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Today's News You Need2Know

• How long will it take for Musk to repair Tesla?

• California Bar used AI to develop exam questions

• Social media bad for other teens’ mental health, s …

• Chinese airlines refuse delivery of Boeing planes

• Max is cracking down on password sharing

Companies mentioned in today’s newsletter

$TSLA ( ▲ 7.05% )  $BA ( ▲ 0.26% )  $WBD ( ▲ 1.12% )  

How long will it take for Musk to repair Tesla?

When Elon Musk is mentioned, titles such as "Moonshot Master," "Edison of Our Age," or "Architect of the Future" are frequently tossed around.

Also tossed around: some other, let’s say, less flattering epithets.

In recent months, Musk has faced a significant challenge: rehabilitating the image of Tesla $TSLA ( ▲ 7.05% ) , a task that may take a bit longer than it took to damage that image in the first place.

Tesla has seen a troubling decline in sales amid ongoing protests and boycotts connected to Musk's public association with far right-wing views. Profits have plummeted by two-thirds this year, a drop that has attracted fierce competition from automotive giants in China, Europe, and the United States.

Musk has downplayed the effect the damage has had on first-quarter sales, attributing the downturn instead to a halt in production to accommodate an upgrade to Tesla's best-selling Model Y. While analysts agree that upgrades likely deterred some buyers temporarily, many do highlight the image as a critical factor that cannot be ignored. Protests, particularly in Europe, have further exacerbated Tesla's troubles. Musk's affiliations have sparked outrage, with incidents such as effigy displays, controversial images projected onto Tesla factories, and posters urging potential buyers to boycott the brand. As a result, European sales have seen substantial drops, with German figures showing a 62% decrease.

The question is, how long will it take Musk to turn this around? Or even: Can he?

California Bar used AI to develop exam questions

The State Bar of California has revealed that AI was used to develop some of the multiple-choice questions in a problem-ridden February 2025 bar exam. This admission has sparked outrage! and raised concerns about the integrity of one of the most critical assessments for aspiring lawyers.

Of the 171 scored multiple-choice questions, a small subset of 23 were crafted using AI under the guidance of ACS Ventures, the State Bar’s psychometrician. While the Bar defended the validity of these questions, many legal experts and academics have criticized the decision. Katie Moran of the University of San Francisco called the use of AI to draft exam questions “a staggering admission,” noting that non-lawyers with AI tools played a role in shaping the exam.

Lawyers hate non-lawyers. They’re all super uptight about this kind of thing.

The AI-assisted exam was further plagued by technical failures during the online testing process, with crashes, screen lags, and unsaved responses creating chaos for test-takers. Calls for score adjustments have since been made to address these issues. Otherwise, I guess they’ll sue?

Today on the ‘gram

Post of the day: @krassentstein

Social media bad for other teens’ mental health, say teens in denial

A new Pew study says 48% of teens perceive social media as having a predominantly negative effect on their peers’ mental health — a significant increase from 32% in 2022. However, fewer teens believe it negatively affects them personally.

Gender plays a crucial role in shaping these experiences. Teen girls are more likely than boys to report adverse effects on mental health, confidence, and sleep due to social media. Yet these platforms continue to serve as essential avenues for fostering friendships and creativity among teens, with 74% believing social media strengthens connections with friends.

A notable contrast also exists between parents and teens regarding comfort in discussing mental health. While 80% of parents feel comfortable discussing mental health, only 52% of teens share the sentiment.

While parents predominantly blame social media for a teen mental health crisis, teens identify a multifaceted array of factors, including bullying and unrealistic social expectations. Also noted by teens we’ve encountered: “I hate you” and “I wish I’d never been born” and “I’m hungry—why don’t we have any good snacks?”

Should you check your 401(k) today?

👍️ 

Yep.

Chinese airlines refuse delivery of Boeing planes

Boeing $BA ( ▲ 0.26% ) is navigating turbulent skies as Chinese corporate customers reject new aircraft deliveries due to soaring tariffs. With Beijing imposing a 125% tariff on U.S. goods and the U.S. retaliating with a 145% tariff on Chinese imports, trade tensions are forcing the aerospace giant to reconsider its strategy. As a result, Boeing aims to resell dozens of jets originally destined for China, revealing the extent of complications in a recent analyst call.

"Due to the tariffs, many of our customers in China have indicated that they will not take delivery," CEO Kelly Ortberg said.

That’s compelled Boeing to redirect these jets to other buyers in markets such as India, Latin America, and Southeast Asia. Despite the complexity and potential costs associated with modifying aircraft for new customers, CFO Brian West said the firm remains optimistic due to high demand in the global jet market.

Airbus, Boeing's European competitor, remains in the mix, engaging in intermittent talks for a substantial order from China. Let’s hope those trade tensions simmer down soon enough, eh?

Quote of the Day: Kelly Ortberg

Max is cracking down on password sharing

It’s a good job the first season of “The Pitt” is already done because the days of sharing your Max streaming password with friends and family may soon be over. Max, owned by Warner Bros. Discovery $WBD ( ▲ 1.12% ) , has announced a new plan to curb password sharing by introducing the You’re a Grown-Up and Can Pay for Yourself "Extra Member Add-On" feature.

The new feature will allow Max account holders to officially share their subscription with one person outside their primary residence for $7.99 per month. But each Max account is restricted to just one extra member add-on. For those of us with relatively few friends, this is fine. For the rest: Ruh-roh.

With major streaming platforms aligning on this shared-password crackdown approach, it’s clear that flexibility in sharing accounts isn’t going away—but it comes at a cost. Whether this adjustment improves customer satisfaction or prompts backlash is something we’ll be watching closely. With our stolen shared password. On Max.

Poll of the Day: Do you cheat at work with AI?

Results from Thursday’s poll:

We asked: How's the new presidency working out?

You answered:

⬜️⬜️⬜️⬜️⬜️⬜️ I voted for Trump and I'm pleased with his handling of the economy (147 votes)

⬜️⬜️⬜️⬜️⬜️⬜️ I voted for Trump and I'm disappointed by his handling of the economy (88 votes)

⬜️⬜️⬜️⬜️⬜️⬜️ I voted for Harris and I'm pleasantly surprised with Trump's handling of the economy (30 votes)

 🟩🟩🟩🟩🟩🟩 I voted for Harris and I'm disappointed with Trump's handling of the economy (1,358 votes)

1623 Votes via @beehiiv polls

Don’t miss: ‘NYC Innovates’

Our new “NYC Innovates” show goes live next Monday wherever you watch Cheddar, but those of you who want to watch it before then can check it out on YouTube!

"NYC Innovates" uncovers the groundbreaking ideas and passionate minds driving the city's evolution across diverse industries. In this episode, join host Chris Castellino as he explores remarkable transformations.

Witness how the iconic, Michelin-starred restaurant Eleven Madison Park, under Chef Daniel Humm's visionary leadership, made the bold pivot to an entirely plant-based menu. Plus: Dive into the resilient spirit of NYC's music scene at Le Poisson Rouge. Learn how this fiercely independent Greenwich Village venue, founded by David Handler, thrives amidst industry giants by championing eclectic artists and fostering a unique connection with its audience. Finally, journey to a Brooklyn startup, Air Company, where CEO Gregory Constantine reveals how they're tackling climate change head-on by transforming captured carbon dioxide into valuable, sustainable products — from premium vodka to revolutionary jet fuel, partnering with major airlines and even the Department of Defense. Tune in, and be inspired!