The path to mainstream electrification is all but inevitable. Despite that, many lawmakers are trying to slow it down. Add to that one of the automakers building thousands of EVs every year, General Motors. A newly uncovered email exposes the company as it urges employees to get political. It hopes that with enough support, the government will stop California from setting its own emission standards.

More: New Bill To Kill EV Tax Credits Will Only Benefit One Brand

The Golden State has long done exactly that. In 2022, it went as far as to tell automakers that they had a little over a decade. By 2035, it won’t allow the sale of new gas-powered cars and trucks. While that would seemingly be good for EV sales, the plan has several critics aside from General Motors.

The Golden State vs. Detroit

“We need your help!” GM said in an email to white-collar employees obtained by The Wall Street Journal. “Emissions standards that are not aligned with market realities pose a serious threat to our business by undermining consumer choice and vehicle affordability.” It’s worth noting that California isn’t alone in its thinking. 11 other states have signed up to follow the same plan. Now, GM and several lawmakers want to remove California’s ability to set its own standards and thus, cancel the ability for the other states involved.

In a statement, GM’s spokeswoman made the company’s stance clear: “GM believes in customer choice, and we continue to focus on offering the best and broadest portfolio of vehicles on the market”. That’s consistent with the automaker’s view, even when it supported California’s proposal in the past. Clearly, a national standard is in the best interest of automakers since they wouldn’t have to manage different regulations in different states.

Government officials say the standards set in California are simply out of touch with reality. Data seems to back that up, too. It set a target to have 35 percent of all vehicle sales be electric in 2026. Right now, EVs only make up 20 percent of new car sales, and that’s in a place where EVs are wildly popular when compared to other states.

EV sales in North America are slower than in most places across the globe. The transition to electrification appears like a sure thing, but probably further down the road than initially expected. 

Elon Musk seems to have no plans of stepping down from Tesla anytime soon, despite the growing grumbles from shareholders who aren’t thrilled about his other ventures, especially when meddling in global politics. To solidify his grip on the company, he’s also eyeing a bigger slice of Tesla’s pie, aiming to raise his stake to around 25%, just to make sure no investors can force him out.

While speaking over video during the Qatar Economic Forum in Doha this week, Musk said he has “no doubt” he will remain CEO for at least the next five years, unless he dies in that time. A little grim, but we get the point.

Read: Elon Musk’s Latest Investor Power Play Just Made Suing Tesla Nearly Impossible

This news may upset some who were concerned Musk was getting distracted and was no longer fully committed to Tesla, but there’s no denying the fact Musk has led Tesla through a rapid expansion that transformed them from a fringe player into one of the world’s largest car manufacturers by volume, and the single most valuable by market cap.

It was recently reported that Tesla board members started to reach out to executive search firms to see if they could find a new CEO. It’s understood that board members had grown concerned Musk was spending too much time in Washington alongside President Trump. However, both Tesla and Musk later denied these assertions.

As reported by the Wall Street Journal, Musk isn’t going anywhere. He currently owns a 12.77% stake in Tesla that currently is worth more than $140 billion, but during a separate interview this week, he said he’d like to increase this to around 25%. He believes this will give him enough control to ensure he cannot be ousted by activist investors.

“It’s not a money thing,” Musk said. “It’s a reasonable control thing over the future of the company. That’s the number I’d feel comfortable at, because that’s where I have some control, but not so much control that I can’t be thrown out, [unless] I’m destroying the value of the company or if I’ve just gone flat-out crazy.”

It seems as though some of the blowback for his involvement in US politics has also gotten to Musk. He spent almost $300 million last year to help President Trump return to the Oval Office, but has confirmed he will “do a lot less” political spending in the future. “If I see a reason to do political spending in the future, I will do it,” he added, but said, “I do not currently see a reason.”

As more automakers revise their EV plans in response to the realities of the market, Honda is also adjusting its electrification strategy. President and CEO Toshihiro Mibe recently announced significant changes to the company’s approach, including a sharp reduction in both its ambitious sales targets and, more importantly, its investment in electric vehicles.

More: Honda’s Future EVs Will Let You Pretend You’re Driving An NSX Or S2000 With Simulated Sounds And Shifts

Slower-than-expected EV adoption has been a key factor behind this shift. While Honda still sees electric vehicles as the best long-term path to carbon neutrality by 2050, the pace of adoption has not kept up with predictions. A combination of evolving environmental regulations and shifting trade policies has kept EVs from breaking through at the rate many hoped for.

Adjusted Expectations

Honda now predicts that EVs will make up less than 30% of its global sales by 2030. In response, the company is slashing its planned investment in electrification from ¥10 trillion ($69 billion) to ¥7 trillion ($48 billion) by 2031. Part of this reduction stems from the postponement of a major EV investment project in Canada.

More importantly, Honda is introducing a new mixed production system that can handle both EVs and HEVs, with the added flexibility to shift between different factories. This will be paired with a “resilient supply chain strategy” designed to make adjustments as needed, depending on market fluctuations in different regions.

Next-Generation Hybrids

With demand for hybrids expected to continue growing toward the end of the decade, Honda plans to introduce 13 next-generation HEV models globally between 2027 and 2031. These hybrids will sport the redesigned “H” emblem, which was previously reserved for EVs. The company aims to reach 2.2 million annual HEV sales by 2030, contributing to a broader sales increase beyond the projected 3.6 million units in 2025.

More: 2026 Honda Prelude Coupe Interior Revealed With Civic Vibes

Honda’s two-motor e:HEV hybrid system will also see improvements, offering enhanced efficiency and better packaging. A new all-wheel-drive (AWD) unit will further elevate performance. The next-generation hybrid system will be 30% cheaper to produce than the current version, making it a more cost-effective option for the company.

Big Plans for North America

Specifically for North America, Honda is developing a new hybrid system tailored for larger vehicles, with an emphasis on high performance and towing capabilities. This powertrain will debut in models set to launch in the next few years, including a large SUV. While the model isn’t named, we suspect that it could very well be a replacement for the Pilot.

Sophisticated ADAS

The company is also investing heavily in intelligent technologies like advanced driver-assistance systems (ADAS). Aiming to enhance the competitiveness of both EVs and HEVs, the next generation of Honda’s ADAS will offer a higher level of autonomy in both city and highway driving. These systems are expected to be launched around 2027 across a wide range of EVs and HEVs in North America and Japan.

Besides its own-developed next-gen ADAS, Honda will also work with Chinese startup Momenta Global Limited to develop systems tailored for all future Hondas that will launch in China.

Honda

It wasn’t a major Tesla shareholder who took down Elon Musk’s record-breaking $56 billion pay package in court, but rather a guy with just nine Tesla shares. But, of course, Tesla isn’t keen on letting that happen again. So, earlier this month, the company quietly tweaked its corporate bylaws, making it harder for shareholders to sue the board or executives over suspected breaches of fiduciary duty.

Read: Musk Appeals For $56 Billion Tesla Payday, As Firing Thousands Just Doesn’t Pay Enough

Tesla’s latest filing reveals that to sue the EV company, an investor now has to hold at least 3% of Tesla’s outstanding shares. Given the automaker’s current market value, that means you’d need around 97 million shares worth more than $34 billion to even think about taking legal action. Good luck with that.

The Texas Twist

Why the change? Well, Tesla has been able to implement this thanks to its recent move to Texas, a state with laws that are a bit friendlier to corporations than Delaware, where Tesla was originally incorporated. Richard Tornetta, the shareholder who first sued over Musk’s compensation, filed the case when Tesla was still a Delaware company. But last year, Tesla made the leap to Texas after receiving shareholder approval, making it easier to adopt these new, lawsuit-limiting bylaws.

Speaking with CNBC, corporate and securities law trial attorney Ann Lipton said Tesla is making the most of more favorable laws in Texas that allow companies to limit shareholder lawsuits for alleged breaches of fiduciary duties. While the change will likely go unnoticed by the majority of Tesla shareholders, it does severely limit their ability to take Tesla to court for wrongdoings.

Musk’s Pay Saga

Elon Musk continues efforts to have his compensation package reinstated. In 2018, the world’s richest man decided against taking a salary at Tesla and struck a deal to buy 303 million Tesla shares at $23 apiece if the company met certain performance and valuation targets. It reached all of these targets, but in January 2024, Delaware Chancellor Kathaleen McCormick annulled the pay plan. According to her, the Tesla board members who approved it were essentially beholden to Musk.

Tesla shareholders were then asked to vote on the pay package again, and they approved it a second time. But the judge wasn’t having it and blocked the deal yet again. It’s a pay plan that just won’t die, and it seems like neither will Musk’s determination to get it reinstated.

Subaru was slow out of the blocks when it came to adding EVs to its lineup, but now it’s wondering whether to even bother trying to catch up to rivals. The automaker revealed this week it was “re-evaluating” its electrification strategy amid a turbulent and uncertain time for the auto industry.

Also: Subaru Trailseeker Is Faster Than A WRX But No One Knows If It’s A Wagon Or SUV

Look at Subaru’s US website and you’ll find just one EV: the recently facelifted Solterra. A second, the Outback-sized Trailseeker that made its debut at last month’s New York Auto Show, is scheduled to be added to the range for 2026. But we’re unlikely to see many more EVs join it any time soon.

Tariffs and Tax Credits: The Great Unknowns

Aside from a general concern about a slowdown in the rate of EV takeup, Subaru, like every other automaker, is hamstrung by a lack of clarity from the US regarding its long term position on both import tariffs and EV tax credits. Nobody knows what the tariff situation will look like six or 12 months from now or whether tax credits will be scrapped or not.

Subaru estimates Trump’s tariffs could cost it $2.5 billion this year because, although the company does have a plant in Indiana, it only builds around half of the 700,000+ cars the brand sells in the US each year, Auto News reports. The remainder have to be imported, an d while Subaru could theoretically push the US plant’s current 345,000-unit annual capacity to 500,000, its supplier base can’t handle more than 370,000 units without a major upgrade.

Overseas Production and Shifting Plans

That means the Trailseeker will probably have to be built overseas, Auto News suggesting production will take place north of Tokyo. Subaru also had planned to create a new EV-only plant, but is rethinking that strategy, too. It now says it might have to add combustion vehicles into the mix at the new site.

Subaru execs made the admissions while announcing the company’s fiscal year financial results that revealed operating profit had dipped 13 percent to $2.7 billion. Global sales dropped 4.1 percent to 936,000 vehicles and North American deliveries slid 4.1 percent to 732,000 vehicles, though sales in Japan did climb 5.4 percent to 104,000.

The first-mover advantage is something Tesla continues to capitalize on. It’s been over 20 years since the brand first launched, and no other automaker in the U.S. has even come close to challenging Tesla’s dominance in the EV space. Despite the growing competition, Tesla still holds a commanding market share, which hovers around 45%.

More: House Speaker Says EV Tax Credits Are Likely Finished

However, if House Republicans succeed in their push, the company’s position could be further strengthened, but at a cost to legacy automakers like Ford and GM. The reason? A looming change to the Federal Tax Credit that currently helps all EV makers sell vehicles.

The Current EV Tax Credit System

At the moment, those who buy a new or used EV in America might qualify for one of two credits. New car buyers can qualify for up to $7,500, and used car buyers can get up to $4,000. These credits are in addition to various state incentives, such as the $5,000 credit in Colorado and $3,500 in Massachusetts.

To be eligible, the vehicle must meet certain requirements, such as North American assembly and specific sourcing of battery materials. SUVs and pickups are eligible for the credit if priced under $80,000, while regular cars must be under $55,000. Income limits also apply: individuals making under $150,000 and couples under $300,000 qualify. For leased vehicles, the credit goes to the leasing company, which often (but not always) passes on the savings to customers, contributing to a rise in EV leases.

That might not seem like a huge chunk of change considering the price of some EVs, but in reality, it plays a huge role in sales. For instance, in 2022, before the introduction of the tax credit, 96,000 EVs were leased. By 2023, that number skyrocketed to nearly 600,000. But a recent budget bill released on Monday proposes ending both the new and used car credits, along with several other non-automotive tax incentives.

A Slower EV Adoption Could Hurt Major Automakers

According to a report from the New York Times, Cox Automotive’s Stephanie Valdez Streaty believes that almost a third of car sales in 2030 will be EVs if the credit stays as it is. However, should the government get rid of it, that figure could drop to just 20 percent. Slowing the adoption of EVs wouldn’t just be a potential backsliding for environmentalists, it could hit big automakers like GM and Ford in a big way.

Those brands are still trying to get to the point where their EV businesses are profitable. And their far from it with their numbers. On the other hand, Tesla hit that mark long ago, so while other players will need to sort out new strategies, it can continue to reap the benefits of being the first to market in the way it was.

Other legacy automakers, such as Toyota, Hyundai, and Kia, have made significant investments in U.S.-based EV production, but they too could face a major setback if the bill passes. The removal of these credits would undermine the financial viability of the incentives that made their business cases profitable.

EV Startups Face Even Greater Financial Pressure

Although Tesla would also be impacted by the removal of the tax credit, it stands to gain in ways its rivals cannot. While Tesla may be able to withstand lower sales, many of its competitors will not have that luxury and could be forced to shut down. Newcomers like Rivian and Lucid, for example, would face immense financial pressure as their sales figures don’t support a profitable business model.

Even smaller, more recent startups like Slate would likely have to review their entire business plan. What, after all, is the point of a tiny EV trucklet with 150 miles of range, no desirable mainstream features, and a price that is as high as a Ford Maverick?

In the grand scheme, while Tesla will undoubtedly be affected, the long-term payoff could be substantial. It may emerge as the dominant force in the EV market with little to no competition to contend with. In other words, instead of having 45% of the EV market’s 33% of car sales, it could end up with double that of the predicted 20%.

In the grand scheme, Tesla will undoubtedly face challenges, but the long-term payoff could be massive. It might emerge as the dominant force in the EV market with little to no competition to contend with in America. Instead of holding 45% of the EV market’s 33% share of total car sales, Tesla might dominate nearly the entire 20% share that EVs are expected to capture in the 2030s if tax credits vanish, while also further extending its technological lead in the field.

“What this does globally to the U.S. auto industry and its ability to compete – I think it’s going to hurt us,” Ms. Valdez Streaty said. “I think it’s going to slow us down, and we are already behind China.”

We’ve got some bad news for Ram fans who were hoping to jump into one of the automaker’s two new electrified trucks. Both have been delayed again, their production debuts having already been pushed back at least once.

The all-electric 1500 REV and hybrid Ramcharger both had their global reveals back in 2023 and were originally slated to enter production in late 2024. That date was then pushed back to 2025, but now truck fans face an additional wait of up to two years to get their hands on one of the hi-tech pickups.

Related: A Secret Ram EV Truck You Never Heard Of Just Sparked A Multi-Million Lawsuit

Stellantis has delayed the Ramcharger’s introduction to the first quarter of 2026 and the REV won’t now land in dealerships until the summer of 2027 as a 28MY truck. The delay was first reported by Crain’s Detroit Business, which discovered two different reasons for the hold-ups.

The Ramcharger delay is due to Ram “extending the quality validation period” to get a handle on some quality niggles, a Stellantis spokesperson told CDB via email. Though the rep didn’t expand on what kinks needed straightening, the powertrain – an electric motor and battery setup charged by a massive combustion V6 – is an entirely new one for the automaker.

Stellantis makes no suggestion that the delay of the 1500 REV is related to quality issues with its fully-electric powertrain. Instead, the spokesperson places the blame squarely on market forces, specifically a “slowing consumer demand” for half-ton BEV pickups.

With technology and customer expectations evolving so quickly these days, let’s just hope the trucks still feel fresh and exciting when they finally start rolling off the line in Sterling Heights, Michigan – several years later than originally planned.

While the delays are disappointing, at least the trucks haven’t been canned altogether like the heavy-duty electric pickup Ram scrapped last year. And there is still plenty of good news coming out of Ram right now. We reported a few weeks back that the brand promised to announce 25 new products over the next 18 months, and the first one is scheduled for June 8.

One of those new models is a smaller truck, though it’s still unclear whether it will go into battle with midsize pickups like the Ford Ranger, or take aim at the small Maverick.

In April of last year, Honda unveiled plans to invest CA$15 billion (US$11 billion) into a full-fledged electric vehicle supply chain in Canada, which would include an EV plant and a standalone battery facility in Ontario. Fast forward 12 months, and the auto industry is a very different landscape, thanks in part to Donald Trump’s return to the Oval Office. As a result, Honda is now pushing back its Canadian EV investments by “approximately” two years.

In a letter sent to Honda shareholders, the automaker attributed the delay to the current slowdown in EV demand. The company reassured investors that it’s keeping a close eye on market trends but stopped short of providing a specific timeline for when the project will get back on track.

Read: Honda Pours $11 Billion To Build EVs In Canada’s Biggest Auto Investment Ever

Honda’s CEO, Toshihiro Mibe, explained during a quarterly earnings press conference that the company will need to “observe what is happening” over the next two years before making any final decisions on the timing of the project. Meanwhile, Honda Canada spokesperson Ken Chiu told CTV News that there are no plans to cut production or jobs locally, despite the delays.

EV Sales Still Climbing, Just Not as Fast as Expected

While Honda claims the postponement is due to a slowdown in EV demand, the reality is that EV sales are still rising in both Canada and the US. In fact, battery-electric vehicles accounted for 11.4% of all new car sales in Canada last year, and 8.1% in the US. True, demand hasn’t accelerated as rapidly as many hoped, prompting automakers to reconsider their EV strategies, but it’s not as though EVs are suddenly unpopular.

A Delayed Investment with Major Implications

Honda’s CA$15 billion commitment was previously hailed by former Prime Minister Justin Trudeau as the “largest auto investment in Canada’s history.” The plan called for a battery plant with an annual capacity of 36 GWh and an EV assembly plant capable of producing up to 240,000 vehicles annually starting in 2028.

In light of the delays, Honda also confirmed it would shift some the CR-V production to its plant in Ohio to mitigate the impact of President Trump’s tariffs on the company’s operations.

“There is room to increase the production capacity in the United States, and we are trying to look into what will happen as a result of that,” Toshihiro Mibe added. “In the midterm, if the tariff measures are to be in place for a long time, then we will have to increase our production capacity in the United States.”

As global carmakers juggle tightening regulations and international trade headaches, the European Union has thrown them a much-needed lifeline. The EU will ease upcoming CO2 emission standards following intense lobbying from major players in the automotive industry.

It’s a significant win for car manufacturers and comes at a time when they’re already dealing with the fallout from US President Trump’s tariffs and the broader effects those have had on global markets and supply chains.

Originally, the EU had proposed that European carmakers reduce their CO2 emissions by 15% by 2025 compared to 2021 levels. Automakers pushed back hard, calling the target unworkable and warning it could result in up to €15 billion (around $16.8 billion) in penalties. Under the current rules, companies must pay €95 (roughly $107) for every gram of CO2 over the limit, multiplied by each car sold—an equation that quickly adds up.

Read: Europe’s Carmakers Hike Gas Car Prices To Push EV Sales Harder Ahead Of New Mandates

Last month, the European Parliament’s executive presented an amendment more to the auto industry’s liking. Rather than basing emissions solely on 2025, it will average them out across 2025, 2026, and 2027. This will give car manufacturers more time to increase production of EVs to offset the ICE-powered models they continue to sell.

Politico reports that 458 members of the European Parliament voted in favor of the change compared to just 101 who voted against it and 14 who abstained. This key amendment will now be put into law.

Changes Couldn’t Come Soon Enough

The reprieve should help European car brands massively at a time when they face fierce competition from new Chinese brands. However, not everyone is pleased with the change.

According to NGO Transport & Environment cars director Lucien Mathieu, local brands will now be able to take their foot off the gas in introducing new and innovative EVs.

“It’s ironic that the EU is delaying emissions targets for the car industry just as EV sales surge,” he said. “The boom is thanks to new, more affordable models that the carmakers launched to comply with the original EU target. This delay will allow the industry to take the foot off the gas for the EV roll-out while also slowing down investments.”

The dream of a driverless Tesla fleet shuttling people around while their owners kick back at home has been around for years, always just around the corner, but never quite here. Now, as the company continues to promise that reality is almost within reach, the U.S. Patent Office may have just introduced another delay.

As it turns out, names like “Robotaxi” and “Cybercab” might be too generic to trademark, and that could complicate Tesla’s rollout plans.

Read: Tesla Stiffs Cybertruck Owners On Another Promised Feature

It’s worth noting that Cybercab and Robotaxi refer to different things in the Tesla world. The former is the two-door prototype the automaker unveiled last year. The latter is the software that could enable everyday Tesla owners to let their car go around picking people up and moving them around while the owner is busy working or doing just about anything else.

According to TechCrunch, the USPTO just issued a non-final office action on the trademark application for the name Robotaxi. Specifically, the office said that name “describes a feature, ingredient, characteristic, purpose, function, intended audience of applicant’s goods and/or services.” In layman’s terms, it’s too general. The office even cited Wikipedia, Zoox, and The Verge to prove it.

“This term is used to describe similar goods and services by other companies,” the agency wrote. That mirrors a similar decision it made in April regarding Tesla’s attempt to trademark “Cybercab.”

FSD Supervised ride-hailing service is live for an early set of employees in Austin & San Francisco Bay Area.

We've completed over 1.5k trips & 15k miles of driving.

This service helps us develop & validate FSD networks, the mobile app, vehicle allocation, mission control &… pic.twitter.com/pYVfhi935W

— Tesla AI (@Tesla_AI) April 23, 2025

In that motion, the USPTO pointed to multiple concerns, including the potential for consumer confusion. In fact, it even mentioned other companies that use the word Cyber, including ones that specifically build aftermarket products for the Cybertruck. In a way, Tesla did this to itself. For now, though, the names aren’t dead and gone.

In both cases, Tesla can argue its case with whatever evidence it thinks is relevant. No doubt, the two words do seem tied to the automaker a little more all the time. Tesla must respond within three months or the USPTO will abandon the application. That runs well past Tesla’s planned June rollout, so expect more news on this topic sooner rather than later.

Last September, Volvo rowed back from its previous pledge to go all-electric by 2030, and now, eight months later, that looks like a very smart move. The Geely-owned automaker just announced its latest sales figures, and they show registrations of fully electric Volvo vehicles fell by almost one-third.

Volvo’s EV sales fell 32 percent in April versus the same period last year. The company sold 17,090 EVs in April 2024, compared to the 11,697 EVs sold in the month just gone. PHEV sales actually grew fractionally (by 2 percent) to 14,688, but MHEV and ICE registrations also dropped 5 percent to 34,315.

Related: Trump’s Tariffs Drive Volvo To Build A New Model In The US

That means Volvo’s combined electric sales were down 16 percent, and total sales for all power types for April stood at 65,838, or 11 percent lower than they were for the corresponding period last year. And April’s terrible performance really dragged down the overall Q1 EV sales figures, which showed a 6 percent sales decline and are down 7 percent Jan-April.

The lacklustre demand for EVs comes despite the EX30 being rolled out to the US and sales of the big EX90 also now having begun. But Volvo is one of the automakers affected by President Trump’s tariffs, albeit not as badly affected as Audi or Porsche. Although it does build the EX90 at its South Carolina plant in the US, other models like the XC90, XC60, XC40, and EX30 are all made overseas and subject to import levies.

Volvo sales April 2025

Volvo is looking to address that issue and is planning to build a second model – probably the XC60 or XC90 – at the same site. Volvo recently dropped the S90 from the US market due to tariffs, though the newly facelifted sedan will still be offered in Asia.

The man tasked with managing the turnaround is Hakan Samuelsson, who returned to the CEO role on April 1 on a two-year contract while the company looks for a permanent new boss. He replaces Jim Rowan, who took over from Samulesson in 2022 but was shown the door this spring after three years in the big chair.

Automakers across the industry are scrambling to navigate Donald Trump’s tariffs, and some are getting particularly creative in their strategies. Rivian, for example, has apparently taken a refreshingly proactive stance. Sources with knowledge of the situation say the automaker is sitting on a stockpile of batteries that it’s been buying up since before the election even happened.

According to a Bloomberg report, Rivian made a savvy move by locking down a stash of lithium iron phosphate (LFP) cells from China’s Gotion High-Tech Co. well before the election, with the goal of powering its Amazon-bound delivery vans. After the political dust settled, the company then teamed up with Samsung SDI to import a sizable batch of battery cells from South Korea, hoping this would keep production rolling for its R1T pickup and R1S SUV models.

Read: Trump Eases Auto Tariffs With 85% Rule While Buyers Brace For Sticker Shock

The strategic move serves as a buffer against potential pricing pressures induced by Trump’s new tariffs. While recent revisions to the tariff plan offer some relief, they still pose significant challenges for automakers relying on international supply chains. That can heavily impact companies like Rivian who need to import batteries to make every vehicle in their lineup. Notably, Samsung SDI said a week ago that the tariff war would make it more expensive to build EVs.

For now, Rivian has bought itself a little more breathing room before it has to worry about raising prices. In the meantime, it’s also gearing up for the launch of its smaller R2 SUV. With this new vehicle, the company plans to switch to 4695-format cells from LG Energy Solution. The initial production will take place in Korea, but Rivian has plans to move operations to LG’s new Arizona facility in Queen Creek. Even without the tariff issues, that move helps Rivian better align with the Inflation Reduction Act’s requirements.

Whether this is a stroke of logistics genius or just plain survival instinct depends on how you read the political winds. Either way, Rivian’s battery strategy gives it a short-term cushion while it scrambles to localize its supply chain before the tariffs squeeze even tighter. Of all the different strategies we’ve seen automakers employ, this is the first time one has proactively bought up supplies to this degree. 

In the end, Rivian’s proactive approach might just be the thing that keeps it on track, at least until the tariff storm blows over.

Nissan is reportedly preparing to shut down production at its plant in Wuhan, China, following dwindling production of the Ariya and X-Trail models built there. It is another blow for the Japanese automaker, coming just days after news broke that Nissan is bracing for the worst financial loss in its history.

Read: Nissan’s New Frontier Pro Plug-in Hybrid Wants To Take On The World

News of Nissan’s plans first came from a local Chinese outlet. It’s understood that annual production at the plant has only hit 10,000 units since operations commenced in 2022. That’s pretty terrible, particularly since the plant has the capacity to build as many as 300,000 vehicles annually. Nissan is currently leasing the site from Dongfeng Motor.

Nissan’s Chinese Sales Were Way Off Target

According to Reuters, fierce competition from Chinese automakers has been a major factor behind Nissan’s underwhelming numbers. Domestic brands have surged ahead, leaving foreign companies like Nissan scrambling to keep up.

This isn’t the only Nissan plant in China that’s under serious pressure. In June last year, it closed its plant in Changzhou due to the jump in sales of Chinese EVs and dwindling demand for imported vehicles. This site had been operating alongside Dongfeng Motor since November 2020 and had the capacity to build 130,000 vehicles annually.

Nissan’s Is Between A Rock And A Hard Place

Nissan is in dire straits at the moment. We’re only a few months removed from its planned merger with Honda falling apart, and on May 13, it’s gearing up to release its full earnings report for the fiscal year that ended in March.

The forecast is grim. Last week, Nissan announced it expects to post a net loss of between ¥700 billion and ¥750 billion (roughly $4.91 billion to $5.26 billion), a massive jump from the ¥80 billion ($560 million) it had originally predicted.

Nissan is currently in survival mode and is implementing a massive restructuring. It has confirmed plans to cut 9,000 jobs, is closing plants, and has streamlined model lineups. It is also looking for a new partner, and could even join forces with Taiwanese tech giant Foxconn.

Nissan is currently in survival mode and is implementing a massive restructuring. It has confirmed plans to cut 9,000 jobs, is closing plants, and has streamlined model lineups. It is also looking for a new partner, and could even join forces with Taiwanese giant Foxconn.

The latest episode in the ongoing feud between dealers and Scout Motors has escalated into a full-blown lawsuit. The California New Car Dealers Association (CNCDA) has filed suit against Volkswagen and Scout, accusing them of bypassing the law. Specifically, the CNCDA wants VW and Scout to sell their vehicles through dealerships instead of direct-to-consumer sales.

Forget about free-market dynamics, dealers are fighting for their slice of the pie, and they’re taking it to court to make sure they get it.

More: VW Talks US Pickup Again And It Could Be A Range-Extender EV

Brian Maas, CNCDA President, stated that “VW dealers would welcome the opportunity to sell Scout trucks and SUVs, but their manufacturer business partner is denying them that opportunity, in direct violation of California law.” The accusation here is that VW’s Scout Motors is allegedly breaking the law by allowing customers to buy vehicles directly from them, bypassing the traditional dealer model.

Is VW Picking and Choosing?

Maas didn’t stop there. He added, “Volkswagen can’t pick and choose which vehicles to sell on its own or through its franchised dealer network, reserving the most profitable or desirable vehicles for itself. Illegal competition will harm not only dealers but also the communities and car buyers that they serve.”

Of course, he fails to mention how wild markups, like the ones imposed by the very California dealers he represents, also hurt car buyers.

Scout and VW Fire Back

It didn’t take long for Scout and VW to respond, and unsurprisingly, both disagree with the CNCDA. After the dealer association sent a cease and desist letter to the automakers last year, Scout responded with a strongly worded letter. “VWGoA is not authorized by Scout Motors to sell, and will not be selling or distributing, Scout-branded EVs in California or in any other state. Scout Motors and the Scout brand exist and operate independently of VWGoA and its brands such as Volkswagen and Audi,” said Scout’s general counsel, Neil Sitron.

And if you thought Scout was backing down, think again. Sitron added, “Scout Motors will not do business with anyone that threatens or tries to intimidate it, either directly or indirectly…. should the CNCDA decide to act on its threats, Scout Motors will vigorously defend against them.”

Now, it looks like Scout will have to do exactly that – defend itself in a court of law. The CNCDA is accusing the automakers of unfair competition, false advertising, and is seeking civil penalties that could top $35 million.

It gets more interesting as Maas claimed that this suit “sends a message to every automaker.” That message could end up being “here’s how to sidestep dealers.” Tesla, Lucid, and Rivian have already proven that dealers aren’t necessary. If Scout and VW win this lawsuit, it’ll show legacy automakers a new path to direct sales, a model that consumers seem eager to engage with.

Saudi Aramco, the world’s largest oil producer and fourth-largest company by revenue, knows that the days of relying solely on oil are numbered. In a bid to future-proof itself, the company has entered into a partnership with BYD, the world’s second-largest manufacturer of electric vehicles, to collaborate on new energy vehicle technologies.

A Joint Development Agreement was signed by Saudi Aramco Technology Company and BYD this week. It “aims to foster the development and innovative technologies that enhance efficiency and environmental performance” as they are seeking “new energy vehicle breakthroughs.”

Read: This Tiny Engine Turns EVs Into Gas Hybrids

Limited details have been announced about the partnership, but it could have far-reaching effects across the automotive industry. As two titans of their respective industries, Aramco and BYD have huge amounts of power and can set trends and redefine markets that their competitors will have to follow.

Aramco says it is working to optimize transport efficiency, exploring advanced powertrain concepts and working on lower-carbon fuels. The Saudi giant believes that “multiple approaches” are needed for a practical energy transition.

“At the crossroads of technological innovation and environmental protection, BYD always believes that true breakthroughs come from openness and collaboration,” the company’s senior vice president, Luo Hongbin, said according to a Business Inquire report.

“We expect that SATC and our cutting-edge R&D capabilities in new energy vehicles will break the boundaries of geography and mindset to incubate solutions that combine highly-efficient performance with a lower carbon footprint. We are confident that this will support the world’s efforts to address the climate challenge.”

BYD no longer sells any consumer vehicles without a plug. Last year, it sold 4.27 million new energy vehicles. Of these, roughly 1.7 million were BEVs, while the remaining 2.48 million were PHEVs.

More: BYD’s Concepts Are All About Gold, Dragons, And Video Games

In China, the term new energy vehicles refers to those that are powered in part or primarily with electricity and alternative fuels. They include plug-in hybrids, battery electric vehicles, and fuel-cell EVs. Aramco will logically be eager to grow the reach of BYD‘s plug-in hybrid models, which retain an internal combustion engine running on gasoline.

This partnership with BYD isn’t the only move Aramco is making in the automotive industry. The Saudi juggernaut also owns a stake in Horse Powertrain, the partnership between Renault and Geely that aims to develop and produce innovative new combustion engines. Earlier this week, Horse unveiled a hybrid powertrain concept that can add a small combustion engine to existing electric vehicle platforms.

As the electric vehicle market continues to evolve, one thing has remained constant: Tesla’s commanding lead, even as it faces recent setbacks. That dominance, according to Rivian CEO RJ Scaringe, has less to do with brand loyalty and more to do with the lack of compelling alternatives, especially for buyers looking in the sub-$50,000 range.

But that may be about to change. Rivian’s upcoming R2 and R3 models are expected to come in below that price point, and with more automakers entering the space, consumers could soon have some real competition to consider

Rivian, much like Tesla in its early days, has taken the approach of launching with higher-end vehicles before branching into more affordable territory. In a recent interview with Fox Business, Scaringe emphasized that increasing consumer choice is key to growing EV adoption. More options, he said, will help drive the industry forward and increase EVs’ share of overall vehicle sales.

Read: Rivian Stacks Discounts Like Pancakes To Steal Tesla Owners After Q1 Sales Crash

“If you’re looking at buying an electric vehicle for under $50,000 today, there’s really very, very few highly compelling choices,” Scaringe said. “And for that reason, you’ve seen Tesla with very significant market share for a long time now, over 50% of the market share, and that’s actually a reflection of limited grade choices. And so what we need to see to go from 8% to 15 to 20 to eventually 100% of vehicle sales being electric, a lot of choice.”

More Models, More Buyers

Scaringe also noted that “choice” doesn’t just mean more brands offering EVs. It includes variety in styling, form factor, feature sets, and design. The broader and more diverse the lineup across the industry, the more likely consumers are to find something that fits their needs – and to leave internal combustion behind.

The Rivian CEO’s comments reflect a growing belief in the industry that EVs need to meet buyers where they are. While early adopters were often willing to pay a premium or compromise on certain features, mainstream customers are looking for affordability, practicality, and familiarity. Rivian’s push into sub-$50K territory could help shift that balance and bring more first-time EV buyers into the fold.

Tariff Troubles

The conversation with Fox also turned to trade policy, where Scaringe discussed the impact of tariffs introduced during the Trump administration. Although Rivian builds its vehicles in the United States, including motors, software, batteries, and electronics, it still depends on a complex international supply chain.

“One of the things with automotive is the supply chain is so complex, where we have hundreds of suppliers providing parts from, say, a headlight or a tow hook or tires or the structure under the skin here that are coming from not only a set of suppliers that supply to us, but those suppliers have suppliers, and then in turn, those suppliers have suppliers, so there’s tier two, tier three,” he said. “So in our case, it is a mix. Given the new environment from a tariff point of view, we’re working really hard to see what we can change, but they’re difficult to change.”

While Rivian may be less exposed than some of its competitors to US tariffs, it isn’t completely insulated. Scaringe also raised concerns about trade restrictions on rare earth elements, especially those processed in China. Though rare earths are mined in many regions, China controls a large share of the refining process, creating a chokepoint in the EV supply chain.

“When we think about the tariffs, of course the 25% auto tariff hits everybody,” Rivian’s boss added. “We do rely on a supply chain that across its tiers has a number of components that come from other countries and then, importantly, the trade restrictions and what we’re seeing in terms of rare earth metals out of China, that’s a real challenge for electric vehicles.” 

Tesla has a lot riding on its Cybercab robotaxi, but the program has hit a major snag, and CEO Elon Musk’s sometimes best buddy, President Trump is to blame. The automaker has been forced to drop its plans to ship essential Cybercab components from China as a result of Trump slapping enormous tariffs on Chinese imports, a report claims.

More: Tesla’s CyberCab Promises 300-Mile Range with Surprisingly Small Battery

The automaker expected to start sending parts to the US from China in the next few months, necessary to begin trial production of both the Cybercab and the Semi truck, the latter of which has so far only been produced in tiny quantities. The plan was to scale up to full production of both models in 2026.

Tariffs Throw a Wrench in the Works

Trump’s announcement of a 34 percent tariff wasn’t great news, but Reuters sources say Tesla was prepared to absorb the financial pain. But when Trump’s tit-for-tat tariffs battle escalated to the point where import duty on Chinese imports had reached 145 percent, Tesla slammed on the brakes.

Exactly how long Tesla will keep its foot on the brakes is unclear, since no one, perhaps not even Donald Trump himself, knows the duration of the massive tariffs. But the US President revealed earlier this week that he was considering making changes to the 25 percent tariff on imported auto parts built in Canada, Mexico, and other regions, and has recently announced an exemption on electronic devices such as iPhones which are made in China.

Tesla’s US Sourcing Strategy

Reuters says Tesla has, for the past couple of years, been increasing the amount of parts it gets from within US borders because it sensed that tariffs might one day come into effect. How quickly Tesla can switch suppliers and get Cybercab and Semi components from America isn’t clear – we’ve asked the question, but don’t expect Tesla to reply.

Tesla unveiled its long-awaited Cybercab last fall, a Honda CRX-shaped pod with scissor doors and no steering wheel, and is currently working on getting approvals to begin testing and operating driverless cars in the US and beyond.

Images: Telsa

Update: It looks like carbon fiber has dodged a regulatory bullet – for now. A representative from the European Parliament told Motor1 Italia that it plans to drop the lightweight material from the draft proposal, with the report stating, “Carbon fiber will be removed from the list of harmful materials, and cars sold in Europe will therefore be able to continue using it even after 2029.” Original story follows below.

Materials like lead, mercury, cadmium, and hexavalent chromium have long been classified as hazardous by the European Union. Despite that, they’re still allowed in the automotive sector under exemptions that don’t apply to other consumer goods. Now, though, another material could face outright prohibition in European cars: carbon fiber.

According to a new report, the European Parliament, which is responsible for the union’s laws, recently concluded a draft revision of the End of Life Vehicles (ELV) Directive that regulates dismantling and recycling vehicles and is aiming to make them more environmentally friendly. In it, carbon fiber is, for the first time anywhere in the world, classified as a harmful material.

More: EU Could Ditch Tariffs On Chinese EVs For Minimum Prices

Carbon fiber is used extensively in the aircraft industry as well as many other applications, such as wind turbine blades, cars and, to a lesser degree, motorcycles due to it being stronger than steel and lighter than aluminum. While it’s pricier than both, as its construction is far more difficult and costly, in many instances its advantages outweigh that con.

Is A Huge Market Worth Billions About To Be Decimated?

The world market for carbon fiber, which was worth $5.48 billion in 2024, is expected to grow annually at an average rate of 11% to $17.08 billion by 2035, US research firm Roots Analysis estimates. Currently, cars account for 10% to 20% of all applications according to Nikkei Asia‘s report. That number is bound to increase exponentially as manufacturers strive to lower the weight of their electric vehicles.

The extra weight of EVs compared to ICE-powered vehicles is due to them having to haul a big battery pack, usually on the floor. Using carbon fiber is seen as an ideal solution, especially by premium manufacturers for whom price is far from the first priority, unlike handling and range, which are compromised by all that weight and definitely matter much more to them.

Caution: Carbon Can Be Harmful When Getting Disposed Of

So why does the EU consider the material to be hazardous? The reason that when carbon fiber, which is bound with resin, is discarded, filaments may become airborne, causing short circuits in machinery and, more importantly, pain in humans if they contact the skin and mucosal membranes.

More: 2025 Kicks Off With A 30% Surge In Global EV And PHEV Sales

As Nikkei Asia points out, the ones who stand to lose the most if this ban goes through are three Japanese companies, Toray Industries, Teijin and Mitsubishi Chemical, who combined hold 54% of the world’s carbon fiber market. For Toray Industries, after aircraft and wind power generation, cars are the third largest segment of its business. Moreover, 50% of that is in Europe, so it would be greatly affected if this proposal gets voted into law.

Apart from EVs, many brands use carbon fiber in their ICE or hybrid cars – McLaren even makes the whole chassis of its supercars out of it. The good news is that even if this ban is adopted in Europe (and that’s a big “if”, as it’s bound to be met with lots of resistance), it won’t come into effect until 2029.

Are We Getting Ahead Of Ourselves?

Four years may not be such a long time for manufacturers who must develop their upcoming cars to comply with regulations, but take a look at how our world has changed in less than four months, when Donald Trump took office as the 47th US President.

A single decision, the 25 percent tariff on imported cars which was implemented on April 2, sent economies all over the globe into a spin. Yet nothing’s set in stone yet, as many countries intend to negotiate with the Trump administration over this measure that harms their business. So, perhaps we shouldn’t worry too much about a possible ban on carbon fiber in Europe just yet – unless, of course, we were execs in one of the aforementioned Japanese companies. Or McLaren.

The automotive industry is currently in a state of collective disorder. And while Donald Trump’s constantly evolving tariffs, which make the headlines daily as they have far-reaching consequences in whole countries and their economies, may play a huge role in that, it’s not the only one.

Electric vehicles, which were touted by almost everyone as dominating all major markets in the (very near) future, are definitely gaining ground with each passing year, just not at the rate most automakers were expecting. Excluding China and Norway, the rate of adoption by buyers is not as high as initially predicted, which has led many manufacturers to reverse their pledge to go all-electric and continue producing ICE-powered models in the interim.

More: GM Just Blinked After Trump’s Tariff War Escalated

Now, GM is about to temporarily lay off 200 out of its 4,500 workers at the all-electric Factory Zero plant in Detroit. As reported by US News, a company source explained that this move is not related to Trump’s tariffs but rather to the automaker adjusting its production to “align with market dynamics”.

For those among us who don’t speak corporate, this means that Factory Zero, which builds solely electric vehicles, specifically the Hummer EV SUV and pickup truck, the Chevrolet Silverado EV, the GMC Sierra EV, and the Cadillac Escalade IQ, needs to slow down for a while as demand for EVs is not as strong as GM anticipated.

Factory Zero used to be known as the Detroit-Hamtramck plant until 2020, when GM decided to turn it into a state of the art hub for manufacturing electric vehicles based on its Ultium platform. To that end, it poured in $2.2 billion which at the time, was, in the company’s own words, the “single largest investment in a plant in GM history”.

The plant’s grand opening took place on November 17, 2021, and then President Joe Biden was there to celebrate this milestone alongside General Motor‘s leadership and factory workers. “GM’s U.S. manufacturing expertise is key to achieving our all-electric future,” GM Chair and CEO Mary Barra said at the opening.“This is a monumental day for the entire GM team. We retooled Factory ZERO with the best, most advanced technology in the world to build the highest quality electric vehicles for our customers.”

Moreover, executive vice president of Global Manufacturing and Sustainability Gerald Johnson stated that “To meet our ambitious EV transition, GM’s North American EV vehicle assembly capacity will reach 20 percent by 2025, and then 50 percent by 2030”. Seems that this target turned out to be more ambitious than GM expected, but if it’s any consolation, the same is true for practically all major car manufacturers – except the Chinese.

Tesla’s sales sank alarmingly in Q1, falling 13 percent to 337,000, a fact that on its own would be enough to make Volkswagen’s German execs crack a wry smile. But what they’ll really have them bro-hugging in Wolfsburg is knowing that Tesla’s misfortune is almost certainly linked to VW posting record EV sales figures over the same period.

Related: Tesla’s European Sales Have Collapsed, Down 45% As EV Market Surges 31%

Sales of fully-electric VW Group vehicles jumped 59 percent in the first three months of the year, reaching 216,800 compared with 136,400 in Q1 2024. By comparison, Tesla reported 336,681 deliveries in the same period, down 13 percent from last year. But even that success is dwarfed by what happened in Europe.

EV Momentum in Europe

EV sales there exploded by 113 percent to 158,100, up from just 74,400 a year earlier, no doubt helped by widespread dislike of Tesla CEO Elon Musk, particularly in Germany, where Musk came out in support of the far-right AfD party. A poll last month found 94 percent of Germans wouldn’t buy a Tesla due to the CEO’s antics. That sentiment appears to be hitting where it hurts: in Q1, Tesla’s sales in Germany plummeted 62 percent compared to the same period last year.

Strong Gains in the US, Trouble in China

US sales also grew significantly, Americans taking home 19,900 EVs, representing a 51 percent increase. But there was bad news from China where EV sales plummeted 37 percent to 25,900 units. And although the global EV sales result is definitely worth celebrating, it ought to be viewed in the context of the sales of vehicles of all power types.

VW GROUP EV SALES

That number did improve, but only by 1.4 percent to 2.13 million units, the decline in demand for combustion cars offset by both the surge in demand for EVs and a 15 percent uptick in PHEV sales. Overall sales in China were down 7 percent, the only region to see a fall.

VW’s Top-Selling EVs

VW’s best-selling EV globally was the ID.4/ID.5, which racked up 43,700 sales, followed by the ID.3 hatch with 28,100 deliveries. Audi’s Q4 e-tron – a reskinned ID.4 – placed third with 22,800 sales, the Skoda Enyaq found 20,200 buyers and VW’s ID.7 scored 19,100 sales.

Porsche’s Macan Electric only ranked seventh with 14,200 sales but since it wasn’t on sale in Q1 2024 its appearance in this year’s Q1 helped Porsche’s EV deliveries jump by 326 percent.

EV SALES BY BRAND