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White House offers funding deal to U.Va., 8 other universities

Summary

  • offers compact to nine major , including U.Va.
  • Schools asked to adopt Trump’s priorities on admissions, gender, and
  • Deal includes caps on international enrollment and tuition freezes

WASHINGTON (AP) — The White House is asking nine major universities, including the , to commit to President Donald Trump’s political priorities in exchange for more favorable access to federal money.

A document sent to the universities encourages them to adopt the White House’s vision for America’s campuses, with commitments to accept the government’s priorities on admissions, women’s sports, free speech, student discipline and college affordability, among other topics.

Signing on would give universities “multiple positive benefits,” including “substantial and meaningful federal grants” and “increased overhead payments where feasible,” according to a letter sent to universities alongside the compact. The letter calls it a proactive effort as the administration continues to investigate alleged civil rights violations at U.S. campuses.

Called the “Compact for Academic Excellence in ,” it asks universities to accept the government’s definition of gender and apply it to campus bathrooms, locker rooms and women’s sports teams. It asks colleges to stop considering race, gender and a wide range of student demographics in the admissions process and to require undergraduate applicants to take the SAT or ACT.

The 10-page proposed agreement was sent Wednesday to some of the most selective public and private universities: Vanderbilt, the University of Pennsylvania, Dartmouth College, the University of Southern California, the Massachusetts Institute of Technology, the University of Texas, the University of Arizona, Brown University and the University of Virginia. It was not clear how these schools were selected or why.

The nine universities could become “initial signatories” and are being invited to provide feedback before the language is finalized, according to the letter. It asks for a decision by Nov. 21.

White House takes a new, incentive-based approach

The memo represents a shift in strategy as the administration offers a reward — not just punishment — as an incentive for adopting Trump’s political wish list. Many of the demands mirror those made by his administration as it slashed billions of dollars in federal money for Harvard, Columbia and others accused of liberal bias. A federal judge overturned cuts at Harvard in September, saying the government had overstepped its authority.

Several universities said they were reviewing the compact and had no comment. A statement from the University of Virginia said there was nothing to suggest why it was chosen. The university’s interim president assembled a group of administrators on Thursday to review the letter.

Leaders of the Texas system were “honored” that the Austin campus was chosen to be a part of the compact and its “potential funding advantages,” according to a statement from Kevin Eltife, chair of the Board of Regents. “Today we welcome the new opportunity presented to us and we look forward to working with the on it,” Eltife said.

California Gov. Gavin Newsom said if any universities in his state sign the compact, they will lose access to state funding, including Cal Grants, a $2.8 billion student financial aid program. In an all-capital statement, Newsom, a Democrat, said California “will not bankroll schools that sell out their students, professors, researchers, and surrender .”

Colleges would have restrictions on international enrollment and tuition hikes

Under the compact, international enrollment would have to be capped at 15% of a college’s undergraduate student body, and no more than 5% could come from a single country. All the universities invited to the compact appear to be within the 15% threshold, though Dartmouth and USC are close, at 14%, according to federal data. Many universities do not report breakdowns by individual countries.

Most other U.S. universities also fall within the 15% cap, but about 120 exceed it, including Columbia University, Emory University and Boston University, federal data show.

Some of the most sweeping commitments are aimed at promoting conservative viewpoints. Universities would have to ensure their campuses are a “vibrant marketplace of ideas” where no single ideology is dominant, the compact said. They would have to evaluate views among students and faculty to ensure every department reflects a diverse mix of views.

To accomplish that, it says universities must take steps, including “transforming or abolishing institutional units that purposefully punish, belittle, and even spark violence against conservative ideas.”

It requires policies meant to counter the kind of protests that roiled U.S. campuses last year amid the Israel-Hamas war. It asks for a commitment to prevent any disruption to classes or campus libraries and to ensure demonstrators don’t heckle other students.

Campuses that sign the compact would have to freeze tuition for U.S. students for five years, and those with endowments exceeding $2 million per undergraduate could not charge tuition at all for students pursuing “hard science” programs.

Opponents see a threat to free speech

Ted Mitchell, president of the American Council on Education, urged universities to reject the deal, saying it violates campus independence and undermines free speech.

“It’s not worth the compromises that they would have to make,” he said. “This is a Faustian bargain.”

The compact also drew criticism from free speech groups, faculty associations and from Larry Summers, a former Treasury secretary and Harvard president. Summers said he believes elite universities have lost their way, but he said the compact is like trying to “fix a watch with a hammer — ill conceived and counterproductive.”

“The backlash against its crudity will likely set back necessary reform efforts,” Summers said.

The terms of the deal would be enforced by the Justice Department, with violators losing access to the compact’s benefits for no less than a year. Following violations bump the penalty to two years.

“Institutions of higher education are free to develop models and values other than those below,” the compact said, “if the institution elects to forego federal benefits.”

Electra expands Manassas headquarters

Manassas-based startup .aero on Tuesday announced it is expanding its headquarters in Virginia as well as a location in Bleienbach, Switzerland.

At Regional Airport, Electra is leasing a new 15,000-square-foot hangar and 6,000-square-foot office space, expanding the company’s total footprint in Manassas to 57,000 square feet. The company says the will house development and engineering teams. Financial terms of the leases were not disclosed.

“Electra is on a mission to transform aviation, and expanding our facilities ensures we will continue attracting the world-class engineering talent to design, develop and commercialize our groundbreaking EL9,” said Electra CEO Marc Allen in a statement. “We’re giving our teams the resources they need to get our ultra-short into the hands of our customers and deliver on the promise of direct aviation, making regional air travel more convenient, affordable, and sustainable.”

Spokesperson Barbara Zadina said that this year, Electra has doubled its team from 40 employees to more than 80, and that the new facilities “provide much-needed space.” The company, she said, is still hiring across all functions as it continues to scale.

With more than 30 open positions listed on Electra’s website, Zadina said, the company is likely to grow to 120 employees by early 2026.

In Europe, Electra expanded its research and development center in Bleienbach, now leasing 2,000 square feet. The company says the facility is crucial for attracting talent and advancing its global engineering efforts.

The company’s EL9 model is a hybrid ultra-short aircraft that can take off and land in 150 feet. The company says the model opens thousands of new access points ranging from small, underserved airports to nontraditional sites such as parking lots or fields.

“The two hangars at Manassas Regional Airport provide the space we need to develop our nine-passenger EL9 aircraft on our planned timeline,” Zadina said in an email.

Electra plans to begin flight testing the EL9 in 2027, to fly for FAA certification credit in 2028 and 2029, and to get the airplane certified and into service in late 2029 or 2030. So far, the company has secured more than 2,200 provisional orders from over 60 customers worldwide, valued at more than $13 billion.

Founded in 2020, Electra announced in April that it had secured $115 million in Series B funding to enter the pre-production and certification phase of the EL9 model. Electra’s strategic investors include Ventures and .

Newport News targets 12 sites for development

SUMMARY:

    • on Thursday held a summit, where it unveiled 12 properties for development
    • The event was held to connect developers with projects, attract investment and broaden Newport News’ economy
    • Ideas floated included a data center near , relocating and downtown revitalization

Newport News city leaders on Thursday unveiled a list of 12 sites they want to see developed or redeveloped, floating concepts such as a data center near Fort Eustis, a relocated City Hall and new downtown housing and retail.

Officials discussed the properties during the Newport News Growth & (EDGE) summit at City Center, with city staff pitching the sites to an audience that included regional developers. Within the following year, the city plans to seek development proposals for many of the targeted parcels.

“The main goal is to develop our economy, to broaden it, and to encourage developers to come and invest into this great city,” said . “So bottom line, up front, at the end of this weekend, I want individuals to have matched developers with projects and generate either an MOU or a letter of interest. This is how we are able to lower taxes and diversify our economy.”

Jones said the largest of the proposed development sites is Air Commerce Park, 330 acres of undeveloped land on the property of the Newport News Williamsburg Airport. The Peninsula Airport Commission, the governing body that oversees the airport, owns the commerce park.

Newport News Assistant Director of Development Derek Perry stated that the property is zoned for light industrial use. The city and airport have previously discussed hopes to use the land for purposes other than commercial air services, such as manufacturing or advanced air mobility.

In the city’s northern and less dense region is the Carleton Advanced Manufacturing site — a 145-acre build-to-suit site at 165 and 185 Yorktown Road owned by the city economic development authority. The city hopes the land, which features CSX rail access, could be used for industrial purposes. The site can accommodate an 800,000-square-foot production facility as well as a 60,000-square-foot office or training building, Perry said.

Nearby and also owned by the city EDA is a 19-plus-acre property on Dozier Road that lies near Fort Eustis and Yorktown Naval Weapons Station. Perry said the city is trying to mitigate encroachment around Fort Eustis and that the property, zoned for heavy industrial use, could be utilized for a data center or a power generator.

“It’s near the base and away from residents,” said Jones, adding that a data center could generate substantial local tax revenue. “It’s almost like the perfect combination to put a medium-sized data center there, which will help bring down our taxes.”

Over the years, the city has had various preliminary discussions about relocating its city hall building from downtown, in the southern part of the city, to a more centralized location. With that in mind, the city is also inviting developers to pitch potential ideas on how to repurpose the existing 10-story, 133,333-square-foot city hall, which was built in 1972. Jones said that regardless of what happens to the municipal headquarters, he will keep the mayor’s office downtown.

The other properties discussed for development or include:

  • A 23-acre site on Oriana Road in the Denbigh community, primed for mixed-use residential and commercial development, according to the city;
  • A 7.74-acre site at 13771 and 13785 Warwick Blvd. that will be anchored by a new Grissom Library;
  • A 38-acre expansion area for City Center at Oyster Point, a rapidly growing business district in the city that offers a mix of dining, housing and commercial spaces;
  • Seven acres at the Warwick Village Shopping Center on Warwick Boulevard;
  • A 9,800-square-foot former Greek Church in downtown, built in 1949;
  • The West Avenue Library at 2907 West Ave., in downtown Newport News;
  • A 5.3-acre site at 2601 and 2701 Washington Ave., blocks from Newport News Shipbuilding, where the city hopes to get proposals that address housing demand, while also introducing retail, hotel, dining and entertainment options;
  • A 27.6-acre waterfront property at 1300 Marshall Ave., in the city’s Southeast community.

The summit aimed to give developers and experts the opportunity to provide ideas and weigh in on how these 12 properties can best complement what’s already in the city, help make the city as vibrant as possible and assist the city in establishing realistic project goals, Newport News Director of Development Florence Kingston said.

City Manager Alan Archer informed developers that the city is not only open for business but also ready to partner with them to bring projects to fruition.

“These sites are catalysts for growth [and] opportunities to attract investment and platforms for innovation,” Archer said. “When these sites are developed, the impact will ripple outward, creating jobs, strengthening neighborhoods and empowering families to build wealth right here in Newport News.”

Rivers Casino Portsmouth hires new general manager

Antonio Perez Jr. has been named general manager of , the casino’s owner, , has announced.

Perez brings to more than two decades of casino and operations experience at six properties in five states. Most recently, he was general manager of California’s Rolling Hills Casino Resort, which features two hotel towers with 110 rooms, restaurants, entertainment venues and gaming facilities. He joined Rolling Hills as director of gaming in 2020.

“We’re excited to welcome Antonio to our growing family of destination ,” Tim Drehkoff, CEO of Rush Street Gaming and Portsmouth, said in a news release dated Sept. 22. “His extensive background in team development, guest experience and operations — including management of two hotels — makes him an excellent choice to lead our Virginia property.”

Earlier in his career, Perez worked with Penn National Gaming, which changed its name to Penn Entertainment in 2022. The company operates 43 casinos and racetracks across 20 states, an online gaming and presence and sports media. He began his casino career working as a table games dealer and slots attendant in West Virginia. Perez has an MBA from West Virginia’s Shepherd University.

Perez replaces Roy Corby, who left the position earlier this summer to become president of Koi Development, a California-based gaming partnership between Global Gaming Solutions and the Koi Nation.

At his new job, Perez has been reminded that the gaming industry is a small world. “There are barely a dozen plus team members here that I’ve worked with at other casinos all throughout the country,” he said in a recent Casino Update interview.

In May, Rush Street, a Chicago-based casino developer, and Rivers Casino Portsmouth announced plans to build a $65 million hotel adjacent to the casino. To be called the Landing Hotel, the eight-story property will have 106 guest rooms, including 32 suites. S.B. Ballard Construction was announced as the hotel’s general contractor in July.

Construction began over the summer on the hotel, according to a spokesperson. A ceremonial groundbreaking will be held this month, she said.

Editor’s note: This story has been updated.

 

30-year mortgage rate rises to 6.34% after recent lows

Summary

WASHINGTON (AP) — The average rate on a 30-year U.S. mortgage ticked up for the second straight week following a string of declines that had brought down home borrowing costs to their lowest level in nearly a year.

The average long-term mortgage rate rose this week to 6.34% from 6.3% last week, mortgage buyer said Thursday. A year ago, the rate averaged 6.12%.

are influenced by several factors, from the ‘s interest rate policy decisions to bond market investors’ expectations for the economy and inflation. They generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans.

The 10-year yield was at 4.10% at midday Thursday, down from 4.19% the same time last week. Much of that decline has come in the past few days, driven by discouraging reports on the U.S. economy, particularly the job market.

In late July, mortgage rates started declining in the lead-up to the Federal Reserve’s widely anticipated decision last month to cut its main interest rate for the first time in a year amid growing concern over the .

However, Fed Chair Jerome Powell has since signaled a cautious approach to future interest rate cuts. That’s in sharp contrast with other members of the Fed’s rate-setting committee, particularly those who were appointed by President Donald Trump, who are pushing for faster cuts.

The housing market has been in a slump since 2022, when mortgage rates began climbing from historic lows. Sales of previously occupied U.S. homes sank last year to their lowest level in nearly 30 years. So far this year, sales are running below where they were at this time in 2024.

The second straight bump in rates could signal a repeat of what happened last year after the Fed cut its benchmark rate for the first time in more than four years. Back then, mortgage rates fell for several weeks prior to the Fed’s September rate cut. In the following weeks however, mortgage rates began rising again, eventually reaching just above 7% in mid-January this year.

Like last year, the Fed’s rate cut doesn’t necessarily mean mortgage rates will keep declining, even as the central bank signals more cuts ahead.

Still, the late-summer decline in mortgage rates has already encouraged many homeowners who bought in recent years after rates climbed well above 6% to refinance to a lower rate.

Mortgage rates will have to sink below 6% to make an attractive option to a broader swath of homeowners, however. That’s because about 81% of U.S. homes have a mortgage with a rate of 6% or lower, according to Realtor.com.

Economists generally forecast the average rate on a 30-year mortgage to remain near the mid-6% range this year.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also inched up this week. The average rate rose to 5.55% from 5.49% the previous week. A year ago, it was 5.25%, Freddie Mac said.

With the US government dark, alternate sources show a sluggish September for jobs

Summary

  • Chicago Fed data shows 4.3% unemployment in September
  • Hiring slows while small businesses cut 48,000 jobs
  • Planned drop, but hiring plans hit 2009 low
  • Fed likely to cut rates again at October meeting

(Reuters) -Alternate data from public and private sources showed the likely remained stalled in September, with sluggish hiring but no change in an economists see as heavily influenced by a decline in the number of foreign-born workers.

With the release of numerous official economic indicators delayed by a , alternative data, such as a new “real-time” estimate of the unemployment rate issued on Thursday by the Bank of Chicago, is likely to attract more than the usual scrutiny.

The Chicago Fed report, which combines private and available public data, estimated the September jobless rate was 4.3%, the same as in August and evidence that a feared rapid rise in unemployment had not yet begun.

But details of the report, along with other data, pointed to ongoing sluggishness in the that is likely to keep Fed officials on track to cut the benchmark interest rate by a quarter of a percentage point at the October 28-29 meeting.

Official reports on the U.S. labor market, including September monthly jobs data that had been scheduled for release by the Labor Department’s Bureau of Labor Statistics on Friday, are for now suspended by the government shutdown that has put around 750,000 workers on furlough and halted many but the most critical federal government functions.

Also delayed so far are the weekly jobless claims report, August factory orders and construction spending data.

Depending on the length of the shutdown, the 15th since 1981, those and other delayed reports could still be available by the time the Fed meets in a little under four weeks.

But policymakers were already discussing at-hand, if imperfect, substitutes for the September jobs report, among the main sources of additional data policymakers would receive before their next meeting.

The Fed’s rate cut discussion now leans heavily on policymakers’ views of whether the labor market is holding up reasonably well, with the 4.3% jobless rate considered around full employment, or is at risk of a sharp rupture. The Fed last month cut its policy rate by a quarter of a percentage point to a range of 4% to 4.25% after job gains slowed sharply and the unemployment rate ticked up in August.

“The data dogs are howling because we are not getting our usual supply of information,” Chicago Fed President Austan Goolsbee told Marketplace Radio on Wednesday. “The best number is the BLS number, but if we don’t have that, we’re going to use the Chicago Fed number and other numbers.”

The Chicago Fed’s new data series, updated twice monthly, showed the hiring rate for unemployed workers dipping slightly and the rate of layoffs and other job separations up a bit.

That put “limited upward pressure” on the unemployment rate, the bank said.

LABOR MARKET IS STAGNATING

New data from technology firm Intuit, using a sample of roughly 400,000 small businesses from its QuickBooks platform, showed firms with from one to nine employees shed more than 48,000 jobs in September, a decline of around 0.37%. Firms of that size have seen a steady drop in employment since early 2024, with average monthly employment for the latest quarter down about 400,000 from a peak of 13.1 million.

U.S. employers meanwhile announced fewer layoffs in September, but hiring plans so far this year were the lowest since 2009, according to the latest report from global outplacement firm Challenger, Gray & Christmas that provided further signs of a labor market at a standstill as the demand and supply of workers fall because of tougher immigration policy and technological advances.

The firm said planned job cuts dropped 37% month-on-month to 54,064 in September. Employers have so far this year announced 946,426 job cuts, the highest year-to-date total since 2020.

Hiring plans so far this year have totaled 204,939, the lowest year-to-date since 2009 when the economy was just emerging from the Great Recession.

“Right now, we’re dealing with a stagnating labor market, cost increases and a transformative new technology,” said Andrew Challenger, senior vice president at Challenger, Gray & Christmas. “With rate cuts on the way, we may see some stabilizing in the fourth quarter, but other factors could keep employers planning layoffs or holding off hiring.”

Economists say lingering uncertainty from President Donald Trump’s trade policy, immigration raids and the rise of artificial intelligence, have combined to reduce demand and labor supply. Nonfarm payroll gains averaged only 29,000 jobs per month in the three months to August compared to 82,000 during the same period last year.

Challenger said the government accounted for the bulk of planned layoffs, with 299,755 job cuts announced so far this year, part of an unprecedented campaign by the to reduce the federal workforce. Trump threatened to fire more federal workers if there was a shutdown.

The surge in AI is costing jobs in the technology sector, with companies in the industry announcing 107,878 layoffs so far this year. Challenger said AI was also making it difficult to land positions, particularly for entry-level engineers.

Should the shutdown persist into next week, reports due later this month, including consumer price, retail sales, housing starts and producer inflation data for September, will probably not be published, impacting decision making by households, investors and policymakers.

(Reporting by Ann Saphir; Additional reporting by Howard Schneider and Lucia Mutikani; Editing by Jamie Freed and Andrea Ricci)

Virginians wagered $510M on sports in August

Virginians bet about $510.2 million on sports in August, winning about $447.3 million, according to Virginia Lottery data released Wednesday. That’s about 22% more than they wagered in August 2024.

About $506.3 million of August’s gross sports revenues came from mobile operators, with the remaining roughly $3.9 million coming from casino retail activity. Virginia currently has three : the Hard Rock Hotel & Casino Bristol, and in . In August, the state’s casinos reported a total of $84.8 million in adjusted gaming revenues.

Casino development continues in the commonwealth. Construction on the $750 million Norfolk casino began in February. The Interim Gaming Hall is expected to open in November in Norfolk. In Petersburg, the $1.4 billion Live! Casino & Hotel Virginia held a groundbreaking in March. and have plans to begin building a $65 million hotel in Portsmouth this summer. S.B. Ballard Construction Co. was announced as the hotel’s general contractor in July.

The licensed operators included in August’s sports revenue reporting were:

  • Betfair Interactive US (FanDuel) in partnership with the Washington Commanders
  • Crown Virginia Gaming (Draft Kings)
  • BetMGM
  • Rivers Portsmouth Gaming (Rivers Casino Portsmouth)
  • Caesars Virginia
  • Bally’s Interactive
  • Penn Sports Interactive
  • Colonial Downs Group
  • HR Bristol
  • Hillside (Virginia)
  • DC Sports Facilities Entertainment
  • Betr VA
  • PlayLive Virginia
  • Sporttrade Virginia

Virginia places a 15% tax on  activity based on each permit holder’s adjusted gross revenue (total wagers minus total winnings and other authorized deductions). With 10 operators reporting net positive AGR for August, state taxes for the month totaled nearly $8.7 million.

Of that, 97.5% — about $8.46 million — will be deposited in the state’s general fund. The remaining approximately $216,955 will go to the Problem  Treatment and Support Fund Allocation, which the Virginia Department of Behavioral Health and Developmental Services administers.

Berkshire Hathaway to pay $9.7 billion for OxyChem, potentially Buffett’s last big deal

Summary

  • to buy for $9.7 billion
  • Deal signals shift of leadership toward
  • Buffett’s last major deal was Alleghany in 2022
  • OxyChem will join Lubrizol but operate independently

OMAHA, Neb. (AP) — Berkshire Hathaway is buying ‘s chemical division for $9.7 billion in what may be the last big acquisition involving the consummate dealmaker, .

Buffett wasn’t mentioned anywhere in materials released by Berkshire Hathaway discussing the deal Thursday, potentially signaling a passing of the torch to Vice Chair Greg Abel, to whom Buffet will hand the CEO title in January.

Buffett will remain chairman at Berkshire and will still be involved in deciding how to spend the conglomerate’s colossal pile of more than $344 billion cash.

Berkshire’s cash reserves have been growing for years because Buffett has been unable to find any major at attractive prices since completing the $11.6 billion acquisition of Alleghany Insurance in 2022. Prices for big acquisitions have been driven higher in recent years by the entry of more hedge funds in the market.

OxyChem makes things like chlorine for water treatment, vinyl chloride for plastics and calcium chloride that’s used to treat icy roads along with an assortment of other chemicals. It will fit nicely within Berkshire alongside Lubrizol, which Buffett bought in 2011 for $9 billion.

“Berkshire is acquiring a robust portfolio of operating assets, supported by an accomplished team,” Abel said in a prepared statement. “We look forward to welcoming OxyChem as an operating subsidiary within Berkshire.”

OxyChem generated $213 million in pretax earnings for Occidental in the second quarter, though that is down from last year when it generated nearly $300 million for the company. This year, Occidental has been selling off some of its assets in the Permian Basin to generate $950 million to pay down debt. Since it completed the CrownRock acquisition in December 2023, Occidental has sold off roughly $4 billion worth of assets to help it pay down $7.5 billion in debt. This OxyChem deal will accelerate that.

Occidental expects to use $6.5 billion of proceeds from the Berkshire deal to lower debt and achieve the target of principal debt below $15 billion set following the announcement of its CrownRock acquisition.

Berkshire held more than 28% of Occidental’s stock and had warrants to buy another 83,911,942.38 shares in the major oil and gas producer for $59.586 per share before this deal. And Berkshire held about $8.5 billion worth of preferred Occidental shares that it picked up in 2019 when it helped finance the oil producer’s purchase of Anadarko that Occidental has been paying 8% dividends on every year.

Buffett had previously told Berkshire investors that he wouldn’t sell off the Occidental stake and he has been periodically buying more shares, but he also told shareholders in 2023 that he had no plans to buy all of Occidental.

Berkshire owns an eclectic assortment of dozens of companies, including Geico and several other insurers, BNSF railroad, a portfolio of major utilities and some well-known brands like Dairy Queen and See’s Candy. Buffett has built up the conglomerate over the past 60 years. In addition to owning companies outright, Berkshire holds stocks worth more than $250 billion, including large stakes in Apple, Coca-Cola, Bank of America and American Express.

The OxyChem deal is expected to close in the fourth quarter of this year.

Tesla reports surprise increase in car sales in the third quarter

Summary

  • Q3 sales increased 7% year-over-year
  • 497,099 vehicles sold, up from 462,890 in 2023
  • Surge tied to $7,500 expiring Sept. 30
  • Rebound follows two quarters of sales declines

NEW YORK (AP) — Months after left the to the relief of Tesla investors worried about boycotts, the world’s richest man has announced some good news: Sales of Tesla cars are back.

Well, maybe.

The electric vehicle maker run by Musk reported Thursday that car sales jumped 7% in the three months through September after plunging for most of the year as turned off by his embrace of President Donald Trump and far-right politicians in Europe balked at buying his cars.

But the jump comes with a caveat: Tesla benefited from consumers taking advantage of a $7,500 tax credit before it expired on Sept. 30, a surge in buying that helped all EV makers.

In fact, many Tesla rivals saw sales rise more. Rivian Automotive reported a 32% increase.

Tesla stock rose sharply on the sales news, but closed the day down 4.5% to $439 amid skepticism the new number really signals a turnaround given all the anti-Musk backlash.

“I don’t think most people are any more enamored with Elon now than they were a few months ago,” said Telemetry Insight’s Sam Abuelsamid. “I expect this is more a blip for Tesla than the restart of growth.”

Even Tesla bull Dan Ives of Wedbush Securities was cautious, noting there are “still demand issues.”

Still, it was a blowout number with sales hitting 497,099 vehicles versus 462,890 in the same period last year. Analysts expected a small drop to 456,000.

Investors cheered Musk’s decision in April to leave Washington for Austin, Texas, where Tesla is headquartered. But he is still heavily involved in political and social wars, alienating potential car buyers.

On Wednesday, he posted on X that he was canceling his Netflix subscription because of critical comments made by the creator of a show on the streaming service, which appeared to spark a wave of cancellations in turn.

The sharp fall in Tesla stock Thursday was remarkable as investors have been surprisingly optimistic about the company in recent weeks despite terrible financial figures.

Investors drove the stock up 34% in September alone in a bet that Musk’s planned new cheaper version of his bestselling Model Y will recharge sales. Musk has also been successful in shifting investor attention away from cars to other aspects of the business — the rollout of its driverless robotaxi service planned for several cities and its Optimus robots for factory work and household chores.

Driving the stock higher has also been Musk’s apparent renewed focus on the company.

To hold his attention, Tesla’s board proposed last month a pay package that would allow Musk to earn $1 trillion if he meets certain financial goals over the next several years. The pay offer, unprecedented for U.S. companies known for outsized CEO compensation, drew criticism from Pope Leo in an interview lamenting widening income gaps.

If Musk meets the goals, he could set a record on top of his own record. He recently became the first person ever to hit $500 billion in net worth, at least according to rich list compiler Forbes magazine.

The 7% sales rise in the last quarter compares with a 13% dropped in the first three months of the year when Musk led Trump’s government cost-cutting efforts at the Department of Government Efficiency. In the following three months through June, sales plunged 13% again.

The anti-Musk backlash in Europe had been also been fierce. Sales plunged 40% in more than two dozen countries after he publicly supported far-right politicians there.

Musk said a British prime minister was an “evil tyrant” who belongs in prison and told Germans “things will get very, very much worse” in their country if they didn’t vote for the anti-immigrant Alternative for Germany party. Protests broke out in several cities, including a hanging of the billionaire in effigy in Milan and posters in London likening him to a Nazi.

For her part, the Tesla head of the board of directors who approved Musk’s latest pay package recently told Bloomberg that she is not sure if Musk’s politics have had any impact on the company’s finances. Robyn Denholm has earned nearly $700 million in compensation for serving on the board since 2014, a package that itself has drawn criticism.

Tesla reports third-quarter earnings later this month. Profits for the previous quarter fell 16% as the company continued to lose market share to European EV makers and fast-growing Chinese rivals, such as BYD.

Musk’s new robotaxi service, which began with a test-run in Austin in June, has had some hitches with reports of the cabs stopping suddenly for no reason and even driving in the opposing lane in one instance. But Musk says the service will quickly roll out anyway with launches in several other cities by the end of next year.

Galax furniture maker adds hours, eyes hiring as tariffs spur demand

 

SUMMARY

  • says demand for its U.S.-made wooden adult bedroom is climbing
  • Company has added hours across multiple departments
  • has modestly raised prices due to on component parts, inflation

The tariffs reshaping the furniture import landscape might be causing headaches and head scratching across the industry, but they are also spurring new momentum for some domestic suppliers.

Vaughan-Bassett Furniture, a -based domestic maker of wooden adult bedroom furniture, says it is seeing demand climb strongly enough that it has added hours across multiple departments, Vaughan-Bassett President Doug Bassett told Furniture Today.

“We have added hours to match the increase in production,” Bassett said. “We’re getting close to needing to hire, but we’ve gone from a little less than full time to full time and in some departments overtime. And then the next step after that will be to add and add capacity if our business continues to track the way it’s tracking.”

For now, overtime has become the first step in meeting stronger order flow.

“We’ve got several departments working a little bit of overtime, and that’s appreciated,” Bassett said. “Back during COVID, we ran overtime for almost two years, every week for two years straight. So we’re right at the beginning of running overtime. That’s the first step. And, you know, first things first. Let us run some overtime, and then as business continues to improve we certainly have the option of adding people as needed.”

The boost in hours reflects a broader trend Bassett said he is hearing about across the domestic case goods segment.

“I’m hearing from other people … that all these American-made case good companies are experiencing good business,” he said. “So we are benefiting, even if not from every aspect of the tariffs like the increased prices and the uncertainty. It’s not true that this isn’t adding jobs or strengthening domestic resources. It is.”

Upholstery uncertainty

The latest round of tariffs focused on upholstered seating and related categories has created new questions about future demand trends for companies such as Vaughan-Bassett that primarily build solid wood products, but also offer upholstered beds.

“We do offer upholstered beds in about five different groups,” Bassett said. “About a third of our groups have an upholstered bed, and it’s usually one of three beds. It’s not a huge number, but it’s not an insignificant number either.”

The balance of Vaughan-Bassett’s line remains in solid wood, but the impact of tariffs on mixed assortments remains a question for some retailers. “We sell a lot more wood beds than upholstered beds,” Bassett said.

“But there are customers who do very well with upholstered beds and who consider them their primary beds. So I got people that don’t carry any of my upholstery. I’ve got other people where the upholstered bed is their primary product.”

Keeping a lid on prices with domestic footprint

While demand is strengthening, Bassett said some cost pressures are unavoidable even for a domestic supplier. The company has raised prices modestly in the past year, although it has sought to limit increases.

“With the groups we came out with last market, we have increased prices,” Bassett said. “Most of our older stuff, at either Vaughan-Bassett or Artisan & Post, we’ve gone up about 5%, and we had not had a price increase in over a year. The last price increase a year ago, over a year ago, was between 2% and 3%. So in 2024 and 2025 combined, we’re up about 7% overall.”

Bassett explained that the company does have to contend with pressures related to inputs like component parts.

“Some of those price increases are due to the tariffs on the components that you can’t get in the United States: drawer guides, hardware, screws, nails, things where there just are no American resources,” he said. “They’ve been hit with tariffs, and so we’ve been hit with higher prices.”

Inflationary pressures outside of trade policy are also part of the picture. “The other portion of it, and it’s probably close to half and half: Health care is going up, labor is going up, energy prices are going up,” Bassett said. “We live in an inflationary cycle here in the U.S. that’s affecting pretty much everything.”

For Vaughan-Bassett, the tariff-driven shift is underscoring the value of its domestic production footprint. The company has long emphasized its U.S.-made sourcing story and is doubling down on this approach as the current trade environment drives retailers to look more closely at domestic resources.