Business

Chinese electric vehicles are taking over

Chinese EVs are increasingly attracting foreigners, and are on pace to subvert some of the biggest international car companies. Chinese automakers traditionally sold most of their vehicles domestically, as they couldn’t compete with larger automakers overseas. However, that is no longer the case.

As an increasing number of drivers are switching to electric, Chinese EV automakers are dishing out affordable options that are taking the roads by storm. China grew its EV exports by 851% in the past three years, skyrocketing shipments to Europe, according to the NYT.

BYD (Bring Your Dollars)

The most notable Chinese EV brand is the Warren Buffett-backed BYD, which has outperformed every expectation since it started gaining traction a few years ago.

• BYD surpassed Tesla in the final quarter of 2023 as the world’s largest EV seller.

• Elon Musk recently told Tesla investors that Chinese automakers will “demolish” their foreign competitors in Europe unless countries establish trade barriers.

Tesla is trying to compete now by slashing prices and targeting a 2024 release for its cheapest model yet. But, BYD, who is seemingly after Tesla’s luxury market, introduced a $233,000 electric supercar and an SUV that floats in water and rotates 360 degrees.

But the company isn’t just after Tesla: BYD also snatched Volkswagen’s top spot as the number one selling car brand in China last year, and it plans to establish its first factory in Europe later this year.

Tesla isn’t the only one with concerns

Last month, President Biden directed the Commerce Department to investigate how Chinese EVs might threaten Americans’ data. But, while Biden dubbed cars “smartphones on wheels,” a Chinese EV tracking your miles driven to get burgers isn’t the only issue.

• Biden said he thinks China is trying to dominate the world’s auto market using “unfair practices.’’

He’s probably referring to China’s (more than generous) government subsidies that allowed its automakers to list prices that are much, much lower than competitors. The EU is already investigating whether these subsidies abide by trade rules and is considering imposing additional tariffs on Chinese cars.

So why don’t we see BYD everywhere?

The quick answer is trade barriers. The US has a 25% tariff on Chinese EV imports, and the Biden administration is considering raising it even further, per the WSJ.

However, BYD is planning to build factories in Mexico, which lawmakers have cited is reason to believe the company is trying to skirt around tariffs. BYD contested the assertion, saying last week that it doesn’t plan on selling the cars in the US.

Even if Chinese EVs end up on US car lots, they aren’t likely to gain the traction they’ve had domestically. BYD has “extremely low” brand awareness among Americans, and their “durability and safety is middling,” Spencer Imel of consumer insights company Langston told Reuters.

Tesla vs. OpenAI

What’s better than a lawsuit that pits two of the world's most prominent tech leaders against each other over the future of artificial intelligence? Elon Musk sued OpenAI and its co-founders, CEO Sam Altman and President Greg Brockman, alleging that they breached the organization’s founding agreement by letting it become too profit-motivated.

Ex-besties

While it may seem like an extraneous lawsuit, Musk actually co-founded OpenAI in 2015 as a nonprofit alongside Altman and other tech sevants. Musk also said he gave the company $44 million of his own money to get things running.

• However, Musk resigned from the board in 2018, partly due to disagreements over plans that year to create a for-profit arm of OpenAI.

Added context: Last year, Musk was among the hundreds of tech pundits who signed an open letter calling on all AI labs to pause testing of powerful AI systems for half a year. Altman pushed back at the time, saying that OpenAI takes safety into account.

What does the lawsuit say?

The filing said the company is straying from its original mission to develop AI for the benefit of the public, and is developing advanced AI for profit along with becoming a “de facto subsidiary of the largest technology company in the world: Microsoft.”

• The tech giant invested $13 billion in OpenAI, buying 49% of its business arm.

• The filing also alleged OpenAI of improperly licensing its GPT-4 AI model to Microsoft despite having an obligation to create such sophisticated tools for nonprofit ends.

Microsoft’s shares have soared 68% in the last year, making it the most valuable company in the world, as it seeks to become a leader in AI adoption.

Altman isn’t doing as well… the Musk lawsuit follows a WSJ report that the SEC is probing whether OpenAI misled investors around his short removal as CEO last fall.

Apple was fined $2 billion over music regulation

In a time where antitrust regulators are constantly on the hunt, Apple has mostly dodged their grasps… until now. On Monday, the European Commission slammed Apple with a €1.8 billion ($1.95 billion) fine after finding the company used its dominance to restrict music streaming competition.

• The fine is the third-biggest (and larger than expected) penalty ever levied by the EC against a company.

• It’s also the first one handed out to Apple by the EU.

The size of the fine came as a surprise to some industry analysts, but the commission said it needed to hand Apple a large fine because, well, it’s a large company.

Bobbing for Apples

What did Apple do exactly? European regulators found that for 10 years, Apple prevented music streaming services from telling iPhone users that they could get subscriptions for less money outside of Apple’s App Store, which resulted in users paying higher prices.

Apple fired some shots in its response to the fine. The company called out Spotify as “the primary advocate for this decision—and its biggest beneficiary,” it’s the one with a monopoly in the music streaming market. Apple said it would appeal the fine — the day the company got fined.

Things aren’t looking up from here… On Thursday, the EU’s Digital Markets Act (a law that will attempt to help smaller companies to compete with tech giants) will begin its run. At the same time, in the US, the DOJ is expected to file an all encompassing lawsuit accusing Apple of trying to mitigate competition.

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Grab Bag

Parking spots are becoming optional

One of the most American things I can think of is an oversized parking lot that serves as an additional eyesore outside of a Bass Pro Shop. This is because developers need to meet a minimum number of parking spaces that are required by US law and city governments, but not any longer.

In 2015, Minneapolis became the first city in the nation to get rid of a mandate requiring a minimum number of parking spots at transit stations. Over 50 major cities nationwide have ditched parking mandates in the years since, allowing developers to decide how much parking they need.

Why get rid of our favorite eyesores?

Representatives are heeding the concerns of critics who say parking minimums hinder new housing construction and encourage people to drive rather than use public transportation. Some points of parking lot critics are:

• Requiring parking to be built alongside housing uses up land that could be occupied by extra units.

• A single parking spot can cost anywhere from $5,000 to $150,000 to construct, with developers paying the bill and typically handing it to renters.

• Parking lots and garages fill up limited urban real estate with concrete eyesores, making cities more sprawling and less convenient.

Parking critics also claim that the number of spots required is often inconsistent and irrational. One Minneapolis suburb mandates bowling alleys to build two spots per lane, while another one requires seven.

Of course, general traffic would play a part in how many spots a business may want or need to have, but Minnesota State Senator Omar Fateh, who wants to ban minimums statewide, told the Star Tribune, “Are bowlers driving 3½ times as much in [one suburb] than in [another]?”

Anti-minimum advocates said while there might not be 3.5 times the drivers, there may be 3.5 times the bowlers, which would explain the need for more parking. They also argued that any rescinding of mandates needs to be coupled with policies promoting public transit that’ll make it easier to stop using cars.

Friends are buying their homes together

Middle school friends are living out their dreams, as friends are increasingly buying long term housing together. Given the current housing market, many individuals don’t want to go in on a house alone… enter your best friend.

There are quite a few benefits to buying a house with your BFF, from increased borrowing power to splitting a downpayment. And as Gen Z is getting married and having children later than any other generation, it’s all the more applicable.

It’s a pretty good deal

While some people may get uber-annoyed by their now permanent roommate, there have been some success stories:

Vice talked to multiple co-homeowners, including one pair that eventually sold their home for a good profit, then used the revenue to buy their own houses. The Atlantic spoke to two couples (both married with children) about sharing a home and how they divvy up the duties to four adults. The decision allowed them to buy a larger house in a better neighborhood.

• Around 15% of Americans had bought a home with someone other than a romantic partner, according to a recent survey.

• From those respondents, nearly 25% said they couldn’t have afforded it alone.

• Of Gen Z respondents, 70% said they’d consider it.

So there is certainly a market for best friends to live together.

But…

While there have been some success stories (like mentioned above), things don’t always go as planned, as anyone who has ever roomed with a good friend would understand.

Without a clear plan about the process, who will take care of what, and what will happen if someone wants out, gets married, or decides to have children, things can go awry for a multitude of reasons.

And the shift doesn’t seem to show a massive trend toward communal living, but instead, a necessity amid spiraling housing costs. In the same survey, the top advantages respondents listed were all financial: Sharing costs (67%), affording a nicer home (56%), and investment opportunities (54%).

Fast Facts

Oscanheimer: The Academy Awards are this Sunday, fingers crossed Oppenheimer wins best picture.

Japan’s Jewels: After a millennium, this was the final year of Japan’s Somin-sai festival (better known as the naked man festival). The event involves a crowd of men wearing only loincloths and socks participating in various rituals, like running through freezing water.

Jetpack Joyride: A seven-person race of pilots wearing jetpacks that can reach top speeds of 80 mph took place in Dubai last week, which organizers called the first of its kind.

Musk Money: The lawyers who worked to void Elon Musk’s $56 billion compensation package in Delaware want their $6 billion in legal fees to be paid in Tesla stock. That’s nearly $300,000 per hour.

AstroNOT: NASA is accepting applications for astronauts for the first time in four years. Go try on your space suit.