Issue #60

Tesla execs fight tariffs, China subsidises washing machines, gold prices reach record high, and more.?

News from March 13 - March 20, 2025

AI Wrong 60% of the Time

Researchers at the Tow Centre for Digital Journalism found that popular Large Language Models (LLMs) like ChatGPT and Gemini give the incorrect answer 60% of the time.?

The study chose ten random articles from publications like TechCrunch and The Wall Street Journal and asked chatbots to identify an article’s headline, publisher, publication date, and URL. The researchers said AI gave the wrong answer “with alarming confidence”.?

ChatGPT Search linked to the wrong source nearly 40% of the time. Elon Musk’s venture, Grok 3, was wrong 94% of the time. This lines up with other research showing that AI would rather ‘hallucinate’ than admit it doesn’t know what it’s talking about.?

Source

People Less Intelligent Now

Young people find it increasingly hard to solve problems, reason, concentrate and process information.

According to the University of Michigan’s Monitoring the Future study and the Programme for International Assessment (PISA), teens and young adults now have shorter attention spans and weakened critical thinking. While the pandemic disrupted education, this trend has been ongoing since the 2010s with literacy and numeracy rates declining in the US.?

The way we consume media is a factor. People read books less than they did a decade ago. But technology also has a part to play. Screen time hurts verbal functioning in children and makes it harder for young adults to concentrate.?

Source

Tesla Execs Fight Tariffs

Tesla execs sent a letter to the Office of the United States Trade Representative (USTR), saying that US tariffs have harmed Tesla sales. The unsigned letter: "Even with aggressive localisation of the supply chain, certain parts and components are difficult or impossible to source within the US." This comes in the wake of Trump's imposition of an additional 20% tariff on Chinese goods, and China's retaliatory tariffs on US cars.

This comes after a bad first few months of 2025 for Tesla when the EV manufacturer recorded its first sales decline. Protestors have set fire to Tesla charging stations in response to owner Elon Musk's controversies at DOGE. There was a 40% drop in stock price since last month and a 71% drop in profit from the previous year. In a show of support to his advisor, Donald Trump sat in the driver's seat of a red Tesla and promised to buy one.

Source

Bulletin Board

• Flying Taxis Over London. Virgin Air wants to introduce a network of air taxis across the UK, in partnership with air taxi venture firm Joby Aviation. These electric air taxis could fly people from Heathrow Airport to Canary Wharf in 8 minutes, not the usual 80-minute car journey. Rates would be similar to other premium options. Joby’s air taxis take off and land like helicopters, in near-silence, and can travel 150 miles on one charge. Construction has begun for Joby Aviation’s first ‘vertiport’ in Dubai. Source
• China Subsidises Washing Machines. The Chinese government will spend $41 billion to encourage consumer spending by subsidising the purchase of washing machines, EVs, home decor and smartwatches. The Chinese economy is deflating, with consumer spending and prices declining for the last 18 months. It got so bad that the Chinese government asked Alibaba and JD.com to stop publishing their sales figures. Source
• Gold Prices Reach Record High. Gold is now $3000 per ounce, thanks to investor uncertainty over a looming global trade war. Gold prices have risen by 16% since January, with gold seen as a safer asset than goods liable to price increases due to tariffs. Trump’s threat to impose a 200% tariff on EU alcohol led to investors rushing to buy gold. There are other reasons too: tensions in the Middle East and Ukraine and central banks buying gold in large quantities. They purchased 1045 tonnes of gold in 2024, driven by a desire to diversify away from the US dollar. Source
• Yoga Mats Track Inflation. The UK’s Office of National Statistics (ONS) will now use yoga mats, VR headsets, and pulled pork to measure inflation, which is now at 3%. The ONS stopped using oven-ready gammon joints and printed newspaper adverts to measure price changes owing to declining consumer interest. Stephen Burgess, the ONS Deputy Director for Prices: “Consumers are choosing easier options in the kitchen, so oven-ready gammon joints make way for the quicker choice of pulled pork.” Source
• Audi Cuts 7,500 German Jobs. Audi announced it would slash 7,500 German jobs by 2029 to cut costs, reduce bureaucracy, and help the luxury brand’s transition to EV production. The move, which will see 8.6% of the company’s global workforce lose their jobs, was agreed with employee representatives and will save €1 billion. Gernot D?llner, Chairman of the Board of Management: “Audi must become faster, more agile, and more efficient. This cannot be done without personnel adjustments.” This comes in the wake of Volkswagen announcing 35,000 job cuts in Germany, owing to competition from Chinese EV makers and declining sales. Source

Disclaimer: This blog offers insights into international business and global events for informational purposes only. It is not intended as investment or business advice. WeavePay is not liable for any decisions made based on the content provided.

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