Tesla chief executive Elon Musk asked X users whether the company should invest $5 billion in his artificial intelligence start-up, saying he was “testing the waters” for a potential deal.
More than two thirds of respondents voted “yes”.
The businessman posed the question on July 23, shortly after the car maker reported a fourth straight quarter of disappointing profit.
Mr Musk was asked during the earnings call if the company would invest in xAI or integrate its chatbot, called Grok, into Tesla’s software.
“Tesla is learning quite a bit from xAI,” he said. It helped advance full self-driving, he added.
Mr Musk said he supported the idea of Tesla investing in xAI, if shareholders approved it.
He set up xAI in early 2023, months after OpenAI ushered in the AI boom with the launch of ChatGPT.
The billionaire co-founded OpenAI as a non-profit and was its leading funder before resigning from the board in 2018, citing a potential future conflict of interest with his role at Tesla.
Concern about conflicts have resurfaced as Mr Musk has built his latest start-up.
In April, he said Tesla was having to make special efforts to retain AI specialists, and that some had left the car maker for xAI.
In June, Mr Musk confirmed he diverted scarce AI chips from Tesla to X and xAI.
In the midst of those developments, xAI announced it had raised $6 billion in a funding round that valued the start-up at about $18 billion.
Sequoia Capital and Andreessen Horowitz were among the companies to take part in one of the biggest investments so far in generative AI.
Anil Agarwal
Vedanta Resources, the mining company that billionaire Anil Agarwal founded, is looking for business partners to boost output at the Zambian copper assets it is regaining control of after years of legal battles.
The company is seeking partners to carry out exploration, development and production as part of a $1 billion investment plan at the Konkola Copper Mines assets, it said in calls for expressions of interest in the state-owned Times of Zambia newspaper on July 24. The deadline is July 31.
The company lost control of Konkola in 2019 after the government placed operations under provisional liquidation, accusing Vedanta of lying about expansion plans and not paying enough taxes.
That sparked a years-long legal battle until Zambia agreed to the hand the assets back.
Mr Agarwal sees KCM as a key source of copper for India, which has limited supplies of its own.
Warren Buffett
When Berkshire Hathaway offloads another chunk of BYD shares – a stock it has held for more than 15 years – it will be done in secret.
Warren Buffett’s investment firm disclosed in a filing to the Hong Kong exchange on July 29 that its stake has fallen to 4.94 per cent from 5.06 per cent, and down from more than 20 per cent two years ago.
Dropping below the 5 per cent threshold means that Berkshire is no longer obligated to disclose any further sales, or whether it exits its position altogether.
Mr Buffett saw a 2,000 per cent gain from his early bet on BYD, which went from a little-known Chinese battery provider for cell phones to the biggest electric and hybrid vehicle maker in a little over 20 years.
At a market valuation of just shy of $100 billion, BYD is the third most-valuable car maker globally after Tesla and Toyota Motor.
Other early investors have also taken profit. Himalaya Capital once held 75 million shares for a stake of around 8.2 per cent but its interest dipped below 5 per cent in 2021.
Himalaya’s chairman Li Lu was the one who recommended the Chinese car maker to the late Charlie Munger, Berkshire’s former vice-chairman.
Berkshire purchased 225 million of BYD’s Hong Kong-listed shares in 2008 for $232 million.
BYD’s market-leading position stems in part from its vertical integration that keeps costs down – the company makes its own batteries and semiconductors, and even has its own ship to send cars abroad – and also its strong line-up of cars along all price points.
BYD sold a record number of electric and hybrid vehicles in the second quarter. The Chinese brand sold just shy of 1 million units between April and June.
Zhong Shanshan
China’s richest man is at risk of losing the pole position he’s held for almost three years, with his wealth slipping the most among billionaires around the world as intensifying competition and mishaps plague the bottled water company he founded.
Zhong Shanshan, chairman of Hangzhou-based Nongfu Spring, has lost $13 billion so far in 2024, according to the Bloomberg Billionaires Index, with a fortune of $49.7 billion as of July 25.
That keeps him a whisker above Colin Huang, founder of online shopping platform PDD Holdings. Mr Huang’s fortune stands at $47.3 billion.
Most of Mr Zhon’s fortune is derived from stakes in the beverage company and pharmaceutical business Beijing Wantai Biological Pharmacy Enterprise.
Earlier this year, Nongfu Spring – and Mr Zhong himself – were barraged by criticism after the death in February of Zong Qinghou, founder of key rival Hangzhou Wahaha Group.
Online sympathy after his passing morphed into a takedown of Nongfu, with some comments deriding its bottled water packaging as looking Japanese in design, and others recapping what they alleged were tricks Nongfu had used to gain an advantage over Wahaha.
In a blow to Nongfu, Wahaha sales surged. While Nongfu refuted some of the claims and said it had taken legal action against people who instigated malicious rumours, many Chinese internet users remained unmoved.
In April, China Resources Beverage Holdings filed for a Hong Kong listing, a move set to provide additional resources for its bottled water brand C’estbon – one of Nongfu’s major competitors.
Soon after, Nongfu introduced a new purified water in direct competition with C’estbon, pushing prices to the floor.
Even as Nongfu reported stronger-than-expected earnings last year thanks to robust sales of its ready-to-drink teas, the proportion of revenue from packaged drinking water dropped to 47.5 per cent – from 54.9 per cent in 2022.
In the latest headwind, Hong Kong’s Consumer Council said Nongfu’s water had been found to contain the maximum limit of bromate, which could pose health risks when overconsumed.
Shares plunged by 7.3 per cent in two trading days before the council clarified that its early findings had come as a result of evaluating Nongfu’s water against criteria used for a category to which it doesn’t belong.
Shares bounced back after the watchdog apologised, but wiped out gains again.
To shore up confidence, Nongfu announced earlier this month that Mr Zhong intended to buy up to HK$2 billion ($256 million) of the company’s shares via Yangshengtang, a holding company he controls.
On July 9, Yangshengtang bought about 3.5 million shares, according to regulatory filings.
Compiled from Bloomberg
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How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
Mica
Director: Ismael Ferroukhi
Stars: Zakaria Inan, Sabrina Ouazani
3 stars
FFP EXPLAINED
What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.
What the rules dictate?
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.
What are the penalties?
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.
Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
Results
Stage three:
1. Stefan Bissegger (SUI) EF Education-EasyPost, in 9-43
2. Filippo Ganna (ITA) Ineos Grenadiers, at 7s
3. Tom Dumoulin (NED) Jumbo-Visma, at 14s
4. Tadej Pogacar (SLO) UAE-Team Emirates, at 18s
5. Joao Almeida (POR) UAE-Team Emirates, at 22s
6. Mikkel Bjerg (DEN) UAE-Team Emirates, at 24s
General Classification:
1. Stefan Bissegger (SUI) EF Education-EasyPost, in 9-13-02
2. Filippo Ganna (ITA) Ineos Grenadiers, at 7s
3. Jasper Philipsen (BEL) Alpecin Fenix, at 12s
4. Tom Dumoulin (NED) Jumbo-Visma, at 14s
5. Tadej Pogacar (SLO) UAE-Team Emirates, at 18s
6. Joao Almeida (POR) UAE-Team Emirates, at 22s
How to donate
Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
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6027 – Dh 100
6026 – Dh 200
Sholto Byrnes on Myanmar politics
if you go
The flights
Etihad, Emirates and Singapore Airlines fly direct from the UAE to Singapore from Dh2,265 return including taxes. The flight takes about 7 hours.
The hotel
Rooms at the M Social Singapore cost from SG $179 (Dh488) per night including taxes.
The tour
Makan Makan Walking group tours costs from SG $90 (Dh245) per person for about three hours. Tailor-made tours can be arranged. For details go to www.woknstroll.com.sg
Muslim Council of Elders condemns terrorism on religious sites
The Muslim Council of Elders has strongly condemned the criminal attacks on religious sites in Britain.
It firmly rejected “acts of terrorism, which constitute a flagrant violation of the sanctity of houses of worship”.
“Attacking places of worship is a form of terrorism and extremism that threatens peace and stability within societies,” it said.
The council also warned against the rise of hate speech, racism, extremism and Islamophobia. It urged the international community to join efforts to promote tolerance and peaceful coexistence.
Company%C2%A0profile
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
