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Elon Musk Pulls Out of $44B Deal to Buy Twitter

Elon Musk Pulls Out of $44B Deal to Buy Twitter

What's happening

Elon Musk sent a letter to Twitter saying he's ending an agreement to buy the influential social media company for $44 billion.

Why it matters

Twitter says it still plans to close the deal, so Musk's move is setting up a legal battle between the company and the billionaire. The company's ownership also impacts the future of Twitter, which has struggled to attract more users and ad dollars.

What's next

Twitter says it plans to pursue legal action to enforce the agreement.

Billionaire Elon Musk said Friday that he's pulling out of a $44 billion deal to buy Twitter, adding another twist to an ongoing saga in which the mercurial entrepreneur presented himself as the savior of free speech on the influential social network.

Musk, who also runs Tesla and SpaceX, said in a letter sent by his lawyer that Twitter breached multiple parts of the merger agreement by failing to provide more information about how it estimates the number of spam accounts on its platform. Twitter has reported that in the first quarter, fewer than 5% of Twitter's 229 million daily users were fake or spam-focused, but Musk says that number might not be accurate.

"This information is fundamental to Twitter's business and financial performance," reads the letter to Twitter from Musk lawyer Mike Ringler. The letter also said that Twitter "appears to have made false and misleading representations."

Bret Taylor, chairman of Twitter's board of directors, tweeted Friday that the company still intends to close the deal. "The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement," Taylor tweeted. "We are confident we will prevail in the Delaware Court of Chancery."

Ringler didn't immediately respond to a request for comment.

The letter also outlines other information Musk says Twitter hasn't handed over, including information about the company's financial conditions and more details about how Twitter calculates daily users who can see ads. The letter says that Twitter has provided Musk with some data, but it calls some of the information "minimally useful." Musk also alleges that an early analysis suggests some of Twitter's public disclosures of daily users are "either false or materially misleading." The letter further alleges Twitter breached another part of the agreement that said the company had to seek and obtain consent before straying from "its obligation to conduct its business in the ordinary course," after the social network fired key executives, laid off staff and froze hiring. 

The decision to terminate the deal caps a tumultuous period for Twitter, which found itself in the crosshairs after Musk revealed a roughly 9% stake in the company in early April. Musk appeared on the verge of joining Twitter's board of directors but pulled out before proposing to buy the entire company and take it private. The board tepidly accepted Musk's offer after he cobbled together highly leveraged financing for the deal.

Musk, the world's richest person, said he wanted to acquire Twitter because he believes the company no longer adheres to the principles of free speech, a term he's used both loosely and often. On April 26, he tweeted, "By 'free speech', I simply mean that which matches the law." 

Under the US Constitution's First Amendment, free speech refers to protection from government interference. It doesn't apply to companies such as Twitter. 

Dan Ives, an analyst with Wedbush Securities, tweeted Friday that Musk's move is a "disaster scenario for Twitter and its Board as now the company will battle Musk in an elongated court battle to recoup the deal and/or the breakup fee of $1 billion at a minimum."

Carolina Milanesi, a principal analyst at market intelligence and strategy consulting firm Creative Strategies, said forcing Musk to buy Twitter could be a mistake for the social network.

"What company wants to be owned by someone who does not want it?" Milanesi said. "I personally never believed Musk had a concrete and viable plan to reinvigorate Twitter and its revenue."

Twitter has struggled to compete for ad dollars and users with larger social networks such as Facebook and TikTok. The company's calculation of daily users who can see ads hasn't always been accurate, either. In April, Twitter revealed it inflated its daily active user numbers since 2019 because of an error involving how it calculated linked accounts.  

The deal's potential collapse could also prompt the Securities and Exchange Commission to further scrutinize Musk, who fell afoul of regulators for tweeting about a plan to take Tesla private. Musk's disclosure of his stake in Twitter was filed late and on the wrong form. 

Musk has railed against the SEC, which alleged that Musk and Tesla had made "false and misleading" statements when he tweeted on Aug. 7, 2018, that he had "funding secured" to take the electric-car company private. 

The SEC struck a deal with Musk and Tesla that required fines of $20 million each. It also required Musk's tweets to be vetted by a lawyer if they contained material information regarding the company. In April, a federal judge denied Musk's request to have the oversight lifted.

Investors never wholly believed Musk would buy Twitter. Though the company's shares jumped after Musk unveiled his stake, they didn't reach the $54.20 price he pledged to pay. (The price includes the number 420, slang for marijuana and a running Musk gag. His proposal to take Tesla private included a suggestion a deal could be done at $420 a share.) 

Twitter shares immediately fell nearly 7% in after hours trading to $34.25 per share on news that Musk wanted to end the deal. Twitter's general counsel, meanwhile, asked employees not to tweet, Slack or otherwise discuss the deal now that the company's board of directors has threatened legal action against Musk.

"I know this is an uncertain time, and we appreciate your patience and ongoing commitment to the important work we have underway," he wrote in an internal memo Friday. A Twitter spokeswoman declined to comment further.

CNET's Ian Sherr contributed to this report.

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Documentary 'Elon Musk's Crash Course' to Take Hard Look at Tesla Safety

Documentary 'Elon Musk's Crash Course' to Take Hard Look at Tesla Safety

A new documentary from The New York Times and FX will examine Elon Musk and Tesla, the electric car maker he co-founded and runs as CEO. 

The documentary, set to debut on FX and Hulu on May 20, will trace "how Autopilot has been a factor in several deaths and dozens of other accidents that Tesla has not publicly acknowledged," according to The New York Times. Autopilot is Tesla's name for its suite of Advanced Driver Assist Features.

Called "Elon Musk's Crash Course," the doc will detail "pressure Elon Musk put on government officials to quash investigations and features inside stories from several former Tesla employees, who speak out against Musk for promoting a self-driving program that they believe was perilous," according to the Times on Monday.

News also broke on Monday that Musk will buy social media platform Twitter.

The film is part of FX's The New York Times Presents documentary series, which also includes titles like The Killing of Breonna Taylor and Framing Britney Spears.

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5 ways the world will change in 2022: CNET's predictions for the year ahead

5 ways the world will change in 2022: CNET's predictions for the year ahead

This story is part of The Year Ahead, CNET's look at how the world will continue to evolve starting in 2022 and beyond.

Even before the momentous events of 2020 and 2021 shook up the planet, the tectonic plates of culture, society and technology were already shifting and reshaping the world. The pandemic took those changes and accelerated them, exacerbated them, and in some cases, threw them into chaos. 

As we speed into 2022, one question remains: Where are we headed next?

In tech, health, money, transportation, home and family life, we can be confident of one fact: Things are changing, fast. As in years past, CNET has its finger on the pulse of the ever evolving world and we're confident our CNET: The Year Ahead stories will help you navigate these choppy waters.

During this three-week series -- which will include CES -- we'll especially tackle five themes that will shape 2022.

1. The pandemic and the future of health

COVID-19 largely caught the world by surprise. When the World Health Organization declared the pandemic on March 11, 2020, few of us suspected that it would lead to two years of shutdowns, social distancing and disruptions. Things appeared to be normalizing in mid-2021, but then the Delta variant -- and later the Omicron variant -- touched off renewed shutdowns.

Will 2022 be the year that COVID-19 transitions from a pandemic to an endemic? That's what we're all hoping, of course, but there's no going back to 2019. For example, expect more of the world to follow Asia's lead, where people have been wearing masks in public for years if they were sick (out of courtesy to the people around them) or immunocompromised. 

And, healthcare will never be the same post-pandemic. Expect telehealth to become commonplace now that a lot more people have been exposed to using video calls for health visits. And the COVID-19 vaccine will forever change the way vaccines (and potentially other therapies) are created. It's not unusual for vaccines to take a decade to develop, but these were created in 10 months using genetics and mRNA technology. This could prove to be one of the most important medical breakthroughs of the century.

2. Hybrid work and the 'Great Resignation'

Work and school were perhaps the most disrupted aspects of life during the pandemic. While schools largely returned in-person, work has been a far slower process. Many employees have decided that they prefer the work/life balance of remote work and many have migrated to be closer to family or moved farther away from city centers to have more space and fresh air.

Meanwhile, many employers have become infatuated with the productivity gains of remote work and the ability to scale down their commercial real estate holdings for significant cost savings. 

The most surprising trend that's likely to continue to gain steam in 2022 is the Great Resignation. More people are quitting their jobs and reprioritizing their lives than ever -- CNET's Farnoosh Torabi even has advice. In December, the US Labor Department reported that the number of people quitting their jobs remains at record high levels. How could we go through something as jarring as the pandemic for the past two years and not be changed by it? The Great Resignation is just one example of how those changes are manifesting themselves. 

3. Crypto, inflation and what's next for your finances 

Money and personal finance also remain in the midst of tectonic shifts. In November, inflation hit its highest level since 1982 at 6.8%. The inflation of real estate and cars will be closely watched in 2022, after eye-watering numbers in 2021. The stock market's bull run looks likely to continue with interest rates at such low levels, but its volatile swings are getting more pronounced. There's a big question about whether tech and other growth stocks have run out of steam or are getting ready for another run. 

Speaking of growth, cryptocurrencies have been breaking new highs and attracting more interest. The crypto exchange app Coinbase passed TikTok and YouTube to become the most downloaded app in Apple's App Store a couple times during 2021. Some view the world's most popular cryptocurrency, Bitcoin, as a hedge against inflation. Politicians, athletes and others started taking their paychecks in Bitcoin in 2021. We'll see if your employer will offer you that option in 2022.

4. Space, travel and the next internet

One of 2022's most dramatic developments is the new space race. China and Russia are collaborating on a future moon base (in 2030) as well as landing a robot on an asteroid (in 2024). Not to be outdone, NASA announced its next 10 future astronauts in December with ambitions for a future Moon mission.

Private space companies SpaceX, Blue Origin and Virgin Galactic all sent civilians into space in 2021, and they are all teasing the promise of a future of space tourism. Their ambitions will get bigger in 2022. This will be the year that SpaceX plans to put its Starship reusable rocket and space vehicle into flight for its first missions. Speaking about Starship, SpaceX CEO Elon Musk said, "This is a profound revolution in access to orbit. There has never been a fully reusable, orbital launch vehicle. This is the holy grail of space technology. It is the fundamental breakthrough that is necessary for humanity to become a space-faring civilization." 

Meanwhile, SpaceX's StarLink and Blue Origin and Amazon's Project Kuiper will launch thousands of low orbit satellites into the atmosphere in 2022. Their mission to bring fast, reliable broadband internet at a reasonable price to every corner of the planet is a welcome advance. But, the side effect is tons of space debris that could disrupt astronomers' telescopes, collide with spacecraft and create massive amounts of space junk. Apparently, they've never watched the movie Wall-E.

5. The EV has arrived -- and it means business

Electric vehicles, or EVs, are poised for a huge year in 2022 after a number of breakthroughs in 2021, including the Tesla Model 3 becoming the bestselling vehicle in Europe in September. The writing is on the wall for fossil fuel-burning vehicles. The US will discontinue purchases of gas-powered vehicles by 2035, the UK will do so by 2030 and a broader coalition of countries have set 2040 as a global date for ending fossil fuel vehicles.

Musk, also the CEO of Tesla, predicted that the Tesla Model Y compact SUV will become the bestselling vehicle worldwide in terms of revenue in 2022 -- beating out the Ford F-150 pickup and the Toyota Corolla compact. But the biggest EV story of 2022 is likely to be the transition in trucks, with the Chevy Silverado EV, Ford F-150 Lightning, Tesla Cybertruck and Rivian R1T dominating the headlines. 

Consumers should also keep in mind that a gas-powered vehicle you buy today could have its resale value drop steeply in the years ahead as demand plummets because of people transitioning away from old combustion engine technology to EVs.

The future

The changes sweeping across the planet will not slow down in 2022, even if the COVID-19 pandemic finally recedes to become endemic. Beyond the five big themes mentioned above, CNET: The Year Ahead will cover a wide range of topics to help you get your head around what's coming.

We'll leave you with one last topic you should expect to hear a lot about in 2022: the metaverse. Plenty of us would love to step into a version of the holodeck from Star Trek, and it's hard not to notice the explosion of online gaming during the pandemic. But let's keep our metaverse expectations low for 2022. A lot of work needs to be done to build better virtual reality headsets and an ecosystem of truly immersive virtual worlds. If we get a few encouraging glimpses of the metaverse in 2022, we should count ourselves pretty happy.

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Test pilots. Engineers. Physicists. A US National Team cyclist. A SpaceX flight surgeon. NASA announced its 2021 class of 10 future astronauts on Monday, and they're a diverse group of high achievers. NASA calls them the "Artemis generation" because they're likely to be heavily involved in future Artemis-program missions to the moon.

"The women and men selected for the new astronaut class represent the diversity of America and the career paths that can lead to a place in America's astronaut corps," the space agency said in a statement.

NASA's candidates, the first ones since 2017, were chosen out of a pool of over 12,000 applicants and received their official introductions during an event near the Johnson Space Center in Houston. You can watch the replay here:

The candidates will kick off two years of intensive training in January. They will learn how to operate equipment for the International Space Station, prepare for spacewalks, advance their robotic skills, learn or improve their Russian language and operate a training jet. The reward for all that work could be trips not just to orbit, but possibly all the way to the moon.

Nichole Ayers is a major in the US Air Force and a combat aviator with experience in the F-22 fighter jet. "Ayers led the first ever all-woman formation of the aircraft in combat," NASA said.

Marcos Berrios, also a major in the US Air Force, is from Puerto Rico. Berrios is a test pilot and aerospace engineer. 

Christina Birch has a doctorate in biological engineering from MIT and is a track cyclist on the US National Team.

Deniz Burnham is a lieutenant in the US Navy and a former intern at NASA's Ames Research Center in California. Burnham has a background in mechanical engineering and experience as a drilling-projects manager.

This patriotic view shows an American flag with the SLS rocket at NASA's Kennedy Space Center. SLS will power the Artemis moon missions.

NASA/Frank Michaux

Luke Delaney is a retired major in the Marine Corps with experience as a naval aviator and test pilot. Delaney is familiar with NASA after having worked as a research pilot at the agency's Langley Research Center.

Andre Douglas has a collection of engineering degrees from multiple universities. "Douglas served in the US Coast Guard as a naval architect, salvage engineer, damage control assistant, and officer of the deck," NASA said.

Jack Hathaway, a Navy commander, is a distinguished aviator with "more than 2,500 flight hours in 30 types of aircraft." 

Anil Menon also has an Air Force background and was SpaceX's first flight surgeon. "Menon is an actively practicing emergency medicine physician with fellowship training in wilderness and aerospace medicine," NASA said.

Christopher Williams is a medical physicist and researcher studying image guidance techniques for cancer treatments.

Jessica Wittner, a lieutenant commander in the Navy, spent her military career as an aviator and test pilot. 

Most of the candidates are in their 30s. Delaney and Menon are in their 40s. NASA has stringent requirements for its future astronauts. They must be US citizens, pass a rigorous, long-duration flight astronaut physical, and hold a master's degree in a science, technology, engineering or math field, along with at least three years of related experience.

Each candidate spoke briefly during the event. Many of them talked about people who inspired them, the excitement of space exploration and the importance of teamwork. Berrios took a different route. He said he would like NASA to scale up the Ingenuity Mars helicopter to carry people, though that's probably a pipe dream.

NASA is hoping to launch its first uncrewed Artemis I test mission next year. Berrios may not get to fly a helicopter on Mars, but he might touch his boots down on the moon one day. 

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Who's Winning America's Electric Vehicle Race?

Who's Winning America's Electric Vehicle Race?

This story is part of Plugged In, CNET's hub for all things EV and the future of electrified mobility. From vehicle reviews to helpful hints and the latest industry news, we've got you covered.

A tsunami of electric vehicles is set to arrive on US shores in the next few years. Practically every automaker around the world, from small boutique operations to goliath multinationals is hard at work developing battery-powered cars and trucks. But among America's traditional manufacturers, who's winning the EV race?

The old guard

GM, Ford and Stellantis (Chrysler, if you prefer), Detroit's Big Three automakers, are each spending vast sums of money to design and manufacture next-generation cars and trucks. GM is set to shell out more than $35 billion by 2025 to develop electric and autonomous vehicles. Through 2026 -- the year it expects to produce more than 2 million EVs -- Ford is on track to spend some $50 billion globally on the technology. As for Stellantis, this amalgamated American/French/Italian concern plans to invest around $32.5 billion (30 billion euros) in electrification and software through 2025.

American automakers are practically all-in on EVs, but plenty of their rivals are spending big bucks, too, from BMW and Mercedes-Benz, to Hyundai, Nissan, Volkswagen and Volvo. For the purposes of this article, however, to keep it from dragging on for days, we're focusing primarily on the Detroit Three.

The new Hummer EV Pickup is absolutely massive.

GMC

The Tesla effect

But you can't talk about EVs without mentioning a certain company with an eccentric CEO and cult-like following. "There's no question Tesla's winning the race right now, by a wide margin," said Michelle Krebs, executive analyst at Cox Automotive. This organization keeps track of the most-shopped electric vehicles, and she said this company's products absolutely dominate the list. "It's going to be tough for anyone to catch up with Tesla," admitted Krebs.

Aside from strong sales, this American automotive upstart also leads when it comes to market capitalization -- being worth a record-breaking $1 trillion -- and mindshare. "Tesla, whether you want to give them the credit or not … [created] the modern EV market," said Edward Sanchez, senior analyst at Strategy Analytics. He noted that the Model S "flipped the script" and proved electric cars could be sexy, desirable and luxurious.

But not all is perfect in Musk-land. The company's been dogged by longstanding quality problems, it's facing labor woes at manufacturing plants, and is suffering from a lack of promised new products -- where's the Cybertruck, Roadster and Semi? No new launches are expected in 2022 and likely for part of 2023, so the automaker's lead will likely erode as more and more rival electric vehicles start showing up at dealerships. During the company's recent first-quarter earnings call, Elon Musk promised its robotaxi will be ready by 2024, but forgive us for not believing him.

Tesla is still the one to beat in the electric vehicle space. 

Mike Cutler/CNET

A classic rivalry

If Tesla is miles ahead of the competition, who's trundling along in second place? Sanchez said, "It's a very dynamic space," one that's "hard to armchair quarterback" because the situation changes from year to year and even month to month. Still, right now, he sees Ford pulling ahead, something echoed by other analysts.

According to Bob Gritzinger, editor-in-chief of Wards Auto, "Right now, for all appearances, Ford is in the lead. Give it a minute and I think you're going to see GM jump [ahead] in a hurry." The Blue Oval put some distance between itself and other domestic car makers, thanks to hit products like the Mustang Mach-E SUV and F-150 Lightning pickup, both of which are sold out, a happy problem for Ford, if not its customers. Still, the battery-powered E-Transit commercial van shouldn't be forgotten, either. "That's another win, an early win for Ford," said Gritzinger, as is the hot-selling Maverick compact truck, which is not offered as a pure EV but comes standard with a hybrid drivetrain.

Of course, it remains to be seen whether it's as well optimized as pickups built on dedicated EV platforms, but Ford was super smart getting the F-150 Lightning out as soon as possible. All-electric rigs like the Lightning could be absolute gamechangers and the Blue Oval has a huge advantage in this space right now.

The Ford F-150 Lightning is expected to be a game-changing EV.

Nick Miotke/Roadshow

One potential area of weakness for Ford, though, is Lincoln. The luxury brand is aiming for more than half of its global sales to be EVs by the middle of this decade, but almost nothing is known about the vehicles it plans to introduce. Lincoln did, however, just show off its new Star concept, a handsome SUV design study that previews some of the features and styling cues we can expect on the four EVs it plans to introduce by 2026. Fortunately, it sounds like we won't have to wait too much longer to learn about Lincoln's electrification strategy.

"Ford is definitely beating GM on sales and shopping data," said Krebs, leveraging its early-to-market advantage. GM has a lot planned, but it has to execute and avoid having issues like it did with the Chevy Bolt hatchback and its combustible battery pack, something Sanchez said severely humbled the automaker.

"There's no denying Ford's strategic advantage with Mach-E, being an early mover," noted Sanchez, but GM has a torrent of new EVs in the works, an unprecedented onslaught that has only just begun. The GMC Hummer EV Pickup is finally available and the Cadillac Lyriq SUV entered production about a month ago. Beyond those models, an all-electric Chevy Silverado is in the works, as are Blazer and Equinox utility vehicles as well as a Hummer SUV and even a new flagship-caliber electric luxury sedan, the Cadillac Celestiq. "My concern with GM is they're kind of almost going overboard," Sanchez said.

The Cadillac Lyriq SUV is one of many electric vehicles GM plans to introduce.

Cadillac

GM's much-publicized Ultium platform is set to underpin these upcoming vehicles, and many more. A relatively plug-and-play affair, "They're investing in one technology they'll be able to spread across the entire portfolio," explained Paul Waatti, manager of industry analysis at AutoPacific. With shared underpinnings, GM can bring a load of vehicles to market without doing a lot of costly and time-consuming reengineering work. Compared to Ford, Waatti said, "I think GM is a couple years ahead on the technology curve," though Ford is "catching up quick."

Stellantis: The dark horse

While those two automakers duke it out, the other leg of the Detroit Three stool is quietly plugging away in the shadows. "I think the dark horse in all this is Stellantis," said Gritzinger. "They've done a lot of work with hybrids and with their 48-volt system," he added. "I think they will be surprisingly strong once they start putting product out there, in large part because they're a European company and Europe is going 100% EV." Historically, Chrysler has almost always been smaller than its main rivals, but it's scrappy and willing to take risks, something that could give it a leg up in the electric vehicle space.

Sanchez said Stellantis is probably behind its major domestic rivals in EV technology, but this isn't necessarily a bad thing as "they're kind of taking advantage of the early adopters paying the price." As electric vehicles start to gain traction, the cost of batteries and related technologies should come down, which would be great for Stellantis. "Sometimes it's not always the worst thing to be late to the game," said Sanchez.

According to Waatti, AutoPacific forecasts that EVs will capture about 15% market share by 2027, something that leaves a ton of room for other propulsion systems, like plug-in hybrids. "Stellantis is probably taking that strategy, mostly because they're behind on straight-EV technology," he said. Plug-ins, like the new Jeep Grand Cherokee 4xe, give customers the best of both worlds: Silent, emissions-free (from the tailpipe, at least) motoring with the ability to drive cross-country without needing to charge. At least in the near term, this should be a good plan for Stellantis, "[and] from a business standpoint," explained Waatti, "They're making money on these right away."

Ram teased its upcoming electric pickup truck in this shadowy image.

Ram

It may not be as sweeping as Tesla's, but another potential advantage for Stellantis is its passionate fan base. Sanchez said even though the Dodge Charger and Challenger are absolutely ancient, their sales continue to grow. "If they can somehow leverage that enthusiasm for their EV models, they could surprise everyone."

Don't forget the smaller companies

Beyond Tesla and its Detroit rivals, a range of new independent automakers has come out in recent years. This old-school term was used decades ago to describe now-defunct brands like Hudson, Packard, Studebaker and Willys, but it works just as well in the 21st century. Today's independent makes include the likes of Fisker, Lucid and Rivian, companies that are focused solely on building EVs. Bollinger, Lordstown Motors and Nikola are in the same camp, too, though, for various reasons these brands have largely failed.

Whether any startup automakers will succeed remains to be seen. Waatti said they don't have the baggage legacy companies do, plus they're "something new and exciting," which could translate into more sales, though as Krebs noted, it's way too early to tell if any of these brands will take off.

For many reasons, the Lucid Air is a damn good electric sedan.

Lucid

This isn't to say today's EV independents aren't doing some great work. "I think Lucid, from a technological standpoint … I would consider them probably the closet peer to Tesla," said Sanchez. The company's Air sedan is not only beautiful and luxurious, it's loaded with clever features and offers storming performance. "[But] the big thing with Lucid is how quickly they can scale, that's the determining factor," Sanchez added.

Exciting times in the automotive industry

We're living in a transformative period as the car industry shifts from internal combustion to electric powertrains. Right now, Tesla is the undisputed American EV champion, a position it will likely maintain for some time. Waatti predicts, "They're still going to be the powerhouse into the end of the decade." But as more and more electric vehicles come out, Tesla's market share will almost inevitably decline. When GM's EV salvo hits, plus battery-powered offerings from myriad other companies, "All of a sudden, there's a lot of competition in your part of the sandbox," said Gritzinger.

As for the Detroit Three, it seems Ford is leading the electric vehicle race right now, thanks to its speedy introduction of the Mach-E and Lightning, vehicles that proved to be extremely popular. GM, however, probably has a technological advantage and could overtake its rival in the coming years once its flurry of new products launches. Of course, Stellantis is hard at work, too, and it's made some big promises, including the introduction of four dedicated EV platforms, though the finer details of its electrification plan are a little murkier. As Krebs said, aside from Tesla's dominance in the EV space, "The race has only begun."

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Signal, WhatsApp and Telegram: Here's which secure messaging app you should use

Signal, WhatsApp and Telegram: Here's which secure messaging app you should use

If your choice of encrypted messaging app is a toss-up between Signal, Telegram and WhatsApp, do not waste your time with anything but Signal. This isn't about which one has cuter features, more bells and whistles or is the most convenient to use: It's purely about privacy. And if privacy's what you're after, nothing beats Signal.

You probably already know what happened. In a tweet heard 'round the world last January, tech mogul Elon Musk continued his feud with Facebook by advocating people drop its WhatsApp messenger and use Signal instead. Twitter's then-CEO Jack Dorsey retweeted Musk's call. Around the same time, right-wing social network Parler went dark following the Capitol attacks, while political boycotters fled Facebook and Twitter. It was the perfect storm -- the number of new users flocking to Signal and Telegram surged by tens of millions. 

Read more: Everything to know about Signal

The jolt also reignited security and privacy scrutiny over messaging apps more widely. Among the top players currently dominating download numbers, there are some commonalities. All are mobile apps available in the Google Play store and App Store that support cross-platform messaging, have group chat features, offer multifactor authentication and can be used to share files and multimedia. They all also provide encryption for texting, voice and video calls.

Signal, Telegram and WhatsApp use end-to-end encryption in some portion of their app, meaning that if an outside party intercepts your texts, they should be scrambled and unreadable. It also means that the exact content of your messages supposedly can't be viewed by employees of those companies when you are communicating with another private user. This prevents law enforcement, your mobile carrier and other snooping entities from being able to read your messages even when they intercept them (which happens more often than you might think). 

The privacy and security differences between Signal, Telegram and WhatsApp couldn't be bigger, though. Here's what you need to know about each of them. 

Getty/SOPA Images

• Does not collect data, only your phone number
• Free, no ads, funded by nonprofit Signal Foundation 
• Fully open-source
• Encryption: Signal Protocol

Signal is a typical one-tap install app that can be found in your normal marketplaces like Google Play and Apple's App Store and works just like the usual text-messaging app. It's an open-source development provided free of charge by the nonprofit Signal Foundation and has been famously used for years by high-profile privacy icons like Edward Snowden.

Signal's main function is that it can send -- to either an individual or a group -- fully encrypted text, video, audio and picture messages, after verifying your phone number and letting you independently verify other Signal users' identity. For a deeper dive into the potential pitfalls and limitations of encrypted messaging apps, CNET's Laura Hautala's explainer is a life-saver. 

When it comes to privacy, it's hard to beat Signal's offer. It doesn't store your user data. And beyond its encryption prowess, it gives you extended, onscreen privacy options, including app-specific locks, blank notification pop-ups, face-blurring antisurveillance tools and disappearing messages. 

Occasional bugs have proven that the tech is far from bulletproof, of course, but the overall arc of Signal's reputation and results have kept it at the top of every privacy-savvy person's list of identity protection tools. The Guardian, The Washington Post, The New York Times (which also recommends WhatsApp) and The Wall Street Journal all recommend using Signal to contact their reporters safely. 

For years, the core privacy challenge for Signal lay not in its technology but in its wider adoption. Sending an encrypted Signal message is great, but if your recipient isn't using Signal, then your privacy may be nil. Think of it like the herd immunity created by vaccines, but for your messaging privacy. 

Now that Musk's and Dorsey's endorsements have sent a surge of users to get a privacy booster shot, however, that challenge may be a thing of the past. 

Getty/NurPhoto

• Data linked to you: Name, phone number, contacts, user ID
• Free, forthcoming Ad Platform and premium features, funded mainly by founder
• Only partially open-source
• Encryption: MTProto

Telegram falls somewhere in the middle of the privacy scale, and it stands apart from other messenger apps because of its efforts to create a social network-style environment. While it doesn't collect as much data as WhatsApp, it also doesn't offer encrypted group calls like WhatsApp, nor as much user data privacy and company transparency as Signal. Data collected by Telegram that could be linked to you includes your name, phone number, contact list and user ID. 

Telegram also collects your IP address, something else Signal doesn't do. And unlike Signal and WhatsApp, Telegram's one-to-one messages aren't encrypted by default. Rather, you have to turn them on in the app's settings. Telegram group messages also aren't encrypted. Researchers found that while some of Telegram's MTProto encryption scheme was open-source, some portions were not, so it's not completely clear what happens to your texts once they're in Telegram's servers. 

Telegram has seen several breaches. Some 42 million Telegram user IDs and phone numbers were exposed in March of 2020, thought to be the work of Iranian government officials. It would be the second massive breach linked to Iran, after 15 million Iranian users were exposed in 2016. A Telegram bug was exploited by Chinese authorities in 2019 during the Hong Kong protests. Then there was the deep-fake bot on Telegram that has been allowed to create forged nudes of women from regular pictures. Most recently, its GPS-enabled feature allowing you to find others near you has created obvious problems for privacy. 

I reached out to Telegram to find out whether there were any major security plans in the works for the app, and what its security priorities were after this latest user surge. I'll update this story when I hear back.

Angela Lang/CNET

• Data linked to you: Too much to list (see below)
• Free; business versions available for free, funded by Facebook
• Not open-source, except for encryption
• Encryption: Signal Protocol 

Let's be clear: There's a difference between security and privacy. Security is about safeguarding your data against unauthorized access, and privacy is about safeguarding your identity regardless of who has access to that data. 

On the security front, WhatsApp's encryption is the same as Signal's, and that encryption is secure. But that encryption protocol is one of the few open-source parts of WhatsApp, so we're being asked to trust WhatsApp more than we are Signal. WhatsApp's actual app and other infrastructure have also faced hacks, just as Telegram has. 

Jeff Bezos' phone was famously hacked in January of 2020 through a WhatsApp video message. In December of the same year, Texas' attorney general alleged -- though has not proven -- that Facebook and Google struck a back-room deal to reveal WhatsApp message content. A spyware vendor targeted a WhatsApp vulnerability with its software to hack 1,400 devices, resulting in a lawsuit from Facebook. WhatsApp's unencrypted cloud-based backup feature has long been considered a security risk by privacy experts and was one way the FBI got evidence on notorious political fixer Paul Manafort. To top it off, WhatsApp has also become known as a haven for scam artists and malware purveyors over the years (just as Telegram has attracted its own share of platform abuse, detailed above). 

Despite the hacks, it's not the security aspect that concerns me about WhatsApp as much as the privacy. I'm not eager for Facebook to have yet another piece of software installed on my phone from which it can cull still more behavioral data via an easy-to-use app with a pretty interface and more security than your regular messenger. 

When WhatsApp says it can't view the content of the encrypted messages you send to another WhatsApp user, what is doesn't say is that there's a laundry list of other data that it collects that could be linked to your identity: Your unique device ID, usage and advertising data, purchase history and financial information, physical location, phone number, your contact information and that of your list of contacts, what products you've interacted with, how often you use the app, and how it performs when you do. The list goes on. This is way more than Signal or Telegram. 

When I asked the company why users should settle for less data privacy, a WhatsApp spokesperson pointed out that it limits what it does with this user data, and that the data collection only applies to some users. For instance, financial transaction data collection would be relevant only to those WhatsApp users in Brazil, where the service is available. 

"We do not share your contacts with Facebook, and we cannot see your shared location," the WhatsApp spokesperson told CNET. 

"While most people use WhatsApp just to chat with friends and family, we've also begun to offer the ability for people to chat with businesses to get help or make a purchase, with health authorities to get information about COVID, with domestic violence support agencies, and with fact checkers to provide people with the ability to get accurate information," the spokesperson said. "As we've expanded our services, we continue to protect people's messages and limit the information we collect." 

Is WhatsApp more convenient than Signal and Telegram? Yes. Is it prettier? Sure. Is it just as secure? We won't know unless we see more of its source code. But is it more private? Not when it comes to how much data it collects comparatively. For real privacy, I'm sticking with Signal and I recommend you do the same. 

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Signal, WhatsApp and Telegram: Here's which secure messaging app you should use

Signal, WhatsApp and Telegram: Here's which secure messaging app you should use

If your choice of encrypted messaging app is a toss-up between Signal, Telegram and WhatsApp, do not waste your time with anything but Signal. This isn't about which one has cuter features, more bells and whistles or is the most convenient to use: It's purely about privacy. And if privacy's what you're after, nothing beats Signal.

You probably already know what happened. In a tweet heard 'round the world last January, tech mogul Elon Musk continued his feud with Facebook by advocating people drop its WhatsApp messenger and use Signal instead. Twitter's then-CEO Jack Dorsey retweeted Musk's call. Around the same time, right-wing social network Parler went dark following the Capitol attacks, while political boycotters fled Facebook and Twitter. It was the perfect storm -- the number of new users flocking to Signal and Telegram surged by tens of millions. 

Read more: Everything to know about Signal

The jolt also reignited security and privacy scrutiny over messaging apps more widely. Among the top players currently dominating download numbers, there are some commonalities. All are mobile apps available in the Google Play store and App Store that support cross-platform messaging, have group chat features, offer multifactor authentication and can be used to share files and multimedia. They all also provide encryption for texting, voice and video calls.

Signal, Telegram and WhatsApp use end-to-end encryption in some portion of their app, meaning that if an outside party intercepts your texts, they should be scrambled and unreadable. It also means that the exact content of your messages supposedly can't be viewed by employees of those companies when you are communicating with another private user. This prevents law enforcement, your mobile carrier and other snooping entities from being able to read your messages even when they intercept them (which happens more often than you might think). 

The privacy and security differences between Signal, Telegram and WhatsApp couldn't be bigger, though. Here's what you need to know about each of them. 

Getty/SOPA Images

• Does not collect data, only your phone number
• Free, no ads, funded by nonprofit Signal Foundation 
• Fully open-source
• Encryption: Signal Protocol

Signal is a typical one-tap install app that can be found in your normal marketplaces like Google Play and Apple's App Store and works just like the usual text-messaging app. It's an open-source development provided free of charge by the nonprofit Signal Foundation and has been famously used for years by high-profile privacy icons like Edward Snowden.

Signal's main function is that it can send -- to either an individual or a group -- fully encrypted text, video, audio and picture messages, after verifying your phone number and letting you independently verify other Signal users' identity. For a deeper dive into the potential pitfalls and limitations of encrypted messaging apps, CNET's Laura Hautala's explainer is a life-saver. 

When it comes to privacy, it's hard to beat Signal's offer. It doesn't store your user data. And beyond its encryption prowess, it gives you extended, onscreen privacy options, including app-specific locks, blank notification pop-ups, face-blurring antisurveillance tools and disappearing messages. 

Occasional bugs have proven that the tech is far from bulletproof, of course, but the overall arc of Signal's reputation and results have kept it at the top of every privacy-savvy person's list of identity protection tools. The Guardian, The Washington Post, The New York Times (which also recommends WhatsApp) and The Wall Street Journal all recommend using Signal to contact their reporters safely. 

For years, the core privacy challenge for Signal lay not in its technology but in its wider adoption. Sending an encrypted Signal message is great, but if your recipient isn't using Signal, then your privacy may be nil. Think of it like the herd immunity created by vaccines, but for your messaging privacy. 

Now that Musk's and Dorsey's endorsements have sent a surge of users to get a privacy booster shot, however, that challenge may be a thing of the past. 

Getty/NurPhoto

• Data linked to you: Name, phone number, contacts, user ID
• Free, forthcoming Ad Platform and premium features, funded mainly by founder
• Only partially open-source
• Encryption: MTProto

Telegram falls somewhere in the middle of the privacy scale, and it stands apart from other messenger apps because of its efforts to create a social network-style environment. While it doesn't collect as much data as WhatsApp, it also doesn't offer encrypted group calls like WhatsApp, nor as much user data privacy and company transparency as Signal. Data collected by Telegram that could be linked to you includes your name, phone number, contact list and user ID. 

Telegram also collects your IP address, something else Signal doesn't do. And unlike Signal and WhatsApp, Telegram's one-to-one messages aren't encrypted by default. Rather, you have to turn them on in the app's settings. Telegram group messages also aren't encrypted. Researchers found that while some of Telegram's MTProto encryption scheme was open-source, some portions were not, so it's not completely clear what happens to your texts once they're in Telegram's servers. 

Telegram has seen several breaches. Some 42 million Telegram user IDs and phone numbers were exposed in March of 2020, thought to be the work of Iranian government officials. It would be the second massive breach linked to Iran, after 15 million Iranian users were exposed in 2016. A Telegram bug was exploited by Chinese authorities in 2019 during the Hong Kong protests. Then there was the deep-fake bot on Telegram that has been allowed to create forged nudes of women from regular pictures. Most recently, its GPS-enabled feature allowing you to find others near you has created obvious problems for privacy. 

I reached out to Telegram to find out whether there were any major security plans in the works for the app, and what its security priorities were after this latest user surge. I'll update this story when I hear back.

Angela Lang/CNET

• Data linked to you: Too much to list (see below)
• Free; business versions available for free, funded by Facebook
• Not open-source, except for encryption
• Encryption: Signal Protocol 

Let's be clear: There's a difference between security and privacy. Security is about safeguarding your data against unauthorized access, and privacy is about safeguarding your identity regardless of who has access to that data. 

On the security front, WhatsApp's encryption is the same as Signal's, and that encryption is secure. But that encryption protocol is one of the few open-source parts of WhatsApp, so we're being asked to trust WhatsApp more than we are Signal. WhatsApp's actual app and other infrastructure have also faced hacks, just as Telegram has. 

Jeff Bezos' phone was famously hacked in January of 2020 through a WhatsApp video message. In December of the same year, Texas' attorney general alleged -- though has not proven -- that Facebook and Google struck a back-room deal to reveal WhatsApp message content. A spyware vendor targeted a WhatsApp vulnerability with its software to hack 1,400 devices, resulting in a lawsuit from Facebook. WhatsApp's unencrypted cloud-based backup feature has long been considered a security risk by privacy experts and was one way the FBI got evidence on notorious political fixer Paul Manafort. To top it off, WhatsApp has also become known as a haven for scam artists and malware purveyors over the years (just as Telegram has attracted its own share of platform abuse, detailed above). 

Despite the hacks, it's not the security aspect that concerns me about WhatsApp as much as the privacy. I'm not eager for Facebook to have yet another piece of software installed on my phone from which it can cull still more behavioral data via an easy-to-use app with a pretty interface and more security than your regular messenger. 

When WhatsApp says it can't view the content of the encrypted messages you send to another WhatsApp user, what is doesn't say is that there's a laundry list of other data that it collects that could be linked to your identity: Your unique device ID, usage and advertising data, purchase history and financial information, physical location, phone number, your contact information and that of your list of contacts, what products you've interacted with, how often you use the app, and how it performs when you do. The list goes on. This is way more than Signal or Telegram. 

When I asked the company why users should settle for less data privacy, a WhatsApp spokesperson pointed out that it limits what it does with this user data, and that the data collection only applies to some users. For instance, financial transaction data collection would be relevant only to those WhatsApp users in Brazil, where the service is available. 

"We do not share your contacts with Facebook, and we cannot see your shared location," the WhatsApp spokesperson told CNET. 

"While most people use WhatsApp just to chat with friends and family, we've also begun to offer the ability for people to chat with businesses to get help or make a purchase, with health authorities to get information about COVID, with domestic violence support agencies, and with fact checkers to provide people with the ability to get accurate information," the spokesperson said. "As we've expanded our services, we continue to protect people's messages and limit the information we collect." 

Is WhatsApp more convenient than Signal and Telegram? Yes. Is it prettier? Sure. Is it just as secure? We won't know unless we see more of its source code. But is it more private? Not when it comes to how much data it collects comparatively. For real privacy, I'm sticking with Signal and I recommend you do the same. 

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Source

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Tesla Now Wants You to Pay Extra for a Level 1 Charger With Its Vehicles

Tesla Now Wants You to Pay Extra for a Level 1 Charger With Its Vehicles

Historically speaking, when someone has bought an electric vehicle, it's come with a 110-volt mobile charger. It makes sense, right? You might need to charge in an emergency, or maybe you don't have a Level 2 charger at home. Well, like our old friend Bob said, "The times they are a-changin'," because Tesla is no longer including a 110-volt charger with its new vehicles.

This news was reported Saturday by InsideEVs and confirmed by Tesla CEO Elon Musk in a Tweet. His stated reasoning for getting rid of the included 110-volt charger is that people don't use them. That makes sense when you think about just how long it takes to charge any EV on 110 volts. Our long-term Mini Cooper SE takes multiple days to go from around 10% charge to 100%, and its battery is tiny compared with a Tesla's.

Of course, taking away something that people have gotten used to getting for free is a sure way to get people riled up on social media. In response, Musk tweeted that Tesla would offer the Level 1 charging kit for $200 and make it easy to order along with the car. As of publication, it's not part of the Model 3 or Model Y configurators, though.

Interestingly, Tesla isn't the only company bailing on the venerable old 110-volt wall charger. Kia's EV6, for example, also doesn't include one, but people don't seem as angry about that. That could be down to it being a new model, or -- and this seems more likely -- Kia fans just aren't as rabid as Tesla fans.

Typically, we'd contact a car company for more information in situations like these, but Tesla does not operate a public relations department to field requests for comment.

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