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Analysts weigh in on Trump presidency’s effects to U.S. auto sector

Ivan Radic, CC BY 2.0 , via Wikimedia Commons

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Analysts have weighed in on the potential effects of U.S. president-elect Donald Trump’s second term on the United States auto sector. As per the analysts, Detroit automakers would actually benefit from a Trump presidency, especially if the president-elect steps back from the Biden administration’s pro-EV policies. 

Regardless of the Biden administration’s apparent feud with Elon Musk and Tesla, it did adopt a very pro-EV stance overall. Trump is the opposite, as he has adopted a critical stance on electric vehicles while openly praising EVs from Tesla. As noted in a USA Today report, auto analysts noted that it would likely be difficult for Trump to completely slash Biden’s Inflation Reduction Act (IRA), though he could limit some EV subsidies included there.

Cox Automotive has predicted that U.S. auto sales would likely hold up and finish the year up 2% with 15.7 million new vehicles this year. In a newsletter on Wednesday, Mark Schirmer, director of Industry Insights & Corporate Communications at Cox Automotive, noted that “Presidents come and go, but the auto industry motors on.” 

The Biden administration’s push towards electric cars was part of the reason why automakers like Ford and General Motors have invested heavily in their respective EV initiatives. Trump, for his part, has hinted at scaling back or possibly even eliminating the Environmental Protection Agency’s emissions standards and incentives that promote the production and adoption of EVs. Experts have noted that fewer EV regulations would benefit veteran automakers. 

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Michael Ward, managing director of research for Freedom Capital Markets, noted to the Detroit Free Press that automakers might be the biggest beneficiaries of Trump’s second term. “I think autos are among the biggest beneficiaries — not sure why more people aren’t talking about it. Five things I looked at: Lower fuel is always good news for the autos, less inflation from the lower fuel prices leading to lower interest rates … autos (are) among the most capital-intensive industries and lower rates benefit the consumer.” 

The Detroit Big Three has responded to Trump’s presidential win. Ford spokesperson Robyn Jackson noted that the automaker congratulates the president-elect, while stating that Ford will remain “steadfast in our strategy to provide customers choice of gas, electric and hybrid vehicles.” She also noted that “We look forward to working with the new administration and Congress on policies that strengthen the U.S. automotive industry, which supports 9.7 million American jobs and drives more than $1 trillion into the economy each year.” 

General Motors spokesperson Liz Winter, for her part, noted that “We congratulate and look forward to working with the president-elect, Congress, and all elected officials to ensure that the U.S. continues to lead the world in technology and innovation, to the benefit of American workers and consumers alike.” 

Stellantis spokesperson echoed similar sentiments. “Stellantis congratulates former President Donald J. Trump on being elected the 47th President of the United States. We look forward to working with President-elect Trump and the new Congress on policies that support a strong and competitive manufacturing base in the U.S,” the spokesperson noted.

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Tesla seeks approval to test FSD Supervised in new Swedish city

Tesla has applied to conduct local Full Self-Driving (Supervised) testing in the city of Jönköping, Sweden.

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Credit: Grok Imagine

Tesla has applied to conduct local Full Self-Driving (Supervised) testing in the city of Jönköping, Sweden.

As per local outlet Jönköpings-Posten, Tesla has contacted the municipality with a request to begin FSD (Supervised) tests in the city. The company has already received approval to test its Full Self-Driving (Supervised) software in several Swedish municipalities, as well as on the national road network.

Sofia Bennerstål, Tesla’s Head of Public Policy for Northern Europe, confirmed that an application has been submitted for FSD’s potential tests in Jönköping.

“I can confirm that we have submitted an application, but I cannot say much more about it,” Bennerstål told the news outlet. She also stated that Tesla is “satisfied with the tests” in the region so far.

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The planned tests in Jönköping would involve a limited number of Tesla-owned vehicles. Trained Tesla safety drivers would remain behind the wheel and be prepared to intervene if necessary.

Tesla previously began testing in Nacka municipality after receiving local approval. At the time, the company stated that cooperation between authorities, municipalities, and industry enables technological progress and helps integrate future transport systems into real-world traffic conditions, as noted in an Allt Om Elbil report.

If approved, Jönköping would become the latest Swedish municipality to allow local Full Self-Driving (Supervised) testing.

Tesla’s Swedish testing program is part of the company’s efforts to validate its supervised autonomous driving software in everyday traffic environments. Municipal approvals allow Tesla to gather data in urban settings that include roundabouts, complex intersections, and mixed traffic conditions.

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Sweden has become an increasingly active testing ground for Tesla’s driver-assistance software in Europe, with regulatory coordination between local authorities and national agencies enabling structured pilot programs.

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Microsoft partners with Starlink to expand rural internet access worldwide

The update was shared ahead of Mobile World Congress.

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Credit: Starlink/X

Microsoft has announced a new collaboration with Starlink as part of its expanding digital access strategy, following the company’s claim that it has extended internet connectivity coverage to more than 299 million people worldwide.

The update was shared ahead of Mobile World Congress, where Microsoft detailed how it surpassed its original goal of bringing internet access to 250 million people by the end of 2025.

In a blog post, Microsoft confirmed that it is now working with Starlink to expand connectivity in rural and hard-to-reach regions.

“Through our collaboration with Starlink, Microsoft is combining low-Earth orbit satellite connectivity with community-based deployment models and local ecosystem partnerships,” the company wrote.

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The partnership is designed to complement Microsoft’s existing work with local internet providers and infrastructure companies across Africa, Latin America, and India, among other areas. Microsoft noted that traditional infrastructure alone cannot meet demand in some regions, making low-Earth orbit satellite connectivity an important addition.

Kenya was cited as an early example. Working with Starlink and local provider Mawingu Networks, Microsoft is supporting connectivity for 450 community hubs in rural and underserved areas. These hubs include farmer cooperatives, aggregation centers, and digital access facilities intended to support agricultural productivity and AI-enabled services.

Microsoft stated that 2.2 billion people globally remain offline, and that connectivity gaps risk widening as AI adoption accelerates.

Starlink’s expanding constellation, now numbering more than 9,700 satellites in orbit, provides near-global coverage, making it one of the few systems capable of delivering broadband to remote regions without relying on terrestrial infrastructure. 

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Starlink is expected to grow even more in the coming years as well, especially as SpaceX transitions its fleet to Starship, which is capable of carrying significantly larger payloads compared to its current workhorse, the Falcon 9.

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Tesla expands US LFP battery supply with LG Energy Solution deal: report

The report was initially published by TheElec, citing industry sources.

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Credit: Tesla

LG Energy Solution (LGES) will manufacture lithium iron phosphate (LFP) energy storage system (ESS) batteries for Tesla at its Lansing, Michigan facility. 

The report was initially published by TheElec, citing industry sources.

LG Energy Solution’s Lansing plant, formerly known as Ultium Cells 3, was previously operated as a joint venture with General Motors. LGES acquired GM’s stake in May 2025 and now fully owns the site. With a production capacity of 50 GWh per year, it is one of the company’s largest facilities in North America.

LG Energy Solution is converting part of the Lansing factory to produce LFP batteries for energy storage systems. Equipment orders for the new lines have already been placed, and mass production is reportedly expected to begin in the second half of next year.

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Last July, LG Energy Solution disclosed a 5.94 trillion won battery supply agreement running from August 2027 to July 2030. While the company did not name the customer, industry sources pointed to Tesla as the buyer.

Tesla has primarily used CATL’s prismatic batteries for its Megapack systems. The move to source prismatic LFP cells from LG Energy Solution’s U.S. plant could then be seen as part of Tesla’s efforts to bolster its North American supply base for its energy storage business.

For the Lansing conversion, LG Energy Solution reportedly plans to use electrode equipment originally ordered under its Ultium Cells venture with General Motors. Suppliers reportedly include CIS and Hirano Tecseed for electrode systems, TSI for mixing equipment, CK Solution for heat exhaust systems, A-Pro for formation equipment, and Shinjin Mtech for assembly kits.

Tesla currently manufactures energy storage products at facilities in California and Shanghai, though another Megafactory that produces the Megapack is also expected to be built in Texas. As per recent reports, the Texas Megafactory recently advanced with a major property sale.

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