Cluely: Your Weekly Review - Cheat on Everything!

This Week in Tech: A Recap

Welcome to this week’s review of the most significant tech news. We’ll be covering developments including sightings of Slate EVs, changes to Airbnb’s pricing strategy, a security breach at Blue Shield, and additional updates. Let's dive in!

AI and Ethics: The Rise of Cluely

Cluely, an artificial intelligence-powered platform, has emerged as a controversial tool. It is designed to assist users in circumventing safeguards in areas like examinations, sales interactions, and job applications.

Despite past issues involving a co-founder’s expulsion from Columbia University due to a comparable application, and some shortcomings in its advertising, Cluely reportedly generates $5.3 million in monthly recurring revenue. This suggests a demand for such services exists.

Electric Vehicles: Slate’s Emergence

Slate, an electric vehicle manufacturer, has largely maintained a low profile. Recent reporting by TechCrunch unveiled the financial backing from Jeff Bezos and the company’s intention to offer its EV at approximately $25,000.

To build anticipation, Slate is strategically positioning prototype vehicles throughout Los Angeles. This aims to attract attention and generate public interest in their upcoming product.

Tesla’s Financial Performance: A Downturn

Tesla’s first-quarter earnings call revealed a challenging period for the company. The results indicate a significant decline in financial performance.

Specifically, Tesla’s net income experienced a substantial 71% decrease compared to the same quarter in the previous year. Furthermore, the company recorded its lowest delivery numbers in over two years.

This is TechCrunch’s Week in Review, a summary of the week’s top stories. To receive this as a weekly newsletter directly in your inbox every Saturday, subscribe here.

Recent Developments

Transparency in pricing: Airbnb is now displaying the complete cost of accommodations upfront during property searches, encompassing all applicable fees and charges.

This change aims to provide users with a clearer understanding of the total expense before committing to a booking.

New Platforms and Funding

Simplified app development: Adaptive Computer’s “vibe coding” platform empowers individuals without programming expertise to create applications through simple text-based instructions.

The company has recently secured $7 million in seed funding, with Pebblebed leading the investment round.

Flow’s significant funding: Flow, the proptech venture founded by former WeWork CEO Adam Neumann, has successfully raised over $100 million in funding.

This influx of capital has resulted in a company valuation of around $2.5 billion, a development that has garnered considerable attention given WeWork’s past challenges.

Social Media and User Data

Positive impacts of social media: A recent Pew Research study indicates that social media can have a beneficial influence on teenagers.

The study reveals that 74% of U.S. teens feel more connected to their friends through social media, and 63% appreciate the platforms as outlets for creative expression.

Data breach at Blue Shield of California: Blue Shield of California has informed its customers about a data breach incident.

The breach stemmed from a misconfiguration in their use of Google Analytics, leading to the unintended collection of personal and health information.

Bluesky service disruption: Bluesky experienced an outage on Thursday evening, prompting questions about the resilience of decentralized networks.

The company subsequently confirmed that the disruption was caused by a Distributed Denial of Service (DDoS) attack.

Growth and Milestones

Chess.com reaches 200 million users: Chess.com has announced it has surpassed 200 million registered members.

Albert Cheng, the company’s chief growth officer, attributes this sustained growth to ongoing product innovation and development.

• Key takeaway: Continued innovation drives user acquisition.

Focus on user experience: These developments highlight a trend towards greater transparency, accessibility, and user-centric design in the tech industry.

Tesla Faces Brand Risk Due to Elon Musk

Growing criticism directed at Elon Musk has prompted Tesla's legal counsel to alert investors to potential damage to the company’s brand and overall business operations.

Investor Warnings and Risk Factors

Typically, disclosures regarding risk factors are formulated with expansive and conservative language. However, modifications – both additions and deletions – to these disclosures can indicate areas of significant concern for Tesla and its legal advisors, as noted by Sean O’Kane.

The recent warning suggests that the legal team perceives the negative publicity surrounding Musk as a substantial threat.

Potential Impact on Tesla

This situation highlights the interconnectedness of a company’s brand image and the public perception of its leadership. A damaged brand reputation could negatively affect sales, investor confidence, and the company’s long-term viability.

Tesla is actively addressing potential repercussions stemming from ongoing controversies.

The company’s proactive communication with investors demonstrates an awareness of the risks and a commitment to transparency.