Tesla

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GOP wants EV tax credit gone; it would be a disaster for Tesla

The Republican Party’s opposition to tax credits for electric vehicles has stepped up a notch. As its members in the US Senate add their input to the budget bill that came from their colleagues in the House of Representatives, among the changes they want to see is a faster eradication of the IRS clean vehicle tax credit. The tax credit provides up to $7,500 off the price of an EV as long as certain conditions are met, and the language from the House would have given it until the end of the year. Now, it might be gone by the end of September.

The looming passage of the bill appears to have reopened the rift between Tesla CEO Elon Musk and the Republican Party, which the billionaire funded to the tune of hundreds of millions of dollars in the last election. After a brief war of words earlier this month that was quickly smoothed over when Musk apologized to President Trump, it seems there’s the potential for strife again.

Yesterday, Musk once again took to his social media platform to denounce the budget bill, threatening to form a third political party should it pass and reposting content critical of the GOP spending plan.

The changes to the budget would be quite deleterious for Tesla. Although its sales have collapsed in Europe and are flagging in China, the US has remained something of a bulwark in terms of EV sales. Most of the EVs that Tesla offers for sale in the US are eligible for the $7,500 credit, which can be applied to the car’s price immediately at purchase, as long as the buyer meets the income cap. That means all these cars will become significantly more expensive on October 1, should the bill pass.

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Tesla launches robotaxi service in Austin

Tesla’s robotaxi service, touted by Elon Musk as the future of his flagging electric-car maker, launched in the company’s home city of Austin, Texas, on Sunday with about 10 vehicles and a human safety driver on board amid regulatory scrutiny of its self-driving technology.

Shares in Tesla have risen about 50 percent from this year’s low in early April, with investors hopeful the autonomous ride-hailing service will help revive a company that has suffered declining sales and a consumer backlash against Musk’s political activism.

Despite the hype surrounding Tesla’s robotaxi, the launch—with a company employee seated in the passenger side for safety while leaving the driver’s seat empty—was low-key, and the initial service was open only to a select group of social media influencers.

Shortly before the launch, Musk said on social media that the robotaxi service would begin “with customers paying a $4.20 flat fee.”

According to Musk, who has stepped back from his US government role to focus on the electric-car maker and the robotaxi, the self-driving Tesla Model Y vehicles will only operate in limited areas, avoid challenging intersections, and have teleoperators who can intervene if problems arise.

The limited launch comes as the National Highway Traffic Safety Administration continues to carry out multiple investigations into Musk’s claims about the capabilities of Tesla’s autopilot and “full self-driving” systems. Despite its name, the full self-driving system still requires humans to sit in the driver’s seat and pay full attention—unlike Google’s Waymo taxis.

The NHTSA wrote a letter in early May seeking additional information about technologies that would be used in Tesla’s robotaxi service. The regulator said it had received Tesla’s response and was reviewing its content.

Musk said in a social media post this month that the company was being “super paranoid” about safety. But he has also claimed there would be 1,000 robotaxis “in a few months,” and that the service would expand to cities such as San Francisco and Los Angeles.

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How Tesla Takedown got its start


America’s most vulnerable Billionaire?

It’s an unlikely coalition that’s been hyping Tesla’s stock slide since its launch.

On a sunny April afternoon in Seattle, around 40 activists gathered at the Pine Box, a beer and pizza bar in the sometimes scruffy Capitol Hill neighborhood. The group had reserved a side room attached to the outside patio; before remarks began, attendees flowed in and out, enjoying the warm day. Someone set up a sound system. Then the activists settled in, straining their ears as the streamed call crackled through less-than-perfect speakers.

In more than a decade of climate organizing, it was the first time Emily Johnston, one of the group’s leaders, had attended a happy hour to listen to a company’s quarterly earnings call. Also the first time a local TV station showed up to cover such a happy hour. “This whole campaign has been just a magnet for attention,” she says.

The group, officially called the Troublemakers, was rewarded right away. TeslaCEO Elon Musk started the investors’ call for the first quarter of 2025 with a sideways acknowledgement of exactly the work the group had been doing for the past two months. He called out the nationwide backlash to the so-called Department of Government Efficiency, or DOGE, an effort to cut government spending staffed by young tech enthusiasts and Musk company alumni, named—with typical Muskian Internet-brained flourish—for an early 2010s meme.

“Now, the protests you’ll see out there, they’re very organized, they’re paid for,” Musk told listeners. For weeks, thousands of people—including the Troublemakers—had camped outside Tesla showrooms, service centers, and charging stations. Musk suggested that not only were they paid for their time, they were only interested in his work because they had once received “wasteful largesse” from the federal government. Musk had presented the theory and sharpened it on his social media platform X for weeks. Now, he argued, the protesters were off the dole—and furious.

Musk offered no proof of his assertions; to a person, every protester who spoke to WIRED insisted that they are not being paid and are exactly what they appear to be: people who are angry at Elon Musk. They call their movement the “Tesla Takedown.”

Before Musk got on the call to speak to investors, Tesla, which arguably kicked off a now multitrillion-dollar effort to transition global autos to electricity, had presented them with one of the company’s worst quarterly financial reports in years. Net income was down 71 percent year over year; revenue fell more than $2 billion short of Wall Street’s expectations.

Now, in Seattle, just the first few minutes of Musk’s remarks left the partygoers, many veterans of the climate movement, giddy. Someone close to the staticky speakers repeated the best parts to the small crowd: “I think starting probably next month, May, my time allocation to DOGE will drop significantly,” Musk said. Under a spinning disco ball, people whooped and clapped. Someone held up a snapshot of Tesla’s stock performance over the past year, a jagged but falling black line.

“If you ever wanted to know that protest matters, here’s your proof,” Johnston recalled weeks later.

The Tesla Takedown, an effort to hit back at Musk and his wealth where it hurts, seems to have appeared at just the right time. Tesla skeptics have argued for years that the company, which has the highest market capitalization of any automaker, is overvalued. They contend that the company’s CEO has been able to distract from flawed fundamentals—an aging vehicle lineup, a Cybertruck sales flop, the much-delayed introduction of self-driving technology—with bluster and showmanship.

Musk’s interest in politics, which kicked into a new and more expensive gear when he went all in for Donald Trump during the 2024 election, was always going to invite more scrutiny for his business empire. But the grassroots movement, which began as a post on Bluesky, has become a boisterous, ragtag, and visible locus of, sorry to use the word, resistance against Musk and Trump. It’s hard to pin market moves on any one thing, but Tesla’s stock price is down some 33 percent since its end-of-2024 high.

Tesla Takedown points to a uniquely screwed-up moment in American politics. Down is up; up is down. A man who made a fortune sounding the alarm about the evils of the fossil fuel industry joined with it to spend hundreds of millions in support of a right-wing presidential candidate and became embedded in an administration with a slash-and-burn approach to environmental regulation. (This isn’t good for electric cars.) The same guy, once extolled as the real-life Tony Stark—he made a cameo in Iron Man 2!—has become for some a real-life comic book villain, his skulduggery enough to bring together a coalition of climate activists, freaked-out and laid-off federal workers, immigrant rights champions, union groups, PhDs deeply concerned about the future of American science, Ukraine partisans, liberal retirees sick of watching cable news, progressive parents hoping to show their kids how to stick up for their values, LGBTQ+ rights advocates, despondent veterans, and car and tech nerds who have been crying foul on Musk’s fantastical technology claims for years now.

To meet the moment, then, the Takedown uses a unique form of protest logic: Boycott and protest the electric car company not because the movement disagrees with its logic or mission—quite the opposite, even!—but because it might be the only way to materially affect the unelected, un-beholden-to-the-public guy at its head. And then hope the oft-irrational stock market catches on.

So for weeks, across cities like New York; Berkeley and Palo Alto, California; Meridian, Idaho; Ann Arbor, Michigan; Raleigh, North Carolina; South Salt Lake, Utah; and Austin, Texas, the thousands of people who make up the Takedown movement have been stationed outside of Tesla showrooms, making it a little bit uncomfortable to test drive one of Musk’s electric rides, or even just drive past in one.

Change in the air

When Shua Sanchez graduated from college in 2013, there was about a week, he remembers, when he was convinced that the most important thing he could do was work for Tesla. He had a degree in physics; he knew all about climate change and what was at stake. He felt called to causes, had been protesting since George W. Bush invaded Iraq when he was in middle school. Maybe his life’s work would be helping the world’s premier electric carmaker convince drivers that there was a cleaner and more beautiful life after fossil fuel.

In the end, though, Sanchez opted for a doctorate program focusing on the quantum properties of super-conducting and magnetic materials. (“I shoot frozen magnets with lasers all day,” he jokes.) So he felt thankful for his choice a few years later when he read media reports about Tesla’s efforts to tamp down unionizing efforts at its factories. He felt more thankful when, in 2017, Musk signed on to two of Trump’s presidential advisory councils. (The CEO publicly departed them months later, after the administration pulled out of the Paris climate agreement.) Even more thankful in 2022, when Musk acquired Twitter with the near-express purpose of opening it up to extreme right-wing speech. More thankful still by the summer of 2024, after Musk officially endorsed Trump’s presidential bid.

By the time Musk appeared onstage at a rally following Trump’s inauguration in January 2025 and threw out what appeared to be a Nazi salute—Musk has denied that was what it was—Sanchez, now in a postdoctorate fellowship at the Massachusetts Institute of Technology, was ready to do something about it besides not taking a job at Tesla. A few days later, as reports of DOGE’s work began to leak out of Washington, a friend sent him a February 8 Bluesky post from a Boston-based disinformation scholar named Joan Donovan.

“If Musk thinks he can speed run through DC downloading personal data, we can certainly bang some pots and pans on the sidewalks in front of Tesla dealerships,” Donovan posted on the platform, already an online refuge for those looking for an alternative to Musk’s X. “Bring your friends and make a little noise. Organize locally, act globally.” She added a link to a list of Tesla locations, and a GIF of the Swedish Chef playing the drums on some vegetables with wooden spoons. Crucially, she appended the hashtag #TeslaTakeover. Later, the Internet would coalesce around a different rallying cry: #TeslaTakedown.

Baltimore-area residents protest the Trump administration and Tesla CEO Elon Musk at a Tesla car dealership as part of a boycott of Tesla vehicles. Saturday, March 29, 2025.

Credit: Dominic Gwinn/Getty

Baltimore-area residents protest the Trump administration and Tesla CEO Elon Musk at a Tesla car dealership as part of a boycott of Tesla vehicles. Saturday, March 29, 2025. Credit: Dominic Gwinn/Getty

The post did not go viral. To date, it has only 175 likes. But it did catch the attention of actor and filmmaker Alex Winter. Winter shot to prominence in 1989’s Bill & Ted’s Excellent Adventure—he was Bill—and has more recently produced multiple documentaries focusing on online culture, piracy, and the power of social media. He and Donovan had bonded a few years earlier over activism and punk rock, and the actor, who has a larger social media following, asked the scholar if he could create a website to centralize the burgeoning movement. “I do think we’re at a point where people need to stick their necks up out of the foxhole en masse, or we’re simply not going to get through,” he tells WIRED. In the website’s first 12 hours of existence, he says, thousands of people registered to take part in the Takedown.

Donovan’s Bluesky post brought Sanchez to the Boston Back Bay Tesla showroom on Boylston Street the next Saturday, where 30 people had gathered with signs. For Sanchez, the whole thing felt personal. “Elon Musk started a PhD at Stanford in my field. He quit after two days and then went and became a tech bro, but he presents that he’s one of us,” he says. With Musk’s new visibility—and plans to slash government research dollars while promoting right-wing ideology—Sanchez was ready to push back.

Sanchez has been outside the showroom during weekly protests throughout the Boston winter, megaphone in hand, leading chants: “It ain’t fun. It ain’t funny. Elon Musk is stealing your money.” “We don’t want your Nazi cars. Take a one-way trip to Mars.”

“We make it fun, so a lot of people come back,” Sanchez says. Someone slapped Musk’s face on one of the inflatable tube guys you often see outside of car dealerships; he whipped around at several protests. A popular bubble-themed routine—“Tesla is a bubble”—saw protesters toss around a giant, transparent ball as others blew bubbles around it. Then the ball popped, loudly, during a protest—a sign? At some of Boston’s biggest actions, hundreds of people have shown up to demonstrate against Tesla, Musk, and Trump, Sanchez says.

Donovan envisioned the protests as potent visible responses to Musk’s slashing of government programs and jobs. But she also knew that social movements are a critical release valve in times of upheaval. “People need to relieve the pressure that they feel when the government is not doing the right thing,” she tells WIRED. “If you let that pressure build up too much, obviously it can turn very dangerous.”

In some ways, she’s right. In at least four incidents across four states, people have been charged by the federal government with various crimes including defacing, shooting at, throwing Molotov cocktails toward, and setting fire to Tesla showrooms and charging stations. In a move that has worried civil liberties experts, the Trump administration has treated these attacks against the president’s richest backer’s car company as “domestic terrorism,” granting federal authorities greater latitude and resources to track down alleged perpetrators and threatening them with up to 20 years in prison.

In posts on X and in public appearances, Musk and other federal officials have seemed to conflate the actions of a few allegedly violent people with the wider protests against Tesla, implying that both are funded by shadowy “generals.” “Firing bullets into showrooms and burning down cars is unacceptable,” Musk said at an event last month in which he appeared remotely on video, his face looming over the stage. “Those people will go to prison, and the people that funded them and organized them will also go to prison. Don’t worry.” He looked into the camera and pointed his finger at the audience. “We’re coming for you.”

Tesla Takedown participants and leaders have repeatedly said that the movement is nonviolent. “Authoritarian regimes have a long history of equating peaceful protest with violence. The #TeslaTakedown movement has always been and will remain nonviolent,” Dallas volunteer Stephanie Frizzell wrote in an email. What violence has occurred at protests themselves seems limited to on-site spats that mostly target protesters.

Donovan herself skipped some protests after receiving death threats and hearing a rumor that she was on a government list targeting disinformation researchers. On X, prominent right-wing accounts harassed her and other Takedown leaders; she says people have contacted her colleagues to try to get her fired.

Then, on the afternoon of March 6, Boston University ecology professor Nathan Phillips was in his office on campus when he received a panicked message from his wife. She said that two people claiming to represent the FBI visited their home. “I was just stunned,” Phillips says. “We both had a feeling of disbelief, that this must be some kind of hoax or a joke or something like that.”

Phillips had attended a Tesla Takedown event weeks earlier, but he wasn’t sure whether the visit was related to the protests or his previous climate activism. So after sitting shocked in his office for an hour, he called his local FBI field office. Someone picked up and asked for his information, he remembers, and then asked why he was calling. Phillips explained what had happened. “They just abruptly hung up on me,” he says.

Phillips never had additional contact from the FBI, but he knows of at least five other climate activists who were visited by men claiming to be from the agency on March 6.

The FBI tells WIRED that it “cannot confirm or deny the allegations” that two agents visited Phillips’ home. Tesla did not respond to WIRED’s questions about the Tesla Takedown movement or Musk’s allegations of coordinated violence against the company.

After the incident, Phillips began searching online for mentions of his name, and he found posts on X from an account that also tagged Joan Donovan and FBI director Kash Patel.

Phillips says that the FBI visit has had the opposite of a chilling effect. “If anything, it’s further radicalized me,” he says. “People having my back and the expression of support makes me feel very confident that it was the right thing to do to speak out about this.”

Organizing for the first time

Mike had attended a few protests in the past but didn’t know how to organize one. He has a wife, three small kids, a house in the suburbs, and a health issue that can sometimes make it hard to think. So by his own admission, his first attempt in February was a mixed bag. It was the San Francisco Bay Area-based Department of Labor employee’s first day back in the office after the Trump administration, spurred by DOGE, had demanded all workers return full-time. He was horrified by the fast-moving job cuts, program changes, and straight-up animus he had already seen flow from the White House down to his small corner of the federal government.

“Attacks on federal workers are an attack on the Constitution,” Mike says. Maybe, he figured, if he could keep people from buying Teslas, that would hurt Elon Musk’s bottom line, and the CEO would lay off DOGE altogether.

Mike, who WIRED is referring to using a pseudonym because he fears retaliation, saw that a Tesla showroom was just a 20-minute walk from his office, and he hoped to convince some coworkers to convene there, a symbolic stand against DOGE and Musk. So he taped a few flyers on light poles. He didn’t have social media, but he posted on Reddit. “I was really worried,” he says, “about the Hatch Act,” a law that limits the political activities of federal employees.

In the end, three federal workers—the person sitting next to him at the office and a US Department of Veterans Affairs nurse they ran into on the street—posted up outside of the Tesla showroom on Van Ness Avenue in downtown San Francisco holding “Save Federal Workers” signs.

Then Mike discovered the #TeslaTakedown website that Alex Winter had built. (Because of a quirk in the sign-up process, the site was putatively operated for a time by the Seattle Troublemakers.) It turned out a bunch of other people had thought that Tesla showrooms were the right places to air their grievances with Trump, Musk, and DOGE. Mike posted his event there. Now the SF Save Federal Workers protest, which happens every Monday afternoon, draws 20 to 40 people.

Through the weekly convening, Mike has met volunteers from the Federal Unionists Network, who represent public unions; the San Francisco Labor Council, a local affiliate of the national AFL-CIO; and the East Bay chapter of the Democratic Socialists of America. As in any amicable custody arrangement, Mike’s group shares the strip of sidewalk outside of the San Francisco Tesla showroom with a local chapter of the progressive group Indivisible, which holds bigger protests on Saturdays. “I’m trying to build connections, meet other community groups,” Mike says. “My next step is broadening the coalition.”

About half of the people coordinating Takedown protests are like Mike, says Evan Sutton, who is part of the national team: They haven’t organized a protest before. “I’ve been in politics professionally for almost 20 years,” Sutton says. “It is genuinely the most grassroots thing that I’ve seen.”

Well into the spring, Tesla Takedown organizers nationwide had held hundreds of events across the US and even the globe, and the movement has gained a patina of professionalism. Tesla Takedown sends press releases to reporters. The movement has buy-in from Indivisible, a progressive network that dates back to the first Trump administration, with local chapters hosting their own protests. At least one Democratic congressional campaign has promoted a local #TeslaTakedown event.

Beyond the showrooms, Tesla sales are down by half in Europe compared to last year and have taken a hit in California, the US’s biggest EV market. Celebrities including Sheryl Crow and Jason Bateman have publicly ditched their Teslas. A Hawaii-based artist named Matthew Hiller started selling “I Bought This Before Elon Went Crazy” car decals in 2023; he estimates he has sold 70,000 anti-Musk and anti-Tesla stickers since then. (There was a “Space X-size explosion of sales after his infamous salute,” Hiller says.) In Seattle, the Troublemakers regularly hold “de-badging” events, where small handfuls of sheepish owners come by to have the T emblems drilled off their cars.

In Portland, Oregon, on a recent May Saturday, Ed Niedermeyer was once again sweating through his shark costume as he hopped along the sidewalk in front of the local Tesla showroom. His sign exhibited the DOGE meme, an alert Shiba Inu, with the caption “Heckin’ fascism.” (You’d get it if you spent too much time on the Internet in 2013.) Honks rang out. The shark tends to get a good reaction from drivers going by, he said. About 100 people had shown up to this Takedown protest, in front of a Tesla showroom that sits kitty-corner to a US Immigration and Customs Enforcement office.

Niedermeyer is a car writer and has spent a lot of time thinking about Elon Musk since 2015, when he discovered that Tesla wasn’t actually operating a battery swapping station like it said it did. Since then, he has written a book, Ludicrous: The Unvarnished Story of Tesla Motors, and documented many of what he claims to be Musk’s and the automaker’s half-truths on their way to the top.

Niedermeyer acknowledges that Musk and Tesla have proven difficult to touch, even by nationwide protests literally outside their doors.

Despite the Seattle cheers during Tesla’s last quarterly earnings call, the automaker’s stock price gained steam through the spring and rose on the news that its CEO would no longer officially work for the federal government. Musk has said investors should value Tesla not as a carmaker but as an AI and robotics company. At the end of this month, after years of delays, Tesla says it will launch a robotaxi service. According to Wall Street analysts’ research notes, they believe him.

Even a public fight with the president—one that devolved into name-calling on Musk’s and Trump’s respective social platforms—was not enough to pop the Tesla bubble.

“For me, watching Musk and watching our inability to stop him and create consequences for this snowballing hype and power has really reinforced that we need a stronger government to protect people from people like him,” says Niedermeyer.

Still, Tesla Takedown organizers take credit for the cracks in the Musk-Trump alliance—and say the protests will continue. The movement has also incorporated a more cerebral strategy, organizing local efforts to convince cities, states, and municipalities to divest from Musk’s companies. They already had a breakthrough in May, when Lehigh County, Pennsylvania, became the first US public pension fund to say it wouldn’t purchase new Tesla stocks for its managed investment accounts.

The movement’s goals may be lofty, but Niedermeyer argues that despite Tesla’s apparent resilience, Musk is still America’s most vulnerable billionaire. And sure, Musk, the CEO of an electric car company, the guy who made himself the figurehead for his automaker and fired his PR team to make sure it would stick, the one who alienated the electric car company’s customer base through a headlong plunge not only into political spending but the delicate mechanics of government itself—he did a lot of it on his own.

Now Niedermeyer, and everyone involved in Tesla Takedown, and probably everyone in the whole world, really, can only do what they can. So here he is, in a shark costume on the side of the road, maintaining the legally mandated distance from the car showroom behind him.

This story originally appeared on wired.com.

Photo of WIRED

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Elon Musk counts the cost of his four-month blitz through US government


Term at DOGE did serious damage to his brands, only achieved a fraction of hoped-for savings.

Elon Musk wields a chainsaw at the Conservative Political Action Conference in February to illustrate his aim to cut government waste Credit: Jose Luis Magana/AP

Elon Musk’s four-month blitz through the US government briefly made him Washington’s most powerful businessman since the Gilded Age. But it has done little for his reputation or that of his companies.

Musk this week formally abandoned his role as the head of the so-called Department of Government Efficiency (Doge), which has failed to find even a fraction of the $2 trillion in savings he originally pledged.

On Thursday, Donald Trump lamented his departure but said Musk “will always be with us, helping all the way.”

Yet the billionaire will be left calculating the cost of his involvement with Trump and the meagre return on his $250 million investment in the US president’s election campaign.

“I appreciate the fact that Mr Musk put what was good for the country ahead of what was good for his own bottom line,” Tom Cole, the Republican chair of the House Appropriations Committee, told the Financial Times.

After Doge was announced, a majority of American voters believed Musk would use the body to “enrich himself and undermine his business rivals,” according to a survey, instead of streamlining the government.

Progressive groups warned that he would be “rigging federal procurement for billionaires and their pals” and cut regulations that govern his companies Tesla and SpaceX. Democratic lawmakers said Doge was a “cover-up” of a more sinister, self-serving exercise by the world’s richest person.

Early moves by the Trump administration suggested Musk might get value for money. A lawsuit brought by the Biden administration against SpaceX over its hiring practices was dropped in February, and regulators probing his brain-implant company Neuralink were dismissed.

Musk’s satellite Internet business Starlink was touted by Commerce Secretary Howard Lutnick as a potential beneficiary of a $42 billion rural broadband scheme. An executive order calling for the establishment of a multibillion-dollar Iron Dome defense system in the US looked set to benefit Musk, due to SpaceX’s dominance in rocket launches.

The gutting of various watchdogs across government also benefited Musk’s businesses, while a number of large US companies rushed to ink deals with Starlink or increase their advertising spending on X. Starlink also signed agreements to operate in India, Pakistan, and Vietnam, among other countries it has long wished to expand into.

But while Doge took a scythe to various causes loathed by Musk, most notably international aid spending and government contracts purportedly linked to diversity initiatives or “woke” research, it also caused severe blowback to the billionaire’s businesses, particularly Tesla.

At one point during his Doge tenure, Tesla’s stock had fallen 45 percent from its highest point last year, and reports emerged that the company’s board of directors had sought to replace Musk as chief executive. The 53-year-old’s personal wealth dropped by tens of billions of dollars, while his dealerships were torched and death threats poured in.

Some of the brand damage to Tesla, until recently Musk’s primary source of wealth, could be permanent. “Eighty percent of Teslas in the US were sold in blue zip codes,” a former senior employee said. “Obviously that constituency has been deeply offended.”

Starlink lost lucrative contracts in Canada and Mexico due to Musk’s political activities, while X lost 11 million users in Europe alone.

Probes of Tesla and SpaceX by government regulators also continued apace, while the Trump administration pressed ahead with plans to abolish tax credits for electric vehicles and waged a trade war vehemently opposed by Musk that threatened to further damage car sales.

In the political arena, few people were cheered by Doge’s work. Democrats were outraged by the gutting of foreign aid and by Musk’s 20-something acolytes gaining access to the Treasury’s payment system, along with the ousting of thousands of federal workers. Republicans looked askance at attempts to target defense spending. And true budget hawks were bitter that Musk could only cut a few billion dollars. Bill Gates even accused Musk of “killing the world’s poorest children” through his actions at Doge.

Musk, so used to getting his way at his businesses, struggled for control. At various points in his tenure he took on Treasury Secretary Scott Bessent, Secretary of State Marco Rubio, Transport Secretary Sean Duffy, and trade tsar Peter Navarro, while clashing with several other senior officials.

Far from being laser-focused on eliminating waste, Musk’s foray into government was a “revenge tour” against a bureaucracy the billionaire had come to see as the enemy of innovation, a former senior colleague of Musk’s said, highlighting the entrepreneur’s frustration with COVID-19 regulations in California, his perceived snub by the Biden administration, and his anger over his daughter’s gender transition.

Trump’s AI and crypto tsar, David Sacks, an influential political voice in the tech world, “whipped [Musk] up into a very, very far-right kind of mindset,” the person added, to the extent that was “going to help this administration in crushing the ‘woke’ agenda.”

Neither Musk nor Sacks responded to requests for comment.

Musk, who claimed Doge only acted in an “advisory role,” this week expressed frustration at it being used as a “whipping boy” for unpopular cuts decided by the White House and cabinet secretaries.

“Trump, I think, was very savvy and allowed Doge to kind of take all those headlines for a traditional political scapegoat,” said Sahil Lavingia, head of a commerce start-up who worked for Doge until earlier this month. Musk, he added, might also have been keen to take credit for the gutting of USAID and other moves but ultimately garnered unwanted attention.

“If you were truly evil, [you] would just be more quiet,” said Lavingia, who joined the initiative in order to streamline processes within government. “You would do the evil stuff quietly.”

The noise surrounding Musk, whose ability to dominate news cycles with a single post on his social media site X rivaled Trump’s own hold on the headlines, also frustrated the administration.

This week, White House Deputy Chief of Staff Stephen Miller took to X to indirectly rebut the billionaire’s criticism of Trump’s signature tax bill, which he had lambasted for failing to cut the deficit or codify Doge’s cuts.

Once almost synonymous with Musk, Doge is now being melded into the rest of government. In a briefing on Thursday, White House Press Secretary Karoline Leavitt said that following Musk’s departure, cabinet secretaries would “continue to work with the respective Doge employees who have onboarded as political appointees at all of these agencies.”

She added: “The Doge leaders are each and every member of the President’s Cabinet and the President himself.”

Doge’s aims have also become decidedly more quotidian. Tom Krause, a Musk ally who joined Doge and was installed at Treasury, briefed congressional staff this week on improvements to the IRS’s application program interfaces and customer service, according to a person familiar with the matter. Other Doge staffers are doing audits of IT contracts—work Lavingia compares with that done by McKinsey consultants.

Freed from the constraints of being a government employee, Musk is increasingly threatening to become a thorn in Trump’s side.

Soon after his Doge departure was announced, he again criticized the White House, this time over its plan to cancel clean energy tax credits.

“Teddy Roosevelt had that great adage: ‘speak softly but carry a big stick’,” Fred Thiel, the chief executive of Bitcoin mining company MARA Holdings, told the FT. “Maybe Elon’s approach was a little bit different.”

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USPTO refuses Tesla Robotaxi trademark as “merely descriptive”

“We are an AI, robotics company,” Tesla CEO Elon Musk announced last April. Despite the fact that the company’s revenues are overwhelmingly derived from selling new electric vehicles, such prosaic activities hold no luster for the boss. Instead, Tesla’s future, according to Musk, depends upon a (claimed) sub-$30,000 driverless two-seater, revealed to the world last October in a staged demonstration on a film set. But Musk’s plans just hit a snag: The company must find some new names.

As spotted by Sean O’Kane at TechCrunch, the United States Patent and Trademark Office has informed Tesla that it will not be allowed to trademark the word “robotaxi” to describe the vehicle. According to the USPTO, the term is far too generic. Indeed, a Google n-gram search shows a steady growth in the use of “robotaxi” starting more than a decade ago.

According to the USPTO, the term is merely descriptive. The agency cites evidence from Wikipedia, The Verge, and the Amazon-backed autonomous vehicle startup Zoox in its denial of Tesla’s trademark application.

A Tesla Cybercab prototype at a Tesla store in San Jose, California, US, on Tuesday, Nov. 12, 2024. Tesla CEO Elon Musk said the robotaxi, which has no steering wheel or pedals, could cost less than $30,000 and

Maybe they should just have called it the Teslapod. Credit: David Paul Morris/Bloomberg via Getty Images

Tesla could challenge this decision, but it would have to show the USPTO all the product’s marketing materials, brochures, and manuals that intend to use the name. If those aren’t available, Tesla must explain to the patent and trademark office’s satisfaction how this product will differ from others, with detailed specifics, not generalities. Tesla must also explain whether the car features robotic systems and whether any of Tesla’s competitors use “robo,” “robot,” or “robotic” to describe their own goods and services—the fact that Zoox refers to its autonomous pods as robotaxis will be very inconvenient for Tesla.

It’s not the first time that Tesla has been accused of a lack of originality. Alcon Entertainment sued Warner Brothers and Tesla after it refused them permission and adamantly objected to WB’s and Tesla’s attempt to link the vehicle with vehicles seen in Blade Runner 2049. Although Tesla attempted to get the case dismissed, in April, the court ordered the parties to enter into mediation.

USPTO refuses Tesla Robotaxi trademark as “merely descriptive” Read More »

tesla-denies-trying-to-replace-elon-musk-as-ceo

Tesla denies trying to replace Elon Musk as CEO

Tensions had been mounting at the company. Sales and profits were deteriorating rapidly. Musk was spending much of his time in Washington.

Around that time, Tesla’s board met with Musk for an update. Board members told him he needed to spend more time on Tesla, according to people familiar with the meeting. And he needed to say so publicly.

Musk didn’t push back.

Musk subsequently said in an April 22 call with investors that “starting next month, I’ll be allocating far more of my time to Tesla now that the major work of establishing the Department of Government Efficiency is done.”

The Journal report said that after Musk’s public statement, the Tesla “board narrowed its focus to a major search firm, according to the people familiar with the discussions. The current status of the succession planning couldn’t be determined. It is also unclear if Musk, himself a Tesla board member, was aware of the effort, or if his pledge to spend more time at Tesla has affected succession planning.”

Tesla’s eight-member board has been criticized for having members with close ties to Musk. Last year, a Delaware judge who invalidated a $55.8 billion pay package awarded to Musk said that most of the board members “were beholden to Musk or had compromising conflicts.”

That includes Musk’s brother, Kimbal, and longtime Musk friend James Murdoch, said the ruling from Delaware Court of Chancery Judge Kathaleen McCormick. The judge also wrote that Denholm “derived the vast majority of her wealth from her compensation as a Tesla director” and took a “lackadaisical approach to her oversight obligations.” Denholm later defended Musk’s pay, telling shareholders that the large sum was needed to keep the CEO motivated.

Tesla denies trying to replace Elon Musk as CEO Read More »

tesla’s-q1-results-show-the-financial-cost-of-musk’s-support-for-trump

Tesla’s Q1 results show the financial cost of Musk’s support for Trump

For Q1 2025, Tesla took in $595 million in regulatory credits. Net income amounted to just $409 million.

None of this should be cause for concern, unlike the many times in the past that Tesla almost went out of business, Musk told investors on a call last night. “It’s been so many times. This is not one of those times. We’re not on the ragged edge of death, not even close,” he said.

I’m coming back!

The good news—if you’re a Tesla investor, at least—is that Musk says he will be spending more time at the electric car company in the coming months. He was hired by President Trump as a “special government employee,” a loophole that allows someone to be appointed to a senior government position without any of the congressional scrutiny that would normally accompany such a significant job. The proviso is that such positions can legally only last for 130 days, and Musk should reach that total in the next few weeks.

The flip side is that his secretive involvement with the DOGE wrecking ball looks set to continue. “I’ll have to continue doing it for, I think, probably the remainder of the president’s term, just to make sure that the waste and fraud that we stop does not come roaring back, which [it] will do if it has the chance,” Musk told investors last night. Earlier this month, The New York Times reported that Musk said his DOGE group would now generate just 15 percent of the vast savings he originally claimed—and even this smaller amount was disputed by the Times.

Musk says he expects to still devote 20 to 40 percent of his working time to the government, meaning Tesla must still compete for his attention, alongside SpaceX and other, lesser ventures.

Autonomous, real soon now

Tesla remains “absolutely hardcore about safety,” Musk said, despite the Cybertruck being more likely than the infamous Ford Pinto to burst into flames. “We go to great lengths to make the safest car in the world and have the lowest accidents per mile in. So—and look, fewest lives lost,” Musk said on last night’s call. In 2024, an analysis of the National Highway Traffic Safety Administration’s vehicle fatality rate data found that, actually, Tesla was the deadliest brand of car on sale in the US.

Tesla’s Q1 results show the financial cost of Musk’s support for Trump Read More »

tesla-odometer-uses-“predictive-algorithms”-to-void-warranty,-lawsuit-claims

Tesla odometer uses “predictive algorithms” to void warranty, lawsuit claims

Tesla is facing a new scandal that once again sees the electric automaker accused of misleading customers. In the past, it has been caught making “misleading statements” about the safety of its electric vehicles, and more recently, an investigation by Reuters found Tesla EVs exaggerated their efficiency. Now, a lawsuit filed in California alleges that the cars are also falsely exaggerating odometer readings to make warranties expire prematurely.

The lead plaintiff in the case, Nyree Hinton, bought a used Model Y with less than 37,000 miles (59,546 km) on the odometer. Within six months, it had pushed past the 50,000-mile (80,467 km) mark, at which point the car’s bumper-to-bumper warranty expired. (Like virtually all EVs, Tesla powertrains have a separate warranty that lasts much longer.)

For this six-month period, Hinton says his Model Y odometer gained 13,228 miles (21,288 km). By comparison, averages of his three previous vehicles showed that with the same commute, he was only driving 6,086 miles (9,794 km) per 6 months.

Tesla odometer uses “predictive algorithms” to void warranty, lawsuit claims Read More »

car-safety-experts-at-nhtsa,-which-regulates-tesla,-axed-by-doge

Car safety experts at NHTSA, which regulates Tesla, axed by DOGE


Tesla has a lot riding on the swift success of its so-called Full Self-Driving software.

Credit: Kai Eckhardt/picture alliance via Getty Images

Job cuts at the US traffic safety regulator instigated by Elon Musk’s so-called Department of Government Efficiency disproportionately hit staff assessing self-driving risks, hampering oversight of technology on which the world’s richest man has staked the future of Tesla.

Of roughly 30 National Highway Traffic Safety Administration workers dismissed in February as part of Musk’s campaign to shrink the federal workforce, many were in the “office of vehicle automation safety,” people familiar with the situation told the Financial Times.

The cuts are part of mass firings by Doge that have affected at least 20,000 federal employees and raised widespread concern over potential conflicts of interest for Musk given many of the targeted agencies regulate or have contracts with his businesses.

The NHTSA, which has been a thorn in Tesla’s side for years, has eight active investigations into the company after receiving—and publishing—more than 10,000 complaints from members of the public.

Morale at the agency, which has ordered dozens of Tesla recalls and delayed the rollout of the group’s self-driving and driver-assistance software, has plunged following Doge’s opening salvo of job cuts, according to current and former NHTSA staff.

“There is a clear conflict of interest in allowing someone with a business interest influence over appointments and policy at the agency regulating them,” said one former senior NHTSA figure, who was not among the Doge-led layoffs.

Remaining agency employees are now warily watching the experience of other federal regulators that have crossed Musk’s companies.

“Musk has attacked the Federal Aviation Administration and Federal Communications Commission to benefit SpaceX,” said another former top official at the regulator. “Why would he spare NHTSA?”

Musk has repeatedly clashed with federal and state authorities. Last year he called for the FAA chief to resign and sharply criticized the FCC for revoking a 2022 deal for his satellite telecommunications company Starlink to provide rural broadband.

The NHTSA said in a statement that safety remained its top priority and that it would enforce the law on any carmaker in line with its rules and investigations. “The agency’s investigations have been and will continue to be independent,” it added.

Musk, Doge, and Tesla did not immediately respond to requests for comment.

The dismissals, instigated by email on Valentine’s Day, affected roughly 4 percent of the agency’s 800 staff and included employees who had been promised promotions as well as newly hired workers, according to seven people familiar with the matter.

Staff working on vehicle automation safety were disproportionately affected, some of the people said, because the division was only formed in 2023 so comprised many newer hires still on probation.

The email cited poor performance as a reason for the dismissals. However, one senior figure still at the NHTSA rejected the notion that this was the basis for the layoffs. Another said morale was low after “some huge talent losses.”

Doge’s actions could hamper Tesla’s plans, according to one laid-off agency worker, who said the dismissals would “certainly weaken NHTSA’s ability to understand self-driving technologies.”

“This is an office that should be on the cutting edge of how to handle AVs [autonomous vehicles] and figuring out what future rulemaking should look like,” said another former NHTSA employee. “It would be ironic if Doge slowed down Tesla.”

The company has a lot riding on the swift success of its so-called Full Self-Driving software.

Musk has promised customers and investors that Tesla will launch a driverless ride-hailing service in Austin, Texas, by June and start production of a fleet of autonomous “cybercabs” next year.

To do so, Tesla needs an exemption from the NHTSA to operate a non-standard driverless vehicle on American roads because Musk’s cybercabs have neither pedals nor a steering wheel.

“Letting Doge fire those in the autonomous division is sheer madness—we should be lobbying to add people to NHTSA,” said one manager at Tesla. They “need to be developing a national framework for AVs, otherwise Tesla doesn’t have a prayer for scale in FSD or robotaxis.”

The NHTSA’s decision on the cybercab exemption and the future of its proposed AV STEP program to evaluate and oversee driverless and assisted cars will be closely watched considering the high stakes for Tesla.

Current and former NHTSA officials have privately expressed concerns about Musk’s ambitious rollout plans and how he would wield his influence to ensure a speedy launch of the cybercab and unsupervised FSD on US roads.

The government could “speed up the [AV STEP] application process and weaken it in some way so the safety case is less onerous to meet,” one person told the FT.

The future of crash reporting is another area of concern for those at the agency, following reports that the Trump administration may seek to loosen or eliminate disclosure rules.

After a spate of incidents, the NHTSA in 2021 introduced a standing general order that requires carmakers to report within 24 hours any serious accidents involving vehicles equipped with advanced driver assistance or automated driving systems.

Enforcing the order has been a vital tool for the agency to launch investigations into Tesla and other carmakers because there is no federal regulatory framework to govern cars not under human control.

It was critical for a recall of 2 million Teslas in December 2023 for an update that would force drivers to pay attention when its autopilot assistance software was engaged.

“Crash reporting is vital, the massive Tesla recall on autopilot could not have occurred without it. We got a huge amount of info on crashes and followed up with demands for more data and video,” said one person involved in the recall. “But everything seems to be fair game right now.”

One person familiar with Musk’s thinking said the company felt unfairly penalized by the rules because its sensors and video recording are more advanced than rivals’ so it files more complete data.

“Reporters see that we are reporting more incidents—many of which have nothing to do with autopilot—and have told the wrong story about our safety record,” the person said. “There is a healthy amount of frustration about that dynamic… the idea our bar for safety is lower is just wrong.”

The NHTSA has shown no signs of backing down, overseeing three new recalls of Tesla vehicles since Trump took office, most recently ordering 46,000 Cybertrucks to be checked after discovering an exterior panel was prone to falling off because of faulty glue.

Of its eight active investigations into Tesla vehicles, five concern Musk’s claims about the capabilities of the company’s Autopilot driver-assistance system and its FSD software—central promises of Tesla’s value proposition and the subject of thousands of consumer complaints.

The agency has received an average of 20 per month on FSD since the software was launched, according to an FT analysis of more than 10,000 complaints.

A sharp rise in complaints about so-called “phantom braking” at the start of 2022 triggered one of the investigations. In one, about a mid-October 2024 incident, a Tesla Model 3 in FSD suddenly stopped in front of a car that would have crashed into it had the Tesla driver not taken back control of the vehicle and accelerated.

“Software is so far from being ready to be safely used,” the Model 3 driver said in the complaint.

While multiple Tesla tech updates in the past two years have reduced complaints about braking glitches, other software issues persist. The FT analysis, which used artificial intelligence to categorize complaints, shows errors connected to driver-assist tools such as FSD and Autopilot still make up a large share of complaints made against the company in the past year.

In February, the driver of a 2024 Cybertruck reported that FSD disengaged without warning, causing the vehicle to suddenly accelerate and nearly collide head-on with another car. The owner said they contacted Tesla service but the vehicle was neither inspected nor repaired.

Former Apple executive Jonathan Morrison has been nominated by Trump as the NHTSA’s next administrator and must find a way to navigate the agency through the perceived conflicts of interest with Musk, without being accused of stifling AV innovation.

“Elon has done a lot of really interesting things with tech that were thought to be impossible,” said one former top NHTSA official.

“What concerns me is that Tesla is not known for taking a slow and methodical approach; they move fast and break things, and people are at risk because of that. There have been preventable deaths, so it’s an immediate concern for us.”

© 2025 The Financial Times Ltd. All rights reserved. Not to be redistributed, copied, or modified in any way.

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fbi-probes-arson-of-tesla-cars-and-facilities,-says-“this-is-domestic-terrorism”

FBI probes arson of Tesla cars and facilities, says “this is domestic terrorism”

Anarchist blog in FBI’s reading list

The New York Post report said the anarchist blog being eyed by the FBI is run out of Salt Lake City, Utah. “In addition, the FBI identified the site Dogeque.st that has information [for] doxxing Tesla employees and locations across the country and [is] being run out of the African country of Sao Tome,” the news report said.

A Democratic congressman criticized the FBI’s decision to create a task force on Tesla-related crime.

“This is the political weaponization of the DOJ,” wrote US Rep. Dan Goldman (D-N.Y.), who previously served as lead counsel in Trump’s first impeachment trial. “Trump uses his official authority to defend his benefactor Elon Musk. The FBI then creates a task force to use our law enforcement to ‘crack down’ on adversaries of Musk’s.”

“Tesla Takedown” calls for peaceful protest

The New York Post report said the FBI is also “tracking a mass protest called ‘Tesla Takedown’ scheduled for March 29 calling for 500 demonstrations at Tesla showrooms and charging stations.” The group behind the protest is calling for peaceful demonstrations and said it opposes vandalism and violence.

A Tesla Takedown website says the planned demonstrations are part of the group’s “peaceful protest movement. We oppose violence, vandalism and destruction of property.” Tesla Takedown says that “Elon Musk is destroying our democracy, and he’s using the fortune he built at Tesla to do it” and urges people to sell their Teslas, dump their Tesla stock, and join the demonstrations.

CNBC quoted a Tesla Takedown spokesperson as saying that the “movement has been and always will be nonviolent. They want to scare us away from protesting Musk’s destruction—but standing up for free speech is essential to democracy. We will not be deterred.”

Three arrests

US Attorney General Pamela Bondi last week issued a statement highlighting three arrests of suspected arsonists. Each defendant faces five to 20 years in prison if convicted. One defendant threw “approximately eight Molotov cocktails at a Tesla dealership located in Salem, Oregon,” another tried to light Tesla cars on fire with Molotov cocktails in Colorado, and a third in South Carolina “wrote profane messages against President Trump around Tesla charging stations before lighting the charging stations on fire with Molotov cocktails,” the press release said.

“The days of committing crimes without consequence have ended,” Bondi said. “Let this be a warning: if you join this wave of domestic terrorism against Tesla properties, the Department of Justice will put you behind bars.”

FBI probes arson of Tesla cars and facilities, says “this is domestic terrorism” Read More »

cybertrucks’-faulty-trim-prompts-biggest-recall-yet,-stokes-tesla-investor-panic

Cybertrucks’ faulty trim prompts biggest recall yet, stokes Tesla investor panic

Every Tesla Cybertruck ever sold is being recalled so Tesla can fix an exterior panel that could potentially come unglued and detach while driving.

If the “panel separates from the vehicle while in drive, it could create a road hazard for following motorists and increase their risk of injury or a collision,” Tesla explained in a safety recall report submitted Tuesday to the National Highway Traffic Safety Administration (NHTSA).

Tesla initially became aware of the issue in January and launched a study of the problem as more complaints came in, the report said. By March, social media complaints were getting louder as Tesla wrapped up its probe, concluding that a voluntary recall was necessary.

The recall affects any 2024 or 2025 Cybertruck manufactured between November 13, 2023, to February 27, 2025, the report said. According to Reuters, this represents “a vast majority of the Cybertruck vehicles on the road, based on analyst estimates.” Potentially more than 46,000 vehicles could require the fix, Tesla said, while conservatively estimating that only 1 percent of cars are likely defective.

Cybertruck drivers unsure if their vehicle needs the fix can look out for warning signs, like “a detectable noise inside the cabin” or visible signs the panel is detaching, Tesla said.

Anyone whose car is covered by the recall can get the fix at no charge, Tesla said. The repair both replaces the adhesive used for the panel with one that’s more durable and reinforces the attachment “with a stud welded to the stainless panel with a nut clamping the steel panel to the vehicle structure,” Tesla said.

Starting tomorrow, all new Cybertrucks that Tesla produces will have this fix, Tesla said, while any vehicles that Tesla currently possesses will be retrofitted before delivery to any customers.

Tesla is currently notifying dealers about the recall, then plans to start reaching out to customers with recall notices on May 19. Any Cybertruck owners interested in pursuing repairs now can call NHTSA’s Vehicle Safety Hotline at 888-327-4236 (TTY 888-275-9171) or go to nhtsa.gov, the agency said.

Investors panicked by Tesla’s “brand tornado crisis moment”

Last year, Tesla had several rounds of recalls, notifying drivers of widely varied problems, from software issues to faulty accelerator pedals or inverters. As recalls have been announced, Cybertruck sales have seemingly slumped, as Tesla obscured the true figures by lumping numbers in with sales of Model X and Model S, MotorTrend reported. This new recall is the first glimpse industry analysts have had of total Cybertruck sales, MotorTrend noted, and compared to other popular trucks, Cybertruck sales overall appear remarkably stunted.

Cybertrucks’ faulty trim prompts biggest recall yet, stokes Tesla investor panic Read More »

the-same-day-trump-bought-a-tesla,-automaker-moved-to-disrupt-trade-war

The same day Trump bought a Tesla, automaker moved to disrupt trade war


Tesla hopes to slow down Trump’s tit-for-tat tariffs amid financial woes.

Donald Trump and White House Senior Advisor, Tesla and SpaceX CEO Elon Musk deliver remarks next to a Tesla Model S on the South Lawn of the White House on March 11, 2025 in Washington, DC. Credit: Andrew Harnik / Staff | Getty Images News

Elon Musk’s Tesla is waving a red flag, warning that Donald Trump’s trade war risks dooming US electric vehicle makers, triggering job losses, and hurting the economy.

In an unsigned letter to the US Trade Representative (USTR), Tesla cautioned that Trump’s tariffs could increase costs of manufacturing EVs in the US and forecast that any retaliatory tariffs from other nations could spike costs of exports.

“Tesla supports a robust and thorough process” to “address unfair trade practices,” but only those “which, in the process, do not inadvertently harm US companies,” the letter said.

The carmaker recommended that the USTR—in its ongoing review of unfair trade practices and investigation into harms of non-reciprocal trade agreements—”consider the downstream impacts of certain proposed actions taken to address unfair trade practices.”

According to Tesla, the current process to address unfair trade threatens to harm its more than 70,000 employees, and more broadly could trigger job losses and revenue dips in the US auto industry. It could also disrupt supply chains, as Tesla claims that even its best efforts prove it would be “impossible” to source all parts from the US currently.

“Even with aggressive localization of the supply chain, certain parts and components are difficult or impossible to source within the United States,” the letter said, asking the USTR to “evaluate domestic supply chain limitations.”

If left unchanged, the process could make the US less competitive in global auto markets, Tesla warned, recommending that the “USTR should investigate ways to avoid these pitfalls in future actions.”

Moving forward, Tesla recommends that the USTR “take into account” how the trade war could hurt US exporters, as “US exporters are inherently exposed to disproportionate impacts when other countries respond to US trade actions.”

In the letter, Tesla appears to suggest that Trump’s tariffs were rushed, suggesting that “US companies will benefit from a phased approach that enables them to prepare accordingly and ensure appropriate supply chain and compliance measures are taken.”

Tesla was not alone in submitting comments to the USTR. So far, hundreds of companies have chimed in, many hoping to push back on Trump’s aggressive tariffs regime.

Among them was a trade group representing major foreign automakers like BMW, Honda, and Toyota—Autos Drive America—which agreed with Tesla that the USTR should slow Trump down and require considerations about long-term impacts of sudden actions to address unfair trade. They similarly warned that imposing “broad-based tariffs will disrupt production at US assembly plants,” Reuters reported.

“Automakers cannot shift their supply chains overnight, and cost increases will inevitably lead to some combination of higher consumer prices, fewer models offered to consumers and shut-down US production lines, leading to potential job losses across the supply chain,” the group said.

Disrupting Trump trade war may be tough

Last week, Trump’s 25 percent tariffs on Canada and Mexico took effect, likely frustrating Tesla, which relies on a small parts manufacturer in Canada, Laval Tool, to source parts for the already costly molds for its Cybertrucks. Those tariffs threatened to spike costs beyond the current rate of nearly $500,000 per mold at a time when the Cybertruck hasn’t been selling well, InsideEVs reported. And for Tesla, Trump’s China tariffs may hit even harder, as China is Tesla’s second biggest market.

On the day that those tariffs kicked in, the head of the Alliance for Automotive Innovation—which represents all the major US automakers, except Tesla—John Bozzella warned that “all automakers will be impacted by these tariffs on Canada and Mexico,” Reuters reported. He joined others predicting price hikes on cars coming soon, perhaps as high as 25 percent.

Tesla’s letter to the USTR is notably unsigned, despite CEO Musk’s close allyship with Trump as a senior advisor in his administration—suggesting Musk may be hesitant to directly criticize Trump’s trade war or his opposition to EVs.

Many have questioned how long Musk’s friendship with Trump can possibly last, given their strong personalities and seeming unwillingness to bend to critics. At the beginning of this administration, Musk seemed unafraid to question Trump despite teaming up with him. Perhaps most notably, Trump’s team was supposedly “furious” after Musk trashed Trump’s $500 billion “Stargate” project with OpenAI, Politico reported, which Trump had hyped as “tremendous” and “monumental.”

“It’s clear he has abused the proximity to the president,” a Trump ally granted anonymity told Politico. “The problem is the president doesn’t have any leverage over him and Elon gives zero fucks.”

Officially, Trump downplayed Musk’s public criticism of his major announcement, seeming to understand that Musk views OpenAI CEO Sam Altman—whom Musk is suing for making a “fool” out of him—as an enemy.

“He hates one of the people in the deal,” Trump told a reporter who asked if Musk’s comments had bothered him, confirming, “it doesn’t.”

Despite a long history of harsh comments about EVs, Trump has recently hyped Tesla cars, which Tesla noted in its letter to the USTR, further its mission “to accelerate the world’s transition to sustainable energy.” The BBC noted Tesla’s letter was sent the same day that Trump hosted a White House event where the president vowed to purchase a Tesla in defiance of Tesla boycotts and protests that some believe are driving a steep Tesla stock fall and even degrading the price of used Teslas. In a Truth Social post, Trump claimed that he was buying a Tesla to support “one of the World’s great automakers” and “Elon’s ‘baby,'” alleging that protests and boycotts were somehow illegal.

The Hill suggested that their friendship isn’t likely to end soon, even though Trump has supposedly complained in private about taunts suggesting that Musk is really the president or somehow pulling the strings, The Independent reported.

Musk may be settling into a good dynamic with Trump after spending ample time at the president’s side, reportedly even joining meetings and sensitive calls. Or perhaps Musk is giving Trump space to call the shots, after Musk’s Department of Government Efficiency’s aggressive cuts at federal agencies sparked backlash that finally pushed Trump to rein in Musk’s power a little.

Musk’s proximity to Trump was predicted to be a boon to his businesses, but Tesla has been stuck in a slump that seemingly some Trump allies think Trump might fear makes him look weak, The New Republic reported. But Trump has made tariffs the core of his trade policy, hoping aggressive taxes will force more industry into the US, and it’s hard to see how Musk could easily influence him to shift gears.

In Tesla’s letter, the automaker told the USTR that it was “essential to support US manufacturing jobs” by ensuring that cost-prohibitive tariffs or other import restrictions don’t disrupt critical auto industry supply chains. For Tesla, the stakes couldn’t be higher, as the company reminded the USTR that “Tesla was ranked as the world leader in the transition to vehicle electrification,” manufacturing “the best-selling car in the world (EV or otherwise).”

“Tesla’s US facilities support over 70,000 employees and are responsible for billions of dollars of US investment and economic activity each year,” Tesla’s letter said.

Photo of Ashley Belanger

Ashley is a senior policy reporter for Ars Technica, dedicated to tracking social impacts of emerging policies and new technologies. She is a Chicago-based journalist with 20 years of experience.

The same day Trump bought a Tesla, automaker moved to disrupt trade war Read More »