Tesla Faces NHTSA Probe Over Model 3 Emergency Door Handles - bloomberg-technology Recap

Podcast: bloomberg-technology

Published: 2025-12-24

Duration: 43 minutes

Guests: Ryan Blastelica, Ipec Osker Deshkai, Eric Larson

Summary

The episode discusses Intel's stock dip due to Nvidia's halted testing, the Trump administration's new H-1B visa fee, and Tesla's scrutiny by the NHTSA over Model 3 door handles.

What Happened

Intel's shares experienced a decline after reports indicated that Nvidia paused its testing of Intel's chip production methods. This development is concerning for investors, particularly as Nvidia had previously invested $5 billion into Intel, and a successful partnership was seen as critical to Intel's strategic turnaround. Despite this, the S&P 500 saw a slight increase of about 0.2% on Christmas Eve.

The Trump administration received a green light from a federal judge to impose a substantial $100,000 fee on new H-1B visa applications. This move is part of a broader agenda focusing on immigration policy changes, which also includes imposing visa sanctions on certain EU officials for their roles in content moderation regulations.

In the automotive sector, Tesla is under new scrutiny as the National Highway Traffic Safety Administration (NHTSA) probes potential issues with the emergency door handles of the Model 3. Although Tesla's shares have seen a 19% increase on a total return basis, the company is facing challenges such as declining sales and shrinking profits.

Tesla's robotaxi service has been launched in Austin and San Francisco, but it remains behind competitors like Waymo, which is already operational in six U.S. cities and plans significant expansion. Waymo is targeting 35 million rides next year, aiming to solidify its presence in the autonomous vehicle market.

The episode also touches upon the booming market for AI infrastructure, with companies like Micron, Seagate, and Western Digital benefitting from increased demand for high bandwidth memory chips. This surge in AI chip demand has led to expanded production capacities and significant stock gains for these companies.

ServiceNow announced its largest acquisition yet, agreeing to buy the cybersecurity startup Armists for $7.75 billion. This strategic move aims to enhance ServiceNow's security offerings with advanced AI and data workflow capabilities, marking a significant milestone for the company as its security business surpasses $1 billion in revenue.

Key Insights

• Nvidia's decision to pause testing of Intel's chip production methods has led to a decline in Intel's shares, despite Nvidia's prior $5 billion investment seen as crucial for Intel's strategic turnaround.
• The Trump administration has been authorized to impose a $100,000 fee on new H-1B visa applications, part of a broader agenda on immigration policy changes, including visa sanctions on certain EU officials.
• Tesla is under investigation by the NHTSA due to potential issues with the emergency door handles of the Model 3, amidst challenges like declining sales and shrinking profits despite a 19% increase in shares on a total return basis.
• ServiceNow has announced its largest acquisition to date, purchasing cybersecurity startup Armists for $7.75 billion to enhance its security offerings with advanced AI and data workflow capabilities, as its security business surpasses $1 billion in revenue.