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U.S. Ramps Up Pressure On Ukraine To Accept Peace Plan; Zelenskyy: Ukraine Won't Recognize Russian Control Of Crimea; India Downgrades Ties With Pakistan After Kashmir Attack; Attack On Kashmir Tourists Sparks Conspiracy Speculation; U.S. Markets Rally on Trump's China Tariff Retreat: China: Won't Negotiate Under Threats or Pressure; Tesla Stock Up 5 Percent after Musk Says He'll Dial Back DOGE Work; The Race to Save the African Penguin; Global Carmakers Compete for Attention in Shanghai. Aired 1-2a ET
Aired April 24, 2025 - 01:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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[01:00:29]
JOHN VAUSE, CNN ANCHOR: The art of capitulation, ahead on CNN Newsroom.
(BEGIN VIDEO CLIP)
J.D. VANCE, VICE PRESIDENT OF THE UNITED STATES: It's time for them to either say yes or for the United States to walk away from this process.
(END VIDEO CLIP)
VAUSE: The White House proposal, a pro Russia take it or leave it peace plan for ending the war in Ukraine.
Last month he was the unbreakable president, refusing to bend on trade policy.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I get along very well with President Xi. And I hope we can make a deal.
(END VIDEO CLIP)
VAUSE: Beijing says it's open to talks with Washington, but warns the blackmail and threats must stop.
Also this hour. (SINGING) And so it begins. Farewell to Pope Francis now lying in stake as thousands of mourners pay their last respects.
UNIDENTIFIED MALE: Live from CNN center, this is CNN Newsroom with John Vause.
VAUSE: A new wave of Russian strikes on Ukraine's capital has left at least nine people dead, more than 60 wounded. At least five districts in Kyiv were hit in the past few hours. Several buildings caught fire. Rescuers are now searching for survivors under piles of debris and rubble. New missile strikes have also been reported in Ukraine's second biggest city, Kharkiv.
Donald Trump promised to end this war in Ukraine on day one in the White House. Ninety-two days later comes a proposed peace plan which officials have described as his final offer amid threats the U.S. will walk away from peace negotiations if the deal is rejected. President Trump believes the Russians are on board, but the Ukrainian president is not. There is one glaring reason why. The proposed peace deal would require an almost total capitulation by Ukraine and would reward Russia for three years of a war of choice.
According to the U.S. vice president, this plan would freeze the front lines of the war with Ukraine formally recognizing Russian control of Crimea, which was illegally annexed by Moscow in 2014. It's a nonstarter for Ukraine. Russia would also remain in control of almost all the Ukrainian territory captured since the start of the 2022 invasion. And in return, Ukraine gets almost nothing tangible, just vague promises of security guarantees and future membership of the E.U., but not NATO. Little wonder why the plan has not been received well by the Ukrainian president, much to the annoyance of Donald Trump.
(BEGIN VIDEO CLIP)
TRUMP: I just want to see the war end. I don't care if they're both happy, they both sign an agreement. I have no favorites. I don't want to have any favorites. I want to have a deal done.
I want to save their lives.
(END VIDEO CLIP)
VAUSE: Meantime, the U.S. Secretary of State and presidential envoy skipped a meeting in London aimed at bringing the war in Ukraine to an end. CNN's Nic Robertson has details.
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: So the meeting in London scaled down. Secretary of State Marco Rubio unable to attend for logistical issues. Just a few days ago in Paris, Friday, he was the one saying that the Europeans, Ukrainians really needed to move on. They communicated to them, communicated to the Russians what a broad plan would be and that they should move on. That was echoed again today by the Vice President J.D. Vance, saying it was time for all parties to make decisions.
(BEGIN VIDEO CLIP)
VANCE: We've issued a very explicit proposal to both the Russians and the Ukrainians. And it's time for them to either say yes or for the United States to walk away from this process. We have engaged in an extraordinary amount of diplomacy of on the ground work.
(END VIDEO CLIP) ROBERTSON: So in that context of a demand for speed, surprising that Secretary Rubio didn't come to London. The meetings downgraded to officials level. The foreign Minister and Defense Minister of Ukraine did come to London, met with their counterparts here. And interesting to hear the analysis of the British defense Secretary about President Putin's so called 30-hour truce over the Easter weekend. He said that the British intelligence services didn't believe Putin had adhered to that truce.
In fact went on to say that it is Putin who is playing for time, dragging his heels here.
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JOHN HEALEY, BRITISH DEFENSE SECRETARY: So while Putin has said he declared an Easter truce, he broke it. While Putin says he wants peace, he's rejected a full ceasefire. And while Putin says he wants to put an end to the fighting, he continues to play for time in the negotiations.
(END VIDEO CLIP)
ROBERTSON: President Trump today again doubled down on Volodymyr Zelenskyy, the Ukrainian president, saying that he has no cards and he needs to get on with this deal now.
[01:05:01]
That -- what he's talking about, what Zelenskyy is talking about, about Crimea and not accepting what the United States seems to be ready to accept that Russia should keep control of Crimea, Zelenskyy says that's a red line. Trump saying very clearly it is Zelenskyy that needs to get on and sign the deal.
Nic Robertson, CNN, London.
VAUSE: Short time ago, I spoke with Robert English, the director of Central European Studies at the University of Southern California. I asked him if the statements by the U.S. vice president showed just how pro Russia this peace proposal really is.
(BEGIN VIDEO CLIP)
ROBERT ENGLISH, DIR. OF CENTRAL EUROPEAN STUDIES, UNIV. OF SOUTHERN CALIFORNIA: It's an admission of what the whole world can see. And, you know, President Trump can try to spin it by saying things like as long as both sides are happy or both sides are trading, but they're not. It's 100 percent pro-Russian and Ukraine gets nothing out of it. But what Trump is learning is that there's power and then there's power. There's ethical power, there's moral power, there's courage.
Ukraine is losing this war. And yet they refused to sign such an unbalanced deal. And our European allies are stiffening their spine and providing the arms that we're cutting off. And lo and behold, Trump thought he could muscle Zelenskyy and he can't. VAUSE: Yes, this has been going on for three months here. That peace deal on day one just hasn't appeared. And now Donald Trump says this is his last offer. Listen to this.
(BEGIN VIDEO CLIP)
TRUMP: I think we have a deal with Russia. We have to get a deal with Zelenskyy. And I hope that Zelenskyy, I thought it might be easier to deal with Zelenskyy. So far it's been harder, but that's OK.
(END VIDEO CLIP)
VAUSE: Zelenskyy says he's not giving up Crimea because it's just not possibly from a legal point of view because of the Ukrainian constitution. But explain why it's just so unacceptable to Ukrainians in the context of all they have lost over the past few years.
ENGLISH: That's exactly it. They're getting nothing in return. They're not -- even if they were to agree to give up most or all of this territory that's being demanded in return, NATO membership, some kind of concrete security guarantees, some kind of major economic invested, no. They're getting their minerals stolen. No NATO membership and no security guarantee.
Who'd accept this deal? Even the most desperate as the Ukrainians are would turn it down because it's even worse than the current situation. And as I said, they're going to show, perhaps President Trump, they're certainly trying. With the European allies behind them that they can make up for what America is not giving, and they can turn global public opinion against President Trump and maybe he'll have to reconsider his position instead of sort of, you know, taking his ball and stomping away in a huff because he didn't get his way. It's really, really unprecedentedly amateurish diplomacy to be approaching things this way and then act so petulantly when the obvious what we could expect happened is happening.
(END VIDEO CLIP)
VAUSE: Pressure continues to grow on Hamas to end the war in Gaza, but this time, the demands are coming from Palestinians. In a fiery speech, the President of the Palestinian Authority, Mahmoud Abbas, lashed out at Hamas, exposing years of animosity between his political party Fatah and Hamas. He demanded the militants group disarm and release all Israeli hostages still being held in Gaza.
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MAHMOUD ABBAS, PALESTINIAN AUTHORITY PRESIDENT (through translator): Stop the Israeli genocidal war in the Gaza Strip. This really must stop. Every day there are hundreds of deaths. Why don't they want to hand over the American hostage? You sons of dogs.
Just hand over the hostages and let's get out of this mess. Block their excuses.
(END VIDEO CLIP) VAUSE: Hamas was quick to reject those demands from Abbas while also questioning his competence. All this comes amid a renewed push for a cease fire in Gaza, with Egypt also suggesting the disarmament of Hamas.
Ahead this hour, thousands of people now pouring into the Vatican to pay their respects to Pope Francis. We'll show you the mood inside St. Peter's Basilica, where he -- the Pope is now lying in state.
Also, a convicted cardinal demanding to be part of the conclave to choose a new Pope. The standoff is brewing in the Vatican. That's next.
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VAUSE: Now to the fallout from the deadliest attack on civilians in India in nearly two decades, with tensions now rising between two nuclear armed neighbors, India and Pakistan. Protesters in three Indian cities blame Pakistan for Tuesday's terror attack which killed 26 people after gunmen opened fire in a popular tourist area in India controlled Kashmir. Pakistani flags were set on fire amid chants of down with Pakistan. Islamabad denies any role in the massacre. A search for the gunman continues, so too an investigation into who was behind the attack, even though a little known militant group called the Resistance Front is claiming responsibility.
The Indian government has now suspended a critical water treaty with Pakistan, one of several measures it's taking against it neighbors.
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VIKRAM MISRI, INDIAN FOREIGN SECRETARY: The Indus Waters Treaty of 1960 will be held in abeyance with immediate effect. The integrated check post Attari will be closed with immediate effect. Pakistani nationals will not be permitted to travel to India under the SAARC Visa Exemption Scheme visas. The defense, military, naval and air advisors in the Pakistani High Commission in New Delhi are declared Persona non grata. Support staff of the service advisors will also be withdrawn from both high commissions.
(END VIDEO CLIP)
VAUSE: Pakistan's foreign minister denounced suspension of the water treaty. Pakistan's National Security Committee is set to meet in the coming hours for a response.
[01:15:07]
Live now to New Delhi and Soumya Awasthi -- Awasthi, rather, a fellow at the Center for Security Strategy and Technology at the Observer Research Foundation. Thank you for being with us.
SOUMYA AWASTHI, FELLOW, CENTER FOR SECURITY AND TECHNOLOGY, ORF: Thank you so much, John. VAUSE: So in the wake of this attack, where do relations stand right now between India and Pakistan? There's some talk that there could be an increased chance of an escalation here. India maybe has this option, possibly of some kind of direct strike on Pakistan at some point. How do you see things? Where are they heading?
AWASTHI: So certainly post Pahalgam attack we see that the relations between India and Pakistan have deteriorated and it's only obvious that to happen because India has taken serious cognizance of what has happened. And we do expect that it will heighten the tension between the two nations. There is a possibility of further diplomatic hardening. What we have seen last night happening with Indus Water Treaty is just a step in that direction. And I think that we are ready to cut off our ties with Pakistan till the solution to this problem is achieved.
And of course there is a risk of potential conflict. And given this potential, I think all options are open on the table for India and we may not hesitate if given, you know, opportunity or something like that happens, we are forced to take any kind of action. But at the moment India is trying to become -- be more responsible and take serious decisions before not jumping into it in a knee jerk reaction.
VAUSE: I guess much will now depend on how Pakistan responds to the measures which have just been announced --
AWASTHI: Yes.
VAUSE: -- by Delhi, right?
AWASTHI: Yes. So -- yes. So Pakistan has of course post our announcement of suspending the Indus Water Treaty, they have taken -- you know, they have paid attention to what is exactly going on. There have been statements coming out from Pakistan that India should not do certain things like this. And they are in fact talking about, you know, how it is going to impact the security dynamics.
And I think there was not much, you know, in the positive or in favor of India anyways because last week General Munir gave a very fiery speech where he talks about bloodshed and he talks about religion and things like that. Then you go on to see how the Lashkar commander talks about bloodshed in (inaudible). So I mean there were already indicators that they are not really, you know, believing in peace and peaceful coexistence. So reaction from Pakistan of that kind is expected.
VAUSE: Yes.
AWASTHI: And I think India is going to retaliate in that direction.
VAUSE: One opposition rebel group says the attack in India controlled Kashmir could have been a full flag operation, a set up. Listen to this.
(BEGIN VIDEO CLIP) RAFIQ DAR, SPOKESPERSON, JAMMU KASHMIR LIBERATION FRONT (through translator): Tourists come to visit the area. Killing them is a heinous crime. We condemn it. However, this could be the work of Indian agencies to divert the world's attention from the Kashmir issue.
(END VIDEO CLIP)
VAUSE: There are similar claims from -- just one more sound bite here. There are similar claims from a Pakistani based pro-independence group. Sorry, this last sound bite. Listen to this.
AWASTHI: Yes.
(BEGIN VIDEO CLIP)
DAR (through translator): The U.S. vice president is on a four day visit to India. We understand that this is a well thought plot. It's a conspiracy to malign the freedom movement of Kashmir.
(END VIDEO CLIP)
VAUSE: What was the likelihood that India would stage a military operation killing dozens of people, many who are likely Indian tourists?
AWASTHI: Yes, so I mean on lighter note, it's a laughable comment made by those rebel groups because which country will, you know, open fire on its own citizens because it can lead to so many other issues, not just in region in terms of security, but even for the politics or the political parties it can be a big question. So I would like to refute this claim by the rebel groups. And we live in the time of information and disinformation warfare that exists. And these rebel groups have taken this as one of the modus operandi to use disinformation campaign against the government and security forces. So I think it is one of those because I don't think so.
It will be right to say for any other nation, leave aside India, to say that they will target their own citizens.
VAUSE: Yes.
AWASTHI: I would like to counter it by saying that probably Pakistan or the terrorist organizations are seeing that India and U.S. have strengthened their bonds with the Tahawwur Rana coming back to India for investigation. I think that kind of pinched Pakistan and that is why they are taking these kinds of action and making such stupid claims that, you know, India is doing it to its own people.
[01:20:00]
VAUSE: In the past, disputes between India and Pakistan have often put the United States in kind of a difficult position. But not now. Listen to the U.S. Vice President J.D. Vance, who is actually -- who was in India at the time of the attack.
(BEGIN VIDEO CLIP)
VANCE: The president's already spoken with Prime Minister Modi. I believe I'll be speaking with him later this afternoon. And obviously we're providing whatever assistance and help we can provide to the government, to the people of India.
(END VIDEO CLIP)
VAUSE: It seems that the Trump White House is firmly behind Delhi. So what does that mean for the U.S. relationship with Pakistan?
AWASTHI: So like I said previously, that Pakistan doesn't -- is not able to digest the fact that India and U.S. have relations have strengthened since the Trump era and even before. I mean, we have had strong relations with the United States and that is somewhere not acceptable to Pakistan. And they keep coming out with some claims or, you know, statements which tries to malign intent of India, whether it is about India being -- you know, they keep claiming that India is sponsoring terrorism in Pakistan. But I think it's now quite obvious that all the Muslim countries, including Saudi Arabia, have condemned the attacks and have called out on the nation which is in question, without even taking their name but it is obvious.
So -- but I think that India and U.S. jointly can put pressure on this through, you know, on Pakistan through various steps like sharing intelligence on Pakistan, because we have already been doing it and probably align the CAATSA with -- to deter the sales of advanced --
VAUSE: Yes.
AWASTHI: -- systems like Chinese J10 sea fighters and Turkish drones. And of course, in the FATF, also, I think India will get the support from the United States --
VAUSE: Yes.
AWASTHI: -- over this thing.
VAUSE: Hey, Soumya --
AWASTHI: And lastly, I think --
VAUSE: -- your final thought. Thank you.
AWASTHI: Yes. I mean, we need -- Yes. So I would -- I would urge from this platform that, you know, UNSC 1267 committee should designate the TRF leader as a global terrorist and citing the Pahalgam massacre, which is -- which was below the belt and it wasn't seen coming from a responsible nation, claimed to be responsible nation like Pakistan.
VAUSE: Soumya Awasthi, thank you so much, there in Delhi. We appreciate your time. Thank you for joining us.
AWASTHI: I'm grateful. Thank you so much and have a good day. Thank you.
VAUSE: You're welcome.
Thousands of mourners have journeyed to the Vatican to pay their respects to the man known as the People's Pope. Many have been waiting in line for hours in return for just a few seconds before the coffin of Pope Francis. It's a poignant moment to honor his life of service and his compassion.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: For me personally, it was really a beautiful experience to see our Holy Father. And I think even the people also are very happy.
UNIDENTIFIED MALE: The trip to Italy was planned months in advance. Now we're in the middle of a historic, you know, every, what, 40 years or something, or the passing of the Pope. So pretty lucky to be here. The timing was almost perfect.
UNIDENTIFIED FEMALE: His life, he visited so many countries, kissing the floor, kissing the feet of everybody. When I got in there today, I was the one giving him that kiss.
(END VIDEO CLIP)
VAUSE: The pontiff will be lying in State at St. Peter's Basilica for two more days before his funeral in Saturday. These are live images from the Vatican. The famous doors to the basilica will be reopened, or they have reopened, actually to the public just a short time ago. They will stay open until midnight local time. The question now is, will three days of lying in state be enough time for all those who want to pay their respects to this incredibly popular pope?
That is a question which remains unanswered at this point. CNN's Chief International Correspondent Clarissa Ward was able to enter the basilica and has this report.
CLARISSA WARD, CNN CHIEF INTERNATIONAL CORRESPONDENT: We've just exited the basilica where the body of Pope Francis is lying in state and will be for the next few days. There were hymns being sung softly by a choir, prayers being said, and this long line of largely silent people filing in quietly to pay their last respects to the leader of the Catholic Church, who many really viewed as transformative. And looking at the crowds who were waiting to go and pay those last respects, you could see that some of them were there to mark a moment in history. Some of them perhaps had already been here in Rome when Pope Francis died. Others clearly deeply moved by his life, by his legacy.
Quite a bit of emotion from some people trying to take the time to pray and have some reflection. We saw a lot of families, babies, children hoisted on shoulders. And of course, a lot of people, as is common in the world today, with their iPhones, trying to capture this moment.
[01:25:09] And although Pope Francis was very emphatic about his desire to live a simple and humble life, when you're standing in that basilica, in that extraordinary space, there is certainly an air of majesty. Now we're outside and you can see some people are exiting, but over here, long lines snaking around as people wait for their turn to go and pay their respects.
When Pope John Paul II died, hundreds of thousands came. And we spoke to one person who has been covering the pope for many years who said that the more people saw the images on television of visitors filing past to see the body of Pope John Paul II lying in state, the more visitors then began to flock to St. Peter's Square to be part of this historic moment. And so we will see in the coming days as more and more people gather to remember Pope Francis.
VAUSE: Clarissa Ward there.
Now a disgraced cardinal, officially declared a non-elector, is demanding to be part of the upcoming conclave which will choose the next pope. Cardinal Giovanni Angelo Becciu is the first cardinal convicted in the Vatican's criminal court, found guilty of embezzlement and fraud in 2023. Maintains his innocence and appeal is still under consideration. CNN's Christopher Lamb told Anderson Cooper what the cardinal is claiming.
(BEGIN VIDEO CLIP)
CHRISTOPHER LAMB, CNN VATICAN CORRESPONDENT: He has told reporters in Sardinia, local reporters there, that he can go to the Conclave, that although he lost those rights and responsibilities and privileges, it was never stated that he can't go to the Conclave.
ANDERSON COOPER, CNN ANCHOR: So is he still a cardinal?
LAMB: He's still a cardinal. He's considered a retired cardinal, but the Vatican lists him as a non-elector. So he can attend the meetings leading up to the Conclave, but he can't, according to the Vatican, at least go inside the Sistine Chapel. But he says he can.
Basically, it's up to those who are running the Conclave, the dean, of course, those from -- those who watch "Conclave" the movie will know about the dean and other senior figures to work out what they're going to do about this situation.
(END VIDEO CLIP)
VAUSE: After shouting matches with White House staff and with Tesla revenue plummeting, Elon Musk is planning to spend less time with the budget chainsaw in Washington, more time with Tesla. And that's already having an impact on Tesla stock. Details after a break.
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[01:33:00]
JOHN VAUSE, CNN ANCHOR: Another shift in trade policy from the White House with Donald Trump warning reciprocal tariffs could be reimposed on some countries within weeks. That is, if they fail to reach a new trade deal with the U.S.
But when it comes to China, the president appears to be taking a much softer approach. Trump says he's optimistic of reaching a deal, and gave details of what will happen if they don't.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I think what's going to happen is we're going to have a great deal. And by the way, if we don't have a deal with a company or a country, we're going to set the tariff. We just set the tariff.
It's something that we think -- that will happen, I'd say over the next couple of weeks, would you say? I think so. Over the next 2 or 3 weeks, we'll be setting the number.
And we're going to pick could be for China too. Could be for China.
(END VIDEO CLIP)
VAUSE: And according to the Treasury Secretary Scott Bessent, rebalancing trade with China could take up to three years. This latest change on tariffs came after the president met with the CEOs of major retailers Monday.
Sources telling CNN President Trump was repeatedly warned his policies would cause supply chain disruptions, which would leave store shelves empty.
Investors on Wall Street seemed encouraged by the softer, gentler stance on China, with significant gains for a second day on Wednesday.
CNN's Vanessa Yurkevich reports.
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VANESSA YURKEVICH, CNN BUSINESS AND POLITICS CORRESPONDENT: Investors have told me over the past couple of days that they've really been tracking two story lines. One, what is happening with the trade war, and what is the fate of Jerome Powell, the head of the Federal Reserve?
And they received encouraging news on both fronts, both from the treasury secretary and from the president. The president said that he was not going to terminate Jerome Powell, the head of the Federal Reserve. Investors were very, very worried about the Fed's independence and sort of the independence of the head of the Federal Reserve himself.
And then we heard from the president that he is essentially looking to de-escalate this trade war with China.
[01:34:50] YURKEVICH: That was also welcome news on Wall Street. But the Wall Street and -- the Dow closed down 400 points, off the session high for the day. Maybe investors were enjoying their profits a little bit.
And investors told me that just as much as they heard encouraging news from the president and his cabinet, that could change very quickly.
But just look at CNN's Fear and Greed Index. We are in fear territory right now, and I bring that up only because for the past several weeks, we've been in extreme fear. We haven't been in the fear space since March 27th.
But that does not erase the $6.5 trillion in losses that the stock market has seen since February, and the $2.5 trillion in losses that we've seen since the beginning of April when President Trump really ratcheted up this trade war.
And I want to read you something from Greg McBride. He's the chief financial analyst at Bankrate. This is how he kind of summed up how the markets and investors are feeling right now.
He told me that a softer tone about the Federal Reserve is welcome news to investors, and the market has responded to that.
Turning down the heat in the trade war with China is nice to hear, but it will ultimately need to be followed up by action. Where the rubber meets the road is in the details of an eventual trade agreement.
Until then, uncertainty will continue to hang over the economy and financial markets.
(END VIDEOTAPE)
VAUSE: Donald Trump has said for days now, direct active talks are underway to reach a trade deal with China, but officials in Beijing will only say they're open to direct talks with the Trump administration, while also warning the threats and the blackmail must stop.
More now from Steven Jiang.
(BEGIN VIDEOTAPE)
STEVEN JIANG, CNN BEIJING BUREAU CHIEF: China's response to the dramatic climbdown from President Trump and the equally telling remarks by his Treasury Secretary, rather predictable, with a government spokesman on Wednesday reiterating that Beijing would fight this trade war to the end if needed. But also leaving the door open for potential talks, stressing, though, that they would not negotiate under threats or pressure.
Now, this kind of consistency is why a lot of people, both inside and outside the Chinese government, would probably agree that without having to do much, Beijing already seems to have the upper hand here in this latest round of exchange. Because in contrast to all these flip flopping and twists and turns
from Washington, the Chinese have been standing their ground. They want to be perceived as the upholder of international order and norms. They really want to be seen as the adult in the room, if you will.
And that's perhaps due to them studying Mr. Trump for a long time. And the conclusion from here seems to be concessions will only invite more pressure and the only language this president understands and respects is leverage.
Now, very interestingly, just a few days ago, I talked to a well- connected source who is familiar with the leadership's thinking here, and he told me oftentimes they would notice Mr. Trump talking very nice and sweet about China, about his relationship with Chinese leader Xi Jinping. Then quickly, they would notice Mr. Trump's cabinet secretaries and senior officials again spewing out very hawkish views about China.
And this source said, given Mr. Trump's total control over his people now by not publicly rejecting those hostile views towards China, the president seemed to be condoning them.
And that just very much runs counter to three things they really want to see from the White House before any progress can be made on those potential trade talks. And those things are reciprocity, sincerity, and perhaps more importantly, consistency.
Steven Jiang, CNN -- Beijing.
(END VIDEOTAPE)
VAUSE: Tesla shares were up more than 5 percent Wednesday, notably the day after Elon Musk announced he will be spending less time at the White House and more time at Tesla.
The EV makers profits have plunged 71 percent in the first three months of the year. Sales have also slumped, partly because of strong competition from Chinese car makers and because Musk's work with the Department of Government Efficiency and his support of far-right groups has turned off many progressives who traditionally have bought electric vehicles from Tesla.
With us now is Allen Root, an associate editor at the financial magazine "Barron's", sister publication of "the Wall Street Journal".
Welcome back. It's good to see you.
ALAN ROOT, ASSOCIATE EDITOR, "BARRON'S": Thanks, John.
VAUSE: So critics say this decision by Musk to spend more time at Tesla, less time firing government workers, won't actually help Tesla's bottom line. The damage is done, too little, too late according to "Business Insider" quoting traders.
One of those traders told CNN "This idea that he's focused on Tesla, so its sales are going to pick up are complete garbage. The damage that he's done is 100 percent irreversible."
There seems to be two issues here. There's the damage to Tesla from Musk's reputation among progressives like Senator Mark Kelly. Listen to this.
(BEGIN VIDEO CLIP)
SEN. MARK KELLY (D-AZ): Elon Musk kind of turned out to be (EXPLETIVE DELETED) and I don't want to be driving the car built and designed by an (EXPLETIVE DELETED).
(END VIDEO CLIP)
[01:39:48]
VAUSE: And then there's the amount of time he spends actually running the company, Tesla. What's more important for Tesla? Musk laying low maybe get out of the spotlight for a while? Or the time he spends actually running the company?
ROOT: Well, both -- those could be one and the same. I chuckled a little bit about those because those are certainly one side of the argument.
Now is the brand damage that Tesla management actually admitted to on the Q1 earnings call permanent. You know, we'll have to see.
Stepping back from DOGE is a great thing. You see that, Tesla's first quarter earnings were relatively weak. The stock still went up 5 percent, mostly because Elon was going to spend more time in Austin, Texas, less time in Washington, D.C.
As opposed to -- as part of laying low, I mean, you know, he does need to repair some of the damage, whether that is launching new vehicles. Tesla would argue that launching self-driving robo taxis will help restore some of the luster. They won't be in sort of a Bud Light situation by virtue of improving products and expanding product lines.
So time will tell. But Tesla is Musk, and Musk is Tesla. He's inextricably linked to the brand and the company so lying low might not be enough. It'll just be -- it really is up to him in terms of change of behavior and tone to see if he can bring back some of those left leaning people that are more willing to buy EVs that he alienated in the first quarter.
VAUSE: Well, Musk did also add that his time at the White House isn't over just yet. Here he is.
(BEGIN VIDEO CLIP)
ELON MUSK, CEO TESLA: I'll continue to spend, you know, a day or two per week on government matters or as long as the president would like me to do so and as long as it is useful.
But starting next month I'll be allocating far more of my time to Tesla. (END VIDEO CLIP)
VAUSE: There's a big if over that actually happening. And even if he has a lower profile, will it be a constant reminder if he does those two days a week of the past few months, you know, like that appearance at CPAC, the conference of ultra conservatives when he was running on stage, gleefully swinging a chainsaw over his head.
ROOT: I mean, we're talking about rate of improvement. The -- metaphorically, perhaps literally, I mean, he was constantly at Mar-a- Lago and in the Oval Office. So if that's seven days a week -- I work at Barron's, but my math will be slightly off. I mean, he's taking that down by 75 percent if he's only there 1 or 2 days a week. So it's a good thing. And then we'll see where it goes from here.
VAUSE: The president also seems ok with Elon moving on. Here he is.
(BEGIN VIDEO CLIP)
TRUMP: I told him, I said, you know, whenever you're ready. I'd like to keep him for a long time, but whenever you're ready. He's an exceptional guy.
(END VIDEO CLIP)
VAUSE: Maybe not so exceptional at overhauling the federal government. According to a CNN poll from March, an overwhelming number of Americans believe he has neither the experience nor the judgment for that job. That poll also found Musk was weighing down Trump's poll numbers.
So, you know, has their relationship, for the most part, run its course? And also the relationship with others within the White House.
He had a shouting match with the U.S. Treasury Secretary, also had an argument last week with the economic adviser. Peter Navarro called him a moron. So maybe this really is a parting of the ways where everyone's quite happy it's happening.
ROOT: Amicable separation. Now, I think it's -- always -- I think I warn investors, readers of "Barron's" to sort of, not be too quick to put a fork in the friendship between President Trump and Elon Musk. I think it can be enduring.
But to your point some of those conflicts, actually, you know, in some respects investors would love it if the president listened to Elon because he is no fan of tariffs. That's -- that was the big blow up between him and Peter Navarro. The Scott Bessent blow up probably also related to tariffs.
Elon is more of a free trader. So in a perfect world investors got exactly what they wanted. They would have Elon focused on the car company, and they would have the president leaning a little more his way about tariffs. That would be near-term euphoric solution for investors. We might not get that much. But some of those tensions are probably around tariffs. But I don't necessarily think it means that he's going to leave Washington completely with his tail between his legs.
VAUSE: OK. Al, thank you very much. Al Rood there, associate editor of "Barron's". Thanks for taking the time. It's always good to see you.
ROOT: Anytime.
VAUSE: Still to come. Tesla may soon have bigger problems than Elon Musk's damaged reputation, with another jaw-dropping technological breakthrough for a Chinese EV maker. We'll take you to China's biggest car show in a moment.
[01:44:48]
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VAUSE: Once numbering in the millions, the African penguin is essential for sustaining coastal ecosystems. But the species is now on the brink of extinction.
Today on "Call to Earth", we visit Cape Town in South Africa where scientists and volunteers are working to save the iconic water bird.
[01:49:47]
(BEGIN VIDEOTAPE)
UNIDENTIFIED FEMALE: On a blustery summer morning along South Africa's western cape --
UNIDENTIFIED MALE: You guys ready?
UNIDENTIFIED FEMALE: -- a celebratory offering to the sea.
UNIDENTIFIED MALE: One, two, three. Go.
UNIDENTIFIED FEMALE: These African penguins are rejoining their colony and returning to the chilly waters of the southern Atlantic Ocean. The reunion is a win for the scientists and volunteers at SANCCOB, the Southern African Foundation for the Conservation of Coastal Birds, and a small victory that's becoming as rare as the penguins themselves.
JADE SOOKHOO, REHABILITATION MANAGER, SANCCOB: Rehabilitation for the African penguin is very important at this stage. The numbers are dwindling. We are struggling a lot with the population decline in the wild.
UNIDENTIFIED FEMALE: Dire warnings from scientists predict the African penguin could face extinction within the next ten years.
A century ago, their numbers had reached more than a million. Today, an estimated 99 percent of them are gone.
DR. DAVID ROBERTS, CLINICAL VETERINARIAN, SANCCOB: So for the last seven years I've been working at SANCCOB, the numbers of patients every year have actually declined And that's because there are not as many penguins in the wild anymore.
UNIDENTIFIED FEMALE: Dr. David Roberts says that most of his surgical work is the result of trauma injuries, which can be caused by anything from pollution to plastic entanglement. But he says, more often than not, the injuries are the result of a predator's bite.
ROBERTS: We did a procedure on an African penguin. Our number for him here is AP 200. He's the 200th penguin that's come in this year. And he was admitted with a wound on his toe.
We're not sure what caused it. Often we don't know what happened in the wild. But what happened was the end of the toe had a large wound on it, and the nail bed had become infected. The nail had actually come off already, and he had a bit of a bone infection there as well.
UNIDENTIFIED FEMALE: In addition to surgeries, SANCCOB works in many other ways to safeguard the penguins. The work includes rearing baby chicks and providing care for up to 500 wounded penguins at a time inside a world class rehabilitation center.
It's a place where many injured or struggling birds can get their sea legs back.
SOOKHOO: We are watching these birds every day coming in with quite severe trauma, with injuries, with emaciation problems. They are struggling a lot out in the wild.
UNIDENTIFIED FEMALE: Gavin Petersen is a seabird ranger at the Stony Point Penguin Colony in Bettys Bay (ph). He says his job is to ensure every penguin has a fighting chance at surviving in the wild.
GAVIN PETERSON, STONY POINT PENGUIN COLONY: There's not a lot of fish around for them. Nowadays, you see lesser birds, you have lesser nests occupied with birds. (INAUDIBLE) also global warming, that stuff is also playing a big role.
UNIDENTIFIED FEMALE: In March, conservationists and the commercial fishing industry reached a deal to create six no fishing zones around penguin breeding colonies along the south and west coastlines. It's a major step forward for people like rehabilitation manager Jade Sookhoo, who work every day to save these iconic and often charismatic seabirds.
SOOKHOO: My hope for the future is that we can turn the tide and to try and help these birds as much as possible. They're such a unique species. They've got such character. It is the only species that lives under the African sun.
A lot of people, when you say penguin, they'd picture icebergs and snow. But this penguin lives on the beach. They thrive in the heat. They thrive in the summer.
And it would be really sad to see such a beautiful and magical species just go extinct. (END VIDEOTAPE)
[01:53:40]
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VAUSE: For the most part, success or failure of an electric car mostly comes down to the battery, how fast it charges and how far it will travel is key. In the past few months, two Chinese EV makers have announced incredible leaps in both. And that's just part of the story of China's hyper competitive auto industry.
CNN's Marc Stewart reports from the Shanghai car show.
(BEGIN VIDEOTAPE)
MARC STEWART, CNN CORRESPONDENT: When we look at this U.S.-China trade war, technology is a big part of it. We're on the ground here in Shanghai at the largest auto show in China.
It's a chance for Chinese companies, of course, to show off their innovations, but it's also a chance for China to show that it's a force and it doesn't need the U.S. to thrive.
The unveiling of this blue car here is one of the most anticipated events of the entire show. It's from Chinese auto giant BYD and its Denza brand, its first concept sports car.
As you can see, it's very aerodynamic. It's got a spoiler on the back. This is a big deal because BYD is really a fierce competitor to Tesla.
This isn't just style, these cars have a potential for speed. This is the 7 GT from the brand Zeekr. It can go from zero to around 60 in just about three seconds.
This car is attention-getting, not just for its bright color, but for its connectivity. It's from a company called Xiaomi. It's a phone company. A lot of people have their phones. One feature is that you can control some of the different appliances from your car from this very panel in front.
Because of tariffs, Chinese car makers are locked out of the American market. But they're firmly planted in China, which is the world's largest automobile market. They've also been expanding to places like Europe and to Africa, showing that they don't have to have American buyers to be successful.
Marc Stewart, CNN -- Shanghai.
(END VIDEOTAPE)
VAUSE: Thank you for watching. I'm John Vause.
Please stay with us. CNN NEWSROOM continues with my friend and colleague Rosemary Church, after a short break.
See you right back here tomorrow.
[01:57:12]
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