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Elon Musk hands drivers first Teslas from new German gigafactory

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Elon Musk was cheered as he oversaw the handover of Tesla's (TSLA.O) first German-made cars at its Gruenheide plant on Tuesday, marking the start of the U.S. automaker's inaugural European hub just two years after it was first announced.

Loud music played as 30 clients and their families got a first glimpse of their shining new vehicles through a glitzy, neon-lit Tesla branded tunnel, clapping and cheering as Tesla Chief Executive Musk danced and joked with fans.

"This is a great day for the factory," Musk said, describing it as "another step in the direction of a sustainable future".

Musk said that Tesla is likely to launch a test version of its new "Full Self-Driving" software in Europe, possibly next year depending on regulatory approval.

"It's quite difficult to do full self-driving in Europe," he told factory workers on Tuesday, saying much work needs to be done to handle tricky driving situations in Europe where roads vary a lot by country.

Although German Chancellor Olaf Scholz, who also attended the event, lauded the gigafactory as the future of the car industry, it has faced opposition and some environmental activists blocked the factory's entrance while displaying banners flagging its high water use.

Two protestors abseiled from a motorway sign near the factory, blocking traffic for hours after the event.

Musk had hoped to begin output from the factory eight months ago, but licensing delays and local concerns around the plant's environmental impact held up the process.

Tesla was forced to service European orders from Shanghai while it awaited its German licence, adding to rising logistics costs at a time when it was struggling with industry-wide chip shortages and other supply chain disruptions.

It got the final go-ahead from local authorities on March 4 to begin production in Germany, provided it met conditions ranging from its water use to air pollution controls.

The plant opening came on the same day as the top U.S. securities regulator urged a federal judge not to let Musk back out of an agreement requiring that his Twitter use be monitored.

Tesla shares ended up 7.9% at their highest level in more than two months on Tuesday.

RACE WITH VW

The new owners received the Model Y Performance configuration, a vehicle costing 63,990 euros ($70,500) with a 514 km (320 miles) range, Tesla said, adding that new orders from the plant could be delivered from April.

Tesla said that around 3,500 of the plant's expected 12,000 workers have been hired so far.

At full capacity, the plant will produce 500,000 cars a year, more than the 450,000 battery-electric vehicles that German rival Volkswagen (VOWG_p.DE) sold globally in 2021.

It will also eventually generate 50 gigawatt hours (GWh) of battery power, surpassing all other plants in Germany. Tesla is expected to initially import batteries from China for its German-made Model Ys before it starts local battery production.

Musk said on Tuesday that battery production will be a "challenge" next year and will be "the limiting factor" in the coming years, as Tesla aims to aggressively boost vehicle production.

For now, Volkswagen still has the inside track in the race to electrify Europe's fleet, with a 25% market share to Tesla's 13%. Musk has said ramping up production would take longer than the two years it took to build the plant.

JPMorgan predicted Gruenheide would produce around 54,000 cars in 2022, increasing to 280,000 in 2023 and 500,000 by 2025.

Volkswagen, which has received 95,000 EV orders in Europe this year, is planning a new 2 billion euro EV factory alongside its existing facility in Wolfsburg and six battery plants across Europe.

But its timeline lags Tesla's, with the EV factory due to open in 2026 and the first battery plant in 2023.

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Australia’s under-16 social media ban sparks anger and relief

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Australians reacted on Friday with a mixture of anger and relief to a social media ban on children under 16 that the government says is world-leading, but which tech giants like TikTok argue could push young people to "darker corners of the internet".

Australia approved the social media ban for children late on Thursday after an emotive debate that has gripped the nation, setting a benchmark for jurisdictions around the world with one of the toughest regulations targeting Big Tech, Reuters reported.

The law forces tech giants from Instagram and Facebook owner Meta Platforms to TikTok to stop minors from logging in or face fines of up to A$49.5 million ($32 million). A trial of enforcement methods will start in January, with the ban to take effect in a year.

"Platforms now have a social responsibility to ensure the safety of our kids is a priority for them," Australian Prime Minister Anthony Albanese said on Friday

"We're making sure that mums and dads can have that different conversation today and in future days."

Announcing the details of the ban earlier this month, Albanese cited the risks to physical and mental health of children from excessive social media use, in particular the risks to girls from harmful depictions of body image, and misogynist content aimed at boys.

In Sydney on Friday, reaction to the ban was mixed.

"I think that's a great idea, because I found that the social media for kids (is) not really appropriate, sometimes they can look at something they shouldn't," said Sydney resident Francesca Sambas.

Others were more scathing.

"I'm feeling very angry, I feel that this government has taken democracy and thrown it out the window," said 58-year-old Shon Klose.

"How could they possibly make up these rules and these laws and push it upon the people?"

Children, meanwhile, said they would try to find a way around the ban.

"I feel like I still will use it, just secretly get in," said 11-year-old Emma Wakefield.

WORLD FIRST

Countries including France and some U.S. states have passed laws to restrict access for minors without a parent's permission, but the Australian ban is absolute. A full under-14s ban in Florida is being challenged in court on free speech grounds.

Albanese's Labor party won crucial support from the opposition conservatives for the bill that was fast-tracked through the country's parliament as part of 31 bills pushed through in a chaotic final day of parliament for the year.

The government has said enough notice was given as it first flagged the ban after a parliamentary inquiry earlier this year that heard testimony from parents of children who had self-harmed due to cyber bullying.

But it was criticised by social media firms and some lawmakers who say the bill has lacked proper scrutiny.

A spokesperson for TikTok, which is hugely popular with teen users, said on Friday the process had been rushed and risked putting children into greater danger.

"We're disappointed the Australian government has ignored the advice of the many mental health, online safety, and youth advocacy experts who have strongly opposed the ban," the spokesperson said.

Albanese said on Friday passing the bill before the age verification trial has been completed was the correct approach.

"We've got your back is our message to Australian parents," Albanese said.

"We don't argue that its implementation will be perfect, just like the alcohol ban for under 18s doesn't mean that someone under 18 never has access, but we know that it's the right thing to do."

The ban could strain Australia's relationship with key ally the United States, where X owner Elon Musk, a central figure in the administration of president-elect Donald Trump, said in a post this month it seemed a "backdoor way to control access to the Internet by all Australians".

It also builds on an existing mood of antagonism between Australia and mostly US-domiciled tech giants. Australia was the first country to make social media platforms pay media outlets royalties for sharing their content and now plans to threaten them with fines for failing to stamp out scams.

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South Korea authorities launch probe after three die in Hyundai car test

The Ulsan plant is Hyundai’s biggest manufacturing facility, with its own port and an annual production capacity of 1.4 million vehicles

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South Korean authorities launched an investigation on Tuesday after three people died during a car test at a Hyundai Motor plant in the city of Ulsan, police told Reuters.

The two Hyundai researchers and one Hyundai contractor were found unconscious in a car at around 3:00 p.m. while they were testing it in a "chamber," according to Hyundai's labour union.

South Korean media reports said the three had suffocated.

A police officer in Ulsan said the police and the labour ministry were investigating the incident, including its cause.

A fire department official told Reuters that it first received a report at 3:17 pm that the accident happened at Hyundai's No.4 factory.

"Hyundai Motor Company is deeply saddened by the incident that occurred at our plant in Ulsan, South Korea," Hyundai said in a statement, saying it would "cooperate fully with all relevant authorities to determine the cause of this incident."

The Ulsan plant is Hyundai's biggest manufacturing facility, with its own port and an annual production capacity of 1.4 million vehicles, including exports of 1.1 million units.

In November last year, Hyundai Motor broke ground on a 2 trillion won ($1.44 billion) plant in Ulsan dedicated to making electric vehicles in South Korea, as the automaker accelerated a shift away from petrol-powered cars.

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Russia fines Google more than the world’s total GDP over YouTube bans

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Russia has fined Google $2.5 decillion after the US tech giant took action against pro-Kremlin TV channels on YouTube following Moscow’s invasion of Ukraine.

Russia imposed a daily fine four years ago - a fine that has since swelled to an unprecedented level - ($20,000,000,000,000,000,000,000,000,000,000,000 - a 33-digit figure).

To put this into perspective, global GDP reaches an estimated $110 thousand billion (12-digit figure), according to the IMF.

Speaking to Russia’s TASS news agency, one expert, Roman Yankovsky from the HSE Institute of Education, said Google “clearly will not pay this penalty, and the Russian Federation will not be able to recover this money from the company."

Euronews reported that a short calculation shows that he is right.

Google's holding company, Alphabet, has a market capitalisation of slightly more than $2 trillion. Even with earnings of $80.54 billion from the last quarter, the tech giant doesn’t seem to be able to afford to pay the fine.

Google first barred pro-Moscow channel Tsargrad TV, which is owned by oligarch Konstantin Malofeev, four years ago.

At the time, Google was fined a daily penalty of 100,000 roubles and warned that amount would double every 24 hours if it went unpaid.

The original fine has been compounded by further penalties after Google eventually blocked a total of 17 Russian TV channels as a result of international sanctions, The Telegraph reported.

The tech giant now owes a staggering $2.5 decillion.

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