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Elon Musk companies under scrutiny in the EU

The EU Commission was requested to look into funding for Musk’s companies as Trump’s tariffs loom.

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Joel Kowsky, Public domain, via Wikimedia Commons

Elon Musk-led companies are under scrutiny in Europe (EU) as tensions continue to rise between the bloc and the United States.

Germany’s Green EU lawmaker Daniel Freund sent a letter to the European Commission requesting “a detailed list of EU funding allocated to companies owned or controlled by Elon Musk” in the past five years. The list reportedly includes some of Musk’s well-known companies, including SpaceX, Tesla, X, xAI, and Neuralink.

Trump’s Tariffs & Europe

The scrutiny on Elon Musk’s companies comes after U.S. President Trump implemented his tariffs on specific goods from Mexico, Canada, and China. A second wave of Trump’s tariffs will come in April and are expected to affect Europe.

According to Reuters, many European companies were not directly affected by Trump’s first wave of tariffs. However, they are now scrambling to adapt to Trump’s tariffs with their operations in North America in mind. European companies are also bracing for Trump to implement a 25% reciprocal rate on EU goods.

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Elon Musk in the Middle

Looking into Elon Musk’s companies that received funding from the EU seems to be a way for Europe to negotiate with the Trump Administration regarding tariffs.

Trump’s MAGA crowd, including Musk, have the clear aim to weaken or even destroy the EU. So we should have a very close look at the EU funding we provide to them. For me it’s clear: the EU should not give millions to people that want to destroy it,” Freund commented.

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.

News

Tesla takes first step in sunsetting Model S and X with drastic move

Tesla won’t be taking custom orders of the Model S or Model X in Europe any longer.

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Credit: @supergeek18 | X

Tesla has seemingly taken the first step in sunsetting two of its older vehicles, the Model S and Model X, by ending international orders.

The flagship sedan and SUV from Tesla are the two oldest cars in the company’s lineup. They account for a very small portion of overall sales, and several years ago, CEO Elon Musk admitted that Tesla only continues to build and sell them due to “sentimental reasons.”

Earlier this year, there were calls for Tesla to end the production of the two cars, but Lars Moravy said that the Model S and Model X were due to get some love later in 2025. That happened, but the changes were extremely minor.

Tesla launches new Model S and Model X, and the changes are slim

Some took this as an indication that Tesla has kind of moved on from the Model S and Model X. A handful of people seemed to think Tesla would overhaul the vehicles substantially, but the changes were extremely minor and included only a few real adjustments.

In Europe, customers are unable to even put a new order in on a Model S or Model X.

We noticed earlier today that Tesla pressing the ‘Order’ button on either of the flagship vehicles takes you to local inventory, and not the Design Studio where you’d configure your custom build:

Tesla simply does not make enough Model S or Model X units to justify the expensive logistics process of shipping custom orders overseas. It almost seems as if they’re that they will essentially build a bunch of random configurations, send them overseas every few months, and let them sell before replenishing inventory.

Inversely, it could also mean Tesla is truly gearing up to sunset the vehicle altogether. It seems unlikely that the company will fade them out altogether in the next couple of years, but it could absolutely think about ending international orders because volume is so low.

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Energy

Tesla inks multi-billion-dollar deal with LG Energy Solution to avoid tariff pressure

Tesla has reportedly secured a sizable partnership with LGES for LFP cells, and there’s an extra positive out of it.

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Credit: Tesla

Tesla has reportedly inked a multi-billion-dollar deal with LG Energy Solution in an effort to avoid tariff pressure and domesticate more of its supply chain.

Reuters is reporting that Tesla and LGES, a South Korean battery supplier of the automaker, signed a $4.3 billion deal for energy storage system batteries. The cells are going to be manufactured by LGES at its U.S. factory located in Michigan, the report indicates. The batteries will be the lithium iron phosphate, or LFP, chemistry.

Tesla delivers 384,000 vehicles in Q2 2025, deploys 9.6 GWh in energy storage

It is a move Tesla is making to avoid buying cells and parts from overseas as the Trump White House continues to use tariffs to prioritize domestic manufacturing.

LGES announced earlier today that it had signed a $4.3 billion contract to supply LFP cells over three years to a company, but it did not identify the customer, nor did the company state whether the batteries would be used in automotive or energy storage applications.

The deal is advantageous for both companies. Tesla is going to alleviate its reliance on battery cells that are built out of the country, so it’s going to be able to take some financial pressure off itself.

For LGES, the company has reported that it has experienced slowed demand for its cells in terms of automotive applications. It planned to offset this demand lag with more projects involving the cells in energy storage projects. This has been helped by the need for these systems at data centers used for AI.

During the Q1 Earnings Call, Tesla CFO Vaibhav Taneja confirmed that the company’s energy division had been impacted by the need to source cells from China-based suppliers. He went on to say that the company would work on “securing additional supply chain from non-China-based suppliers.”

It seems as if Tesla has managed to secure some of this needed domestic supply chain.

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News

Tesla uses Sydney Sweeney ad controversy to flex its car seat testing strategy

Tesla says its seat robot also has great jeans, just like Sydney Sweeney.

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Tesla Model S Updated Front Seats
Tesla Model S Updated Front Seats (Source: Tesla)

Tesla has a knack for making light of a situation. As tensions seem to be high over American Eagle’s latest jeans ad featuring Hollywood it girl Sydney Sweeney, the automaker saw it as a grand opportunity to show off its seat testing.

Tesla builds and does quality control on its own car seats, and they have been built at a factory just down the street from the Fremont Factory for some time. It also performs quality testing in-house.

Elon Musk shares first look at Tesla Model 3 white seats at factory

Outside of the Tesla world, there is a strange controversy going on with Sydney Sweeney and her recent ad for American Eagle, where she describes her “good jeans.” Some see it as a commercial for jeans, others see it as something else, perhaps a political statement of some sort by the clothing maker.

Nevertheless, Tesla is making light of the joke and using it as a chance to show off its in-house seat testing, stating, “Our seats robot also has great jeans.”

Here’s the post:

Tesla went on to refer to the robot as “Sydney Seatney.”

It is nice to see some companies still have a sense of humor, and as the controversy over a seemingly innocuous ad for a pair of jeans continues to rage on, it will be interesting to see who comes after Tesla for this one. It will obviously draw some attention.

The video here is actually from 2019, and not from recently. The robot and machine used in this testing phase simulate long-term use. This is one of the most crucial testing processes the seats go through during the quality assurance phase.

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