Is Elon's Empire Crumbling?

Jeff Brown - the legend who called Tesla and Nvidia early - says Elon is about to launch a $25T AI revolution. This isn't another chatbot. It's real-world AI that could 14X the impact of ChatGPT. But after July 23rd, it may be too late.

Business News Digest

DEE-ANN DURBIN
July 02, 2025

AP Business Digest

Here are the AP's top business stories that have moved or are planned to move today. All times U.S. Eastern. For up-to-the minute information on AP's coverage, visit AP Newsroom's Coverage Plan.

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UPCOMING

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CONGRESS-TAX CUTS-SOLAR

DESCRIPTION: Hours before a key Senate vote on Republicans' massive policy and tax bill, a North Carolina renewable energy executive warned his employees that deep cuts to clean energy tax credits would mean big job losses. Southern Energy Management CEO Will Etheridge said he borrowed money from his grandmother and against his house to build a business on the expectation that the tax credits would be around for years. His company isn't the only one that will suffer. By Michael Phillis.

UPCOMING: By 07/02/2025 2:00 p.m. EDT, Photo, Text

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US PHILADELPHIA-LABOR STRIKE

DESCRIPTION: Coverage on merits of the potential second day of a strike by thousands of city workers in Philadelphia that impacts residential curbside trash collection, 911 call answering, pool and recreation center hours and other services.

ON MERITS: By 07/02/2025 3:00 p.m. EDT, Photo, Video, Text, Alternate Headlines

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US HAWAII VACATION RENTALS

DESCRIPTION: TENTATIVE: A Maui County Council committee is expected to vote on the mayor's bill to ban vacation rentals in apartment zones. The mayor proposed the legislation after the 2023 Lahaina wildfire exacerbated Maui's housing shortage and activists camped out in front of oceanfront hotels to demand changes. The bill, if enacted, would mandate the conversion of about half of Maui's legal short-term rentals into long-term housing. The vote is by the Housing and Land Use Committee but since all nine council members are on the committee, it will indicate how the council's final vote may go.

UPCOMING: By 07/02/2025 7:00 p.m. EDT, Photo, Text

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NEW AND DEVELOPING

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US--MICROSOFT-LAYOFFS

Microsoft announces another mass layoff, thousands of workers affected

SUMMARY: Microsoft is firing thousands of workers, its second mass layoff in months. The tech giant began sending out layoff notices Wednesday. The company declined to say how many people would be laid off but that it will comprise less than 4% of the workforce it had a year ago. Microsoft said the cuts will affect multiple teams around the world, including its sales division and its Xbox video game business.

WORDS: 164 - MOVED: 07/02/2025 10:25 a.m. EDT

https://newsroom.ap.org/home/search?query=itemid:f44079957b12370f72e24edebe9fcc6b&mediaType=text

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FORD-RECALL

Ford recalls more than 200,000 vehicles over malfunctioning rearview camera

SUMMARY: Ford Motor Co. is recalling more than 200,000 vehicles because a software defect can cause the rearview camera to fail, increasing the risk of a crash and injury. Ford told U.S. highway safety regulators that the camera can either display a blank image or that the image may remain on the display after the driver finishes backing up, causing a distraction. Dealerships will eventually update the camera software free of charge. Owner notification letters are expected to be mailed by July 28.

WORDS: 252 - MOVED: 07/02/2025 10:23 a.m. EDT

https://newsroom.ap.org/home/search?query=itemid:a8338c331a353e178f9f664f8dd0f0bd&mediaType=text

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ENT--MUSIC-BAND REUNIONS

Ahead of Oasis' tour, a look at famous and brief band reunions: Nirvana, Outkast and more

SUMMARY: The Britpop band Oasis will reunite for a 2025 world tour kicking off Friday in Cardiff, Wales. It is a surprising run of dates that end the band's 15-year hiatus and seem to suggest an end to the long-held feud between bandmates and brothers Liam and Noel Gallagher. The Oasis reunion tour brings to mind other short reunion runs, like Nirvana and Led Zeppelin, who got together only for a few select events over the last few decades. Or Outkast, who reunited for a worldwide festival run in 2014 and then resumed their hiatus.

WORDS: 1316 - MOVED: 07/02/2025 10:13 a.m. EDT

https://newsroom.ap.org/home/search?query=itemid:65151d411fea172951aed2bf139ffa03&mediaType=text

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EU--RUSSIA-UKRAINE-WAR

Ukraine looks to jointly produce weapons with allies, while US halts some shipments

SUMMARY: Ukraine is moving forward with plans for joint weapons production with allies while the U.S. halts some arms shipments. Officials said Tuesday that draft legislation to support this effort will be voted on later this month. President Volodymyr Zelenskyy says Ukraine will seek joint weapons production with European countries. The U.S. cited concerns over its own stockpiles for the halt in shipments. The decision has increased pressure on European nations to support Ukraine militarily. Analysts say Europe can help fill some gaps but lacks alternatives to key U.S. systems like HIMARS and Patriots. They are vital for Ukraine's defense against Russian attacks. Ukraine's Foreign Ministry summoned U.S. chargé d'affaires John Hinkel on Wednesday to discuss ongoing defense cooperation.

WORDS: 939 - MOVED: 07/02/2025 10:10 a.m. EDT

https://newsroom.ap.org/home/search?query=itemid:52fa070cd64062c5d4979e3a13192199&mediaType=text

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US-TESLA-SALES

Tesla sales fell sharply in Q2 as Musk backlash and competition chipped away at company's dominance

SUMMARY: Sales of Tesla electric cars fell sharply in the last three months as boycotts over Elon Musk's political views continue to keep buyers away. Tesla is also facing stiff competition from other electric makers, especially in Europe where China's BYD has taken a bite out of its market share. The 13% plunge in sales reported Wednesday adds to growing signs that Musk's embrace of U.S. President Donald Trump and far-right politicians in Europe has had a deep and enduring hit to Tesla's brand appeal. Sales fell to 384,122 in April through June, down from 443,956 in the same period last year.

WORDS: 365 - MOVED: 07/02/2025 10:10 a.m. EDT

https://newsroom.ap.org/home/search?query=itemid:976a467eca5a179db58cbe4318f54a52&mediaType=text

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US--MEDIA-TRUMP-60 MINUTES

Paramount will pay $16 million in settlement with Trump over '60 Minutes' interview

SUMMARY: Paramount has agreed to pay $16 million to settle a lawsuit by President Donald Trump over the editing of CBS' "60 Minutes" interview with then-Vice President Kamala Harris in October. Paramount, which owns CBS, says the money will go to Trump's future presidential library, not to the Republican president himself. Paramount also says the settlement doesn't involve an apology. Paramount is seeking approval from his administration for a proposed merger, and the case was widely seen as a referendum on how far organizations would go to curry favor with Trump. Paramount and CBS said the case was "completely without merit" and tried to have it dismissed, even while involved in settlement negotiations.

WORDS: 692 - MOVED: 07/02/2025 10:07 a.m. EDT

https://newsroom.ap.org/home/search?query=itemid:6415042fe910ae60b432dd8c73ef61b2&mediaType=text

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US--CONGRESS-TAX CUTS

House Republicans race toward a final vote on Trump's tax bill, daring critics to oppose

SUMMARY: A resolution setting up terms for debating President Donald Trump's tax breaks and spending cuts bill in the House has barely cleared the Rules Committee, a warning sign of some House Republican resistance. Reps. Chip Roy of Texas and Ralph Norman of South Carolina sided with Democrats on Wednesday in voting against the resolution. House Republican leaders want a Wednesday vote on Trump's bill to seize momentum from a hard-fought vote in the Senate on Tuesday. The bill would extend and make permanent various individual and business tax breaks Republicans passed in Trump's first term, plus temporarily add new tax breaks, such as no income taxes on tips and overtime.

WORDS: 1104 - MOVED: 07/02/2025 9:58 a.m. EDT

https://newsroom.ap.org/home/search?query=itemid:3b525482be43fdf956366cebd84dcaac&mediaType=text

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FINANCIAL MARKETS

US stocks drift ahead of Thursday's jobs report

SUMMARY: U.S. stocks are drifting as Wall Street's record-breaking rally slows ahead of a highly anticipated report coming Thursday about the U.S. economy. The S&P 500 edged down by 0.1% Wednesday, coming off its first loss after hitting all-time highs in back-to-back days. The Dow Jones Industrial Average dipped 118 points, and the Nasdaq composite rose 0.1%. Treasury yields were mixed ahead of Thursday's report, which will show how many jobs U.S. employers created and destroyed last month. An unexpected weakening of the job market could push the Federal Reserve to resume cutting interest rates.

WORDS: 644 - MOVED: 07/02/2025 9:47 a.m. EDT

https://newsroom.ap.org/home/search?query=itemid:b9723d20a05804798618c28d9a90d172&mediaType=text

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ML--MIDEAST-WARS-IRAN

Iran's president orders country to suspend cooperation with UN nuclear watchdog IAEA

SUMMARY: Iran's president has ordered the country to suspend its cooperation with the International Atomic Energy Agency after American airstrikes hit its most-important nuclear facilities. State media online on Wednesday reported the decision by President Masoud Pezeshkian. It follows a law passed by Iran's parliament to suspend that cooperation. It wasn't immediately clear what that would mean for U.N. watchdog IAEA. Iranian Foreign Minister Abbas Araghchi signaled in a CBS News interview that Tehran still would be willing to continue negotiations with the United States.

WORDS: 1041 - MOVED: 07/02/2025 8:56 a.m. EDT

https://newsroom.ap.org/home/search?query=itemid:8bbdc81b9199d8d179d0fb2e1b8dac2a&mediaType=text

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EU--EUROPE-WEATHER

Wildfire kills 2 people in Spain as parts of Europe bake in heat wave

SUMMARY: Spanish authorities say two people have died in northeastern Spain in a wildfire that spread quickly before firefighters brought it under control. Catalan regional president Salvador Illa announced the deaths in a social media post around midnight on Tuesday. The fire came amid a European heat wave that's sending thermometers soaring again on Wednesday. A total of 6,500 hectares or 16,000 acres was burned before firefighters established a perimeter and declared the blaze under control. About 14,000 people were ordered to stay indoors. That order was lifted late Tuesday.

WORDS: 852 - MOVED: 07/02/2025 8:19 a.m. EDT

https://newsroom.ap.org/home/search?query=itemid:bee31bb95122fdf09dbea73d882a0330&mediaType=text

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US--FASHION-DUPES

Lululemon's lawsuit against Costco highlights the rise of fashion 'dupes'

SUMMARY: Less expensive versions of high-end clothing and other accessories are just about everywhere these days. But these fashio dupes are also drawing some businesses into legal battles. In the latest example, Lululemon has sued Costco, accusing the retailer of selling cheaper imitations of its popular athleisure wear. Dupes, or less expensive alternatives to luxury products, are far from new, but their popularity has surged with social media trends. Recent examples include Target's $15 version of Hermès $1,000 fuzzy slippers and a $99 version of Bottega Veneta's $2,800 hobo bag sold on Quince. And, while not to be confused with counterfeits, some dupes raise legal concerns over potential trademark or copyright infringement.

WORDS: 1086 - MOVED: 07/02/2025 8:12 a.m. EDT

https://newsroom.ap.org/home/search?query=itemid:2def75bcaf37e81ccb0065fe67b82101&mediaType=text

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US--MEDIA-NOOSPHERE

Award-winning international correspondent launches a new journalism platform

SUMMARY: Reporting in Somalia, Afghanistan and Syria was tough work for reporter Jane Ferguson. So is launching a new journalism platform from scratch. That's Ferguson's latest project -- Noosphere, a subscription-based site for independent reporters looking for a place to showcase their work. Some are international reporters she knew from the field, but Ferguson also has signed on some domestic U.S. reporters, including former "Meet the Press" moderator Chuck Todd and Chris Cillizza, formerly of CNN. Ferguson says founding the startup is a high pressure challenge, but that she's "used to pressure in the field."

WORDS: 954 - MOVED: 07/02/2025 8:03 a.m. EDT

https://newsroom.ap.org/home/search?query=itemid:2fbf68c367a34aac503cbb122b33d272&mediaType=text

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BEHIND THE WHEEL-RISING USED CAR PRICES

Edmunds: What you need to know about rising used car prices

SUMMARY: Used car prices are climbing again, driven by tight supply and cautious buying. According to Edmunds, 3-year-old vehicles now sell for more than $30,000 on average, an increase of more than 2% from a year ago. Edmunds' car experts have taken a closer look at these market trends. With some careful shopping, you can still find value in buying a used car. Alternately, you might consider waiting until later in the year to see if pricing normalizes.

WORDS: 743 - MOVED: 07/02/2025 6:37 a.m. EDT

https://newsroom.ap.org/home/search?query=itemid:afe8bcf9510368186132f4844b780f6d&mediaType=text

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US--TRUMP-TARIFFS-ANALYSIS

Analysis shows Trump's tariffs would cost US employers $82.3 billion

SUMMARY: An analysis finds a critical group of U.S. employers would face a direct cost of $82.3 billion from President Donald Trump's current tariff plans. That could be managed through price hikes, layoffs, hiring freezes or lower profit margins. The JPMorganChase Institute analysis is among the first to measure the direct costs created by the import taxes on businesses with $10 million to $1 billion in annual revenue. This category includes a third of private-sector U.S. workers. These companies are more dependent than other businesses on imports from China, India and Thailand. The retail and wholesale sectors would be especially vulnerable to the Republican president's import taxes. Trump claims foreign manufacturers will absorb the costs.

WORDS: 722 - MOVED: 07/02/2025 6:29 a.m. EDT

https://newsroom.ap.org/home/search?query=itemid:6fef729ff39ce24fcd46bbb60134b032&mediaType=text

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EU--BRITAIN-HEATHROW-FIRE

Fire that shut Heathrow was caused by a preventable technical fault known for years, report finds

SUMMARY: An inquiry has found that an electrical substation fire that shut down Heathrow Airport in March was caused by a preventable technical fault identified almost seven years earlier. Europe's busiest air hub shut for about 18 hours in March after a fire knocked out one of the three electrical substations that supply it. More than 200,000 passengers had journeys disrupted. The National Energy System Operator said Wednesday that an "elevated moisture reading" had been found in oil samples at the substation in 2018. But action wasn't taken to replace electrical insulators. It said the March 20 blaze was caused by moisture entering the transformer and causing a short circuit that ignited the oil.

WORDS: 339 - MOVED: 07/02/2025 6:10 a.m. EDT

https://newsroom.ap.org/home/search?query=itemid:1262c39655627b2668d7a3047e853ee5&mediaType=text

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US-CHINA-HUAWEI

US judge says China's Huawei Technologies must face criminal case for racketeering and other charges

SUMMARY: A U.S. judge has ruled that China's Huawei Technologies, a leading telecoms equipment company, must face criminal charges in a wide reaching case alleging it stole technology and engaged in racketeering, wire and bank fraud and other crimes. U.S. District Judge Ann Donnelly in Brooklyn, New York, rejected Huawei's request to dismiss the allegations in a 16-count federal indictment against the company. During President Donald Trump's first term in office, his administration raised national security concerns and began lobbying Western allies against including Huawei in their wireless, high-speed networks. Donnelly ruled that Huawei's motions to dismiss the allegations were premature.

WORDS: 404 - MOVED: 07/02/2025 5:27 a.m. EDT

https://newsroom.ap.org/home/search?query=itemid:74cc326067ab373ad6e0e978631e0304&mediaType=text

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AS--NORTH KOREA-TOURISM

North Koreans swim and play at a beach resort touted as a boost for tourism

SUMMARY: North Koreans are swimming and playing at a new beach resort that the country is touting as a boost for tourism. State media reported the Wonsan-Kalma resort on the eastern coast opened to domestic visitors Tuesday. But prospects for the resort and North Korean tourism are unclear. The country hasn't fully reopened its borders since the COVID-19 pandemic, and analysts say it's unlikely to embrace Western tourists anytime soon. A Russian tour group is expected to visit the resort next week, but Chinese tourism to North Korea is stalled. Leader Kim Jong Un has called the resort key to developing the tourism industry. But experts say resuming international tourism will be key to reaching that goal.

WORDS: 463 - MOVED: 07/02/2025 1:18 a.m. EDT

https://newsroom.ap.org/home/search?query=itemid:1fe3d41501e93eb0c5a04dc2700a284b&mediaType=text

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US--EDUCATION-GRANT FREEZE

Trump administration withholds over $6 billion for after-school, summer programs and more

SUMMARY: The Trump administration is withholding more than $6 billion in federal grants for after-school and summer programs, English language instruction, adult literacy and more. The administration says it is reviewing the grants to ensure they align with President Donald Trump's priorities. The move leaves states and schools in limbo as they budget for programs this summer and the upcoming school year, introducing new uncertainty about when or if they will receive the money. Programs that rely on the funding were expecting it to be released July 1, but an Education Department notice issued Monday announced the money would not be distributed while the programs are under review.

WORDS: 1208 - MOVED: 07/02/2025 12:43 a.m. EDT

https://newsroom.ap.org/home/search?query=itemid:fac670e8f60fab397fbd68dfed866ea1&mediaType=text

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US--MOBILE PHONE REVOLUTION-ABRIDGED

He pioneered the cellphone. It changed how people around the world talk to each other -- and don't

WORDS: 1041 - MOVED: 07/02/2025 12:10 a.m. EDT

https://newsroom.ap.org/home/search?query=itemid:794a3bdc27364695da7bbda5d63c5859&mediaType=text

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US--CONGRESS-TAX CUTS-SOCIAL SECURITY

Trump keeps saying the GOP mega bill will eliminate taxes on Social Security. It does not

SUMMARY: President Donald Trump keeps saying that Republicans' mega tax and spending cut legislation will eliminate taxes on federal Social Security benefits. It does not. Instead of eliminating the tax, the Senate and House have each passed their own versions of a temporary tax deduction for seniors aged 65 and over, which applies to all income -- not just Social Security. And it turns out not all Social Security beneficiaries will be able to claim the deduction. Those who won't be able to do so include the lowest-income seniors who already don't pay taxes on Social Security, those who choose to claim their benefits before they reach age 65 and those above a defined income threshold.

WORDS: 645 - MOVED: 07/02/2025 12:05 a.m. EDT

https://newsroom.ap.org/home/search?query=itemid:adea287e00c7c553f69f3667d3ef78cc&mediaType=text

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US--MOBILE PHONE REVOLUTION

He pioneered the cellphone. It changed how people around the world talk to each other -- and don't

SUMMARY: Martin Cooper changed the world when he pioneered the portable phone. The Motorola company's four-pound box has evolved into a global army of powerful smartphones weighing ounces. Some 4.6 billion people -- nearly sixty percent of the world -- have mobile internet. The phone's inventor says the revolution's just begun. Cooper observes that the tiny computers that we carry by the billions are massive, interlinked networks of processors performing trillions of calculations per second. That's the computing power that artificial intelligence needs. Cooper sees the cellphone's imminent transition to a thinking computer fueled by human calories to avoid dependence on batteries. These new parts would run constant tests and feed our doctors real-time results, building longevity.

WORDS: 1476 - MOVED: 07/02/2025 12:03 a.m. EDT

https://newsroom.ap.org/home/search?query=itemid:3127c722666030ae6571494d27ae3b00&mediaType=text

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