Original title: Elon Musk’s MAGA politics are fast becoming a mega problem for Tesla.
Tesla has experienced a significant decline in vehicle registrations across Europe, with new registrations dropping nearly 60% in Germany and similar declines in Spain, France, Sweden, and the Netherlands. This downturn is attributed to both broader economic factors and the controversial actions of CEO Elon Musk, who has openly supported far-right politicians and made divisive gestures. The backlash against Musk has led to calls for boycotts, with some Tesla owners expressing a desire to sell their vehicles due to his ideology. Rival brands like Polestar are capitalizing on this sentiment, seeing increased interest from disgruntled Tesla customers. Despite Tesla's Model Y being the best-selling car in Europe in 2023, the company faces intense competition and unique challenges, including an ageing model lineup and a general slump in electric vehicle demand. Analysts suggest that Musk's controversies could be impacting Tesla's sales volume and profitability, with some attributing a portion of the blame to industry factors as well.
Original title: Europe’s startup ecosystem needs to evolve to compete globally
Europe's startup scene is facing challenges as it seeks to enhance its ecosystem model, which connects individuals, organizations, and resources to drive innovation and growth. The European Union plays a crucial role in this ecosystem, with initiatives like the Payment Service Directive enabling fintech success stories such as Swan. However, experts emphasize that startups cannot thrive in isolation; they require a supportive network of talent, infrastructure, partnerships, and customers. While there are positive developments in funding, such as a new EU initiative for AI investments, concerns remain about the fragmented regulatory landscape across member states, which complicates scaling efforts. Experts advocate for harmonizing laws to facilitate smoother expansion and highlight the importance of focusing on product-market fit before scaling. Additionally, they stress the need for attention to HR and finance as essential components of successful scaling. Overall, the call is for greater public and governmental support to foster a thriving startup ecosystem in Europe.
Original title: British R&D unit that’s been compared to DARPA is funding synthetic muscles, electronic skin, and mechanical hands for a robotics dexterity project.
The Advanced Research and Invention Agency (ARIA) in the UK has announced funding for ten teams focused on enhancing robotics dexterity, allocating £52 million to bridge the gap between software and hardware in robotics. This initiative aims to address the limitations of current robotic systems, which struggle to match human flexibility and precision, particularly as the global population ages and labor shortages increase. Among the teams, Arthur Robotics is developing a biologically inspired mechanical hand for manufacturing, while Denmark's Pliantics and US-based Artimus are working on artificial muscles to improve robots' physical interactions. The project emphasizes collaboration across various levels of development, fostering innovation in hardware and integration. Established in 2023, ARIA is modeled after DARPA, funding high-risk research with the potential for significant technological advancements, including projects related to AI safety and climate monitoring.
Original title: European aerospace and defence stocks soar, boosting military tech startups
Shares in European aerospace and defense companies have reached record highs, with significant increases seen in firms like BAE Systems and Rheinmetall. The Stoxx Europe aerospace and defense index hit an all-time peak, reflecting a broader surge in military tech firms, particularly those leveraging AI. Analysts highlight the potential for growth in this sector, noting that AI-driven companies are outperforming traditional defense giants. In 2024, European defense tech startups attracted a record $5 billion in venture capital funding, marking a 24% increase from the previous year, which has raised expectations for future public listings. This surge in investment is driven by heightened concerns over military sovereignty in Europe, exacerbated by the Russia-Ukraine war and calls from leaders for increased defense spending. A McKinsey report indicates that investment in European defense tech startups has increased by over 500% from 2021 to 2024 compared to the previous three years, although the sector still lags behind the US in maturity. The shift in military spending towards software, drones, and robotic solutions suggests a growing demand for innovative defense tech products and services.
Original title: European glaciers are melting at an alarming rate, and the Alps are the worst hit
A study by British startup Earthwave and European scientists reveals alarming glacial melt trends, particularly in the European Alps, which have experienced a 39% reduction in glacier mass over the past two decades, significantly higher than the global average of 5%. The research indicates that glaciers worldwide have lost an average of 273 billion tonnes of ice annually since 2000, with the rate of loss accelerating from 231 billion tonnes per year (2000–2011) to 314 billion tonnes per year (2012–2023). Factors contributing to this decline include rising temperatures in the Alps, which are increasing at twice the global average, and dust from the Sahara that darkens glacier surfaces, leading to faster melting. Human-induced climate change is identified as the primary driver, with predictions suggesting that the Alps could lose over 90% of their glacier mass by 2100 if greenhouse gas emissions continue to rise. This glacial retreat poses significant risks to millions who depend on glacial melt for drinking water, agriculture, and hydropower, while also contributing to global sea-level rise. The study, part of the Glacier Mass Balance Intercomparison Exercise (Glambie), utilized satellite data to provide a comprehensive overview of glacier retreat, highlighting the importance of monitoring these changes to understand their broader impacts on ecosystems and freshwater supplies.
Original title: Europe’s dumbphone revival: Nokia 3310 and Barbie Phone lead the charge
The nostalgia for early mobile phones, particularly the Nokia 3310, highlights Europe's past dominance in the telecom industry, which has since been overshadowed by American and Asian manufacturers due to slow smartphone adoption and weak software ecosystems. Despite this decline, European companies are finding new opportunities in the resurgence of dumbphones, which offer a simpler alternative to smartphones and a break from constant data collection. Recent launches include modern versions of classic models, such as the Nokia 3310, and innovative products like the Barbie Phone from HMD Global, designed to promote digital wellbeing. These new dumbphones, featuring basic apps and games, are appealing to both children and adults, although the branding may not suit everyone. Notable models include the Nokia 2660 Flip, Punkt MP02, and Doro 6820, showcasing Europe's renewed focus on this market segment.
Original title: Mel Morris launches AI research engine Corpora.ai
Mel Morris has unveiled Corpora.ai, an AI research engine designed to generate detailed reports from single prompts, processing up to 2 million documents per second. The system scans a variety of sources, including academic papers and news articles, to compile summaries and analyses on diverse topics. Morris emphasizes that Corpora is a research engine, not a search engine, highlighting its depth and breadth of output. With a personal investment of $15 million, he aims to create a new business model for large language models (LLMs) that complements existing AI vendors like OpenAI and Google. Corpora.ai promises faster, more cost-effective research outputs and offers subscription-based plans with features such as instant query running, report categorization, and support for over 20 languages. Morris believes Corpora will provide deeper insights than current technologies, allowing users to explore beyond surface-level information.
Original title: US unicorns dwarf EU, but Netherlands shines as fourth-largest hub
The US leads the global unicorn landscape, holding 55% of the total unicorns and 75% of their valuation, while the EU lags significantly with only 9% of billion-dollar startups and 4% of global unicorn value. Despite this, the Netherlands stands out as a notable player, ranking fourth in the EU with 32 unicorns, 72% of which remain active. Most Dutch unicorns emerged between 2018 and 2022, with Amsterdam hosting 7% of all EU unicorns. The Netherlands has successfully attracted unicorns, with five startups relocating there, while only one has left for the US. However, the country still faces challenges, as it, like the rest of the EU, struggles to foster high-growth companies compared to the US. PwC identifies four key factors for the US's unicorn success: higher venture capital intensity, regulatory fragmentation in Europe, the size of the US market, and access to a larger talent pool. To bridge the unicorn gap, the EU is advised to enhance venture capital investment, streamline regulations, and create a more integrated market.
Original title: Why sustainability tech struggles to attract VC funding
Sustainability technology has gained attention from investors and governments, with projections of $75 trillion in funding by 2050. However, venture capital investment in this sector has been declining since 2021, as many sustainability startups face challenges in securing funding. VCs often apply traditional growth metrics used for software and AI startups to sustainability companies, which may not yet demonstrate rapid growth or large markets. This mismatch in expectations leads to difficulties in financing, as many sustainability solutions require long sales cycles and significant upfront investments. The performance gap between impact investments and traditional VC returns creates tension within the VC model, making it risky for funds to back unproven sustainability innovations. To address these challenges, new funding mechanisms, actionable support for scaling, and adjusted evaluation metrics are necessary. Investors must adapt their approaches to align with the unique characteristics of sustainability technologies to avoid missing out on transformative innovations.
Original title: How AI is changing the way musicians practice and create music
In the past, aspiring drummers faced challenges finding drumless tracks to practice with their favorite songs, but advancements in technology have changed that landscape. Today, apps like Moises utilize AI to separate and remove instruments from songs, enabling musicians to play along with their favorite tracks without the original drums. Founded by Geraldo Ramos, Moises has gained significant popularity, boasting 50 million registered users, including notable musicians who praise its impact on their practice routines. The app employs machine learning algorithms trained on thousands of audio stems to effectively isolate and reconstruct sounds, enhancing the creative process for musicians. While AI tools like Moises are celebrated for democratizing music production, concerns about copyright infringement and the potential loss of human artistry persist. Some artists express both fascination and apprehension regarding AI's role in music, while others argue that technological advancements have historically coexisted with human creativity. Ultimately, the conversation around AI in music continues to evolve, with many hopeful about its potential to enhance rather than replace human artistry.