Elon Musk Posts AI Video Featuring Xi Jinping With Controversial Winnie The Pooh Reference: Will it Harm Tesla's Business In China?
- by Benzinga on MSN.com
- Jul 23, 2024
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See Also: Elon Musk Pushes Back Optimus Timeline, Says Tesla’s Humanoid Robot Will ‘Hopefully’ Be Available For Other Companies By 2026
Despite the potential risks, Musk has a history of taking public stands on issues such as free speech, and it remains to be seen how this latest incident will affect Tesla’s business in China.
Tesla did not immediately respond to Benzinga's request for comment.
Why It Matters: Musk’s recent post is not an isolated incident. Over the weekend, Musk shared an AI-generated video featuring global figures like Mark Zuckerberg in a reptilian skin suit, poking fun at conspiracy theories. This video was part of an AI fashion show created by the YouTube channel "Interdimensional TV."
Moreover, Tesla’s future in China is already under scrutiny. Analysts have raised concerns about the feasibility of Tesla’s robotaxi technology in China due to national security risks. Morgan Stanley analyst Adam Jonas recently reiterated an Overweight rating on Tesla but noted significant uncertainties regarding its operations in China.
Tesla is also facing internal challenges in China. The company has been cutting jobs in the country amid increasing competition in the electric vehicle market. Recent layoffs have affected various departments at Tesla’s Shanghai plant, which is responsible for over half of the company’s global production.
Meanwhile, Tesla is preparing to report its second-quarter financial results. Analysts expect Tesla to report second-quarter revenue of $24.93 billion, according to data from Benzinga Pro.
Price Action: Tesla stock closed at $251.51, up 5.15% on Monday. In after-hours trading, the stock increased slightly 0.04%. Year to date, Tesla’s stock has risen 1.24%, according to data from Benzinga Pro.
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