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CATL allegedly restructures for IRA eligibility

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CATL has reportedly restructured the shareholdings of two top executives to avoid a “Foreign Entity of Concern” (FEOC) designation under the Inflation Reduction Act (IRA) in the United States. 

CATL provided an official reason for its change in shareholdings. The Chinese battery supplier stated that the restructuring would help it adapt to changes in its internal and external environments, improve its decision-making power, and promote sustainability in the company.

CruGroup hinted that CATL’s restructuring could be more about qualifying for the IRA’s tax incentives in the United States. 

Before the restructuring, CATL was in danger of receiving a FEOC designation. In December 2023, the Biden administration released a Notice of Proposed Rulemaking (NPR) explaining FEOC requirements.

“To strengthen the security of America’s supply chains, beginning in 2024, an eligible clean vehicle may not contain any battery components that are manufactured or assembled by a FEOC, and, beginning in 2025, an eligible clean vehicle may not contain any critical minerals that were extracted, processed, or recycled by a FEOC,” said the NPR.

The People’s Republic of China (PRC) is considered an FOEC. CATL is based in China, and one of its top executives, Robin Zeng Yuqun, is closely linked to the Chinese government. Zeng held over 25% of CATL shares before the restructuring and is a member of the Chinese People’s Political Consultative Conference (CPPCC), an advisory body to the Chinese government. 

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CATL’s restructuring appears to be a way for the company to distance itself from the Chinese government and comply with IRA requirements. CATL must loosen ties with the PRC to qualify for the IRA’s tax incentive. The Chinese company has battery supply deals with one of the top automakers in the United States who want to ramp up electric vehicle production. 

Ford and CATL teamed up to build a $3.5 billion battery production facility in Michigan. The collaboration raised concerns with the United States Congress.

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Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

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Grok 3 by xAI Rolls Out on Azure AI Foundry with Free Trial

Grok 3 is now on Azure AI Foundry with a free preview until early June. From code to vision, Grok joins a growing roster of powerhouse models.

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(Credit: xAI)

xAI’s Grok 3 model is now available on Microsoft’s Azure AI Foundry Models, launching with a free preview to drive AI innovation. The collaboration marks a significant step in making advanced AI accessible to developers worldwide.

Grok 3 became available on Microsoft’s Azure AI Foundry Models on May 19, 2025. Developers can explore xAI’s Grok 3 at no cost through early June. After the free trial period, Grok 3 prices will be as follows:

“Microsoft and xAI are thrilled to unveil the availability of Grok 3 into the Azure AI Foundry Models, marking a significant milestone in AI accessibility and innovation,” Microsoft stated in its announcement.

The partnership integrates xAI’s cutting-edge model with Azure’s secure, scalable infrastructure, enabling enterprise scenarios in reasoning, coding, and visual processing. Grok 3 is accessible via Azure AI Foundry’s catalog, alongside models from OpenAI, Meta, Cohere, NVIDIA, and Hugging Face, reflecting Microsoft’s commitment to a diverse AI ecosystem.

“The addition of xAI’s Grok 3 underscores Microsoft’s commitment to support an open, diverse AI ecosystem, rather than relying on a single model provider,” the company noted.

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Like other AI models in Azure, developers can easily discover and deploy Grok 3’s model card. Grok 3 is also available for testing on GitHub models.

Microsoft provides two flexible deployment options for integrating xAI’s Grok 3 into applications: Standard Pay-Go or Provisioned Throughput Units (PTUs). The Standard Pay-Go option allows pay-per-token API calls for quick scaling. Meanwhile, the PTUs are better for reserved capacity with predictable latency.

“For production scenarios where you expect steady high volume or need strict latency, provisioning Grok 3 with PTUs can be cost-effective and reliable,” Microsoft advised.

The launch of Grok 3 on Azure AI Foundry empowers developers to build intelligent assistants, process large documents, or explore new AI applications. As xAI and Microsoft combine innovation with robust tools, Grok 3’s arrival signals a new era of AI development, inviting creators to leverage its capabilities and shape the future of technology.

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Tesla Robotaxi deemed a total failure by media — even though it hasn’t been released

Nearly two weeks before it is even set for its planned rollout, Tesla Robotaxi has already been deemed a failure — even though it is not even publicly released.

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Credit: Tesla

Tesla Robotaxi is among the biggest tech developments of the year, and its June launch date has not yet arrived.

This does not matter to skeptics of the company, as they have already deemed the rollout a “failure,” “an enormous mess,” and plenty of other adjectives. No matter what, several outlets are already leaning on biased opinions and a lack of true evidence that points in any direction.

Futurism posted an article this morning claiming that Robotaxi is “already an enormous mess,” citing the opinions of Dan O’Dowd, perhaps Full Self-Driving’s biggest critic. There is no mention of any of the excitement or prosperity that would come from the opposite side of the argument.

Instead, it included that O’Dowd felt it was a failure in an 80-minute drive around Santa Barbara.

This is fair to include: Full Self-Driving is not perfect, which is why Tesla will implement safeguards like teleoperation at first. However, it’s not like it’s so awful it isn’t even remotely close. Personally, my experience with FSD was incredibly successful, responsible, and it was something I still wish I had on my car to this day. I wish the article would have included a quote from someone who is as equally passionate about FSD, just from the other side of the argument.

Credit: Tesla

There is no mention of Tesla’s most recent Vehicle Safety Report, which showed Autopilot-enabled cars are nearly 10x less likely to be involved in an accident compared to the national average. This might not be the same as Full Self-Driving, but it is still a testament to what Tesla has achieved with its driver assistance systems.

To be fair, Tesla has been a company that has missed timelines, especially when it comes to FSD. I used to roll my eyes a bit when CEO Elon Musk would say, “We’ll have Full Self-Driving finished by the end of the year,” or “We’ll have a million robotaxis on the road next year.” I was always skeptical.

However, Tesla has handled things differently this year. They’ve admitted the Robotaxi rollout will be controlled at first, including a fleet of only 10-20 Model Y vehicles. It will be private at launch, and only the lucky invited will have the opportunity to experience it in Austin in June.

It might be less than a public rollout, which of course, for people like you and me, is disappointing. But let’s be real: if Tesla launched a full-blown Robotaxi platform with no regulations or small-batch testing, there would be criticism of that, too.

Some media outlets are pointing to the recent NHTSA request for more information on how Tesla’s tech will “assess the ability of Tesla’s system to react appropriately to reduced roadway visibility conditions.” This seems more than reasonable as Robotaxi will be among the first driverless ridesharing programs in the United States.

Tesla gets new information request from NHTSA on Robotaxi rollout

It’s no more than a request for information on how things will be handled and how the tech works.

It is sad to see so many outlets already deem something that could be the next big thing as a failure, despite there being no real indication of it being that or a success. Let’s be fair and give Tesla an opportunity to meet its June target and Robotaxi some time to operate and prove to be a reliable ride-share option.

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Tesla confirms annoying Full Self-Driving feature has been fixed

Tesla has changed one of its driver monitoring features in a request from several owners.

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Tesla has confirmed that an annoying Full Self-Driving feature has been fixed.

We reported last week that several owners reported changes in the feature, and now we have confirmation that it has been revised by Tesla.

Tesla Full Self-Driving (Supervised) does not require a driver’s hands to be on the steering wheel. However, eye movements and attentiveness are tracked through a cabin-facing camera, aiming to improve safety and limit loopholes in the system.

Tesla seems to have fixed one of Full Self-Driving’s most annoying features

If the system detects that your eyes are not on the road or you are not paying attention, FSD will nudge you to get them back on the road. Too many occurrences of the driver not paying attention will result in losing access to FSD for the remainder of the drive.

However, many drivers using FSD complained that the system was too quick to alert drivers of inattentiveness. Fixing things like the HVAC temperature or even Autopilot settings on the center touchscreen would get you a nudge, which seemed unreasonably fast. Many drivers said it was a seven-second limit, but it seemed faster than this.

In my experience, FSD nudged me to pay attention to the road when I was adjusting the speed offset, which gives the vehicle permission to travel over the speed limit by a percentage. For example, a 10% offset in a 50 MPH zone would let the car travel 55 MPH.

The nudging seemed to be too fast and annoying, and many other Tesla drivers agreed. CEO Elon Musk had even noted that the nudge was too fast and drivers were right to be annoyed with it, especially considering that, in theory, it would be safer to adjust these settings on FSD and not while operating the car manually.

Tesla took the criticism drivers had and turned it into a much-needed and notable change that has now been confirmed by Ashok Elluswamy, Head of AI and Autopilot for the company:

The change seems to be initiated on vehicles with Hardware 4. It is certainly a welcome change as the nudge was just a tad sensitive and could have been much more reasonable.

The adjustment made by Tesla came just a week after owners truly started becoming more vocal about the issue.

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