TheChek News Flow

The art star known for turning pop culture icons into archaeological relics has issued much-hyped collaborations with Dior, Rimowa, Tiffany, Adidas, Uniqlo and more. Now he’s launching a label of his own: Objects IV Life.

The plants in Germany and Texas are losing billions of dollars, the auto maker’s CEO said in a late May interview

Tesla Inc.’s TSLA -0.40% two newest car factories have been losing billions of dollars as supply-chain disruptions and battery-cell manufacturing challenges limit the company’s ability to increase production, Elon Musk said in a recent interview.

The company’s plants in Germany and Texas, which opened earlier this year, are “gigantic money furnaces,” the Tesla chief executive said in a May 30 interview with a Tesla owners’ club that was released Wednesday.

“Overwhelmingly our concern is, how do we keep the factories operating so we can pay people and not go bankrupt?” Mr. Musk said in the interview. He added that he expected Tesla to resolve these problems quickly.

In the weeks since the interview was recorded, Tesla has begun layoffs that Mr. Musk indicated could touch 10% of the company’s salaried workforce.

Mr. Musk didn’t respond to a request for comment. Tesla’s stock closed down less than 1% on Wednesday, but has tumbled by around a third in 2022.

Car making is a notoriously cash-hungry business, and ramping up new factories can be especially so. Tesla, for example, spent roughly $11 billion in the first quarter on items needed to make and sell cars, including materials, labor, manufacturing and shipping.

Investors for years worried that Tesla’s war chest wouldn’t be sufficient. Such concerns eased, however, as the company paid down debt, raised money and reported a string of quarterly profits that helped transform it into the most valuable auto maker in the world. As of the first quarter, Tesla was sitting on roughly $17.5 billion in cash.

Tesla has faced several setbacks in recent months, including higher supplier and logistics costs amid soaring inflation. Governmental Covid-19 restrictions in China also curtailed output at the company’s plant in Shanghai, which had been its largest by volume.

Tesla this spring launched deliveries of Model Y compact sport-utility vehicles made at its newest plants, but ramping up output from those facilities has proven difficult, Mr. Musk said. He cited battery supply as a key bottleneck.

“Berlin and Austin are losing billions of dollars right now because there’s a ton of expense and hardly any output,” Mr. Musk said.

Tesla has long relied on finger-sized battery cells made by companies such as Panasonic Corp. , but it has been working to develop its own, larger cells in-house. That effort is aimed at reducing the cost of a key component and mitigating the risk of battery shortages.

The Texas plant, which Tesla designed to be able to make cars using batteries of multiple sizes, has been caught in the middle of the company’s transition. Increasing in-house production of the larger battery cells and associated packs has proven challenging, Mr. Musk said. Meanwhile, the tooling required to make cars using smaller battery cells was stuck in China, he said.

Analysts expect Tesla to deliver roughly 273,000 vehicles in the second quarter, according to FactSet, down from around 310,000 in the first three months of the year. That would mark the company’s first quarter-over-quarter decline in deliveries in more than two years.

Tech company cancels remainder of $10 million agreement with organizers of the 2026 national commemoration

WASHINGTON— Facebook parent Meta Platforms Inc. said Wednesday it has canceled its sponsorship agreement with the organization planning the federal government’s commemoration of the 250th anniversary of the U.S., a project beset by internal strife and facing a discrimination lawsuit filed by female former executives.

Meta said in March it would review its ties to the U.S. Semiquincentennial Commission and its affiliated America250 Foundation following Wall Street Journal reports detailing feuds among the congressionally appointed commissioners and accusations of mismanagement and misuse of federal funds by former employees.

“All the leadership dysfunction was super concerning,” a person familiar with the matter said. Among other issues, when Meta, then known as Facebook, made the deal in June 2021, the company had been under the impression that it would be one of many corporate sponsors, the person said; to date, it is the only company that has signed on, people familiar with the issue said.

Daniel DiLella, a Philadelphia-area developer who is chairman of both the Semiquincentennial Commission and the America250 Foundation, didn’t immediately respond to a request for comment. In a March statement, he said the project has “hit many roadblocks along the way, and there may be more, but we are on the right path to fulfill our sacred mission to honor this great country.”

A foundation spokesman said: “The America250 Foundation remains confident that it will be working with Meta in the future—the company supports our mission of bringing the country together around this national milestone.” The spokesman added the organization was speaking with other companies about potential sponsorship arrangements.

Andrew Hohns, a member of the Semiquincentennial Commission and a critic of its leadership, said Meta’s decision points to broader problems.

“We need a fresh start with this project, one that involves many more Americans and is focused on historic preservation, national renewal and bold ambition,” said Mr. Hohns, chief executive of Philadelphia investment firm Newmarket Capital.

The social-media giant has already paid America250 the first $2 million installment of a $10 million deal through 2026 to serve as the exclusive “social connectivity” partner, with an inside role in planning and presenting the observances and the right to use America250 branding. America250 won’t receive the remaining $8 million balance, a Meta spokesman said.

Meta’s contribution was America250’s largest single source of funding apart from the federal government, records show.

“While we are no longer a corporate sponsor, we look forward to seeing commemoration efforts come to life for this special anniversary,” said Joe Osborne, a Meta spokesman. The company notified America250 on Tuesday it was pulling out, Mr. Osborne said.

The Semiquincentennial Commission was created by Congress in 2016 to plan observances leading to the anniversary on July 4, 2026.

Rich People’s Problems: Leave the airport hordes behind, take a road trip to the sun

I’ve had enough of flyers with massive suitcases masquerading as hand baggage and flinch at those lacking spatial awareness

Flying is no longer a glamorous travel option. I’ve gone on a proper road trip instead. The electric vehicle is range inhibited, so it’s time to bring out the big guns. Fire up the Aston! It’s going to be a petrol-powered holiday with three other couples. 

Some may shudder at the thought of an epic car journey. But think about how air travel has changed. I used to love airports but they’ve become intolerable. They’re often overcrowded and expensive. I hate the queues. The security screening processes would be inhumane to cattle, let alone humans.

I bristle at those dressed up to the nines because they think they’re better than everyone else. And when I see red trouser-wearing men and pearl-clutching ladies travelling abroad with hats, I ask myself: who needs a hat in an airport? I’m infuriated by flyers with massive suitcases masquerading as hand baggage and flinch at those who lack spatial awareness. And that’s before one’s walked 18 miles to get on the plane. 

Added to the post-Covid travel chaos and domestic rail strikes, the government and aviation regulator have written to carriers telling them to ensure schedules are “deliverable”, resulting in multiple cancellations. With the queues to get off planes and a long wait for your bags, I’m left wondering if it is worth the bother or expense.

In a car, you literally are in the driving seat. Pack what you want and there’s always room for a cheeky purchase made along the way. But there are downsides. A few years ago my trusty Aston Martin ended a road trip on the back of a low-loader. Not wishing to repeat this disaster I sent it for a pre-trip once-over. £3,150 later, he’s ready to go. There may be a cost to owning a 20-year-old car but in this case it’s still a fantastic ride.

The ignition key clicks, there’s an electronic “bong”. Pause. Press the illuminated “Start” button and with a delighted roar, the car kicks into life. The sound of an Aston Martin’s engine is joyous. If it was food it would be an apple flan, the kind made by a chef. A familiar tasty classic but a special treat.

After the original hi-fi buttons went spongy and sticky, I’d installed a £129.99 Kenwood Bluetooth stereo system (no need to spend more, apparently). Its factory-supplied speakers emit a deep bass reflex, should I ever decide to pump out some banging dance tunes. 

A Eurotunnel ticket costs just £229 for a return non-refundable fare, for the car and two passengers. There was hardly a queue in sight at Folkestone and the automated check-in and passport control is a breeze, contrary to the “project fear” Brexit warnings. The only trip hazard is that you will need to have a “UK” identification on your number plate, as some bore-o-crat has decided that we’re no longer “GB”.

And off we set. I did think about calling the police after we were mugged at a French service station. But I was told by the other half that the price of fuel had risen substantially and it’s the same for everyone. Despite the French government’s intervention, petrol costs €2.20 a litre for the E5 “super”. Well, the Aston needs a treat. Inexplicably, in the same way that the French cannot make a decent cup of tea, some of their filling stations limit the amount you can take in a single filling to €150.

If you fly, in addition to being frazzled when you arrive, you’ll miss out on the benefits that proper travelling can provide, like a fantastic overnight stop in a picturesque village. We’d settled on a pretty three-bedroom hotel called Le Bailli de Montsaugeon near Dijon. On a walk we meet an octogenarian resident who keeps bees. He’ll happily sell you his best acacia honey for €8 a jar. At the commune-run bar, they serve a locally produced rosé that’s off the chart good. Just €9 a bottle. We quaffed two. 

The hotel cost €145 a night (including the most amazing breakfast) and for €30 a head, they’ll give you dinner. We returned to the bar for an impromptu rock concert, clattering through another bottle of rosé while playing pétanque. It’s 28C, the sun is beginning to set, there’s a light breeze and the wine is going down a treat. You don’t get this unplanned joy on a package or destination holiday. 

We were en route to a remote villa with an infinity pool in the hills above the town of Fayence. Satnav is a brilliant thing. I’d like to think we’re not too stupid to end up following it blindly. After the Aston and our neighbour’s Bentley ended up off-road on a rocky path that became steeper, narrower and increasingly precarious, we had to question our intelligence. Because the last piece of road to get to the villa wasn’t mapped, the satnav knew a “better” route. 

Amazingly, the Aston made it without any apparent damage or concern. The Bentley fared worse, with warning lights flashing on the dashboard necessitating a trip to the nearby dealership in Mougins. They were brilliant, checking over the car while suggesting how it should be driven to last the rest of the adventure — with no charge for either the service or the once-over. Bravo Bentley. I’m almost tempted to return to the brand!

If the concept of renting a villa is alien to you, reconsider. Yes, staying at hotels where washing, cleaning and everything else is done for you is all very well. But often a hotel falls short in service, delivery, pillows or it’s just unbelievably expensive. 

In this age of austerity, will a fancy hotel or well-appointed villa provide better value and a more enjoyable holiday? Ours cost us £4,000 for the week, or £142 per couple per night. If I’m looking for somewhere to razz it up for a few days, I’d rather go to a villa than a blow-the-budget hotel. You can fix the itinerary and the activities with your friends — and get to see and do more, experience better restaurants and, to my mind, have more enjoyable memories. 

Travel is changing, again. Jetting off for a few weeks might be accessible but unless it’s long haul, it’s no longer the way to travel in style. As I write, we’ve started our winding journey home, via stops on the Côte d’Azur. Although La Reserve in Beaulieu-sur-Mer was tempting, €1,350-€1,650 a night for one of the cheaper rooms is a bit steep. I’d rather go to the four-star Carlton with rates at €160 including an epic buffet breakfast and super friendly staff and splash the money “saved” on lunch and an afternoon at the pulsating Anao Plage beach bar, followed by dinner at the nearby Hotel Royal-Riviera. What a view!

Fly if you want. But I won’t be booking a ticket any time soon. I’d rather stick to four wheels with my friends and the fabulous Aston. There are interesting places to stay and wonderful villas to rent. It will cost you less and you can go away for longer, avoiding the crowds, strikes and queues.