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North Korean to Send Up to 30,000 More Troops to Russia; U.S. Pauses Some Military Aid to Ukraine; Sean "Diddy" Combs Denied Bail After Jury Convicts on Two Charges; U.S. House Divided Over Trump's Budget Bill; Hamas Leaders to Consider Latest Gaza Ceasefire Plan; Europe Battles Dangerous High Temperatures; Tesla Reports Record Sales Plunge from Last Year. Aired 12-12:45a ET
Aired July 03, 2025 - 00:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[00:00:45]
JOHN VAUSE, CNN INTERNATIONAL ANCHOR: A pause in some U.S. supplied weapons for Ukraine has the Kremlin seeing victory, ahead on CNN NEWSROOM.
(BEGIN VIDEO CLIP)
DMITRY PESKOV, KREMLIN SPOKESPERSON (through translator): The less weaponry is supplied to Ukraine, the closer the end of the special military operation.
(END VIDEO CLIP)
VAUSE: The Trump administration placing a hold on air defense munitions amid a surging Russian aerial assault on Ukraine.
(BEGIN VIDEO CLIP)
REP. MIKE JOHNSON (R-LA): We can't make everyone 100 percent happy. It's impossible.
(END VIDEO CLIP)
VAUSE: Like herding cats. The scramble by Republican leaders in the House to secure enough votes for the president's mega budget bill now on hold.
(BEGIN VIDEO CLIP)
MARC AGNIFILO, SEAN COMBS' ATTORNEY: Today is a great victory. It's a great victory for Sean Combs.
(END VIDEO CLIP)
VAUSE: Not guilty on charges of racketeering and sex trafficking. But Sean "Diddy" Combs will still face up to 20 years in jail, as well as dozens of civil suits.
ANNOUNCER: Live from Atlanta, this is CNN NEWSROOM with John Vause. VAUSE: Amid an unprecedented surge in Russian airstrikes on Ukraine,
the Pentagon has confirmed a review is underway of all U.S. military aid and deliveries of anti-missile missiles for the Patriot air defense system to Ukraine are on hold. The Pentagon says the review is meant to align all spending on military assistance globally, with President Trump's America First agenda.
(BEGIN VIDEO CLIP)
SEAN PARNELL, U.S. CHIEF PENTAGON SPOKESPERSON: We see this as a common sense, pragmatic step towards having a framework to evaluate what munitions are sent and where.
(END VIDEO CLIP)
VAUSE: But a senior Ukrainian official says a pause in weapons shipments, especially for the Patriot system, would be inhumane, leaving civilians increasingly vulnerable to a Russian air attacks. Ukrainian President Volodymyr Zelenskyy has been left scrambling for more information and clarity from the White House.
(BEGIN VIDEO CLIP)
VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT (through translator): Technical level discussions between Ukraine and the U.S. are ongoing to clarify all details related to the delivery of defense aid especially air defense components.
(END VIDEO CLIP)
VAUSE: As for Moscow, pausing weapons deliveries, they say, to Ukraine will help bring an end to their so-called special military operation. Now to its fourth year.
Well, already outnumbered Ukrainian forces could soon face even more pressure on the front lines. A Ukrainian intelligence assessment has found North Korea plans to send tens of thousands of troops to fight alongside Russians.
CNN's Nick Paton Walsh has this exclusive report.
(BEGIN VIDEOTAPE)
NICK PATON WALSH, CNN CHIEF INTERNATIONAL SECURITY CORRESPONDENT (voice-over): They brought near suicidal ruthless tactics. The rumblings of a war going global. 11,000 North Korean troops helped Russia expel Kyiv's soldiers from its border of Kursk. But that, it seems, is just the start.
CNN has learned up to 30,000 more may be headed to the front lines, according to Ukrainian intelligence, for use in a summer offensive, with Moscow hungry for manpower and Pyongyang keen to school its troops in brutal trench and drone warfare.
They were first seen here in October, but recently the routes used then could be active again. A troop carrying Laputa ship was seen here on May 18th, the same type of vessel at the same Russian port used in transports last year, experts said.
Ukraine also assesses Russia will refit transport planes like the one seen on the tarmac here again in June at North Korea's Sunan Airport to move so many North Koreans. Likely air or rail will take them across Siberia to the front line, 10 kilometers east of Kursk, this camp is enlarged in recent months. Further evidence of North Korean build up.
CNN has geolocated to hear the six-minute video report from a part Korean-Russian correspondent. The report surfaced 48 hours after the Kremlin's first admission of the North Korean deployment.
UNIDENTIFIED FEMALE (through text translation): Such a good bunker. Warm.
PATON WALSH: They are not only training, but appear to have new long- term bunker accommodation and equipment. The tastes of home, red Korean pepper and homemade propaganda. It says, "Revenge for our fallen comrades."
[00:05:04]
This Russian instructor says his new trainees are aged 23 to 27.
UNIDENTIFIED MALE (through text translation): The guys arrive in good physical condition. Their fighters are as good as ours. The enemy runs away first. And the enemy does run, because it's afraid of a gun fight.
PATON WALSH: And there's a translation sheet to get over the language barrier, which meant the first units operated separately from the Russians.
State media has shown videos of both countries now training together. Here, in the same training ground, a Russian shows how to use a shotgun to take down a drone. Others practicing clearing buildings together. More signs are open. Putin's top presidential adviser, Sergei Shoigu, visiting Kim Jong-un here for the second time in a fortnight, announcing a thousand mine clearers and 5,000 military construction workers to rebuild Kursk region.
Perhaps a sign Moscow is indeed short of the manpower it has sent mercilessly into the fight, but also that it is not short on allies who share their ruthless commitment.
Nick Paton Walsh, CNN, London.
(END VIDEOTAPE)
VAUSE: Live now to Washington and CNN military analyst and retired U.S. Air Force Colonel Cedric Leighton.
Good to see you, Colonel.
COL. CEDRIC LEIGHTON, CNN MILITARY ANALYST: Good to be with you, John. VAUSE: So Ukraine receives U.S. military assistance two ways. There's
direct drawdowns from existing stockpiles from the Pentagon. There's also the Ukraine Security Assistance Initiative. And according to former National Security adviser Jake Sullivan, who wrote an op-ed in "The New York Times," "USAI I deliveries, the main target of the pause are sourced from procurement contracts, not from Pentagon stockpiles, and are distinct from orders for the U.S. military."
So if you put this together, in other words, the reason for the hold that were getting doesn't actually explain what is on hold and why. So what do you make of all of this?
LEIGHTON: Yes, I think it's a huge mistake, John, that the Trump administration is putting out there because they basically feel that they want to stop this war and they feel the way to do that is to prevent weapons deliveries from getting to Ukraine. But it is precisely the opposite of what is the real way to do this.
The only way to get the Russians to stop this war, stop their incursions, is to bring in more weapons to Ukraine, to make Ukraine basically a very dangerous place for them to operate in, for basically make their weapons ineffective. And if they don't have the weapons, such as the Patriot missile or such as, you know, some of the other weapons systems, then the Ukrainians risk losing territory and certainly losing lives, especially civilian lives.
And this type of policy that they're promulgating, as Jake Sullivan pointed out, is basically an error. There is no reason that it is related to U.S. military stockpiles. And it is basically a false equivalency that they're drawing here.
VAUSE: And a number of NATO countries actually operate the Patriot air defense system. They have their own stockpiles, but legally they can't transfer those anti-missile missiles to Ukraine. Here's a Ukrainian lawmaker to explain why.
(BEGIN VIDEO CLIP)
FEDIR VENISLAVSKYI, UKRAINIAN LAWMAKER (through translator): Any transfer of such weapons, in accordance with international rules of trade and arms supply, requires the consent of the manufacturer. That is, if the United States of America approves the transfer of such missiles by those countries that have them, then Ukraine has a chance to receive them.
(END VIDEO CLIP)
VAUSE: So let's assume for a moment that, you know, the Trump administration is being truthful, that there is a shortage of U.S. anti-missile missiles for the Patriot, at a minimum then the White House could actually authorize a transfer from European allies of these missiles to Ukraine, especially given this unprecedented surge in Russian airstrikes in recent weeks.
LEIGHTON: That's exactly right. And in fact, it would be militarily a necessity for the U.S. to authorize that kind of transfer from, let's say, Germany or one of the other NATO allies. Failure to do this really risks not only making the air defenses in Kyiv almost meaningless, but what it really does is it shows the Trump administration's unwillingness to poke Russia in the eye. And that is precisely what is needed in this particular situation because if Russia doesn't get poked in the eye, they are going to continue these offensives, they're going to continue their war effort.
Even if they can't sustain these offensive operations, they can still, in essence, provoke a whole field of misery for the Ukrainians. And that is, that is a significant problem for the war effort and really for NATO security.
VAUSE: Yes, which explains why this announcement of a pause by the White House and weapons shipments was welcomed by the Kremlin. Here's spokesperson, Dmitry Peskov.
[00:10:03]
(BEGIN VIDEO CLIP)
PESKOV (through translator): As far as we understand, the reason for this decision was empty stockpiles, a shortage of these weapons in storage. In any case, the less weaponry is supplied to Ukraine, the closer the end of the special military operation.
(END VIDEO CLIP)
VAUSE: That's that last part. Never a truer word spoken by Peskov. So without military support to Ukraine, you know, this just sees Russia getting closer and closer to victory. It is a significant move by the Trump administration.
LEIGHTON: It really is. And that victory, of course, would include the subjugation, the complete subjugation of Ukraine. That's the Russian goal. That is something that has -- that they've not deviated from the beginning of this special military operation, so-called special military operation. And really, they haven't deviated from this since 2014, when they first invaded Crimea. So it is an extremely dangerous move for the United States to do this.
It is basically a situation that they've that the United States is putting Ukraine in, that could result in their inability to fend off Russian attacks. And those Russian attacks include record numbers of drones and missiles that are hitting Ukrainian cities well over 500 in, you know, in one night. And that is something that makes it very difficult for the Ukrainians to overcome. They can overcome this, but they really need the support of the of the U.S. in order to make that happen.
VAUSE: Yes. And when we talk about this, the Patriot defense system, we're talking about saving lives every night, every day, you know, while these Russian strikes go on. So without the, you know, weapons shipments, people will die.
Cedric Leighton, thank you, sir.
LEIGHTON: Yes. For sure.
VAUSE: Appreciate your time.
LEIGHTON: You bet, John.
VAUSE: Indonesian rescue crews are searching for at least 38 people still missing after a ferry sank overnight near Bali. The Associated Press reports 65 people were on board when the ferry went down, about half an hour after leaving East Java. Police say 23 people have been rescued. Four bodies have been recovered.
Ferries are a common form of transport amid Indonesia's 17,000 islands, and poor safety standards means accidents like these are common.
Entertainment mogul Sean "Diddy" Combs has been denied bail after a jury returned a split verdict in his federal criminal trial Wednesday. Combs was cleared of the most serious charges of racketeering and sex trafficking, but he was convicted on two counts of transportation to engage in prostitution. Prosecutors accused Combs of leading a criminal enterprise and using employees to commit criminal acts, including forcing Combs' former girlfriend Cassie Ventura and another woman into drug fueled sex acts.
Ventura's attorney says they wanted convictions across the board, but are still pleased that Combs faces time in prison.
(BEGIN VIDEO CLIP)
DOUG WIGDOR, CASSIE VENTURA'S ATTORNEY: We're pleased that he's finally been held responsible for two federal crimes, something that he's never faced in his life. He still faces substantial jail time. Of course, we would have liked to have seen a conviction on the sex crimes in RICO, but we understand beyond a reasonable doubt is a high standard. And we're just pleased that, that he still faces substantial jail time.
(END VIDEO CLIP)
VAUSE: Combs is facing a maximum of 20 years in prison, but that will likely be a much shorter sentence.
CNN's Kara Scannell has more details now reporting in from New York.
(BEGIN VIDEOTAPE)
KARA SCANNELL, CNN CORRESPONDENT: Sean "Diddy" Combs was acquitted of the most serious charges he was facing. The jury finding him not guilty of sex trafficking and racketeering conspiracy. He was found guilty of two counts of transportation to engage in prostitution. Still, his lead attorney, Marc Agnifilo, after court called it a great victory.
AGNIFILO: Today is a great victory. It's a great victory for Sean Combs. It's a great victory for the jury system. You saw that the Southern District of New York prosecutors came at him with all that they had. They're not stopping. But one thing stands between all of us and a prison. And that is a jury of 12 citizens. And we had a wonderful jury. They listened to every word, and they got the situation right, or certainly right enough.
SCANNELL: Inside of court, as the jury foreperson said, that they had found Combs not guilty of the first two charges, racketeering conspiracy and sex trafficking involving Cassie Ventura, Combs had given a slight fist bump, and members of the family and the spectators section, his supporters let out a yes and a woo. Clearly release of tension that they had felt as they were awaiting this verdict.
Sean Combs himself had dropped to his knees before he spoke to his family members, putting his hands again in the sign of a prayer. And then he turned to them, and he said to them, "I love you," and as he was escorted out of the courtroom. Now once his lawyers were left there, they addressed the family members. They were hugging each other, slapping each other on the back. And as Combs had left, they were -- the family members were applauding. And then they turned and they started chanting, "Dream team, dream team," to his lawyers.
[00:15:01]
Now they came back later in the day and the judge denied releasing Combs on bail, saying that there was a history of violence and that Combs had blatantly disregarded the law. Combs seemed surprised by that. His eyes had widened, his mouth had dropped open, and at one point he wanted to talk to the judge, waving his hands in the air, although that his lawyers seem to have convinced him not to do that.
The judge sent a tentative sentencing date for October, though there is a hearing next week because Combs' legal team wants to expedite this sentencing hearing so that he can get sentenced and then eventually be released to his family. As Combs, again, was leaving the courtroom, he said, "I'll see you when I get out. Love you all. Be strong."
Kara Scannell, CNN, New York.
(END VIDEOTAPE)
VAUSE: In a moment here on CNN, a glimmer of hope for a ceasefire in Gaza. But still, at least one major hurdle is to be cleared before it becomes reality. That's just ahead.
(COMMERCIAL BREAK)
VAUSE: Breaking news from Washington with another long overnight session in Congress, this time for the lower House. Members are voting on whether to bring President Trump's sweeping domestic agenda bill to the floor for debate. Republicans can afford to lose only three votes. As it stands right now, five Republicans have voted no.
[00:20:02]
Several other holdouts have not voted yet. GOP leadership plans to keep this vote open for as long as it takes to try and flip enough of those no votes to yeses.
Live now to CNN's Brian Todd in Washington.
What a day, Brian. What a night. And now what a morning. So where does this deadlock stand right now with these five no votes? How much longer is this expected to drag on?
BRIAN TODD, CNN CORRESPONDENT: Well, John, House Speaker Mike Johnson says he's going to keep this vote open for as long as it takes. So this could drag on for several more hours. We're just going to be here pretty much all night, all morning long to wait and see how this is finally resolved.
As you mentioned there are now five no votes, and that's a dramatic development in and of itself, because as of maybe just a few minutes ago, there were only four, but a few minutes ago, Congressman Thomas Massie, a Republican from Kentucky, said he would flip to a no. And this is -- these are no votes on the procedural vote just to get it to a final House passage. So right now they have five no votes and they can only afford three.
The five are, as we mentioned, Congressman Thomas Massie of Kentucky, Congressman Andrew Clyde, a Republican from Georgia, Congresswoman Victoria Spartz from Indiana, Congressman Keith Self from Texas, and Congressman Brian Fitzpatrick, he's a moderate from Pennsylvania. Those are the five voting no on this procedural vote. And they have to try to flip those just to get this to final House passage.
Also, we can tell you that eight Republican representatives have not voted yet at all. So they're trying to get them to come here and vote as well. So things not going House Speaker Mike Johnson's way at the moment, but he says he's going to keep this session open for as long as it takes. So this could really be just playing out in the hours ahead.
They have, of course, promised to try to get this onto President Trump's desk on the 4th of July. That's Friday, and we'll see if they can do it. But they've got to get through this procedural vote first.
And right now it's hit a snag, John. We can tell you that President Trump has been instrumental in getting some of the holdouts to flip to his side. He met with several of them for several hours on Wednesday and did convince some of them to come to his side. They have won over a couple, at least a couple of hardcore Republicans who were adamantly opposed to this bill. But right now you've got these five holdouts plus eight representatives who have not voted at all yet, John. So it's hit a real snag at this point.
VAUSE: Just very quickly, Brian, we're almost out of time. But, you know, because this vote is being held open, if you voted no earlier, you can then change your vote and say yes?
TODD: That's right. And that's what Thomas Massie has done. He was going -- he said he was going to vote yes on this procedural vote up until a few moments ago. Now he's voting no. And there was one congresswoman who's still among the five holdouts. She was always going to vote yes on the final passage, but is voting no on the procedural vote. So, yes, you can vote one way on one and another way on another. And that is also causing headaches for the speaker.
VAUSE: And changing your vote it looks like once you voted, it seems like it's an open palooza there.
TODD: Right.
VAUSE: Brian Todd in Washington. Hope you unpack your jammies and have a good night. Thanks for being with us.
TODD: Thank you.
VAUSE: OK.
Senior Hamas leaders expected to meet Thursday to decide on whether or not to accept a new U.S. ceasefire plan for Gaza. That's according to a source who says that if Hamas agrees, it would quickly move on to further talks with the -- with Israel. Its government is already on board with the proposal, which reportedly calls for the release of at least some hostages held in Gaza during a 60-day ceasefire.
Jeremy Diamond has more.
(BEGIN VIDEOTAPE)
JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT: Well, since President Trump posted Tuesday night that Israel has agreed to the latest proposal for a ceasefire and hostage release deal, we've been trying to understand what is new about this latest proposal, what is different from the proposal that Steve Witkoff, the U.S. special envoy, presented just a month ago to Israel and to Hamas.
An Israeli official who I've spoken with says that there are indeed stronger assurances from the United States and from the mediators about reaching a settlement to end the war in Gaza, meaning a stronger commitment from the United States to ensure that those negotiations that are supposed to take place during this 60-day ceasefire and perhaps beyond as well, that they ultimately lead to a permanent ceasefire between Israel and Hamas.
I'm told that Ron Dermer, the Strategic Affairs Minister, one of Prime Minister Netanyahu's closest advisers, he agreed to this proposal on Tuesday while he was in Washington. In addition to those stronger assurances I'm told that Israel has also agreed here to allow for a surge of humanitarian aid during this 60-day ceasefire through the traditional United Nations run humanitarian channels and not through this controversial U.S. and Israeli backed Gaza Humanitarian Foundation.
Now the question is, will Hamas accept this? Hamas has now confirmed that they have received this latest proposal and they say that they are conducting, quote, "national consultations," but they reiterate once again that they are aiming to reach an agreement that ends the war and secures the withdrawal of Israeli forces. And so the question now is whether or not this stronger language in this latest proposal will be enough to bridge that gap with Hamas.
[00:25:03]
And, of course, Prime Minister Netanyahu still contending with a very volatile domestic political situation as right-wing members of his government, Bezalel Smotrich, Itamar Ben-Gvir, are both signaling opposition to another ceasefire proposal. The prime minister set to convene his full cabinet on Saturday night to discuss all of this before he heads to Washington on Sunday.
Jeremy Diamond, CNN, Tel Aviv.
(END VIDEOTAPE)
VAUSE: Iran's president has signed off on suspending cooperation with the U.N. nuclear watchdog. Tehran has accused the International Atomic Energy Agency of collaborating with Israel during its strikes on nuclear facilities over the last few weeks, claiming the -- claims which the IAEA denies. There's been a lot of criticism of this move by Iran coming from the U.S. State Department.
(BEGIN VIDEO CLIP)
TAMMY BRUCE, U.S. STATE DEPARTMENT PRESS SECRETARY: It is we'll use the word unacceptable that Iran chose to suspend cooperation with the IAEA at a time when it has a window of opportunity to reverse course and choose a path of peace and prosperity. Iran must cooperate fully without further delay.
(END VIDEO CLIP)
VAUSE: There's now concern Iran will send its nuclear program underground, try and rebuild it in obscurity. New satellite images appear to show repairs taking place at Fordow nuclear facility, the one inside the mountain, which was hit last month by U.S. bunker buster bombs.
In a moment, wildfires are still raging in Turkey. How some countries around the Mediterranean are now coping with an extreme heat wave. That in a moment.
(COMMERCIAL BREAK)
VAUSE: Welcome back, everyone. I'm John Vause. Let's take a look at today's top stories.
[00:30:05]
A judge has denied bail to entertainment mogul Sean "Diddy" Combs after the rapper was convicted on two criminal counts Wednesday.
The jury found him guilty of the lesser charges of transportation to engage in prostitution and cleared him of the more serious charges of racketeering and sex trafficking.
The Associated Press reports more than three dozen people remain missing after a ferry sank overnight near Bali, Indonesia. The vessel sank about half an hour after leaving East Java. Police say four bodies have been recovered. Nearly two dozen people have been rescued so far.
Donald Trump says he's reached a trade deal with Vietnam. The U.S. president announced a 20 percent tariff of Vietnamese exports into the U.S. and 40 percent tariff for transshipping, which refers to goods originating in another country before being shipped from Vietnam.
Donald Trump says the agreement gives the U.S. access to Vietnam's markets with, quote, "zero tariffs."
The number of wildfires burning in Turkey continues to grow, all made worse by an extraordinary heatwave across the region. Air tankers and helicopters dumped water on fires around the province of Izmir, where 42,000 people have been evacuated.
In Madrid, Spain, the heatwave sent temperatures soaring near 40 degrees Celsius. That's more than 100 degrees Fahrenheit.
CNN's Melissa Bell now has more on how people are trying to stay cool in the blistering heat.
(BEGIN VIDEOTAPE)
MELISSA BELL, CNN INTERNATIONAL CORRESPONDENT: All across Europe, scenes like these repeating themselves, people seeking whatever relief they can from the scorching heat.
It is yet another very hot day across huge parts of Europe. The big peak of this heat wave appears to have been on Tuesday, when records were reached in Spain, one town recording 114 degrees Fahrenheit; 115 in one town in Portugal.
BELL (voice-over): Here in Paris, one of the hottest days on record. And the point about these heat waves, beyond the toll. We know that two people have died here in France --
BELL: -- as a result of the heat yesterday. Two deaths reported in Spain, as well, due to a wildfire there.
Beyond the immediate human toll, the fact that these heat waves are having so -- happening so early, there are fears of more wildfires spreading over the course of the summer.
And of course, the main point here is that Europe is not adapting fast enough to the climate change that is happening faster here than anywhere else on Earth. The climate is getting hotter in Europe twice as fast as it is anyone else, which has, of course, huge implications, not just for tourism. The Eiffel Tower closed now for the second day in a row.
BELL (voice-over): The point is, these heat waves are happening summer after summer here in Europe. Temperatures the continent had not been used to when these cities were built, and they need to be re-equipped. Of course that can't happen quickly enough in many European cities,
with the death tolls that we're seeing and the difficulty that there is for cities to adapt for what we expect will be another scorching summer here in Europe.
BELL: Melissa Bell, CNN, Paris.
(END VIDEOTAPE)
VAUSE: The sweltering heat is changing travel plans for many in Europe, the world's fastest warming continent. The European Travel Commission says the climate crisis is affecting plans for 81 percent of Europeans.
That's up 7 percent from last year, and that includes just simply watching weather forecasts more closely and choosing destinations where temperatures are a little more mild.
The second day of a religious conference is underway in Northern India to mark the Dalai Lama's 90th birthday this coming weekend.
Tibetan Buddhists welcomed his announcement Wednesday that he intends to reincarnate after his death. The Dalai Lama says his office is the only authority with the power to recognize the future reincarnation.
That announcement ensures the centuries-old tradition will continue. It could lead to a showdown with Beijing's atheist Communist Party, which insists that it alone holds the authority to choose the Dalai Lama's successor.
He's urged his followers to reject any candidate chosen by Beijing.
The Princess of Wales is opening up about the difficulties of life after chemotherapy. Catherine's comments came during a visit to the Wellbeing Garden at England's Colchester Hospital in -- on Wednesday, rather.
She hasn't said much about her cancer treatment, but she spoke with patients at the hospital about the personal struggles she's faced.
(BEGIN VIDEO CLIP)
CATHERINE, PRINCESS OF WALES: You know, you put on a sort of brave face, with stoicism through treatment. The treatment's done.
UNIDENTIFIED FEMALE: Yes.
PRINCESS CATHERINE: So, I can crack on and get back to normal again. But actually, that -- the phase afterwards is really -- you know, it's really a difficult journey. You know, you're not necessarily in the clinical team any longer. But you're not able to function normally at home as you perhaps once used to.
And actually, someone to help talk you through that; show you and guide you through that --
UNIDENTIFIED FEMALE: Yes.
PRINCESS CATHERINE: -- sort of phase that comes after treatment, I think, is really valuable.
(END VIDEO CLIP)
VAUSE: Notably, this is Catherine's first public appearance since she unexpectedly withdrew from the Royal Ascot two weeks ago.
In a moment, Tesla sales stuck in reverse. The electric car maker reporting dismal sales compared to last year. We'll find out how the company plans to shift its focus to get back in gear.
(COMMERCIAL BREAK)
[00:38:12]
VAUSE: After reporting strong profits for Q1, Microsoft has announced it will cut thousands of jobs.
Nine thousand workers will be laid off, less than 4 percent of the entire workforce. At the same time, Microsoft says profits in the first quarter soared by 18 percent, almost $26 billion.
The staff downsizing comes as Microsoft and other firms are using artificial intelligence to make their workforce more efficient. It's unclear whether A.I. directly contributed to these latest cuts.
Have a guess.
Tesla is hoping to get back in gear with an increased focus on robo- taxis and artificial intelligence for cars. The company is reporting a record drop in sales of its electric vehicles, which may have something to do with the man behind the wheel of the company, Elon Musk.
Here's CNN's Hadas Gold.
(BEGIN VIDEOTAPE)
HADAS GOLD, CNN MEDIA CORRESPONDENT: Wednesday's results were the largest year-over-year drop in sales for Tesla in company history.
GOLD (voice-over): They delivered just over 384,000 cars from April through June. That's down around 60,000 cars from the same time the year before, but it is up 14 percent from the first quarter, total.
Now, Wall Street expected this. It was actually not as bad as some of the more dire predictions, whispers --
GOLD: -- that were going around Wall Street about what this could look like. And that's why you saw Tesla shares up just a bit today.
Why this is all happening? Well, there's several reasons to keep in mind.
The first is that Elon Musk and Tesla are really sort of --
GOLD (voice-over): -- shifting away from the -- what you could now call the traditional electric vehicle car that you're selling directly to consumers.
A lot of their focus right now is on these autonomous driverless vehicles, the robo-taxis that are being tested in Austin.
And also, they say that they believe that their future is in things like A.I. for cars, as well as robotics. The Optimus robot.
GOLD: That is really where they're focusing on.
Also, Tesla's competitors, especially out of Asia, are picking up some steam.
And then, of course, you just can't ignore the giant elephant in the room --
GOLD (voice-over): -- which is politics. The fact that Elon Musk has gotten so involved in politics; recently, not only alienating Democrats because of his time with the Trump administration, but now, also the Trump administration and some of those fans, those Republican President Trump fans --
GOLD: -- after his recent several dust-ups with the president.
If Tesla investors (UNINTELLIGIBLE), I believe most of them would want Elon Musk to fully step away from politics and only focus on his businesses.
But as we've heard from Elon Musk recently, as he's saying that he is going to support primary challengers for members of Congress who had talked about government spending, cutting government spending, but are now supporting the big domestic policy bill that President Trump is trying to push through; and the fact that he is threatening to create a new political party. It doesn't seem as though he is completely going to step away from politics anytime soon.
And that's something that Tesla investors are just going to have to stomach going forward.
Hadas Gold, CNN, New York.
(END VIDEOTAPE)
VAUSE: A piece of Mars will soon be up for sale. In fact, next month. The largest Martian rock ever found on earth will be on the block at Sotheby's.
This rare meteorite, discovered in Niger two years ago, is expected to get up to $4 million.
Scientists believe an asteroid blasted it off the Martian surface and into space before finally reaching our planet as a meteorite.
Weighing 54 pounds, or 24.5 kilograms, it's more than most of the 400 Martian meteorites already found on Earth.
Thank you for watching CNN NEWSROOM. I'm John Vause. I'll be back with more news at the top of the hour. In the meantime, please stay with us. WORLD SPORT starts after a short break.
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