Elon Musk Stirs Controversy with AI-Generated Video of Xi Jinping

Elon Musk Posts AI Video Featuring Xi Jinping With Controversial Winnie The Pooh Reference: Will it Harm Tesla's Business In China? - Tesla (NASDAQ:TSLA)

Tesla Inc. TSLA CEO Elon Musk has once again stirred controversy with his social media activity, and this time it could have implications for his company's business in China. What Happened: On Monday, Musk posted a video on X that featured a parody of an AI fashion show. The video included Musk, Bill Gates, and other prominent figures, as well as a brief appearance by Chinese leader Xi Jinping. In the video, Xi is seen wearing a robe with a cartoon bear that resembles Winnie the Pooh, a character that has been used to mock the Chinese leader for over a decade. In 2013, Xi was the subject of memes comparing him to Pooh after a photo surfaced of him walking next to then-President Barack Obama, whom people likened to Tigger. The use of this character is a sensitive issue in China and has previously led to international incidents, such as the blocking of HBO after an episode of John Oliver's show made fun of Xi's alleged sensitivity to the character, reported Business Insider. China is a crucial market for Musk's company, accounting for 22% of its total revenue in 2023. Musk has been actively expanding Tesla's operations in China, including a deal to roll out autonomous driving software in the country. However, Musk, who is outspoken on free speech issues, often takes public risks. For example, he swore at advertisers during a conference, accusing them of trying to blackmail him. See Also: Elon Musk Pushes Back Optimus Timeline, Says Tesla's Humanoid Robot Will 'Hopefully' Be Available For Other Companies By 2026 Despite the potential risks, Musk has a history of taking public stands on issues such as free speech, and it remains to be seen how this latest incident will affect Tesla's business in China. Tesla did not immediately respond to Benzinga's request for comment. Why It Matters: Musk's recent post is not an isolated incident. Over the weekend, Musk shared an AI-generated video featuring global figures like Mark Zuckerberg in a reptilian skin suit, poking fun at conspiracy theories. This video was part of an AI fashion show created by the YouTube channel "Interdimensional TV." Moreover, Tesla's future in China is already under scrutiny. Analysts have raised concerns about the feasibility of Tesla's robotaxi technology in China due to national security risks. Morgan Stanley analyst Adam Jonas recently reiterated an Overweight rating on Tesla but noted significant uncertainties regarding its operations in China. Tesla is also facing internal challenges in China. The company has been cutting jobs in the country amid increasing competition in the electric vehicle market. Recent layoffs have affected various departments at Tesla's Shanghai plant, which is responsible for over half of the company's global production. Meanwhile, Tesla is preparing to report its second-quarter financial results. Analysts expect Tesla to report second-quarter revenue of $24.93 billion, according to data from Benzinga Pro. Price Action: Tesla stock closed at $251.51, up 5.15% on Monday. In after-hours trading, the stock increased slightly 0.04%. Year to date, Tesla's stock has risen 1.24%, according to data from Benzinga Pro. Read Next: Tesla CEO Elon Musk Blasts Satya Nadella After Microsoft-CrowdStrike Issue Takes Down Millions Of Computers Globally: 'This Gave A Seizure To The Automotive Supply Chain' Photo courtesy: Shutterstock This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote Market News and Data brought to you by Benzinga APIs

Elon Musk, With Tesla Factories in China, Tweets AI Video of Chinese President Xi Jinping Wearing Pooh Clothes

Tesla is driving on rocky ground in China, where sales have slumped and its availability is subject to government approval. So it's head-scratching that Tesla CEO Elon Musk posted an AI video that disrespects Chinese President Xi Jinping on the social media platform X-formerly-Twitter, which should drive other Tesla execs with any shred of common sense into a fit of worry. With Enya's soothing song "Only Time" playing in the background, the AI video Musk shared shows a parade of world leaders walking down a fashion runway while wearing clothes that at times poke fun at their history or recent news about them. For example, former President Bill Clinton shows up in a blue tulle dress, a reference to the infamous blue garment of his one time paramour Monica Lewinsky. But for the Chinese leader, the video goes for the jugular. Xi Jinping is dressed in a pants-like robe emblazoned with what looks like Winnie-the-Pooh and the acronym "CCP," standing for the ruling Chinese Communist Party -- a serious disparagement in the authoritarian China, where dissidents have for years used the lovable children's character to poke fun at Jinping. The taboo against comparing Xi and Pooh is so severe that a horror movie featuring the character was pulled from Hong Kong and Macau movie theaters last year, which critics say was due to censorship from China. Musk tweeted the video on Sunday, so it may be too soon to tell how China will respond to such disrespect. But others have noticed. Tesla critic Brad Munchen tweeted about Musk's video and raised the big money implications for Tesla's bottom line. "Winnie the Pooh memes are banned in China because they're an insult to Xi Jinping who some say looks like Pooh," he posted. "China is where $TSLA built its most profitable factory, which generated 70% of global profits in 2023. One must be on drugs to tweet something this reckless." And he's right. Tesla's Shanghai factory has supplanted the Fremont, California Tesla factory as the company's largest and most productive facility, according to The New York Times. We can't begin to explain why would Musk shoot himself in the foot, but this behavior seems par the course for the mercurial billionaire, who often seems drawn to conflict even when it's clearly bad for his own interests. Is there anybody who can tell Musk the hard truths about his online behavior and how it may impact his businesses? Something tells us there are no such brakes at Tesla.

Positive Developments On Tesla's Optimus Robot Overshadowed By Elon Musk's X Post That Can Land Him In Hot Water In China

This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy. A segment of Wall Street that remains uber-bullish on Tesla typically identifies three critical catalysts to drive the EV giant's future growth: a $25,000 Model 2, the robotaxi, and the Optimus humanoid robot. Today, Elon Musk relayed positive developments vis-à-vis the imminent launch of the Optimus robot, albeit marred by another of his characteristically impish X post that has the potential of sparking a severe backlash in China. In response to an X post that illustrated the AI-related prognostications of the celebrated British film writer and director Daniel Kokotajlo, Elon Musk announced that Tesla will start using its Optimus humanoid robot internally in small numbers in 2025. By 2026, the EV giant intends to ramp-up the humanoid robot's production and formally add it to its product portfolio. Elon Musk first announced the Optimus robot during Tesla's AI Day event in 2021. A year later, Tesla offered the first glimpses of the self-mobile, bipedal robot. Optimus leverages a neural network-trained, AI-equipped brain that allows it to interact with the external elements. The bipedal robot is currently capable of performing menial, labor-intensive tasks, with significant AI capabilities currently in the pipeline. Tesla's humanoid robot also leverages its bespoke neural network to map and navigate obstacles as well as track objects. Despite its heft, Optimus is equipped with sensitive tactile finger sensors that allow the bipedal robot to pick up an egg with finesse. Back in 2022, Elon Musk had endorsed a $40 trillion market opportunity for the Optimus robot, where each unit is expected to sell at a sub-$20,000 price point. This brings us to the other topic of today's discussion. By now, most are accustomed to Elon Musk's characteristically impish and nonchalant attitude that often manifests in the form of witty memes. Sometimes though, this procilivity does land the world's richest person in trouble. Consider Musk's recent X post that showcases an AI-enabled fashion show of some of the most famous personalities around the globe. In the video, the Chinese President Xi Jinping is depicted clad in a Winnie-the-Pooh costume. Do note that such costumes are banned in China for their perceived insult to the Asian giant's president. Consequently, Elon Musk's X post can spark a severe backlash from the Chinese authorities. Given Tesla's enormous stakes in China, such a reaction could morph into a severe crisis for the world's largest manufacturer of electric vehicles.