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US Senator Elizabeth Warren calls for tax code changes so Elon Musk would stop “freeloading off everyone else”

Credit: Elizabeth Warren/Twitter and Credit: Elizabeth Warren/Twitter and Tesla/YouTube

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Massachusetts Senator Elizabeth Warren has posted some strong criticism of Tesla and SpaceX CEO Elon Musk and his recent title as TIME Magazine’s 2021 Person of the Year. The longtime politician called for a change in the country’s tax code so that Musk would “stop freeloading off everyone else.” 

“Let’s change the rigged tax code so The Person of the Year will actually pay taxes and stop freeloading off everyone else,” Warren wrote. She later posted a follow-up tweet featuring an edited TIME Magazine cover with Elon Musk and the words “Tax Me.” The edited image also showed statements indicating that the CEO got $240 billion richer during the pandemic, and that Musk paid $0 in federal income tax in 2018. 

“When someone makes it big in America—millionaire big, billionaire big, Person of the Year big—part of it has to include paying it forward so the next kid can get a chance, too,” Warren wrote

Musk, who is poised to pay $15 billion in taxes this year for selling 10% of his TSLA holdings, has spoken out about how he believes billionaires should be taxed. During his appearance at the Wall Street Journal’s CEO Council Summit, Musk explained that his marginal tax rate is actually pretty high — about 53%, in fact. And this, following Musk’s selloff of some of his TSLA shares, would result in the CEO paying a record amount of $15 billion worth of taxes this year. Musk also expressed some criticism of the government’s skills in capital allocation. 

“First of all, I pay a lot of tax. My marginal tax rate is like 53%. That’s not trivial. Obviously, there’s asset-based taxes, the sales tax, and everything else. There’s also the estate tax. Generally, I think the estate tax is a good tax. If you think of assets beyond a certain level, that are far beyond let’s say, somebody’s ability to consume, then at some point what you’re really doing is capital allocation. 

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“So it’s not money for personal expenditure. It does not make sense to take the job of capital allocation away from people who demonstrate great skill in capital allocation and give it to an entity that has demonstrated very poor skill in capital allocation, which is the government. I think of the government essentially as a corporation. It is simply the biggest corporation with a monopoly on violence, and where you have no recalls,” Musk said. 

Musk currently stands as the richest person in the world, with the CEO being listed with a net worth of $254 billion, $97.6 billion of which was added year-to-date, as per data from the Bloomberg Billionaires Index. This increase was primarily driven by the rise of Tesla, which has become a trillion-dollar company that made electric vehicles mainstream. Musk, through his numerous ventures, also employs about 100,000 workers across the globe, allowing his companies to provide jobs to those who are qualified, regardless of whether they have a college (or even a high school) degree or not. 

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla rolls out most aggressive Model Y lease deal in the US yet

With the promotion in place, customers would be able to take home a Model Y at a very low cost.

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(Credit: Tesla)

Tesla has rolled out what could very well be its most aggressive promotion for Model Y leases in the United States yet. With the promotion in place, customers would be able to take home a Model Y at a very low cost.

Zero downpayment leases

The new Model Y lease promotion was initially reported on X, with industry watcher Sawyer Merritt stating that while the vehicles’ monthly payments are still similar to before, the cars can now be ordered with a $0 downpayment. 

Tesla community members noted that this promotion would cut the full payment cost of Model Y leases by several thousand dollars, though prices were still a bit better when the $7,500 federal tax credit was still in effect. Despite this, a $0 downpayment would likely be appreciated by customers, as it lowers the entry point to the Tesla ecosystem by a notable margin.

Premium freebies included

Apart from a $0 downpayment, customers of Model Y leases are also provided one free upgrade for their vehicles. These upgrades could be premium paint, such as Pearl White Multi-Coat, Deep Blue Metallic, Diamond Black, Quicksilver or Ultra Red, or 20″ Helix 2.0 Wheels. Customers could also opt for a White Interior or a Tow Hitch free of charge.

A look at Tesla’s Model Y order page shows that the promotion is available for all the Model Y Premium Rear-Wheel Drive and the Model Y Premium All-Wheel Drive. The Model Y Standard and the Model Y Performance are not eligible for the $0 downpayment or free premium upgrade promotion as of writing. 

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Tesla is looking to phase out China-made parts at US factories: report

Tesla has reportedly swapped out several China-made components already, aiming to complete the transition within the next two years.

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(Source: Tesla)

Tesla has reportedly started directing its suppliers to eliminate China-made components from vehicles built in the United States. This would make Tesla’s US-produced vehicles even more American-made.

The update was initially reported by The Wall Street Journal.

Accelerating North American sourcing

As per the WSJ report, the shift reportedly came amidst escalating tariff uncertainties between Washington and Beijing. Citing people reportedly familiar with the matter, the publication claimed that Tesla has already swapped out several China-made components, aiming to complete the transition within the next two years. The publication also claimed that Tesla has been reducing its reliance on China-based suppliers since the pandemic disrupted supply chains.

The company has quietly increased North American sourcing over the past two years as tariff concerns have intensified. If accurate, Tesla would likely end up with vehicles that are even more locally sourced than they are today. It would remain to be seen, however, if a change in suppliers for its US-made vehicles would result in price adjustments for cars like the Model 3 and Model Y.

Industry-wide reassessments

Tesla is not alone in reevaluating its dependence on China. Auto executives across the automotive industry have been in rapid-response mode amid shifting trade policies, chip supply anxiety, and concerns over rare-earth materials. Fluctuating tariffs between the United States and China during President Donald Trump’s current term have made pricing strategies quite unpredictable as well, as noted in a Reuters report. 

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General Motors this week issued a similar directive to thousands of suppliers, instructing them to remove China-origin components from their supply chains. The same is true for Stellantis, which also announced earlier this year that it was implementing several strategies to avoid tariffs that were placed by the Trump administration. 

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Tesla owners propose interesting theory about Apple CarPlay and EV tax credit

“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.

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Credit: Tesla Raj/YouTube

Tesla is reportedly bracing for the integration of Apple’s well-known iOS automotive platform, CarPlay, into its vehicles after the company had avoided it for years.

However, now that it’s here, owners are more than clear that they do not want it, and they have their theories about why it’s on its way. Some believe it might have to do with the EV tax credit, or rather, the loss of it.

Owners are more interested in why Tesla is doing this now, especially considering that so many have been outspoken about the fact that they would not use it in favor of the company’s user interface (UI), which is extremely well done.

After Bloomberg reported that Tesla was working on Apple CarPlay integration, the reactions immediately started pouring in. From my perspective, having used both Apple CarPlay in two previous vehicles and going to Tesla’s in-house UI in my Model Y, both platforms definitely have their advantages.

However, Tesla’s UI just works with its vehicles, as it is intuitive and well-engineered for its cars specifically. Apple CarPlay was always good, but it was buggy at times, which could be attributed to the vehicle and not the software, and not as user-friendly, but that is subjective.

Nevertheless, upon the release of Bloomberg’s report, people immediately challenged the need for it:

Some fans proposed an interesting point: What if Tesla is using CarPlay as a counter to losing the $7,500 EV tax credit? Perhaps it is an interesting way to attract customers who have not owned a Tesla before but are more interested in having a vehicle equipped with CarPlay?

“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.

Tesla has made a handful of moves to attract people to its cars after losing the tax credit. This could be a small but potentially mighty strategy that will pull some carbuyers to Tesla, especially now that the Apple CarPlay box is checked.

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