Italian PM Meloni Hosts 'Atreju 2023' Conservative Political Festival In Rome

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IS FCF 🇸 🇪 🇽 🇾?

Tesla’s big beat comes with a bigger bill ahead

The company’s positive free cash flow is largely due to the fact that it hasn’t ramped capex spending yet.

4/23/26 6:36AM

Investor excitement over Tesla’s surprisingly good earnings report Wednesday quickly faded as it became clear that the financial pain they’d been bracing for is still ahead — and likely worse than expected.

Tesla reported an unexpected $1.4 billion in positive free cash flow, versus the roughly $1.5 billion cash burn analysts had forecast. However, that upside appears to say less about improving fundamentals than about timing: Tesla’s spending hasn’t really ramped yet.

Capital expenditure came in at $2.5 billion last quarter, well below the $4.4 billion analysts had expected, according to FactSet. At the same time, Tesla raised its projected 2026 capex to $25 billion from $20 billion.

That implies roughly $7.5 billion in spending in each of the next three quarters — more than double the company’s previous peak.

Last year, the company reported capex of just ~$9 billion, so this latest bump is a pretty substantial one.

“We are in a very big capital investment phase, which is going to start now and would last a couple of years,” CFO Vaibhav Taneja said during the earnings call, pointing to the six factories Tesla is funding, along with AI infrastructure, and its Terafab chipmaking project.

Musk hoped to allay spending fears by saying that the “very significant increase in capital expenditures” would be “well justified for a substantially increased future revenue stream.”

The bet is that today’s spending surge will translate into higher-margin AI and software revenue — but Tesla offered little detail on timing, saying only that “over time, we expect our hardware-related profits to be accompanied by an acceleration of AI, software, and fleet-based profits.”

The stock, which was up more than 4% after the report came out, is now down more than 3% in premarket trading. Some of that weakness can at least be excused by wider market weakness, with futures on the tech-heavy Nasdaq 100 off 0.6% this morning.

Chris Stokel-Walker

Bot bias

6/17/26

Companies are getting AI chatbots to smear their competitors

The race to influence AI chatbots is leading to some companies to adopt shady competitive tactics.

Tom Jones6/17/26

Prediction markets have, predictably, been given a boost by the summer of sports

Major platforms like Kalshi and Polymarket have seen huge upticks in users of late, thanks in no small part to what’s felt like a recent sporting smorgasbord, with major competitions across hockey, basketball, and soccer soaking up fans’ time (and spending, clearly) at the outset of summer.

While gaming industry groups may not like it, there’s been a huge change in the methods people are using to put money on the big games, with everyone from fortunate NYC bar owners, to a far less fortunate Spanish supporter, turning to prediction markets to try and turn their sports know-how into cold, hard cash.

According to a new report from Adam Blacker for apptopia, that shift might have been even more seismic than imagined in the wake of the NBA and NHL finals and around the 2026 World Cup kicking off.

2026 World Cup Reverses Seasonal Lull for Sports Betting Apps

According to a new report from Adam Blacker for apptopia, that shift might have been even more seismic than imagined in the wake of the NBA and NHL finals and around the 2026 World Cup kicking off.

South by Southwest Conference and Festivals

Gold Tesla Cybercabs are piling up, but they’re not picking up passengers yet

Low-volume production started in April. Now people are noticing them more and more in the wild.

Rani Molla6/15/26

Millie Giles

TAKING ACCOUNTS

6/15/26

Britain announces social media ban for under-16s starting early 2027

The UK government plans to use the same model for the restrictions as Australia — but how successful has that case study been so far?

UK Prime Minister Announces Under-16s Social Media Ban

Jon Keegan6/15/26

Anthropic pulls Fable and Mythos access worldwide after Trump administration bars their use by foreign nationals

Only days after releasing two versions of its next-gen AI model, Anthropic has disabled them for users worldwide.

Anthropic says it received a Friday night order from the Trump administration to suspend access to the models for any foreign national (anywhere in the world) — a group that included some Anthropic employees. In response, the company turned off access to everyone.

Last week, the company released to the public its much-anticipated Claude Fable 5 model (and its restricted version Claude Mythos 5, which is still being tested with trusted partners). Anthropic said in a blog post announcing the action that officials cited national security concerns with the new models, while offering few specific details.

The post said that the government gave the company “verbal evidence of a potential narrow, non-universal jailbreak” of the public Fable 5 model. A jailbreak is a means by which users can evade restrictions built into the code to unlock prohibited functionality. Anthropic downplayed the significance of the attack, and said other major models, such as OpenAI’s GPT-5.5, could also be affected by the technique described.

Fears of these first Mythos-class models being misused are running high, after Anthropic warned the cybersecurity world in May that the advanced cyber capabilities of Mythos have rapidly discovered thousands of vulnerabilities in ubiquitous software, leading to the decision to restrict the full version of the model to a close group of trusted partners for testing.

This morning, Axios reported that Anthropic technical staff have flown to Washington to meet with White House officials to resolve the issue.

The Wall Street Journal is reporting that the Trump administration’s decision to take action against Anthropic was prompted by discussions that Amazon CEO Andy Jassy had with officials, including Treasury Secretary Scott Bessent. According to the report, Amazon researchers said they had been able to evade some of Fable 5’s security restrictions using specific prompts. Amazon is a major investor in Anthropic.

Anthropic is currently suing the US government to fight the Pentagon’s blacklisting of the company on national security grounds.

Statement on the US government directive to suspend access to Fable 5 and Mythos 5