Tesla delivered over 405,000 vehicles in Q4 2022, setting a new company record

Tesla delivered 405,278 electric vehicles over the final three months of 2022, the automaker announced on Monday. That number represents a new record for the company, but it also fell short of Wall Street estimates. As recently as December 30th, the consensus among most analysts was that Tesla would deliver about 418,000 vehicles in Q4. A year earlier, the company delivered 308,600 cars during the same period.

According to Tesla, the Model 3 and Model Y made up most of the company’s deliveries in the fourth quarter of 2022, with 388,131 of those vehicles making their way to consumers before the end of the year. Comparatively, Tesla’s more expensive Model S and Model X cars accounted for a modest 17,147 deliveries over the same time frame. Tesla produced 439,701 vehicles in the fourth quarter, setting another record.

It’s fair to say the end of 2022 could have gone better for Tesla. Even before considering how much Elon Musk’s takeover of Twitter has hurt the company, Tesla was faced with macroeconomic and logistical challenges threatening to slow growth. As they did earlier in the year, COVID-19 restrictions in China forced Tesla to suspend and reduce production at its Shanghai Gigafactory. Tesla also closed the facility during the last week of December, adding to concerns the company has been dealing with weakening demand in the world’s biggest automotive market. In Q4, Tesla also had trouble securing transportation for completed vehicles.

Separately, Elon Musk’s handling of Twitter and repeat Tesla stock selloffs saw the value of the company’s shares drop dramatically. In December, Tesla’s stock fell 33 percent (and 45 percent over the last six months) before rallying in anticipation of the company’s fourth-quarter numbers. Tesla will publish its full Q4 results on January 25th and hold its next annual Investor Day presentation on March 1st.

Microsoft and FTC pre-trial hearing set for January 3rd

A federal judge has set a date for the first pre-trial hearing between Microsoft and the Federal Trade Commission (FTC). The two go to court on January 3rd to spar over the fate of Microsoft’s $69 billion bid to buy Call of Duty publisher Activision Bl…

Meta buys smart lensmaker Luxexcel to further AR ambitions

Facebook parent company Meta has acquired Luxexcel, a Dutch startup specializing in smart eyewear. News of the purchase was first reported by De Tijd and later confirmed by TechCrunch. “We’re excited that the Luxexcel team has joined Meta, deepening the existing partnership between the two companies,” a Meta spokesperson told the outlet. The company did not disclose the financial terms of the deal.

Founded in 2009, Luxexcel began life as a prescription lens manufacturer. More recently, the company has made a name for itself in the augmented reality space. At the start of 2021, for instance, it partnered with WaveOptics, the display manufacturer Snap paid $500 million later that same year to buy. As TechCrunch points out, there are also rumors Luxexcel previously worked with Meta on the company’s Project Aria AR glasses.

The acquisition comes as Meta faces regulatory scrutiny from the Federal Trade Commission over its purchase of Supernatural developer Within. The agency sued Meta in July to block the deal. The social media giant also faces criticism over just how much it’s spending to further its metaverse ambitions. In October, a month before the company laid off 11,000 employees, Meta told investors Reality Labs, its virtual and augmented reality unit, lost more than $9 billion in 2022. It went on to predict the division’s operating losses were likely to “grow significantly year-over-year” in 2023.

The EU is investigating Broadcom’s $61 billion deal to buy VMware

The European Union plans to carry out a full-scale investigation of Broadcom’s $61 billion bid to buy VMware. Following a preliminary probe, the European Commission, the bloc’s executive branch, announced on Tuesday it believes the proposed acquisition may allow Broadcom to “restrict competition” in the markets for network interface cards, fiber channel host-bus adapters and storage adapters.

Specifically, the EU is concerned Broadcom may harm competition in those markets by limiting interoperability between rival hardware and VMware’s server virtualization software. It also worries the company could either prevent or degrade access to VMware’s software. The European Commission warns those actions “could lead to higher prices, lower quality and less innovation for business customers, and ultimately consumers.”

The Commission will also investigate whether Broadcom could hinder rivals like NVIDIA and Intel from developing their own smart network interface cards. Here it points to VMWare’s involvement in Project Monterey, an industry-wide effort the company announced in 2020. “Broadcom may decrease VMware’s involvement in Project Monterey to protect its own NICs revenues,” the Commission notes. “This could hamper innovation to the detriment of customers.” Another concern is that Broadcom could start bundling VMware’s virtualization software with its own mainframe and security tools, a move that would reduce choice in the market.

As one of the larger tech acquisitions of 2022, Broadcom’s bid to buy VMware was certain to draw scrutiny. The European Commission won’t necessarily block the deal, but the investigation could significantly delay the transaction and force concessions out of Broadcom. With today’s announcement, the Commission has 90 working days or until May 11th, 2023, to make a decision. If the deal were to fall through, it would be a bitter repeat of Broadcom’s 2018 attempt to buy chipmaker Qualcomm. While the circumstances and concerns were different, the company was forced to abandon the takeover after the Trump administration blocked the transaction.

Here’s everything Sam Bankman-Fried is accused of by the US government

On Monday evening, Bahamian authorities arrested FTX founder and former CEO Sam Bankman-Fried at the request of the US government. The following morning, the Securities and Exchange Commission (SEC), Department of Justice (DOJ) and Commodity Futures Trading Commission (CFTC) filed formal civil and criminal charges against Bankman-Fried in “parallel actions.” It was a lot to take in all at once, so below Engadget has broken up current charges against SBF by agency, with some additional context provided.

Those indictments likely represent only the start of Bankman-Fried’s troubles. In addition to the charges it announced on Tuesday, the SEC said it was investigating Bankman-Fried for other securities violations. The agency also announced that it’s actively examining the actions of other FTX executives and employees. As more charges are unsealed, Engadget will continue to update this article.

Securities and Exchange Commission

The Securities and Exchange Commission accused SBF of defrauding FTX investors and customers of more than $1.9 billion. Starting as early as May 2019 until as recently as this past November, “Bankman-Fried was orchestrating a massive, years-long fraud, diverting billions of dollars of the trading platform’s customers funds for his own personal benefit and to help grow his crypto empire,” the SEC said.

All the while, Bankman-Fried portrayed himself as a responsible business leader building a safe trading platform with “sophisticated, automated measures to protect customer assets.” In reality, the SEC says, “Bankman-Fried orchestrated a fraud to conceal the diversion of customer funds to his privately-held crypto hedge fund, Alameda Research.”

Bankman-Fried told investors and customers FTX’s sister company was just another platform on the exchange with no special privileges to speak of. “These statements were false and misleading,” according to the SEC. Alameda had access to a “virtually unlimited ‘line of credit” unknowingly funded by FTX customers. In May 2022, when Alameda’s lenders demanded the firm repay loans worth billions of dollars, Bankman-Fried allegedly directed FTX to divert even more money to the hedge fund.

The SEC seeks to bar Bankman-Friend from trading securities in the future. The agency also wants to seize his ill-gotten gains and bar him from acting as an officer or director at another company.

Current FTX CEO John Ray III testified before the House Financial Services Committee on Tuesday — SBF had said he would attend the hearing before his arrest. Ray spoke to some of the allegations detailed by the SEC. “This is really old-fashioned embezzlement,” he told the panel. “We’ve lost $8 billion. I don’t trust a single piece of paper in this organization.”

Department of Justice

In addition to civil charges, Bankman-Fried faces a criminal indictment from the Justice Department. On Tuesday, prosecutors from the Southern District of New York filed eight charges against the former executive, including multiple counts of wire fraud. The Justice Department alleges SBF conspired with other individuals to defraud investors by sharing misleading information about FTX and Alameda’s financial condition. Prosecutors further accused him of attempting to commit commodities and securities fraud. On top of that, Bankman-Fried allegedly broke federal election laws by donating more than is legally allowed and in the names of other people.

SBF spoke about his political donations in a recent interview with journalist Tiffany Fong. “I donated to both parties. I donated about the same amount to both parties,” he said. “All my Republican donations were dark. The reason was not for regulatory reasons, it’s because reporters freak the fuck out if you donate to Republicans.”

It’s worth emphasizing how serious the criminal charges against Bankman-Fried are. For context, a federal judge recently sentenced Theranos founder and former CEO Elizabeth Holmes to 11 years in prison for defrauding the company’s investors and patients. Meanwhile, Ramesh “Sunny” Balwani, the startup’s former chief operating officer, was sentenced to nearly 13 years in prison for his role in the scheme. Sam Bankman-Fried stands accused of defrauding investors of almost $2 billion, or about twice what investors lost to Theranos.

Commodity Futures Trading Commission

Rounding out the current charges against Bankman-Fried, the Commodity Futures Trading Commission accused the former executive of using Alameda Research to “surreptitiously” siphon customer funds. “At Bankman-Fried’s direction, FTX executives created features in the underlying code for FTX that allowed Alameda to maintain an essentially unlimited line of credit on FTX,” the regulator alleges. It adds that Alameda had other “unfair” advantages, including an exemption from the platform’s auto-liquidation risk management process.

As early as May 2019, SBF and “at least one” other Alameda executive directed the firm to use FTX customer funds to trade on competing platforms and buy “high-risk” digital assets. Additionally, the CFTC alleges that Bankman-Fried and his cohorts “took hundreds of millions of dollars in poorly-documented ‘loans’ from Alameda,” which they then used to purchase real estate and make political donations.

For his actions, the CFTC is seeking to ban Bankman-Fried from trading derivatives and impose civil penalties against him. It also wants to bar him from acting as a director or officer in the future.

Huawei signs a patent cross-licensing agreement with its biggest Chinese rival

Before Trump-era sanctions made the company a non-player in the market, Huawei was briefly the world’s largest phone manufacturer, surpassing both Samsung and Apple in shipments. In a sign of how much it has fallen since then, Huawei announced this wee…

Jeep parent company Stellantis blames EV costs for upcoming layoffs

Jeep parent company Stellantis on Friday said it would indefinitely shut down a manufacturing plant in Illinois and lay off approximately 1,350 employees early next year. The facility – located in Belvidere, a city 75 miles northwest of downtown Chicag…

Microsoft vows to bring ‘Call of Duty’ to Nintendo consoles

Microsoft vows to bring Call of Duty to Nintendo and to continue making it available on the latter’s consoles for 10 years if its Activision Blizzard acquisition pushes through. Phil Spencer, Microsoft Gaming’s CEO, has announced the company’s commitment on Twitter, adding that “Microsoft is committed to helping bring more games to more people — however they choose to play.” Spencer previously said during an interview that the company intends to treat Call of Duty like Minecraft that’s available across platforms and that he would “love to see [the game]” on the Switch. A 10-year commitment potentially means that the franchise will also be released for the current Switch’s successors. 

In addition, Spencer has announced on Twitter that Microsoft will continue to offer CoD on Steam, alongside the Xbox, after the deal is closed. As The New York Times says, this announcement could be a move to appease the Federal Trade Commission and to get regulators on their side. The publication says the FTC is expected to discuss the acquisition in a closed-door meeting on Thursday, where the agency will decide whether to take steps to block the deal. 

A recent report by Politico claimed that Microsoft failed to convince the FTC staff reviewing the acquisition with its arguments and that the commission will likely file an antitrust lawsuit to block it as soon as this month. The FTC is reportedly concerned the purchase would give Microsoft an unfair advantage and that it would reduce competition in the market. 

In an opinion piece written for The Wall Street Journal, Microsoft President Brad Smith defended the acquisition and argued that it’s good for gamers. FTC suing to block the deal “would be a huge mistake,” he said, and would hurt competition in the industry instead. Smith also said that Microsoft offered Sony, the loudest dissenting voice to the merger, a 10-year contract ensuring all new CoD releases would be available on the PlayStation the same day they go out for the Xbox. “We’re open to providing the same commitment to other platforms and making it legally enforceable by regulators in the US, UK and European Union,” he wrote. Whether these efforts are enough to assure regulators that the purchase wouldn’t be detrimental to the industry remains to be seen.