Key Takeaways
- Intel's (INTC) new CEO, Lip-Bu Tan, is reportedly facing significant opposition from the company's board regarding critical strategic initiatives, including plans to raise capital and acquire an artificial intelligence (AI) company. [WSJ headlines]
- The internal disagreements at Intel (INTC) extend to fundamental questions about the company's future, with a split among leadership on whether to remain in or exit the manufacturing business. [WSJ headlines]
- General Motors (GM) plans to procure electric vehicle (EV) batteries from China's CATL for its upcoming low-cost Chevrolet Bolt EV, a move aimed at reducing production costs despite facing substantial U.S. tariffs.
- Japan's Economic Revitalization Minister Ryosei Akazawa announced that the U.S. is expected to amend an executive order and repay stacked levies, with action anticipated in a "reasonable timeframe" rather than a prolonged 6-12 month period. [Headline]
Intel's Leadership Battles Internal and External Pressures
Intel (INTC) is grappling with significant internal strife as its new CEO, Lip-Bu Tan, reportedly clashes with some board members just months into his tenure. The disagreements center on fundamental company strategy, including Tan's proposals to raise capital and pursue the acquisition of an AI company. [WSJ headlines] This internal division also extends to the core of Intel's business model, with a reported split on whether the company should remain in or exit the manufacturing business. [WSJ headlines]
Adding to the pressure, former U.S. President Donald Trump publicly called for Tan's immediate resignation, asserting that the CEO is "highly conflicted" due to alleged ties to Chinese firms. This demand followed a letter from Republican Senator Tom Cotton to Intel's board, raising concerns about Tan's investments in Chinese semiconductor companies and a past criminal case involving his former company, Cadence Design Systems, which pleaded guilty to violating U.S. export controls by selling products to a Chinese military university. Following Trump's remarks, Intel's (INTC) stock experienced a decline in pre-market and midday trading.
Lip-Bu Tan assumed the CEO role in March 2025, succeeding Pat Gelsinger, who was reportedly ousted due to board frustration with the pace of the company's turnaround efforts. Tan has indicated plans to streamline operations, divest non-core businesses, and implement significant job cuts to reduce costs.
General Motors Drives Towards Lower-Cost EVs with CATL Partnership
General Motors (GM) is moving forward with its strategy to produce more affordable electric vehicles by sourcing batteries from China's Contemporary Amperex Technology Co. Ltd. (CATL). These batteries are intended for the next-generation Chevrolet Bolt EV, which is expected to be priced around $30,000.
The decision to import batteries from CATL comes despite the imposition of 80% tariffs on Chinese EV batteries by the Trump administration. GM (GM) views this temporary arrangement as crucial for maintaining competitive pricing and adhering to production timelines, even as it anticipates a gross tariff impact of $4 billion to $5 billion for the year. The automaker plans for this to be a short-term solution, lasting approximately two years, until its joint venture with LG Energy Solution can commence domestic production of lower-cost lithium iron phosphate (LFP) batteries in the U.S. by 2027. The new Bolt vehicles are slated to begin rolling off the production line later this year at GM's (GM) Fairfax Assembly Plant in Kansas, with deliveries to dealerships expected in 2026.
US-Japan Trade Relations See Movement on Levies
In broader economic news, Japan's Economic Revitalization Minister Ryosei Akazawa has indicated that the United States is prepared to amend an executive order and repay stacked levies. [Headline] Akazawa expressed an expectation for these actions to occur within a "reasonable timeframe," rather than a drawn-out 6-12 month period. [Headline] This development signals potential progress in ongoing trade discussions between the two nations, particularly concerning U.S. tariff measures that have been a point of contention for Japan.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.