The electric vehicle market in Europe seems poised to see some substantial changes in the coming months, with the European Commission telling automakers on Wednesday that China-based EV imports could see additional tariffs of up to 38% from next month. The additional duties would be implemented on top of the current 10% tariff placed on all EVs that are produced in China.
The European Commission’s announcement came following an anti-subsidy probe, as noted in an AFP News report. The tariffs given to China-based EVs would depend on the level of state subsidies that automakers receive. With this in mind, the European Commission has ordered a provisional hike of tariffs on several Chinese automakers.
These include BYD, which is poised to receive additional tariffs of 17.4%; Geely, which will receive 20%, and SAIC, which will receive a substantial 38.1% additional tariff. All other EV companies from China that cooperated with the European Commission’s probe are expected to see an average tariff of 21%, while electric vehicle makers that did not cooperate with the probe would see an additional 38.1% duty. Tesla cooperated in the EU’s probe, and thus, its Model 3 imports to the region are poised to receive an additional 21% tariff.
The much anticipated EU EV tariffs have been announced. In 2023 just shy of half a million China made EVs were sold in the EU making up nearly one-third of the total EVs bought. ? pic.twitter.com/x1G0zs3SfK— Iola Hughes (@RhoMoIola) June 12, 2024
“The Commission has provisionally concluded that the battery electric vehicles (BEV) value chain in China benefits from unfair subsidization, which is causing a threat of economic injury to EU BEV producers. Should discussions with Chinese authorities not lead to an effective solution, these provisional countervailing duties would be introduced,” the European Commission noted.
The additional tariffs are expected to be applied starting July 4, with full implementation being rolled out from November, as noted in a Reuters report. This is, at least, unless a qualified majority of EU states decide against the system. Some members of the European Union, such as Germany, have already spoken up against the additional tariffs.
As per transport minister Volker Wissing, a trade war and market isolation are not the way. “Cars must become cheaper through more competition, open markets, and significantly better business conditions in the EU, not through trade war and market isolation,” Wissing wrote in a post on X.
#Strafzölle der EU-Kommission treffen deutsche Unternehmen und ihre Spitzenprodukte. Durch mehr Wettbewerb, offene Märkte und erheblich bessere Standortbedingungen in der EU müssen Fahrzeuge preiswerter werden, nicht durch Handelskrieg und Marktabschottung.— Volker Wissing (@Wissing) June 12, 2024
China, for its part, has criticized the European Commission’s additional tariffs, stating that such a move would “harm Europe’s own interests.” China also claimed that the additional tariffs amount to protectionism. China foreign ministry spokesman Lin Jian noted that the country would take all necessary measures to protect its EV makers’ interests.
“This anti-subsidy investigation is a typical case of protectionism… It goes against the principles of market economy and international trade rules undermines China-EU economic and trade cooperation as well as the stability of the global automobile production and supply chain. China will take all necessary measures to firmly safeguard its legitimate rights and interests,” the foreign ministry spokesman noted.
Chinese Passenger Car Association (CPCA) Secretary General Cui Dongshu shared a tempered view on the matter. “The EU’s provisional tariffs come basically within our expectations, averaging around 20%, which won’t have much of an impact on the majority of Chinese firms. Those exporting China-made EVs that include Tesla, Geely and BYD still have huge potential for development in Europe in the future,” the CPCA official noted.
Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.
Tesla made a dramatic change to the Online Design Studio to show its plans for Full Self-Driving, a major part of the company’s plans moving forward, as CEO Elon Musk has been extremely clear on the direction moving forward.
With Tesla taking a stand and removing the ability to purchase Full Self-Driving outright next month, it is already taking steps to initiate that with owners and potential buyers.
On Thursday night, the company updated its Online Design Studio to reflect that in a new move that now lists the three purchase options that are currently available: Monthly Subscription, One-Time Purchase, or Add Later:
🚨 Check out the change Tesla made to its Online Design Studio:
It now lists the Monthly Subscription as an option for Full Self-Driving
It also shows the outright purchase option as expiring on February 14 pic.twitter.com/pM6Svmyy8d
— TESLARATI (@Teslarati) January 23, 2026
This change replaces the former option for purchasing Full Self-Driving at the time of purchase, which was a simple and single box to purchase the suite outright. Subscriptions were activated through the vehicle exclusively.
However, with Musk announcing that Tesla would soon remove the outright purchase option, it is clearer than ever that the Subscription plan is where the company is headed.
The removal of the outright purchase option has been a polarizing topic among the Tesla community, especially considering that there are many people who are concerned about potential price increases or have been saving to purchase it for $8,000.
This would bring an end to the ability to pay for it once and never have to pay for it again. With the Subscription strategy, things are definitely going to change, and if people are paying for their cars monthly, it will essentially add $100 per month to their payment, pricing some people out. The price will increase as well, as Musk said on Thursday, as it improves in functionality.
I should also mention that the $99/month for supervised FSD will rise as FSD’s capabilities improve.
The massive value jump is when you can be on your phone or sleeping for the entire ride (unsupervised FSD). https://t.co/YDKhXN3aaG
— Elon Musk (@elonmusk) January 23, 2026
Those skeptics have grown concerned that this will actually lower the take rate of Full Self-Driving. While it is understandable that FSD would increase in price as the capabilities improve, there are arguments for a tiered system that would allow owners to pay for features that they appreciate and can afford, which would help with data accumulation for the company.
Musk’s new compensation package also would require Tesla to have 10 million active FSD subscriptions, but people are not sure if this will move the needle in the correct direction. If Tesla can potentially offer a cheaper alternative that is not quite unsupervised, things could improve in terms of the number of owners who pay for it.
News
Tesla Model S completes first ever FSD Cannonball Run with zero interventions
The coast-to-coast drive marked the first time Tesla’s FSD system completed the iconic, 3,000-mile route end to end with no interventions.
A Tesla Model S has completed the first-ever full Cannonball Run using Full Self-Driving (FSD), traveling from Los Angeles to New York with zero interventions. The coast-to-coast drive marked the first time Tesla’s FSD system completed the iconic, 3,000-mile route end to end, fulfilling a long-discussed benchmark for autonomy.
A full FSD Cannonball Run
As per a report from The Drive, a 2024 Tesla Model S with AI4 and FSD v14.2.2.3 completed the 3,081-mile trip from Redondo Beach in Los Angeles to midtown Manhattan in New York City. The drive was completed by Alex Roy, a former automotive journalist and investor, along with a small team of autonomy experts.
Roy said FSD handled all driving tasks for the entirety of the route, including highway cruising, lane changes, navigation, and adverse weather conditions. The trip took a total of 58 hours and 22 minutes at an average speed of 64 mph, and about 10 hours were spent charging the vehicle. In later comments, Roy noted that he and his team cleaned out the Model S’ cameras during their stops to keep FSD’s performance optimal.
History made
The historic trip was quite impressive, considering that the journey was in the middle of winter. This meant that FSD didn’t just deal with other cars on the road. The vehicle also had to handle extreme cold, snow, ice, slush, and rain.
As per Roy in a post on X, FSD performed so well during the trip that the journey would have been completed faster if the Model S did not have people onboard. “Elon Musk was right. Once an autonomous vehicle is mature, most human input is error. A comedy of human errors added hours and hundreds of miles, but FSD stunned us with its consistent and comfortable behavior,” Roy wrote in a post on X.
Roy’s comments are quite notable as he has previously attempted Cannonball Runs using FSD on December 2024 and February 2025. Neither were zero intervention drives.
Elon Musk
Tesla removes Autopilot as standard, receives criticism online
The move leaves only Traffic Aware Cruise Control as standard equipment on new Tesla orders.
Tesla removed its basic Autopilot package as a standard feature in the United States. The move leaves only Traffic Aware Cruise Control as standard equipment on new Tesla orders, and shifts the company’s strategy towards paid Full Self-Driving subscriptions.
Tesla removes Autopilot
As per observations from the electric vehicle community on social media, Tesla no longer lists Autopilot as standard in its vehicles in the U.S. This suggests that features such as lane-centering and Autosteer have been removed as standard equipment. Previously, most Tesla vehicles came with Autopilot by default, which offers Traffic-Aware Cruise Control and Autosteer.
The change resulted in backlash from some Tesla owners and EV observers, particularly as competing automakers, including mainstream players like Toyota, offer features like lane-centering as standard on many models, including budget vehicles.
That being said, the removal of Autopilot suggests that Tesla is concentrating its autonomy roadmap around FSD subscriptions rather than bundled driver-assistance features. It would be interesting to see how Tesla manages its vehicles’ standard safety features, as it seems out of character for Tesla to make its cars less safe over time.
Musk announces FSD price increases
Following the Autopilot changes, Elon Musk stated on X that Tesla is planning to raise subscription prices for FSD as its capabilities improve. In a post on X, Musk stated that the current $99-per-month price for supervised FSD would increase over time, especially as the system itself becomes more robust.
“I should also mention that the $99/month for supervised FSD will rise as FSD’s capabilities improve. The massive value jump is when you can be on your phone or sleeping for the entire ride (Unsupervised FSD),” Musk wrote.
At the time of his recent post, Tesla still offers FSD as a one-time purchase for $8,000, but Elon Musk has confirmed that this option will be discontinued on February 14, leaving subscriptions as the only way to access the system.
Tesla makes big Full Self-Driving change to reflect future plans
Tesla Model S completes first ever FSD Cannonball Run with zero interventions
