Tesla Faces NHTSA Probe Over Model 3 Emergency Door Handles

Welcome to Bloomberg Tech, I’m Katie Greifeld. We’re watching Intel after reports Nvidia paused tests of its chipmaking process, a court greenlight for a $100,000 H-1B visa fee, and fresh scrutiny for Tesla’s emergency door release. Markets are quiet on this Christmas Eve with light gains and low volatility.

What’s the real takeaway from Nvidia stepping back from Intel’s latest manufacturing test?

It underscores the gap Intel still has versus TSMC and others, and dents the turnaround hopes that were buoyed by high-profile investments. Even if not shocking, it’s enough to cool enthusiasm in a stock that’s run hard on recovery headlines.

This year the so‑called boring side of AI ran hot. Which names and why?

Micron surged as high-bandwidth memory became core AI plumbing, and hard-disk makers like Western Digital and Seagate rallied as storage needs climbed. These under-the-radar suppliers turned into standout winners.

Does that momentum carry into 2026, and where does the trade broaden?

Capacity chased AI chips, leaving other segments tighter and lifting prices, which helped those ‘boring’ pockets. In 2026 we expect AI gains to spread beyond tech as productivity and cost benefits hit areas like banks and healthcare.

Software lagged even as AI hype grew. What held it back?

Monetization fell short and competition intensified, pressuring pricing and margins. Next year brings tougher contests across AI apps and integrated tools.

How are investors weighing big AI capex against near‑term returns?

They want slower spend until ROI shows up because tech can age out fast. Firms with data centers and rentable capacity—Microsoft, Amazon, and Google—look better positioned to convert spend into revenue.

Bottom line conviction for 2026?

Macro stays supportive, the rally likely cools, and AI advantages extend into non‑tech sectors that adopt the tools.

A judge upheld the $100,000 H‑1B fee. How exposed is tech, and what’s the legal path?

Tech uses these visas heavily, and the government argues they can pay up, but hospitals and universities say the cost could harm services. One case just ended in the government’s favor; state and union cases could bring injunctions next year, and it may ultimately reach the Supreme Court.

The U.S. imposed visa sanctions on former EU commissioner Thierry Breton and others over content moderation. How did that land in Europe?

It sparked anger and surprise, seen as an overreach that chills speech. It’s another flare‑up in the U.S.–EU standoff over how to police and tax platforms like Facebook, Instagram, and X, and follows Europe’s fines tied to hate‑speech enforcement.

On media dealmaking, can Larry Ellison’s personal guarantee calm concerns, and what’s the bigger risk?

We’re watching a rapid consolidation of prized media assets with a massive data angle that could feed AI training. Investors must weigh a cleaner Netflix path against a more leveraged Ellison plan, while boards grapple with governance, data control, and regulatory gauntlets beyond the January vote.

Back to Intel: how damaging is Nvidia pausing the 18A test?

It’s a blow because Nvidia’s involvement signaled validation of Intel’s comeback story, even without a contract. The pause makes it harder for Intel to prove it can attract marquee customers and match TSMC at scale.

Active ETFs, single‑stock leverage, options overlays—does the wave keep rolling into 2026?

Yes—investors embraced innovation after years of me‑too passive products, and we expect fresh AI, quantum, and infrastructure themes. Single‑name leveraged funds and income‑oriented options strategies should stay in demand.

Do you plan for some funds to miss while a few hits carry the lineup?

We do deep diligence on volatility, interest, and positioning before launch, but not every idea lands right away. Trends can revive sleepers, so we iterate and adjust to where investors are heading.

Will you push into AI‑linked credit or new network themes like 6G, and how’s quantum shaping up?

We’re exploring fixed income angles and see real promise in 6G after the policy push for U.S. leadership. Quantum is early but gaining commercial proof points, so we view it as a long‑term buy‑and‑hold, while leveraged single‑names remain short‑term tools for sophisticated traders across retail and institutions.

Tesla faces a new U.S. probe into Model 3 door releases. How serious is this and how should they respond?

It’s serious and likely needs hardware changes, not a quick software patch, and other automakers have faced similar issues. Tesla must move quickly to reinforce its image as a tech leader, not just a carmaker.

What’s the 2026 playbook with RoboTaxis and competition from Waymo?

With a towering valuation but pressure on sales and margins, Tesla needs faster regulatory approvals and more cities to drive growth. Waymo’s big head start across multiple markets and rising ride counts raises the bar, while Tesla’s booming energy business—Powerwalls, Megapacks, and utility‑scale blocks—can help offset auto volatility.

Why buy Armis now, and should we expect more big ServiceNow deals next year?

Armis expands our security automation by combining asset intelligence with our workflow, data, and AI to harden customer posture. We’re not leaning on it for our growth targets and expect more tuck‑ins rather than another large transaction.

Before we go, Bitcoin’s slumping into year‑end, ads may be coming to ChatGPT, and Waymo’s updating software after taxis froze during a power outage. That does it for this edition of Bloomberg Tech—thanks for spending part of your Christmas Eve with us.