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Why Tesla’s valuation is hard to read as Musk’s EV empire falters

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Prickly billionaire Elon Musk is at a crossroads with Tesla (TSLA) — and investors are shouldering the outsized risk.

“I think we are in the transition phase, so it’s a very critical phase for Tesla at the moment,” Gradient Investments’ Lisa Schreiber said on Yahoo Finance’s Opening Bid (watch above).

On July 23, Tesla reported much weaker second quarter earnings compared to a year ago. During the earnings call, Musk cautioned about headwinds and shared that ride-hailing and autonomous features will be a key focus for the company going forward.

Shares fell directly after the earnings announcement and closed down 8.2% on Thursday.

Tesla remains an innovator, with robots and AI in its portfolio. Its EV business, however, is sharply declining as competition rises and backlash grows against Musk’s politics. The expiration of a $7,500 federal credit for EVs won’t help matters, either.

“When we look at valuation, investors do not know exactly how to value [Tesla]. Is it an EV maker? Is it more than that? The thing is, it’s not just an EV play anymore,” Schrieber said. “But it’s also not a robotaxi [and] robot company already. So we have struggles here.”

To Schrieber’s point, Tesla’s stock trades more like a hot tech player trying to take on juggernauts like Nvidia (NVDA). Shares trade at 161 times the estimated forward price to earnings. (Nvidia, with much stronger growth, trades around 55 times.) Ford (F), a pure-play automaker, trades at 9.6 times.

Meanwhile, some perceive Tesla as a company that isn’t sure what it wants to be when it grows up. The innovation around autonomous driving is noteworthy, but the waiting can make even the most patient investor antsy.

“Especially with Tesla, we have to be a little bit careful,” Schreiber said, noting that Musk has a history of huge promises but delayed launches.

The robotaxi, for instance, launched this past June in Austin, Texas. William Blair analysts Jed Dorsheimer and Mark Shooter, who rate Tesla’s stock at Market Perform, noted that rival company Google’s (GOOG) Waymo robotaxi “represents a six-year head start.”

“We think the training wheels will get taken off quickly and the pace at which robotaxi scales will surprise the upside,” the pair wrote. “Although maybe not to half of Americans by the end of the year.”

During Tesla’s earnings call, Musk also discussed humanoid robots, AI, and their integration into the vehicle fleet, calling the company’s cars “essentially a four-wheeled robot.”

“Optimus is a robot with arms and legs,” he said. “So the same principles that apply to optimizing AI inference of the car applied to Optimus because they’re both really robots in different forms.”

If Musk and Co. can deliver, investors like Schreiber will likely be among the first in line to celebrate, but for the time being, they are content to watch and wait.

“I think we have to be a little bit careful here,” she said. “For us to be able to be a buyer here, we would need to see some foot on the ground and we would need to see some realization first.”

Join top investors and newsmakers at Yahoo Finance Invest on November 12–13 in NYC as they discuss the agenda for success in 2026. Register to attend today.

Grace Williams is a writer for Yahoo Finance.

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Travis Kelce Debuts Buzz Cut For NFL Season

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No. 10: He Can Handle the Pressure

Not only has Travis played in four Super Bowls, winning three of them (NBD!), but he’s also hosted Saturday Night Live, so you know he can handle intense spotlight with ease. 

That may seem trivial, but Taylor has penned several songs regarding her fear that her level of fame could prove to be too much for her romantic partner to handle. (See: “Peace” and “The Archer.”) 

“It all depends who you’re with,” Taylor said in, “If they have a serious issue with it, I guess you’ll hide or whatever, but I don’t really like that, because it makes me feel like I’m running from the law or something. I don’t want to feel like a fugitive, like, ‘Oh my god, we’re having a relationship, better hide!’

“I feel like if you can be in a relationship and have it seem normal, that would be good.” 

And in his WSJ interview, Travis proved he’s more than ready for the pressure that comes with dating someone as powerful as Taylor.

“Obviously I’ve never dated anyone with that kind of aura about them…I’ve never dealt with it,” he said. “But at the same time, I’m not running away from any of it.”

“The scrutiny she gets, how much she has a magnifying glass on her, every single day, paparazzi outside her house, outside every restaurant she goes to, after every flight she gets off, and she’s just living, enjoying life,” he added. “When she acts like that I better not be the one acting all strange.”

Plant Based Diet Cookbook for Beginners! Complete 90 Day Vegan Meal Plan for Rapid Weight Loss and Muscle Building : With Easy Whole Food Recipes, Workout Plans and Nutrition Guide for Optimal Health

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Price: $17.17 - $1.99
(as of Jul 27, 2025 18:58:57 UTC – Details)

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Accessibility ‏ : ‎ Learn more
Publication date ‏ : ‎ June 4, 2025
Language ‏ : ‎ English
File size ‏ : ‎ 1.5 MB
Simultaneous device usage ‏ : ‎ Unlimited
Screen Reader ‏ : ‎ Supported
Enhanced typesetting ‏ : ‎ Enabled
X-Ray ‏ : ‎ Not Enabled
Word Wise ‏ : ‎ Enabled
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Page Flip ‏ : ‎ Enabled
Best Sellers Rank: #1,769,021 in Kindle Store (See Top 100 in Kindle Store) #369 in Vegetarian Diets (Kindle Store) #611 in Vegan Diets (Books) #4,115 in Weight Maintenance Diets

Tour de France 2025 results: Tadej Pogacar seals fourth title

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Wout van Aert denied Tadej Pogacar a prestigious win on the final stage of this year’s Tour de France as the Slovenian secured his fourth Tour title.

Reigning champion Pogacar had a lead of more than four minutes heading into the final day, when only the stage win would be contested in Paris.

With rain falling in the French capital, the 26-year-old established himself in a six-man breakaway during a thrilling finale on the same circuit used for last year’s Olympic race.

But Van Aert attacked on the third and final climb to the Basilica of Sacre Coeur de Montmartre and stretched his lead over the final 5km to clinch victory on the Champs-Elysees.

After a frustrating Tour, the versatile Belgian was able to claim his 10th Tour win, crossing the line 19 seconds before a group of three riders, the latter being Pogacar.

As Pogacar finished he put a hand in the air to celebrate going level with British rider Chris Froome for all-time Tour wins, with only Jacques Anquetil, Eddy Merckx, Bernard Hinault and Miguel Indurain above them (five wins).

Pogacar has also become the first reigning world road champion to win the Tour since Greg LeMond in 1990 and secured the King of the Mountains title for a third time.

Two-time Tour winner Jonas Vingegaard finished the race four minutes 24 seconds behind Pogacar, with Florian Lipowitz third in the general classification standings ahead of British rider Oscar Onley.

Lipowitz, 24, was the best young rider while fellow Tour debutant Jonathan Milan, who is also 24, topped the points classification standings.

More to follow.

Trump, EU’s von der Leyen strike trade deal for 15 percent tariffs

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President Trump and President of the European Commission Ursula von der Leyen announced a trade deal on Sunday, setting tariffs at 15 percent for European goods, including automobiles.

The European Union will purchase $750 billion worth of energy from the U.S. as part of the deal, Trump announced, and agreed to invest in the U.S. $600 billion more than the current investments for other goods.

The agreement is lower than the 30 percent tariff Trump had threatened to impose on the EU, which would have begun on Aug. 1, and avoids a trade war with the U.S.’s largest trading partner.

Trump and von der Leyen both touted the enormity of the deal they had agreed to during a meeting at the president’s golf course in Turnberry, Scotland.

“I think it’s the biggest deal ever made,” Trump said.

“We have a trade deal between the two largest economies in the world. It’s a big deal, it’s a huge deal, it will bring stability, it will be predictability,” von der Leyen said. “It’s a good deal, it’s a tough deal.”

When asked about concessions the U.S. made to reach the deal, von der Leyen acknowledged that there was an unbalanced trade relationship previously between the EU and the U.S., resulting in a deficit for the U.S.

“We wanted to rebalance the trade relation and we wanted to do it in a way that trade goes on between the two of us across the Atlantic,” she said.

Trump went into the meeting with von der Leyen saying he thought there was a 50-50 chance the two leaders could strike a deal on Sunday.

“You’re known as a tough dealmaker and negotiator,” von der Leyen said before the meeting.

“And fair,” Trump responded.

“This is really the biggest trading partnership in the world so we should give it a shot,” Trump said.

Trump similarly reached a deal with Japan on trade earlier this week, which would set a 15 percent tariff on Japanese goods. That is lower than the 25 percent tariff Trump had threatened to impose on Japan beginning Aug. 1.

Also in that deal, Trump said that Japan would invest $550 billion in projects in the U.S. and would open its markets to U.S. automobiles, rice and other agricultural products.

The president on Sunday doubled down on tariffs starting on Aug. 1, telling reporters, “The August 1 is there for everyone. The deals all start on August 1.”

Reaction to US and EU trade deal

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TURNBERRY, Scotland (Reuters) -U.S. President Donald Trump on Sunday said the United States and the European Union had reached agreement on a trade deal that includes a 15% tariff on EU goods entering the U.S. and significant EU purchases of U.S. energy and military equipment.

The deal also calls for $600 billion in investments in the U.S. by the European Union, he told reporters.

This follows a U.S. deal with Japan on July 23 that cut tariffs on auto imports and other goods in exchange for a $550 billion package of U.S.-bound investment and loans.

Major financial markets were still closed. The euro ended last week around three-week highs at $1.1738, while the STOXX 600 <.STOXX > hit its highest since early June last week as optimism built for an EU/U.S. trading deal.

Following are comments from business leaders and companies, and market reaction to the announcement.

COMMENTS:

MICHAEL BROWN, SENIOR RESEARCH STRATEGIST, PEPPERSTONE, LONDON:

“The EU is going to be hit with a 15% tariff which is pretty punchy but it’s half of the 30% they were threatened with and it’s well off the 50% that Trump had been throwing around at the start of the month so that’s good news.”

“This is more a case of the risk of no deal being removed as opposed to whether it’s 15%-20%, I’m not entirely sure that matters so much at least not in terms of how markets are going to trade in an hour or so when things get up and running for the week.”

“The two obvious reactions that you would expect are upside in the euro and upside in equity futures. I don’t think equities in particular needed much of an excuse to rally and now they’ve got one.”

ERIC WINOGRAD, CHIEF ECONOMIST, ALLIANCEBERNSTEIN, NEW YORK:

“This is very similar to the deal we reached with Japan.”

“We will need to see how long the sides stick to the deal. From a market perspective, it is reassuring in the sense that having a deal is better than not having a deal.”

RICK MECKLER, PARTNER, CHERRY LANE INVESTMENTS, NEW VERNON, NEW JERSEY:

“It’s really in line with the Japan deal, and I assume investors will view it positively as they viewed the Japan deal. The reality is there will be higher tariffs, which may lead to more inflation, depending on how much of it is absorbed by the manufacturers and how much of it is passed on to consumers.

I think from the administration’s point of view, they probably have begun to address the balance of trade issues. The question remains whether using tariffs as a way to address these imbalances is positive for the global economy or just a tax that helps with jobs here in the U.S.”

(Reporting by Matt Tracy and Caroline Valetkevitch in New York and Lucy Raitano and Karin Strohecker in London; Compiled by Amanda Cooper; Editing by Alexandra Hudson)

The X-E5 is the perfect travel camera if you can justify the price

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The X-E5 is Fujifilm’s tiny powerhouse. It’s part of a line of cameras that has often been described as similar to the X100, except with an interchangeable lens. But the X-E line has evolved this year and is taking on a new shape. It used to be seen as a budget option, but at $1,699, that can no longer be said.

Despite the fact that I’ve used almost every Fuji out there, this was my first time playing around with any of the X-E line of cameras. The X-E5 is a gorgeous, petite, and classy-looking camera with sharp lines throughout the body, and with buttons and an occasional concave edge for some extra flair and a distinctive look. It is ever-so-slightly shorter and thicker than the X100VI, but weighs about the same when paired with one of Fujifilm’s pancake lenses. It is hard to keep your eyes and hands off of it. Over the last few weeks using the camera, I’ve had a lot of people asking me about it. Two even assumed it might be a Leica.

An overhead photo of the X-E5

It’s often described as an interchangeable X100, and that is definitely true this year.
Photo by Vjeran Pavic / The Verge

The camera build feels incredibly solid. The dials and the buttons are very clicky; even the side door just feels right. The hinges on the flip screen are sturdy, and it can flip all the way around for some vlogging, too. All those little details matter and make the camera feel premium, but unfortunately this camera is not weather sealed (something you’d also expect for this price).

The big new feature for the X-E is the dedicated film simulation dial. We’ve seen other Fujis adding these, but this was my first time using it. I rarely shift between film simulations since I have a few of my own, which I stick to 99 percent of the time. But the dial does make saving these sims easier, and encouraged me to experiment with different looks a lot more than before.

When it comes to video, you get 6.2k up to 30fps and 1080p up to 240fps. The X-E5 can also film in F-Log and F-Log 2 color spaces, so there is plenty of latitude for post-processing, which will match well with other Fujifilm cameras. And there’s HLG HDR too. The rolling shutter isn’t the greatest, although it’s far from bad. But the X-E5 shouldn’t be your primary video camera for two big reasons: the video mode takes a toll on this battery, and I’ve had it overheat after 13 minutes of continuous filming.

1/7

The X-Trans CMOS V sensor has enough dynamic range for challenging lighting situations.
Photo by Vjeran Pavic / The Verge

As stated earlier, this Fuji is equipped with the same sensor we’ve seen for a few years now. It is a 40MP BSI CMOS 5 sensor and it is capable of making some great images. It has been my favorite Fuji sensor since the CMOS III. The photos are sharp, with plenty of detail, and the noise levels are well managed. Anything above 2000 ISO will slowly start to break down and look mushy and soft. This is where the 7-stop IBIS comes in and helps you to keep that shutter open for a bit longer, therefore lowering your ISO too.

I brought this camera with me on a trip to Mexico along with a handful of lenses. The X-E5 proved to be a brilliant travel camera. I loved having the option to stick to my pancake 27mm for an ultra-compact setup or bring the all-rounder 16-55mm zoom lens for some versatility on a long day out.

But despite how much I loved my time with the X-E5, all of the recent Fujifilm cameras are becoming too similar to each other when it comes to performance. Some of those cameras excel in some way, but the X-E5 doesn’t have anything unique going for it. It is a classic jack of all trades. And that’s not a bad thing.

But once you start looking at the prices, you might have some second thoughts. When the X-E4 came out it was $850 and was seen as a hidden gem in the lineup. At $1,700, it starts to become a harder sell. However, if you do pick this one, be assured you’re picking a brilliant and gorgeous camera. It might no longer be a hidden gem, but it’s still a gem.

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England vs India fourth Test: Ravindra Jadeja refuses Ben Stokes handshake to end game as a draw

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England captain Ben Stokes offers a handshake to try and end the Test match as a draw but India decide to stay out on the field until Ravi Jadeja and Washington Sundar reach their centuries.

FOLLOW LIVE: England v India fourth Test – day five

Available to UK users only.

Prison reform laws could safely send thousands home — if they’re enforced

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The two of us have spent a good chunk of our lives on opposite sides of prison bars. 

One of us worked for 16 years in the federal Bureau of Prisons, including a stretch as acting director during the first Trump administration. The other spent 14 years in federal prison before fighting to help hundreds of thousands of incarcerated people earn their freedom and successfully reenter society. 

Despite these different backgrounds — or perhaps because of them — we agree on one thing: Our criminal justice system can and must do much more to enhance safety and justice for all Americans.

That’s why we were encouraged when, last month, the Bureau of Prisons quietly issued a new directive that will help incarcerated individuals return more quickly to their families and communities.

Although we are optimistic, the devil is in the details. For this policy to succeed, it must be implemented fairly and consistently for all who qualify. 

The U.S. has made real progress on criminal justice over the past few decades. The crime rate has declined 61 percent since its peak in 1991. The prison population has shrunk by roughly 25 percent since 2009, and racial disparities have dropped by 40 percent

This progress came from thoughtful, bipartisan reforms. Between 2007 and 2018, 35 states passed sentencing and corrections reform laws. At the federal level, two landmark measures — the Second Chance Act and First Step Act — stand out.  

Signed in 2008 by President George W. Bush, the Second Chance Act funds state and local programs that help incarcerated people reenter their communities. 

Ten years later, Trump signed the First Step Act, which modified mandatory minimums, expanded opportunities for people to earn time credits toward early release and increased access to rehabilitative and vocational programs.  

Many were surprised when Trump, who had promised tougher sentences as he campaigned for office, championed the First Step Act. But he pressured Republicans in Congress to support it and enthusiastically signed it into law, calling it proof that “America is a nation that believes in redemption.”

In his second term, Trump has sent mixed signals so far. His Justice Department cut more than $500 million in state and local criminal justice grants, and Attorney General Pam Bondi rolled out new tough-on-crime policies. 

At the same time, Trump created a new “pardon czar” position to advise him on presidential clemency decisions, appointing Alice Marie Johnson — who served over 20 years in federal prison before receiving clemency from Trump — to the role.

The latest advancement came in June when Bureau of Prisons Director William K. Marshall III directed the bureau to fully implement both the Second Chance Act and First Step Act. 

Declaring “the dawn of a new era,” Marshall promised the policy change would save money, reduce strains on corrections staff and facilities and make it easier for many incarcerated people to return home and contribute to society.

This latter point is the centerpiece of the First Step Act. The act allows low-risk individuals who complete rehabilitative programs to earn “time credits” which can be applied toward early release or to serve the remainder of their sentences in home confinement or residential reentry centers.  

Since its passage, the First Step Act has proven effective. A Council on Criminal Justice analysis found that individuals released under the First Step Act were 55 percent less likely to return to prison than people with similar profiles released before the law took effect. These lower recidivism rates held even among those considered higher risk by the Bureau of Prisons. 

Yet challenges remain. Despite receiving more than $400 million annually under the First Step Act, the Bureau of Prisons has long claimed it lacks the contract capacity to support home confinement and reentry centers.

There has also been confusion about whether the First Step Act and Second Chance Act could be applied simultaneously. Both the Biden and Trump administrations initially said they could not, before allowing it.

The new Bureau of Prisons policy promises to solve these issues, but its success will depend on implementation. The director’s message must reach and be embraced by all corners of the system.

We have seen encouraging signs thus far. This month, the Bureau of Prisons launched a task force to address logistical hurdles faced by staff — a promising step toward ensuring the policy is put into practice.

Going forward, we see three top priorities. 

First, communication. With over 155,000 employees, the Bureau of Prisons must ensure every staff member understands this policy and why it matters. 

Second, training. Too often, people remain behind bars simply because staff aren’t properly trained on how to apply the law. 

And third, accountability. Bureau of Prisons leaders must quickly address any staff who resist the changes — whether through correction or removal.

In the early months of Trump’s second term, we have seen America’s political divides on display, from the “big beautiful bill” to the bombing of Iran to new tariffs. 

Criminal justice reform should be an exception. It offers a rare opportunity for common ground — a chance to advance solutions that make our communities both safer and more just. 

Hugh Hurwitz worked for the Bureau of Prisons for more than 16 years, including as acting director during the first Trump administration, and is a member of the Council on Criminal Justice. Louis L. Reed, who served nearly 14 years in federal prison and later helped pass over 30 state and federal bills, including the First Step Act of 2018. He is a member of the Council on Criminal Justice’s Board of Trustees.

Why Procter & Gamble (PG) is a Pillar of Dividend Stability

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The Procter & Gamble Company (NYSE:PG) is included among the 11 Dogs of the Dow Dividend Stocks to Buy Now.

Dogs of the Dow: Why Procter & Gamble (PG) is a Pillar of Dividend Stability
Dogs of the Dow: Why Procter & Gamble (PG) is a Pillar of Dividend Stability

A happy couple viewing the products of this household and personal product company in a mass merchandiser store.

The Procter & Gamble Company (NYSE:PG) owns several leading consumer brands like Pampers and Tide— products that are considered essentials for many households. While there’s always a possibility that consumers could opt for cheaper, generic alternatives, recent sales figures don’t indicate any major shift in buying behavior that would pose a serious threat to the business.

The Procter & Gamble Company (NYSE:PG) is considered one of the most reliable dividend stocks in the market. Its stability comes from a wide range of top-tier brands in areas like beauty, health, grooming, home care, and family care. Thanks to strong customer loyalty and an efficient global supply chain, the company regularly posts profit margins that outperform many competitors.

The Procter & Gamble Company (NYSE:PG)’s long-standing financial strength is further proven by its impressive 69 consecutive years of dividend increases, which is one of the longest growth streaks among publicly traded companies. On July 8, the company declared a quarterly dividend of $1.0568 per share, in line with its previous dividend. With a dividend yield of 2.67% as of July 26, PG is among the best dogs of the Dow.

While we acknowledge the potential of PG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: Top 10 Safest Dividend Stocks in the UK and Dividend Champions vs Aristocrats: 12 Under-the-Radar Stocks to Buy

Disclosure: None.