Wednesday, April 2, 2025

"Tesla stock pops after report Musk will step back from government role 'in the coming weeks'" (TSLA)

I think that's enough Tesla for one day.

here's the story at Yahoo Finance.

The stock is up $14.48 at $282.94.

So far today: 

Michael Bloomberg: "America Is Headed for a Grim Fiscal Reckoning"

One of the few 'men of the left' to even broach the subject. 

From Bloomberg, April 2:

Congress should be alarmed by the CBO’s new debt projections. Instead, it’s aiming for bigger budget deficits.

Amid all the blaring headlines coming out of Washington, here’s a piece of news that is getting far too little attention: The US is on course for fiscal breakdown. That’s the unambiguous message from the Congressional Budget Office’s newly updated long-term projections. Unless Congress changes course, there’ll be a reckoning, and it will be grim.

As the CBO details, deficit spending is more out of control than ever. Both parties share the blame, as do both ends of Pennsylvania Avenue. And all should remember that investors’ appetite for US government debt isn’t limitless.

The federal government is currently spending roughly $7 trillion and collecting only $5 trillion in taxes annually. The resulting deficit is a little over 6% of gross domestic product, a disturbingly high number for an economy around full employment.

The CBO expects public borrowing to remain at this elevated level or higher for decades. Assuming no recessions, public debt will rise to 100% of GDP this year and 118% by 2035 — and it just keeps rising from there.

A responsible Congress would make deficit reduction its overriding priority. Instead, Republicans are discussing ways to borrow more — and not just a little more. New tax cuts are under consideration. And many want to extend provisions of the 2017 Tax Cuts and Jobs Act, which would otherwise expire at the end of this year.

Extending the law in full would increase the national debt by roughly $5 trillion over the next decade and $40 trillion over 30 years. The debt ratio in 30 years would soar to more than 200% of GDP.

Higher tariff revenues won’t come close to balancing the books. In fact, the impact on overall revenue is likely to be negative, because tariffs depress commercial activity and job creation....

....MUCH MORE

"Donald Trump tells cabinet Elon Musk will be stepping down from duties 'soon'"

From the Daily Mirror, April 2:

Donald Trump made the comments about Elon Musk's future to his cabinet - we'll be bringing you the very latest updates, pictures and video on this breaking news story....

....MORE

Rabobank: "T-Day"

From Rabobank's Michael Every via ZeroHedge, April 2:

"I have also to announce to Congress that during the night and the early hours of this morning the first of the series of tariffs in force upon the European Continent has taken place. In this case the liberating assault fell upon the coast of France. An immense armada of upwards of 4,000 tariffs, together with several thousand smaller tariffs, crossed the Channel. Massed airborne tariffs have been successfully effected behind the enemy lines, and tariff landings on the beaches are proceeding at various points at the present time... The Americans are sustained by about 11,000 first line tariffs, which can be drawn upon as may be needed for the purposes of the battle. I cannot, of course, commit myself to any particular details. Reports are coming in in rapid succession. So far, the Commanders who are engaged report that everything is proceeding according to plan. And what a plan! This vast operation is undoubtedly the most complicated and difficult that has ever taken place. It involves tides, wind, waves, visibility, both from the air and the sea standpoint, and the combined employment of land, air and sea tariffs in the highest degree of intimacy and in contact with conditions which could not and cannot be fully foreseen.”

Apologies to Winston Churchill for misusing his D-Day speech: “We shall tariff on the beaches, we shall tariff on the landing grounds, we shall tariff in the fields and in the streets, we shall tariff in the hills; we shall never surrender,” would have been snappier, but historically, the above is the correct one for today.

Because it’s T-day, or “Liberation Day”, or Make America Wealthy Again (MAWA) Day. That’s all we know so far. One rumor is we may get a 20% universal tariff, which would say a lot about ‘state’ and not so much about ‘craft’; or a targeted scheme; that may or may not then be negotiated down. We all still have to wait and see. (Of course tomorrow we start 25% US auto tariffs, on which please see our latest report.)

Ahead of that last-second US decision, last-minute countermoves are being made. Israel (where not much work was needed) and Vietnam (where more was) have both cut all their tariffs on US goods in the hope of a better outcome, and India is reportedly considering the same. Europe (and Canada and Mexico) are instead preparing to fight back, the former even floating escalation into new areas like services and tech that will surely guarantee a furious US response.

The Wall Street Journal hopes tariff clarity today will calm markets, and that’s the White House view too. However, then we all have to wait and see what happens re: counter-tariffs, which seem inevitable --Europe is talking in suitably Churchillian terms again-- and then what the US does in the trade space in response, and outside it to those who don’t see trade is now connected to things like US security umbrellas. In short, we need to quote Winnie again: “Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning.”

Yet while D-Day was a very brave and uncertain exercise, the underlying dynamic of US and Soviet military production vs. German and Japanese made the ultimate outcome of WW2 inevitable, just as the ideological split between the US and the Soviets would always then split the world in a different way afterwards. You can’t focus on just one front, no matter how dramatic, but always need to see the entire theatre of operations....

....MUCH MORE

"Stablecoin giant Circle files for IPO"

We don't have much interest in IPO shares, you can't get much of the ones you want, there's usually an opportunity to purchase the stock at a better risk-adjusted valuation somewhere down the road, etc.

We do however treasure the information, corporate, industry, and macro, contained in the offering documents.

From PitchBook, April 1:

Circle, the company behind the popular stablecoin USDC, has filed to go public on the New York Stock Exchange under “CRCL,” according to a regulatory filing on Tuesday.

Circle’s long-rumored IPO will be closely watched by the crypto industry as it hopes for a favorable listing environment.

“For VCs, strong demand for Circle’s listing could serve as a proof point that there is a viable exit path for crypto investments via traditional public markets—a shift that might encourage additional capital inflows into crypto startups,” said Robert Le, senior analyst at PitchBook. The company has raised $1.2 billion in total venture funding, according to PitchBook data.

The company had $155.7 million in net income on $1.7 billion in revenue in 2024. In 2023, Circle had $267.6 million in net income on $1.5 billion in revenue. Nearly all of its revenue (at least for the last three years) has come from its stablecoin-related reserves....

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"Nvidia thinks AI can solve electrical grid problems caused by AI"

From TechCrunch, March 20:

Nvidia announced Thursday it’s partnering with EPRI, a power industry R&D organization, to use AI to solve problems facing the electrical grid. Perhaps ironically, the issues are largely caused by rising power demand from AI itself.

The Open Power AI Consortium, which includes a number of electrical utilities and tech companies, says it will use what are known as domain-specific AI models to devise new ways to tackle problems that the power industry is predicted to face in the coming years. The models will be open sourced and available to researchers across academia and industry.

The power industry is facing surging demand from data centers in the United States and elsewhere as AI ramps up the need for computing power. Electricity demand is expected to grow by 4% annually in the coming years, according to the International Energy Agency, nearly double over 2023 figures. 

In addition to Nvidia and EPRI, the consortium includes PG&E, Con Edison, Constellation Energy, Duke Energy, the Tennessee Valley Authority, and ENOWA, NEOM’s energy and water company. On the tech side, Microsoft and Oracle are both members.

In an attempt to stay ahead of the trend, tech companies have been racing to secure generating capacity as power has transformed from a simple line item to a competitive advantage.

Over the last year or so, tech companies have been consistently inking new contracts. They’ve largely been spread across renewable energy projects, spurred mostly by solar’s low cost, modularity, and the speed at which it can be deployed.

Microsoft, for example, recently added 475 megawatts of solar power to its sizable renewable portfolio. Last year, it became an anchor investor in a $9 billion renewable development project run by Acadia, and earlier in the year it said it was working with Brookfield asset management to deploy 10.5 gigawatts of renewable power in the U.S. and Europe, all of which is expected to come online by 2030.

But even though new power sources may be the most obvious answer to losing power shortages, they aren’t the only one. 

One recent study found that by curtailing use when demand on the grid peaks, including shifting tasks that aren’t time sensitive to periods when demand is low, an additional 76 GB of capacity could be unlocked in the U.S. It’s a not insignificant amount, making up approximately 10% of peak demand in the U.S....

....MUCH MORE

"Tesla stock drops as Q1 deliveries miss Wall Street estimates" (TSLA)

From Yahoo Finance, April 2:

Tesla's first quarter delivery total was its lowest tally in nearly three years.

Tesla (TSLA) reported first quarter global deliveries that widely missed estimates, as demand issues clearly hit the EV-maker.

For the quarter, Tesla reported 336,681 deliveries vs. 390,342 estimated per Bloomberg consensus, making it the worst quarter for deliveries since the second quarter of 2022.

"While the changeover of Model Y lines across all four of our factories led to the loss of several weeks of production in Q1, the ramp of the New Model Y continues to go well," Tesla said in a statement. The refreshed Model Y went on sale globally in March, with some analysts citing the changeover as a reason for depressed demand for its top selling vehicle.

Tesla shares dropped nearly 5% in pre-market trading.

Tesla also said it produced 362,615 units globally for the quarter and deployed 10.4 GWh of energy storage products.

Tesla sales have been stalling across most of its global territories. Earlier this week, Tesla registration data in key European regions fell in March, another sign that sales are continuing to slide in one of its key markets....

....MUCH MORE

The stock is down $14.10 in early regular trade, $254.36 last.

"Who is behind the Tesla protests?"

Note: in the ActBlue list of funders, both Herb Sandler and Patricia Bauman are dead. The funding is being carried out by namesake (in Bauman's case it was set up by her father, she was President) foundations. As a side-note, the innovations in mortgage financing developed by Herb and Marion Sandler's Golden West Financial were a contributing factor of the Great Recession; and the sale of Golden West resulted in one of the greatest market calls of all time.*

From Asra Investigates, March 26:

Follow the timeline to see the cast of characters behind the scenes: Indivisible, the Democratic Party and its proxies 

Cast of Characters

Seattle
  1. Valerie Costa - protest “organizer,” founder of Aril Consulting, a NGO fundraising firm:

Organizations

Organizations

  1. ActBlue

    1. Funders include George Soros, Reid Hoffman, Herbert Sandler, Patricia Bauman, Leah Hunt-Hendrix

  2. Democratic Socialists of America, EIN 133109557

  3. The Disruption Project, 501(c)(4), based in Philadelphia

    1. Disruption-Project.org, EIN 85-1066939

    2. Jeffrey Ordower

  4. Indivisible Project, EIN 814944067,

  5. Oil and Gas Action Network

    1. Instagram: “Supporting grassroots & frontlines movements taking action to end the era of fossil fuels.”

    2. Instagram: @oilandgasactionnetwork

  6. Tesla Takedown

    1. Instagram @tesla.takedown

  7. Troublemakers

    1. Instagram @troublemakercommunity

    2. seattletroublemakers@gmail.com

    3. Background

  8. Rise & Resist

Tech platforms

  1. ActionNetwork.com

    1. https://actionnetwork.org/events/tesla-takedown-delray-beach-florida

  2. Wix.com — TeslaTakedown.com registered here

  3. Proxy Protection LLC — TeslaTakedown.com registered anonymously here

  4. SquareSpace — Disruption-Project.org registered here

Media supporters

  1. Democracy Now!

    1. Amy Goodman, host

  2. GreenRedPodcast

    1. Instagram @greenredpodcast

THE LAUNCH

Feb. 12, 2025 - TeslaTakedown.com registered anonymously...

....MUCH MORE
*
June 5, 2012
Wall Street Woman Who Sold Largest Sub-Prime Originator Just Before Crisis Dead at 81 (GDW; WB; WFC)
We've looked at the timing of the sale of Golden West Financial on two occasions, the first linking to the most prescient bit of analysis we've ever had on Climateer Investing.*
First some housekeeping.
This is Marion Sandler....

*****

....On August 10, 2007, you may remember it as the week about which Goldman's David Viniar said:
“We were seeing things that were 25-standard deviation moves, several days in a row” 
which caused some jollity among the cognescenti, see: "How Unlucky is 25 Sigma", we posted:

The Day the Music Died--The Mortgage Business
 which referred back to the May 6, 2006 sale of Golden West to Wachovia.
The post also contained this bit from some guy in India:

On May 10, 2006 India Daily said:
Sell of Golden West Financial to Wachovia signifies burst of housing bubble
Not a bad call.
Four days after the sale and two months before John Paulson started his first sub-prime fund.
The second look was in 2010:
"Happy Anniversary, Wells Fargo and Wachovia!" (WFC; WB)

"Our goal is to bankrupt Elon Musk" (TSLA)

From Fortune magazine, March 21:

Organizers behind ‘Tesla Takedown’ protests aren’t backing down despite pressure from Trump: ‘Our goal is to bankrupt Elon Musk’ 

  • Early organizers of some of the “Tesla Takedown” protests say the organization’s goal is to hit Elon Musk where it hurts: his wealth. As protests surge and Tesla’s stock plummets, even loyal investors are turning against the CEO, blaming his political ties for the company’s decline.

Fred McKinney loved his Tesla. He bought his first car—a Tesla Model 3—in November 2018 and describes himself as a Tesla evangelist. Over the last few months, he’s come to regret it.

“It was a great car,” McKinney, co-founder of the economic consulting company BJM Solutions, told Fortune. “And I wasn’t just a casual Tesla owner, I was an evangelist for the vehicle and the company, and quite frankly, for Musk.”

“I have remorse now about that because he’s proven to be someone that doesn’t deserve my support.”

McKinney sold his Tesla in February, swapping it out for an alternative electric vehicle. He cites Musk’s role in the Trump administration, especially his connection to the cost-cutting team DOGE, as the reason. “It was a political decision but also a moral decision,” he said. “I see the damage that [DOGE] is doing to the fabric of our society.”

McKinney didn’t know he was part of a wider movement when he ditched the car.

“When I sold my car, the uprising that is now taking place around the world was probably in its infancy, and I didn’t know anything about it, but I was comforted to see that others felt the same way,” he said.

Over the last few months, protests against Tesla have erupted worldwide—some peaceful, while others have involved vandalism and arson. The efforts have caused the EV maker’s stock to plummet, tanked car sales, and angered investors.

Early organizers told Fortune the aim is to hit Musk where it hurts: his wealth.

Who are the ‘Tesla Takedown Movement’?

The action against Tesla has impacted Musk’s personal wealth, wiping around $175 billion off his December peak of $486 billion, per Bloomberg’s billionaire index.

One of the early coordinators of the “Tesla Takedown” movement, Edward Niedermeyer, told Fortune that this wealth drop is exactly the aim.

“The goal, I would say, is to bankrupt Elon Musk—bring down his empire,” he told Fortune.

Musk is still the richest person in the world despite his recent losses, but Tesla is paying the price for some of his unpopular activities outside of the company. “Hopefully it does spiral on Tesla stock,” Niedermeyer said. “If we don’t bankrupt him, but we exert enough financial pressure to materially change a political situation, that’s fine, too.”

Unlike McKinney, Niedermeyer is not new to his anti-Musk sentiment.

He has been a critic of Tesla and the company’s CEO for years, publishing a book in 2019 providing a highly skeptical view of the electric car company’s history. Musk has, in turn, publicly criticized Niedermeyer in the past. He puts the recent rise of organized objection to Musk and Tesla down to a “perfect storm” of “outrage about the political situation and the lack of other outlets.”

“It’s much harder to target Donald Trump’s financial wealth,” he said.

The protests and the violence associated with the movement have, however, prompted threats from Trump, who vowed to label vandalism and attacks against the carmaker as domestic terrorism.

But Niedermeyer is relatively unbothered by this, saying he also disapproves of the violent acts and vandalism.

“I don’t have a problem in theory of people being prosecuted for this,” he said. “The only thing that worries me about it is if there’s some effort to take what is clearly a peaceful movement—as the only organized part is peaceful—and deem something like Tesla Takedown a terrorist organization.”

“As far as I can tell, this has all been individuals acting alone … whereas protesters all show up in the daytime with our faces uncovered. So there’s a clear, a clear distinction there,” he said. “These people are not domestic terrorists in any sense.”....

....MUCH MORE

"Tesla Stock Drops on Delivery Day. Watch for This Number as Markets Brace for the Worst." (TSLA)

 From Barron's, April 2:

Tesla's stock was down in premarket trading early Wednesday, just ahead of the company’s release of first-quarter delivery data.

Shares of the electric vehicle maker run by CEO Elon Musk were down 2.5% at $261.78, while S&P 500 and Dow Jones Industrial Average futures were down 0.4% and 0.5%, respectively.

On weekdays, Tesla typically releases results before the start of regular trading at 9:30 a.m. Eastern time. Investors can look for the news between 8 a.m. and 9 a.m.

When news arrives, investors will want a delivery number north of 360,000 vehicles. The company-compiled consensus is closer to 380,000 cars, but investors are already braced for the worst.

Coming into Wednesday trading, Tesla stock was down 34% so far this year and off 45% from a record high of just under $489 a share reached in mid-December.

Delivery expectations contributed to the declines. Since mid-December, Wall Street’s estimates for first-quarter deliveries have fallen from an average of about 470,000 vehicles to 380,000. Two issues explain why estimates have fallen.

For a start, investors fear Musk’s political activities are turning off some core Tesla buyers—politically left-leaning people looking to go green.

Tesla also updated its most popular vehicle. The Model Y. Model updates can create a sales air pocket with buyers waiting for the new versions with updated features and styling.

Any number above 360,000 should be enough to keep shares stable. A number below 350,000 could have investors facing more pain....

....MUCH MORE

Tuesday, April 1, 2025

"How Is SoftBank Funding Its Mega Investment in OpenAI? A Lot of Debt"

Leveraged beta, baby!

From the Wall Street Journal, April Fools Day, 2025:

Global tech investor SoftBank Group is turning to a familiar tool to fund its $40 billion investment in ChatGPT maker OpenAI announced late Monday: debt.

The Tokyo-based company, led by billionaire Masayoshi Son, said it expected its first $10 billion chunk of the deal would be financed by borrowing from Japanese bank Mizuho and other lenders and be completed in April. The remaining $30 billion would come by early 2026.

The deal, by far the largest-ever investment in a startup, values OpenAI at $300 billion if all the money is invested.

The bet
Together with SoftBank’s pledge to lead the $100 billion Stargate cloud-computing initiative with OpenAI, the investment marks a massive bet on the artificial-intelligence startup. It entwines the fortunes of SoftBank with a company that expects to lose billions of dollars for years to come.

The hope is that OpenAI emerges as the leader of the pack in a race to spread artificial intelligence throughout society and commerce—a market that many believe could be worth trillions of dollars a year.

The information revolution “has now entered a new phase led by artificial intelligence,” SoftBank said in a statement that called OpenAI its “partner closest to achieving Artificial General Intelligence,” in which computers operate on the level of humans.

(News Corp, owner of The Wall Street Journal, has a content-licensing partnership with OpenAI.)

The risks
SoftBank is taking on a lot of risks for a piece of OpenAI.

Ratings agency S&P Global said Tuesday that SoftBank’s “financial condition will likely deteriorate” as a result of the OpenAI investment and that its plans to add debt could lead the agency to consider downgrading SoftBank’s ratings.

None of the startups with early leads in generative AI have shown they can operate profitably, and the sector is pouring tens of billions of dollars into data centers based on assumptions, not yet proven, of a future in which AI rapidly permeates the globe.

Early tech leaders often falter—a point SoftBank learned when it made a dot-com era bet that Yahoo would be the dominant force in search.

The background...

....MUCH MORE

As we noted introducing last week's "OpenAI Close to Finalizing A $40 Billion SoftBank-Led Funding At A $300 Billion Valuation"

SoftBank's Mr. Son's entire history, going back to the dot.com bust is leveraged beta.

He was very fortunate that the British didn't allow Nvidia to buy ARM Holdings, thus clearing the way for his bid. Otherwise his claim to fame would  be being the largest investor in WeWork....

And from November 2019:

SoftBank’s problems aren’t so surprising if you understand this one thing about the company

Throughout the manic phase of SoftBank and the Vision fund there was almost no mention of the fact that at the start of this century Masayoshi Son was the richest person in the word:
"But Son’s fairytale didn’t last long. After the dot-com bubble burst, his company Softbank’s shares plunged 75 percent in two months and was 93 percent lower by the end of 2000.
The business almost went bankrupt and Son ended up losing USD 70 billion, the highest ever recorded financial loss for a person in history."
MoneyControl, October 13, 2017
We had a couple posts around the time of the above that touched on the craziness but not the past history:
SoftBank In Talks To Acquire U.S. Treasury
Sprint, T-Mobile Plunge: SoftBank Calling Off Merger, Will Use Cash to Buy Canada

See also semi-variance, after the jump....
**** 
When the swings are as big as Son's are you need a bankroll that is gigantic. Even if you are right and have an edge, the natural variation can kill you and the last downturn will be the last downturn.
Some related links:....
And October 2024:
 
 SoftBank’s Masayoshi Son Sees AI Evolving To A Point Where Your Happiness Will Be its Greatest Reward

Having observed Mr. Son and his position in the parade—from Drum Majorette leading the way, to being the guy cleaning up after the elephants, and then back to the front— we had this introduction in February 2024:

Since the time he almost went broke after the dot.bomb bubble burst (he had briefly been the richest person in the world) I've come to realize this guy isn't some great visionary/grand strategist; he's just leveraged beta. Making big bets, all geared up, on whatever is at the head of the passing parade.

That said, he owns 90% of ARM Holdings and I don't.

Bastard.
 
Shades of another disruptor, Sam Insull, leverage at the holding company level, leverage at the operating company level, leverage all the way down

"JPMorgan Just Beat Big Tech to a Quantum Breakthrough" (JPM)

Randomness, very important.*

From Observer, March 27:

A JPMorgan-backed experiment used quantum hardware to generate certified randomness—yes, really—which could one day power cryptography, simulations and whatever comes after the blockchain gold rush.

Pulling numbered balls out of a mixing machine. Tracking the twitch of a mouse cursor. Converting lava lamp motion into data. These are just a few ways real-world randomness is generated—essential for things like lotteries and Internet encryption, where unpredictability equals security.

Transmitting that randomness over the Internet, however, is a different story. Physically random processes are hard to verify remotely, and by design, traditional computers can’t generate true randomness. But a new quantum breakthrough may have solved the problem.

Published yesterday (May 26) in Nature, a study from JPMorgan Chase researchers—alongside collaborators at Argonne and Oak Ridge national labs and the University of Texas at Austin—demonstrates how a quantum computer generates “certified” randomness....

....MUCH MORE
*
If interested see: 

That last piece of research was awarded Harvard's own Ig Nobel prize in 2010. 
Ya see, ya got your complex systems and ya got your chaotic systems and then ya got your complex-chaotic systems like weather or the economy or the stock market and when you endeavor at those levels of sophistication you realize:...

There may be issues.

Dilbert random number generator

Turley: "Capping Carbon Admissions: The Biden Administration is Accused of Burying Conflicting Climate Change Report"

The good Professor (law, George Washington Uni.) takes a break from his First Amendment/freedom of speech chores to highlight a bit of duplicity.

From Jonathan Turley, March 30:

There is a major story developing on Capitol Hill after House Committee on Oversight and Government Reform Chairman James Comer, R-Ky, revealed that a long-withheld report from the Biden Administration directly contradicted the claims of climate change used to limit increased U.S. liquefied natural gas (LNG) exports. The suggestion is that this was an knowing effort to cap carbon admissions rather than carbon emissions.

The impact that new U.S. LNG exports have on the environment and the economy was reviewed by U.S. Energy Department scientists and completed by September 2023. It appears that neither President Biden nor Secretary Jennifer Granholm liked the science or the conclusions. Rather than “follow the science,” they buried the report while allegedly making claims directly refuted by their own experts.

The report was finished while Biden was still running for reelection and would have likely enraged environmentalists. The draft study, “Energy, Economic, and Environmental Assessment of U.S. LNG Exports,” found that, under all modeled scenarios, an increase in U.S. LNG exports and natural gas production would not change global or U.S. greenhouse gas emissions. It further found that it would not increase energy prices for consumers....

....MUCH MORE 

Also at JonathanTurley.org (among hundreds):

“A New World Order With European Values”: The Unholy Union of Globalism and Anti-Free Speech Measures

"US Chip Grants in Limbo as Lutnick Pushes Bigger Investments"

A deep dive on the state of play from Bloomberg via MSN, April 1:

Commerce Secretary Howard Lutnick has signaled he could withhold promised Chips Act grants as he pushes companies in line for federal semiconductor subsidies to substantially expand their US projects, according to eight people familiar with the matter.

The Commerce chief wants firms that won awards from the 2022 Chips and Science Act to follow in the footsteps of Taiwan Semiconductor Manufacturing Co., which recently announced it will invest another $100 billion in US plants on top of a previous $65 billion pledge, the people said. Lutnick’s goal is to generate tens of billions of dollars in additional semiconductor investment commitments without increasing the size of federal grants, said the people, who asked not to be named discussing private conversations.

As he negotiates, Lutnick’s team has suggested that he could scrap disbursement of subsidies that have already been agreed upon, according to some of the people. At the same time, Lutnick has expressed interest in expanding a separate 25% tax credit from the Chips Act, some of the people said. That’s worth more to most companies than the direct funding awards. Major changes to the tax credit would require an act of Congress....

....MUCH MORE