China is the world’s largest automotive market, and understandably so, an important one for electric vehicle (EV) makers like Tesla. Although competitive Chinese automaker BYD isn’t yet slated to enter the U.S. market, the company’s recent release of a city EV with a price tag under $10,000 has some worried for when it and other low-cost companies do.
BYD launched its Seagull, a small hatchback EV with a price tag starting at 69,800 yuan (~$9,773), at the Shanghai Auto Show last year. While BYD said just last month that it has no plans to enter the U.S. auto market anytime soon, some U.S. automotive groups have expressed concerns over the Seagull EV and other affordable mass-market EVs eventually coming to North America.
Credit: BYD
At the same time, many automakers including Tesla are racing to build their next-generation, mass-market EVs, set to first be produced in Texas as soon as 2025, then later at an upcoming factory in Mexico, and eventually at a yet-unannounced third location. However Tesla and other automakers have generally been considered to be targeting a $25,000 price tag, and while affordable, it’s still far greater than $10,000.
While BYD isn’t planning to enter the U.S. at this point, the company has been beginning to deliver its EVs in several markets throughout Europe and Asia. Even despite ongoing political concerns, its entry into North America is considered an eventuality, and other Chinese automakers likely won’t be far behind.
Former General Motors (GM) executive Terry Woychowski, who is now President of engineering consultancy Caresoft Global, called the arrival of the Seagull a “clarion call for the rest of the auto industry,” adding that it’s a “significant event” (via CNBC).
In a report last month from the Alliance for American Manufacturing, similar points were highlighted:
“The introduction of cheap Chinese autos — which are so inexpensive because they are backed with the power and funding of the Chinese government — to the American market could end up being an extinction-level event for the U.S. auto sector,” the organization writes.
BYD last year sold 1.57 million battery-electric vehicles (BEVs), substantially increased from 2020, when the automaker sold just 130,970. The automaker also reached a production milestone of 200,000 Seagull EV units in November.
Chinese automakers are the most competitive in our experience
— Elon Musk (@elonmusk) October 8, 2023
Tesla CEO Elon Musk, while continually encouraging increased competition to help advance sustainable transportation, aired a similar warning during Tesla’s Q4 and FY 2023 earnings call in January.
“The Chinese car companies are the most competitive car companies in the world,” Musk said during the call. “So, I think they will have significant success outside of China depending on what kind of tariffs or trade barriers are established.”
“Frankly, I think, if there are not trade barriers established, they will pretty much demolish most other companies in the world.”
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.
News
Elon Musk shuts down Tesla ‘AMG’ division speculation: ‘Focus is autonomy’
“I think it’s best to leave that to the custom shops. Tesla’s focus is autonomous cars, building futuristic autonomous cars. We want the future to look like the future.”
Tesla CEO Elon Musk was asked by Joe Rogan late last week whether the company would ever consider establishing an “AMG division” like Mercedes-Benz has established for powerful, race-inspired vehicles.
However, Musk turned down any talk of that, highlighting that the company is laser-focused on autonomous vehicles, seemingly hinting that any distraction from autonomy would be a detriment to the future.
Rogan drives a Tesla Model S himself, but it is not your run-of-the-mill all-electric sedan. Already outfitted with the Plaid powertrain that Tesla developed, Rogan took his vehicle to Unplugged Performance for a true performance outfitting.
The vehicle is completely overhauled with performance parts and seats. Known as the Model S-APEX, Rogan took delivery of it from Unplugged in January.
Rogan asked Musk on Friday during his most recent appearance on the Joe Rogan Experience podcast whether Tesla would ever establish an “AMG division” that would focus on catering Teslas to performance-based standards.
Musk said:
“I think it’s best to leave that to the custom shops. Tesla’s focus is autonomous cars, building futuristic autonomous cars. We want the future to look like the future.”
🚨 Elon Musk was asked by Joe Rogan if he would ever create an “AMG division” where customization and performance options are available.
Musk said:
“I think it’s best to leave that to the custom shops. Tesla’s focus is autonomous cars, building futuristic autonomous cars. We… pic.twitter.com/k7qy7UQc60
— TESLARATI (@Teslarati) October 31, 2025
Tesla fans have said for years that the company should consider acquiring Unplugged Performance and its Upfit Tesla division, which recently outfitted the Las Vegas Metropolitan Police Department’s fleet of Cybertruck cruisers.
However, it seems Tesla will keep things separate. Musk is primarily focused on autonomy, which will drive the technology forward and drive shareholder growth. Something like an outfitter for performance would be a cool thing for the owners who have the interest and the money.
It’s not a tremendous revenue driver or anything that would contribute to the financial state of the company. Mercedes-Benz, for example, is more accessible for consumers as it sold over 140,000 units from its AMG brand in 2024.
Tesla Model Y driver starts race in reverse, still wins against AMG SUV
It helps with driving revenue higher by as much as 15 percent compared to similar models that are not AMGs. However, would Tesla see this much of a benefit? Likely not, because the Performance trim already caters to many owners.
Cybertruck
Tesla Cybertruck fleet takes over at SpaceX’s Starbase
Interestingly, the Cybertruck uses the same exterior, a stainless steel alloy, as SpaceX rockets. This synergy between the two companies and their very different products shows a very unified mentality between Musk companies.
Tesla Cybertrucks have taken over at SpaceX’s Starbase facility in Texas, as hundreds of the all-electric pickup trucks were spotted late last week rounding out a massive fleet of vehicles.
The Cybertruck fleet is geared toward replacing gas vehicles that are used at Starbase for everyday operations. The only surprise about this is that it was not done sooner:
Was just visiting. pic.twitter.com/5Q9wPPaeuH
— Derek Li (@derek1ee) October 31, 2025
Deliveries have been going on for a few weeks, as Cybertrucks have made their way across the state of Texas from Austin to Starbase so they could be included in SpaceX’s fleet of vehicles at the facility.
Interestingly, the Cybertruck uses the same exterior, a stainless steel alloy, as SpaceX rockets. This synergy between the two companies and their very different products shows a very unified mentality between Musk companies.
However, there are some other perspectives to consider as SpaceX is utilizing such a massive fleet of Cybertrucks. Some media outlets (unsurprisingly) are seeing this as a move of weakness by both Tesla and SpaceX, as the aerospace company is, in a sense, “bailing out” lagging sales for the all-electric pickup.
It’s no secret that Tesla has struggled with the Cybertruck this year, and deliveries have been underwhelming in the sense that the company was anticipating between 1 million and 2 million orders for the vehicle before it was widely produced.
A lot of things changed with the Cybertruck between its 2019 unveiling and 2023 initial deliveries, most notably, price.
The price of the Cybertruck swelled significantly and priced out many of those who had pre-ordered it. Some have weighed the option of whether this purchase was a way to get rid of sitting inventory.
However, it seems more logical to consider the fact that SpaceX was likely always going to transition to Teslas for its fleet, especially at Starship, at some point.
It doesn’t seem out of the question that one Musk company would utilize another Musk company’s products, especially considering the Cybertruck has been teased as the vehicle that would be present on Mars.
Elon Musk
Elon Musk subtly confirms one of Tesla AI8’s uses, and it’s literally out of this world
Elon Musk appears to have subtly confirmed that Tesla’s upcoming AI8 chip won’t be limited to vehicles or robots alone.
Elon Musk appears to have subtly confirmed that the uses of Tesla’s upcoming AI8 chip won’t be limited to vehicles or humanoid robots alone.
If Musk’s recent responses on X are any indication, it would appear that Tesla’s AI8 will be used by the CEO’s other companies, and its applications would literally extend out of this world.
Tesla’s AI8 could extend beyond vehicles
Musk’s update came on the heels of his recent comments, where he revealed that Tesla was not just working on its AI5 and AI6 chips. The company is also designing AI7 and AI8. This comment caught a lot of attention, with some wondering why Tesla feels the need to design an AI8 chip when AI4 seems on track to be a good fit for autonomous driving.
Amidst these speculations, an X user suggested that Elon Musk’s comment about AI8 being out of this world could actually be quite true in the literal sense, as it could be used as the chip for SpaceX’s orbit data centers. Musk subtly confirmed this, as he responded to the X user’s post with a bullseye emoji.
Musk’s subtle confirmation that AI8 will be used by SpaceX’s in-space data centers presents a pretty interesting future for the electric vehicle maker. Synergy among Elon Musk-led companies is nothing new, but having Tesla produce chips for SpaceX is undoubtedly something that’s never really been done before.
SpaceX’s space-based computing with Starlink V3 satellites
Musk previously stated that SpaceX plans to use its Starlink V3 satellites to develop space-based data centers. In response to an Ars Technica report on autonomous space construction, he wrote on X: “Simply scaling up Starlink V3 satellites, which have high-speed laser links, would work. SpaceX will be doing this.”
The concept, while ambitious, could address growing energy and cooling constraints facing Earth-based data centers amid the AI boom. Space-based clusters could also cut down on land and water usage, though critics have questioned their cost and maintainability.
Musk recently called the orbital data center project “a very big deal,” and given SpaceX’s history of turning improbable ideas into operational systems, it may not be too far-fetched at all, especially since SpaceX’s Starlink V3 platform is capable of up to 1 terabit per second (Tbps) throughput.
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