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Economist says cheap Chinese EVs should be kept out of U.S. due to security risk

An assembly line worker at the Wuling plant. He is putting the finishing touches on the HongGuang Mini EV here. (Credit: YouTube | Gweilo 60)

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An economist is suggesting that cheap Chinese electric vehicles be kept out of the United States automotive market due to a “security risk,” which is an eerily similar situation that Tesla was put in a few years back in China.

“I think we should try and keep them out,” Heritage Foundation economist Diana Furchtgott-Roth said, according to Fox News.

Interestingly, a similar narrative was spread through China, starting several years ago. Tesla vehicles were looked at as potential spy devices for the U.S. government, and government employees were discouraged from owning them.

Elon Musk responds to reports of Tesla ban among China’s military over security concerns

Furchtgott-Roth added that the outrage that was caused by the Chinese spy balloons last year would only be minimal compared to what cheap Chinese-built EVs would cause.

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There are also other security concerns, she said.

Plus, car manufacturers now can disable cars from remote,” she added. “What if we were in some foreign entanglement with China? And then China decided to stop all the EVs in the United States? It’s a security risk.”

Tesla CEO Elon Musk has routinely complimented Chinese automakers that have developed EVs. The only reason they have not taken over more regions in terms of sales is because of trade barriers, Musk said during the Q4 2023 Earnings Call in late January.

Several domestic car companies have already stated that they will scale back EV development. Ford noted during its call this week that it will do this to eliminate some of the losses it feels from building electric vehicles.

The Biden Administration has pushed hard to encourage EV sales, and U.S. market share of electric cars is higher than ever. EVs captured 7.6 of the total U.S. market share in 2023, according to Cox Automotive.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla ‘Mad Max’ gets its first bit of regulatory attention

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Credit: Teslarati

Tesla “Mad Max” mode has gotten its first bit of regulatory attention, as the National Highway Traffic Safety Administration (NHTSA) has asked for additional information on the Speed Profile.

A few weeks ago, Tesla officially launched a new Speed Profile for Full Self-Driving (Supervised) known as “Mad Max,” which overtook the “Hurry” mode for the fastest setting FSD offers.

Tesla launches ‘Mad Max’ Full Self-Driving Speed Profile, its fastest yet

It launched with Full Self-Driving v14.1.2, and it was no secret that the company was looking for a new mode that would cater to more aggressive driving styles.

The release notes showed the description of the Speed Profile as:

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“Introduced new speed profile MAD MAX, which comes with higher speeds and more frequent lane changes than Hurry.”

It certainly lived up to its description. In our testing, it was aggressive, fast, and drove similarly to some of the more challenging traffic patterns I’ve come across.

In normal highway driving, it was one of the quicker cars on the road, while other applications saw it be a suitable version for navigating things like rush-hour traffic.

Here’s what my experience with it was:

While Tesla owners have certainly enjoyed the feature and the behaviors of Mad Max, the NHTSA said it is in contact with Tesla about it, looking to gather additional information. Additionally, it said:

“The human behind the wheel is fully responsible for driving the vehicle and complying with all traffic safety laws.”

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The important thing to note with Mad Max mode, along with the other Speed Profiles, is that the driver can choose whichever one they’d like, and they all cater to different driving styles.

While Mad Max is more aggressive, modes like “Sloth” and “Standard” are significantly more conservative and can be more suitable for those who are not comfortable with the faster, more spirited versions.

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Tesla shares AI5 chip’s ambitious production roadmap details

Tesla CEO Elon Musk has revealed new details about the company’s next-generation AI5 chip, describing it as “an amazing design.”

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Image used with permission for Teslarati. (Credit: Tom Cross)

Tesla CEO Elon Musk has revealed new details about the company’s next-generation AI5 chip, describing it as “an amazing design” that could outperform its predecessor by a notable margin. Speaking during Tesla’s Q3 2025 earnings call, Musk outlined how the chip will be manufactured in partnership with both Samsung and TSMC, with production based entirely in the United States.

What makes AI5 special

According to Musk, the AI5 represents a complete evolution of Tesla’s in-house AI hardware, building on lessons learned from the AI4 system currently used in its vehicles and data centers. “By some metrics, the AI5 chip will be 40x better than the AI4 chip, not 40%, 40x,” Musk said during the Q3 2025 earnings call. He credited Tesla’s unique vertical integration for the breakthrough, noting that the company designs both the software and hardware stack for its self-driving systems.

To streamline the new chip, Tesla eliminated several traditional components, including the legacy GPU and image signal processor, since the AI5 architecture already incorporates those capabilities. Musk explained that these deletions allow the chip to fit within a half-reticle design, improving efficiency and power management. 

“This is a beautiful chip,” Musk said. “I’ve poured so much life energy into this chip personally, and I’m confident this is going to be a winner.”

Tesla’s dual manufacturing strategy for AI5

Musk confirmed that both Samsung’s Texas facility and TSMC’s Arizona plant will fabricate AI5 chips, with each partner contributing to early production. “It makes sense to have both Samsung and TSMC focus on AI5,” the CEO said, adding that while Samsung has slightly more advanced equipment, both fabs will support Tesla’s U.S.-based production goals.

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Tesla’s explicit objective, according to Musk, is to create an oversupply of AI5 chips. The surplus units could be used in Tesla’s vehicles, humanoid robots, or data centers, which already use a mix of AI4 and NVIDIA hardware for training. “We’re not about to replace NVIDIA,” Musk clarified. “But if we have too many AI5 chips, we can always put them in the data center.”

Musk emphasized that Tesla’s focus on designing for a single customer gives it a massive advantage in simplicity and optimization. “NVIDIA… (has to) satisfy a large range of requirements from many customers. Tesla only has to satisfy one customer, Tesla,” he said. This, Musk stressed, allows Tesla to delete unnecessary complexity and deliver what could be the best performance per watt and per dollar in the industry once AI5 production scales.

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Tesla VP hints at Solar Roof comeback with Giga New York push

The comments hint at possible renewed life for the Solar Roof program, which has seen years of slow growth since its 2016 unveiling.

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Image Credit: Tesla/Twitter

Tesla’s long-awaited and way underrated Solar Roof may finally be getting its moment. During the company’s Q3 2025 earnings call, Vice President of Energy Engineering Michael Snyder revealed that production of a new residential solar panel has started at Tesla’s Buffalo, New York facility, with shipments to customers beginning in the first quarter of 2026. 

The comments hint at possible renewed life for the Solar Roof program, which has seen years of slow growth since its 2016 unveiling.

Tesla Energy’s strong demand

Responding to an investor question about Tesla’s energy backlog, Snyder said demand for Megapack and Powerwall continues to be “really strong” into next year. He also noted positive customer feedback for the company’s new Megablock product, which is expected to start shipping from Houston in 2026.

“We’re seeing remarkable growth in the demand for AI and data center applications as hyperscalers and utilities have seen the versatility of the Megapack product. It increases reliability and relieves grid constraints,” he said.

Snyder also highlighted a “surge in residential solar demand in the US,” attributing the spike to recent policy changes that incentivize home installations. Tesla expects this trend to continue into 2026, helped by the rollout of a new solar lease product that makes adoption more affordable for homeowners.

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Possible Solar Roof revival?

Perhaps the most intriguing part of Snyder’s remarks, however, was Tesla’s move to begin production of its “residential solar panel” in Buffalo, New York. He described the new panels as having “industry-leading aesthetics” and shape performance, language Tesla has used to market its Solar Roof tiles in the past.

“We also began production of our Tesla residential solar panel in our Buffalo factory, and we will be shipping that to customers starting Q1. The panel has industry-leading aesthetics and shape performance and demonstrates our continued commitment to US manufacturing,” Snyder said during the Q3 2025 earnings call.

Snyder did not explicitly name the product, though his reference to aesthetics has fueled speculation that Tesla may finally be preparing a large-scale and serious rollout of its Solar Roof line.

Originally unveiled in 2016, the Solar Roof was intended to transform rooftops into clean energy generators without compromising on design. However, despite early enthusiasm, production and installation volumes have remained limited for years. In 2023, a report from Wood Mackenzie claimed that there were only 3,000 operational Solar Roof installations across the United States at the time, far below forecasts. In response, the official Tesla Energy account on X stated that the report was “incorrect by a large margin.”

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