Despite not being eligible to run for president himself, Tesla (TSLA) CEO Elon Musk is one of the names that stood out this election season.
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Although Musk's political leanings were not an absolute secret to those who used his social media platform X (formerly known as Twitter), his full-on endorsement of Trump after the attempt on his life on July 13 created a platform for the two that would become mutually beneficial in the long run.
But politics aside, Elon's image as a technological mogul fascinates many and leaves them wondering about his next move. However, as a man who parrots the gospel of artificial intelligence, he may also become the victim of his own creation.
The rumors aren't true: No, Elon's Tesla did not buy Ford.
Despite strongly believing in the power of computer-generated artificial intelligence, Elon Musk and several other companies and public figures may be the victims of a story from an AI-generated rumor mill that has been garnering attention on social media.
The biggest rumor revolves around Tesla's rumored acquisition of the Ford Motor Company. Ford (F) has confirmed to local newspapers and publications such as the Houston Chronicle and MySA that this is far from the truth.
"We don't have much to say here other than the story's totally false," Ford spokesperson Ian Thibodeau told MySA in a statement.
According to the San Antonio-area publication, the rumors started on Nov. 7, when an AI-generated video on YouTube claimed that the transaction occurred. However, the video failed to provide any proof of the deal taking place, as the AI-generated voice only parrotted simple facts about Tesla, its CEO, and Ford throughout the video.
Similar AI-generated videos have also spread rumors of false Tesla acquisitions and product launches on YouTube and other social media sites like TikTok.
In one video on TikTok, so-called $13,000 "Tesla Homes" were touted as a housing solution concocted by Elon Musk. In another video on YouTube, Tesla is falsely revealed to have acquired multinational automaker Chrysler, Jeep, and Dodge parent brand Stellantis (STLA) .
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Elon's newfound power and responsibility
With Trump filling the seat in the Oval Office come election day, Musk's influence as one of Trump's closest allies can benefit many Tesla shareholders.
In a note published on Nov. 11, Tesla bull and Wedbush analyst Dan Ives increased his price target on Tesla stock from $300 to $400. They also wrote that a Trump White House could be a "gamechanger for the autonomous and AI story for Tesla and Musk over the coming years," especially since Tesla sees itself as an AI and robotics company than an automaker.
"We estimate the AI and autonomous opportunity is worth $1 trillion alone for Tesla and we fully expect under a Trump White House, these key initiatives will now get fast tracked as the federal regulatory spiderweb that Musk & Co. have encountered over the past few years around FSD/autonomous clears significantly under a new Trump era," Ives wrote.
"In essence, Musk made a strategic and big bet on a Trump White House win that will be known as a "bet for the ages" for TSLA bulls as now Tesla and Musk are set to reap the benefits from a new friendlier regulatory era in the Beltway ahead."
Related: Ford's latest EV plan is a shocking letdown to its loyal workers
Ford's tattered path to profitability
As for Ford, the EV market has been a losing game for its CEO Jim Farley.
The Blue Oval recently informed its suppliers and plant officials that it will temporarily stop building new units of its F-150 Lightning electric pickup truck from Nov. 15 until January 6.
In a statement to the publication, Ford cited lower-than-expected demand for the Lightning as its reason for the shutdown.
“We continue to adjust production for an optimal mix of sales growth and profitability,” Ford said.
Despite calling it an "area of strength" that he "wouldn't trade for any of our competitors," the shutdown comes as Farley announced that Ford's EV division, known internally as Ford Model e, lost $1.2 billion in EBIT during its Q3 2024 earnings call. This number is expected to total about $5 billion by the end of the year.
Though the negative numbers represent an improvement, Farley emphasized that Ford is trying to survive amidst harder and harsher market conditions.
"In our home market in the U.S., no OEM is immune," Farley said. "Since Q1 of last year, EV volumes have grown 35% while revenues in total are flat at $14 billion. That means the progress on volume has been fully offset by prices."
Related: Veteran fund manager sees world of pain coming for stocks
