News

Tesla on the winning end of proposed U.S. import tax

Published

8 years ago

February 7, 2017

U.S. automobile sales might slow as a result of the proposed import tax affecting vehicles with manufacturers outside of the country. However, this change could stimulate up to 1 million additional vehicles could be manufactured in the U.S., which would add 50,000 more jobs at car production and part assembly plants.

That good news/ bad news scenario is according to researchers at Baum & Associates, LLC, which advises suppliers. Their report is intended to provide estimates to show the relative impact of the tax plan on each automaker. Dan Luria, an economist at the Michigan Manufacturing Technology Center in Ann Arbor, is the lead author of the Baum & Associates report, which accounts for imports of both finished vehicles and parts for domestic cars that are made overseas.

According to a report by Bloomberg, Tesla is the single automaker that would be able to maintain consistent pricing before and after such a tax implementation, as it manufactures all its cars in the U.S. and incorporates predominately U.S. made parts.

Border tax consequences for automakers

According to Baum & Associates, LLC, most automakers would need to raise vehicle prices by thousands of dollars. They would also likely have to assume a portion of the higher tax burden.

Ford, with significant domestic manufacturing, would accrue the smallest price hike among major automakers, at about $282 per vehicle;
General Motors Co. would experience a $995 increase per vehicle;
Volvo and VW vehicle prices would have to rise by about $7,600 and $6,800, on average;
Jaguar’s Land Rover, which is 100% imported, would require an increase of more than $17,000 per vehicle.

According to Alan Baum, the founder of the West Bloomfield, Michigan-based firm which produced the report, “The plan results in a net cost for automakers. Each company will then make its own decisions on pricing in order to best compete and maximize its profits.”

In what direction might a proposed border tax shift automakers’ current business practices? Essentially, the tax would create an incentive for automakers to keep U.S. plants running at the expense of those in Canada and Mexico. It could also steer auto companies currently conducting business in the U.S. to other markets.

Automakers may boost U.S. parts procurement and production from existing vehicle assembly plants;
Overseas automakers including Fuji Heavy Industries Ltd.’s Subaru, Mitsubishi Motors Corp., Mazda Motor Corp., Hyundai Motor Co., and Kia Motors Corp. may consider expanding existing U.S. operations or building new capacity;
Volkswagen AG could build another U.S. assembly plant;
Fiat Chrysler Automobiles NV may accelerate the conversion of factories in Michigan to build pickups there instead of Mexico;
Nissan Motor Co. might export more from Mexico to Latin American markets and less to the U.S.;
Mazda and Mitsubishi, which rely entirely on imports to the U.S. market, may have to quit the U.S. market or pay other manufacturers to assemble their cars.

Meanwhile, Toyota Motor Corp. is one of the corporations that is warning that the proposed border tax will result in many costlier products, not only in automobiles, but also in food, clothing, and gasoline, among other areas.

Other analysts weigh in on the effects of a proposed border tax

It’s not just Baum and associates who are advising clients on their prospective bottom lines should a border tax become legislated by U.S. officials. Other analysts are weighing in on the proposed border tax effects on commerce. Colin Langan, an analyst at UBS Securities LLC, argues that the proposed border tax could raise average prices in the U.S. by about 8 percent, or $2,500 per vehicle.

The border tax has the potential to reduce annual sales by about 2 million vehicles, Langan said.

He also projects that, while the tax has the potential to move through the House of Representatives, it is “very unlikely” to pass in the Senate. Langan predicts the chances of the border tax being enacted at less than 50 percent.

The proposal to begin levying companies’ imports and domestic sales and make exports tax-exempt would completely overhaul the U.S. tax code.

News

Elon Musk claims X is under ‘massive cyberattack’

Could the X outages be the result of a massive cyberattack? Elon Musk thinks so.

Published

52 minutes ago

March 10, 2025

Zachary Visconti

Credit: Elon Musk | X

Elon Musk claims that an ongoing outage on his social media platform X is due to a “massive cyberattack,” and he says the attack seems to have an unprecedented amount of resources behind it.

Amidst intermittent outages on X on Monday morning, Musk claimed in a post that the issues were the result of a targeted cyberattack on the platform. He also claimed that, while attacks are lodged against the platform everyday, this particular one seemed to have substantial resources behind it, which he says could be “either a large, coordinated group and/or a country.”

There was (still is) a massive cyberattack against 𝕏.

We get attacked every day, but this was done with a lot of resources. Either a large, coordinated group and/or a country is involved.

Tracing …

When X user Hassan Sajwani responded to the post saying that “They want to silence you and this platform,” Musk simply responded “Yes” in a follow-up post. X has yet to release an official statement on the outages.

The news also comes after mass demonstrations and vandalism against Tesla’s stores and vehicles have broken out around the world in the past few weeks, in protest of Musk’s recent efforts under the Trump administration to gut a broad range of federal agencies. Arrests have been made following attacks and arson against multiple of the Tesla locations, though it’s not yet clear if the ongoing cyberattack against X could be related.

🚨 Elon Musk says there is an ongoing “massive cyberattack” against X
The platform has been battling outages for most of the day https://t.co/SoHvW52yAe
— TESLARATI (@Teslarati) March 10, 2025

Musk purchased X, then called Twitter, for $44 billion in 2022, going on to launch mass layoffs at the company. About six months after the purchase, he said in an interview with BBC that the company had brought headcount down to just 1,500 from roughly 8,000, representing a cut of around 80 percent of staff.

Last month, X reported an adjusted EBIDTA of $682 million for 2024, along with about $5 billion in revenue. Wall Street Journal also reported that banks had completed a sale of $5.5 billion in debt backed by X. CEO Linda Yaccarino said in January that the company has also secured a deal with Visa to launch X Money, slated for release later this year.

Elon Musk’s X recruiting “hardcore software engineers”

News

Tesla’s Full Self-Driving faces a new hurdle in UK rollout plans

Published

2 hours ago

March 10, 2025

Zachary Visconti

Tesla has been working to start deploying its Supervised Full Self-Driving (FSD) system outside of North America, though as the first waves of the software go out in China and Mexico, regulatory holdups in the United Kingdom (UK) and elsewhere are proving tough to overcome.

The UK’s Department for Transport (DfT) has proposed rules paring back allowances for autonomous driving systems such as Tesla’s Supervised FSD, according to documents seen by Telegraph in a report over the weekend. The delays echo previous statements from Tesla officials highlighting that the system may not be able to roll out in full in Europe until 2028, after recent regulation changes have slowed the deployment of certain automated capabilities.

Although the department’s original draft of safety rules related to self-driving systems allowed vehicles to perform maneuvers such as stopping and starting at traffic lights, turning at intersections, and changing lanes, all while drivers were hands-free, a new draft has diluted these functions to only allow “highway” maneuvers, such as lane changes, while also requiring drivers to keep their hands on the steering wheel.

“Whilst [a driver assistance system] may help in reducing collisions, it may also introduce new safety risks,” said a group of UK officials who helped propose the added restrictions in September.

The group has also suggested that systems like Tesla’s FSD Supervised should be rolled out “in phases,” echoing that safety concerns should be closely evaluated amidst deployment.

“The technological advancements in these systems are promising, but there remain concerns about their impact on driver behaviour, situational awareness and overall safety.”

The changes also come after concerns about deploying automated driving systems were raised in the United Nations Economic Commission for Europe (UNECE) last year, with the UK’s DfT officials speaking out then about concerns for broader approval of the technology.

Tesla FSD vs Xiaomi vs Li Auto inner city driving test.🇨🇳
While FSD was not perfect, it was arguably the smoothest system of the three that were tested. It will be exciting to see just how well FSD evolves as it gets updated in China.pic.twitter.com/19CRkpIiuz
— TESLARATI (@Teslarati) March 10, 2025

READ MORE ON TESLA FSD’S MARKET ROLLOUT: Tesla used this clever workaround to train FSD for China’s roads

Tesla’s launch of FSD Supervised in Europe, elsewhere: what’s causing delays?

Tesla recently launched early FSD-related features in China and Mexico, and the news comes as the company has continued to face tough regulatory barriers to launching the software in markets across Europe and the UK.

As part of his resignation announcement in October, Tesla’s former Global Vehicle Automation and Safety Policy Lead Marc Van Impe warned of major barriers in Europe due to the UN Regulation 171, dubbed DCAS, which could delay the deployment of FSD until 2028.

“This impacts Europe’s competitiveness and it’s clear that the type-approval framework needs to evolve to better and more quickly tackle innovative technologies,” Van Impe said of the delay. “Perhaps temporary certification or deployment through pre-certification can prove a solution.”

Despite this, Tesla went on to launch an introductory version of Actually Smart Summon in Europe and the Middle East in November, after the highly-anticipated software had previously been lumped in with an FSD Supervised update in North America.

During Tesla’s Q4 2024 earnings call in January, CEO Elon Musk also highlighted European regulations as a major barrier to getting FSD approved. He also highlighted an upcoming European Union (EU) committee session in May, which he said is expected to approve the software.

Tesla employees are performing autonomous FSD trials, CEO Elon Musk says

News

Elon Musk’s X experiences several outages on Monday

As of this writing, X’s desktop and mobile services are still intermittent.

Published

4 hours ago

March 10, 2025

Simon Alvarez

Credit: Linda Yaccarino/X

Elon Musk’s social media platform, X, experienced several outages on Monday morning.

As of this writing, X’s desktop and mobile services are still intermittent.

Initial Reports

As noted in a TechCrunch report, a wave of reports about X being offline were submitted on Downdetector, a website that tracks online outages, early Monday morning, around 5:30 a.m. ET.

At the time, about 20,000 users reported experiencing problems accessing the social media platform. This initial wave of outages seemed to have been resolved after about an hour, with users being able to access X’s services once more.

Outage Encore

Another wave of outages on X were reported by users around 9:30 a.m. ET, though this time, Downdetector listed about 40,000 user reports. This particular outage seemed worse than the first, as it was still ongoing until about lunchtime Eastern Time.

As of this writing, issues with X appear to still be ongoing, as per tests done by Teslarati staff. While some pages on the social media platform are now loading, some features such as users’ timeline and analytics remain inaccessible.

Update as of 12:17 p.m. ET: X’s mobile and desktop features appear to have gone back online.

X, for its part, has not issued a comment about the matter.

X’s Evolution

Previously known as Twitter, the social media platform was acquired by Elon Musk in late 2022 for $44 billion. Since then, Twitter has returned to becoming a private company, and it has been renamed X.

While reports following Musk’s acquisition noted that Twitter saw a sharp drop in valuation after the Tesla CEO’s acquisition, Bloomberg News, citing people reportedly familiar with the matter, claimed last month that X was in talks to raise funds from investors at a $44 billion valuation, thanks in no small part to its stake in xAI, Musk’s artificial intelligence startup.