Tesla Sales Plunge in Germany

TECH
Tesla Sales Plunge in Germany

Tesla’s vehicle registrations in Germany plunged 76% in February to 1,429 units, while overall EV sales rose 31%, according to the German Federal Motor Transport Authority. The decline coincides with CEO Elon Musk’s controversial political endorsement of the far-right Alternative for Germany (AfD) party ahead of the country’s federal election.

Tesla’s struggles in Germany reflect a broader European downturn, with sales down 71% in Germany and 44% in France. However, the UK, now the region’s largest EV market, saw an 11% increase in Tesla registrations.

Beyond politics, production issues are also impacting Tesla’s sales. The company is suspending output at Model Y plants, including its Grünheide factory near Berlin, for assembly line upgrades. Meanwhile, Chinese rival BYD is gaining ground in Europe.

Adding to Tesla’s challenges, activist groups targeted railway infrastructure near its German plant, further complicating operations and the company’s planned expansion efforts.

FINANCE
Investors Bet on Ruble Surge

Goldman Sachs and JPMorgan are among banks brokering trades for investors seeking exposure to Russian-linked assets through ruble-based derivative contracts. These non-deliverable forwards (NDFs) allow traders to speculate on the ruble’s value without directly holding Russian assets, making them permissible under Western sanctions. The ruble has surged 20% this year, outperforming all global currencies.

Interest in Russian assets has grown as U.S. officials consider easing sanctions as part of potential peace talks with Ukraine. However, European restrictions remain in place. Some hedge funds and Middle Eastern family offices—unaffected by sanctions—are exploring opportunities in Russian corporate bonds, including Gazprom and Lukoil.

Despite rising bond prices, wide bid-offer spreads make valuations uncertain. Analysts warn against overestimating potential gains, given complex sanction laws. Some investors remain cautious, recognizing that U.S. legal restrictions require congressional approval to lift, making any speculative investments risky and potentially long-term.

TECH
CuspAI Expands with Top AI Talent

CuspAI, a U.K. startup using AI to discover new materials, has added AI pioneers Geoffrey Hinton and Yann LeCun to its advisory board. Hinton and LeCun, both Turing Award winners, have shaped modern AI and will support CuspAI’s mission to develop materials for sustainability, including carbon capture and advanced batteries.

The company also appointed materials scientist Kristin Persson and AI policy expert Verity Harding as advisors. Additionally, CuspAI has quietly hired AI talent from Google DeepMind, including engineers and executives specializing in AI-driven scientific discovery.

Cofounded by CEO Chad Edwards and CTO Max Welling, CuspAI aims to build AI models that can generate chemical “recipes” for new materials. Its first AI-designed materials are being prototyped by an industry partner.

CuspAI’s business model involves partnering with manufacturers and retaining intellectual property rights to earn royalties. Backed by $30 million in VC funding, the company is expanding across Europe to accelerate AI-driven material discovery.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.