.Most of them are even hidden directly in front of the driver, but chances are you haven't even seen them.If you press button on your Tesla's charge handle, the light around the charge port flashes rainbow colors.Something to keep you entertained while you wait for your car to charge.If you've purchased Tesla's Autopilot software, turn it on four times quickly to display a Mario Kart-like rainbow road on your gauge cluster screen.Elon Musk referred to this rainbow Easter egg as a "psychedelic cowbell road."
Elon Musk s SpaceX made waves by announcing in late April that it planned to field a Mars mission by 2018.While it s fairly clear on exploratory issues, it s much less clear on exoplanetary settlements and exploitation of resources.The U.S. Government is working through the issues raised by SpaceX s planned mission, Motherboard reports.Such an agreement is vital, considering Article VI of the treaty states that signees shall bear international responsibility for national activities in outer space, including the moon and other celestial bodies, whether such activities are carried on by governmental agencies or by nongovernmental entities, and that the signee governments require authorization and continuing supervision by the appropriate State Party to the Treaty.This likely means whatever shape SpaceX s mission does take in the end, it will likely be in some form of a public-private partnership to ensure the company is within the limits of international law.This might be the most important part of the two entities work together, considering Musk s ultimate goal is a permanent settlement on Mars spearheaded by SpaceX itself.
Other inventions NASA science has created include the pacemaker, scratch-resistant lenses and the solar panel.As we enter the transhumanist age — the era of bionic limbs, brain implants and artificial intelligence — space exploration might once again dramatically lead us forward in discovering the most our species can become.The hope, of course, is that within the next 10-15 years, astronauts will be stepping foot upon the red planet, too.That may sound low, but it also adds up when extrapolated to century-scale.Experts say it will soon be possible to mine asteroids from space — some that are worth billions of dollars each.This type of thinking should be a priority for whoever ends up in Congress and the White House come 2017.
Now, Talk It Over: On your anniversary, you want to remember the good times that got you to where you are today.You probably don t want to feel forced into spending time with someone you don t really feel like hanging around with.Well, that s kind of what Facebook Chief Executive Mark Zuckerberg was faced with Wednesday.See, Wednesday marked the fourth anniversary since Facebook held its IPO and became a publicly traded company.On this day in 2012, Facebook went public at $38 a share.And in order to ensure whatever comes out of Handler s mouth is understood as much as possible, Netflix has hired more than 200 translators to handle the 20 languages in which Chelsea is being streamed.It s too early to say if Handler s humor will cross all those international borders no matter how well Netflix s translators do their jobs.The company will offer up $1.4 billion of its shares, and the rest will come out of the portfolio of Chief Executive Elon Musk.Tesla is banking on the $35,000 Model 3 to spur its next phase of growth, as the company has set a target of producing 500,000 cars a year by 2018.Cisco Comes Out On Top: Cisco Systems reported its fiscal third-quarter results after the stock market closed Wednesday, and investors liked what the networking-equipment maker had to say.Cisco reported a profit of 46 cents a share on revenue of $12 billion.Apparently, a bunch of people thought Lively s use of one of Sir-Mix-A-Lot s lines from his 1992 hit Baby Got Back showed racial insensitivity.
Even after the sale, the number of shares of common stock held by Musk will increase, the company said.The net proceeds of the sale are going toward Tesla s ambitious goal of producing 500,000 cars annually by 2018.Ironically, Goldman Sachs is underwriting the offering, and just hours earlier the firm upgraded the stock to a buy rating, signaling that Goldman Sachs felt the stock was undervalued and worth purchasing.Stocks tend to move on these new ratings issued by banks, and Tesla shares were up 3 percent on the day.As part of its earnings report, Tesla also said it still plans to deliver 80,000 to 90,000 new vehicles this year.Shares of Tesla dipped slightly on the news, though the stock has certainly had a rocky year.
Tesla Motors Inc. said it will sell about $1.4 billion in stock to help pay for an expansion that includes its forthcoming Model 3 electric car and boosting annual production to 500,000 vehicles in 2018.The total sale will be about $2 billion, with the rest of the shares to be sold by Chief Executive Officer Elon Musk to cover tax obligations on stock options he s exercising, the company said Wednesday in a statement.The electric-car maker needs to add production because it has received more interest than expected in its Model 3 sedan, which is supposed to go on sale late next year.Consumers had lined up at stores around the U.S. to order the car, which was unveiled March 31.Tesla said in the filing that about 8,000 customers canceled orders and that it scrapped about 4,200 reservations because they appeared to be duplicates from speculators.Kallo said Tesla s latest figure is still a very solid number for Model 3 reservations and that some churn in the pre-orders was expected.The shares rose less than 1 percent to $211.60 in extended trading at 6:28 p.m. in New York.It s going to make sense for us to raise some amount of money, some combination of equity and debt and make sure the company has a good buffer of cash on hand, Musk said on the call.Tesla had $1.44 billion in cash and equivalents at the end of the first quarter, up from $1.2 billion at the beginning of this year.When asked about the timing of Archambault s report and the latest Tesla stock offering, Leslie Shribman, a Goldman spokeswoman, said: Our research is independent.
Tesla just announced a $2 billion stock offering — and it's great news for Goldman Sachs and Morgan Stanley.The two banks are acting as lead joint book runners on the offering, according to a statement.Deutsche Bank, Citibank, and Bank of America Merrill Lynch will act as additional book-running managers.Tesla is offering about $1.4 billion of shares, according to the press release.CEO Elon Musk is selling the remaining shares.The deal is the fifth-largest equity-capital markets transaction in the US in 2016, after TransCanada, ArcelorMittal, Molson Coors, and Baxalta.Goldman Sachs analysts on Wednesday issued a "buy" rating on Tesla's stock, leading to a jump in its price.NOW WATCH: Everything Elon Musk just revealed about the Tesla Model 3Loading video...
That follows customer cancellations of about 8,000 cars and 4,200 duplicates canceled by the company.Company executives had previously indicated reservations totaling about 400,000, without giving an absolute number.The reservations have been coming organically, without a promotional push since the March 31 unveiling.Meanwhile, Tesla said, its existing models are still very much for sale."If we wanted to, we believe that we could further increase the number of Model 3 reservations with minimal effort but believe it is better to guide customers to purchase products currently in production," Tesla said in the filing.The $1.4 billion sale of shares falls within most Wall Street expectations after Tesla Chief Executive Officer Elon Musk indicated earlier this month that the company would need to raise "some combination of equity and debt and make sure the company has a good buffer of cash."The company says it plans to make 500,000 units of the Model 3 by 2018.Earlier today, shares had climbed 3.2 percent after Goldman Sachs Group Inc. estimated Tesla would require only about $1 billion in additional capital.
Since the start of Tesla Model S electric-car production in 2012, the company s lithium-ion cells have been supplied by its Japanese partner Panasonic.That applies to the more recent Tesla Model X crossover SUV as well—and Panasonic was also an early investor in Tesla Motors shares, owning a small percentage of the Silicon Valley company.For the upcoming $35,000 Model 3 sedan, Tesla is building its massive gigafactory outside Reno, Nevada, to lower the cost of that car s cells through a single integration production site.Panasonic is a partner in that project, although its financial commitments have been cautious and conservative.Now, according to an article yesterday in The Korea Times, Tesla is talking with three other possible cell suppliers for the Model 3: LG Chem, Samsung, and SK Innovation.According to the newspaper s report, LG Chem is expected to win the Tesla business thanks to its output commitment, good pricing and on-time delivery.LG Chem is one of the world s three largest suppliers of lithium-ion cells for electric vehicles, with contracts to supply more than a dozen different vehicles—including both the Chevrolet Volt plug-in hybrid and the Chevy Bolt EV that will go into production by the end of this year.Panasonic is another of the three, with Tesla as its primary customer.The third large cell supplier is Automotive Electric Supply Corporation AESC , the joint venture between Nissan and Japanese computer giant NEC.That venture supplies cells for the current Nissan Leaf, the world s best-selling electric car.Earlier this month, Tesla CEO Elon Musk said the company had moved up its target date for producing 500,000 electric cars a year.Formerly planned for 2020, he now says that will be the rate for 2018—an escalation in production rates that some industry insiders say simply cannot be met.The Model 3 is scheduled to go into production before the end of 2017, another extremely aggressive target, using cells from the Nevada gigafactory.At the moment, that plant is assembling battery packs using cells assembled elsewhere, but Tesla says it will begin fabrication of the cells themselves by the end of this year.Still, if Musk s remarkable volume target is to be met, it appears that Model 3s may require more than one cell supplier.Hence the discussions with the three Korean companies.If the newspaper s report is accurate, and even some Tesla Model 3s are built using cells made by LG Chem, that would likely catapult the Korean company to the leader among global battery suppliers.The Model 3 is expected to use 4.9-Amp-hour cylindrical cells from Panasonic in the 26650 format, somewhat larger than the 3.4-Ah 18650 cells used in the Model S and Model X.To ramp up to the required battery-pack volumes for Musk s Model 3 targets, LG Chem, Samsung, or SK Innovation would have to offer cells in that format that offer the same energy and power characteristics as the Panasonic cells—which Tesla likely helped to design.Whether those cells would be shipped to its pack-assembly line from elsewhere, or fabricated in the gigafactory, remains unknown.But with such aggressive goals for Model 3 volumes, it appears that Tesla wants to ensure that the capacity of the world s lithium-ion cell suppliers won t constrain production of the car for which Tesla says it has taken almost 400,000 deposits.In fact, the ability of battery suppliers to provide enough cells to meet growing demand for battery-electric cars promises to be a fascinating story over the next two or three years.hat tip: Joseph Dubeau This post first appeared on Green Car Reports.
Tesla will sell $2 billion of its shares, the company said Wednesday."Tesla is offering about $1.4 billion of shares with the remaining shares to be sold by Elon Musk to cover tax obligations associated with his concurrent exercise of more than 5.5 million stock options," the automaker said in a statement."On a net basis, Mr. Musk will increase his overall Tesla shareholdings through these transactions."Tesla said that it would use the capital it raises to "accelerate the ramp" of its Model 3 mass-market vehicle.After Tesla reported first-quarter earnings, Musk said that the company would aggressively ramp up its production and delivery schedule, with 500,000 vehicles to roll off assembly lines in 2018.That's two years ahead of original 2020 target.Tesla is also constructing a battery factory in Nevada, to provide the lithium-ion cells it will need to create battery packs for all those cars.The fundraising confirmed expectations across Wall Street, though the $1.4 billion Tesla is more than some analysts — including Goldman Sachs' Patrick Archambault — had anticipated.Morgan Stanley and Goldman are leading the underwriting, Tesla said.The shares shares fell about 4% in trading after the markets closed Wednesday, more than wiping out the day's gains.The Palo Alto-based electric-car maker raised $738 million in August 2015, when shares were valued at $242.Tesla has repeatedly said that it maintains a comfortable cash position at about $1 billion.But the company's shares have also recovered from a swoon earlier this year, and while they're still well below a trading peak of over $290 set in 2014, Musk and his team may have looked at the market and decided that this was the best time to fill the war chest.NOW WATCH: We went inside Elon Musk's futuristic Tesla factory filled with over 150 robotsLoading video...
Tesla has announced plans via the SEC to sell approximately $1.4 billion about £959 million, AU$1.9 billion in shares to speed up production of its upcoming Tesla Model 3 sedan.Tesla hopes the money will help speed up deliveries of the Model 3 by two years.Tesla CEO and founder Elon Musk will sell over 5 million stock options to cover tax obligations associated with the sale, bringing the total stock value to $2 billion, according to the SEC.This means Musk will boost his overall shares in Tesla, thanks to what the company itself is selling off.Owners can expect to get about 215 miles of range from a single charge, which is lower than Tesla's Model S sedan but much higher than competitors, like the Nissan Leaf's 84-mile range.Tesla plans to produce 500,000 Model 3 cars by 2018, moving the release date up two years from its original 2020 estimate.
HEIKO JUNGE/AFP/Getty Images PALO ALTO -- A Tesla contractor said Wednesday it may terminate its relationship with a Slovenian company that records show paid as little as $5 an hour to workers expanding the electric car company's Fremont plant.The statement came after Tesla CEO Elon Musk said in a tweet that his company paid $55 an hour for the work.Eisenmann, a German manufacturer of industrial systems hired by Tesla, announced it would investigate allegations that its subcontractor ISM Vuzem paid a work force of about 140 Eastern European men substandard wages.LiPo Ching/Bay Area News Group The newspaper's investigation, "The Hidden Workforce Expanding Tesla's Factory," profiled Gregor Lesnik, a construction worker brought in from Slovenia to help build the new high-tech paint shop.Lesnik sued Vuzem, Eisenmann and Tesla, claiming he and scores of other Eastern European workers were brought to the U.S. on questionable visas and paid substandard wages.AdvertisementThe complex business arrangement brought several companies together to complete the plant expansion, designed to help Tesla boost manufacturing from about 50,000 vehicles last year to a half-million in 2018.Vuzem hired Lesnik and the other imported workers to build a ventilation system.Along with his tweet, Musk posted a portion of a letter from Eisenmann President Mark West to Tesla that said Eisenmann and Vuzem agreed to an hourly rate of $55.
At the same time sells CEO Elon Musk shares 5 billion to cover tax expenses related to the option program. We have previously reported that preorders of the new Tesla Model 3 car was much larger than expected. It has led to the company now needs to expand throughout the production system and increasing the pace. The company takes in $ 1.4 billion - the equivalent of 11.6 billion in a rights issue to fund expansion. In addition, it sells CEO Elon Musk shares for $ 600 million, equivalent to 5 billion. Tesla shares rose 1 percent after trading on the stock exchange on Wednesday.
Tesla Motors Inc. has set an unrealistic goal for itself and will probably miss 2018 production forecasts by a whopping 66 percent, according to a report Wednesday by Goldman Sachs Group Inc. Should that dissuade you from buying the stock?"This is the sort of wild disconnect that Tesla Chief Executive Officer Elon Musk has wrought.By moving up his already-ambitious goal of building 500,000 electric cars in 2020 by a full two years, he's left Wall Street models in disarray.Tesla announced Wednesday that it's selling another $1.4 billion in stock to help fund the company's expansion.Joseph Spak, an analyst at RBC Capital Markets, said the capital round was about $100 million less than his forecast, though it comes more than a year sooner than expected.Goldman Sachs joined RBC and Robert Baird in brushing aside the new 2018 goal while simultaneously adjusting their expectations for 2020 to a range that's more consistent with Musk's original target—one that until recently had mostly been considered fantasy.
For those who keep track of such things, here s the official number for Tesla Model 3 reservations: 373,000.That s according to a prospectus filed Wednesday by the electric car maker, which also announced it is selling about $1.4 billion worth of stock.In addition, CEO Elon Musk is selling some of his shares, bringing the stock offering to about $2 billion as the company raises the money it needs to make all those cars, among other things.Last we checked in on Tesla Model 3 reservations, they were at almost 400,000, CEO Elon Musk said at a conference in Europe last month.The demand exceeded expectations, with the company s stores seeing iPhone-like lines on that first day and people plunking down $1,000 for reservations for a car they hadn t even seen.Tesla is proud that people are basically ordering the car on faith, as reflected in its prospectus: We have obtained this level of reservations… without yet publicly disclosing numerous features about the car, the company said.It says it still expects first deliveries of the car in late 2017.In its most recent earnings call earlier this month, Tesla announced that it was raising its production goal to 500,000 cars a year by 2018.Photo: The Model 3, Tesla s $35,000 electric sedan, was unveiled Thursday, March 31, 2016.
On Wednesday, before the stock market opened in New York, Goldman Sachs analyst Patrick Archambault upgraded shares of Tesla.Archambault put a "Buy" rating and a $250 a share price target on the stock because of what he sees as the market's failure to "fully capture the company's disruptive potential."On Wednesday, after the market closed in New York, Tesla said it would sell $2 billion worth of stock, $1.4 billion of which would be issued by the company.Tesla CEO Elon Musk would sell $600 million worth of stock to meet a tax obligation related to his buying even more Tesla stock."This would, however, be a breach of what the banks call a "Chinese Wall," or a separation of various divisions that could come into conflict one another.Research and investment banking are examples of divisions that could create a conflict of interest and between which there exists said wall — meaning that research analysts don't know who investment banks are doing deals with and investment banks don't know what analysts think of companies outside of published research.In an email to Business Insider, Goldman Sachs said: "Our Research is independent.As a result, investors buy.This report is delivered just as Goldman's sales force is about to hit the phones to push $1.4 billion of those very shares for a nice fat fee for Goldman and a dilutive hit to the shareholders.So then there are investors who, based on Archambault's note, bought the shares in the morning only to learn by that afternoon that Goldman would have a hand in diluting their newly acquired ownership stake.And the popular view says Goldman knew this was going to happen the whole time.There's an additional potentially uglier mess if you also think Goldman clients were told by Goldman sales-trader types not to buy the stock on the upgrade: What did they know, and so on.But analysts aren't really the problem hereA big problem here is that Goldman can't save itself from itself.Publishing a positive opinion on a company Goldman was about to do investment-banking business with — in order to secure more fees from said business — is a very public hill to die on.The firm can't have some sort of compliance middleman stop the publishing of Archambault's note without the Chinese Wall effectively coming down.Here's the conversation you can't have:Patrick, you can't publish that note upgrading Tesla until after the market close on Wednesday.Why?You just can't.Obviously, at this point, Archambault would know something is up, and considering everyone knew Tesla was going to tap the capital markets to raise cash — Elon Musk said as much on the company's most recent earnings call — Archambault would know it was this thing.And since his note deals extensively with Tesla's likely capital needs going forward — Archambault estimated Tesla needed to raise $1 billion, about $400 million less than the company tapped the market for — the whole piece of work is compromised.But I guess to my mind this all just seems like something that ought to be avoided, right?We're about five years past Occupy Wall Street and almost eight years past the collapse of Lehman Brothers.NOW WATCH: THE STORY OF GOLDMAN SACHS: From foot peddlers to a powerhouseLoading video...
More Charts Tesla announced on Wednesday that it's selling another $2 billion worth of shares, including $600 million worth held by its founder and CEO, Elon Musk.The company said it would use the new money to ramp up production of its Model 3, which will be priced lower than previous Teslas and is meant for mainstream car buyers.Tesla expects to make 500,000 of the cars in 2018.As this chart from Statista shows, Tesla's capital expenditures have been on a tear in the last two years, and are expected to grow even more in 2016.Not only does Tesla need to build all these new Model 3s, but it also needs to finish its massive Nevada "gigafactory" where it will build the batteries for all these cars.NOW WATCH: A SpaceX rocket just did something not even its engineers thought was possibleLoading video...