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There are still ‘significant gaps to close’ in UAW negotiations: Ford

Credit: UAW

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Despite making some progress in contract negotiations with the United Auto Workers (UAW) union, Ford says there are still some major gaps to address before an agreement is reached. The statement comes after Ford avoided escalated strikes by meeting some UAW demands last week, just as parts workers walked out of 38 Stellantis and General Motors (GM) distribution centers on Friday.

Ford said on Sunday that there were still “significant gaps to close” in contract negotiations with the UAW, according to a report from Reuters. The UAW said it made “some real progress at Ford” over the weekend, although it added that the two parties still had serious issues to work through.

On Sunday evening, Ford said the related “issues are interconnected and must work within an overall agreement that supports our mutual success.”

At the time of writing, the UAW has not yet commented on the statement from Ford. The news also comes ahead of U.S. President Joe Biden’s plans to visit Michigan in support of the strikes on Tuesday.

Ford also said that it would be pausing construction on a $3.5 billion battery manufacturing plant in Michigan, as detailed in a Monday afternoon report from Reuters.

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“We are pausing work and limiting spending on construction on the Marshall project until we’re confident about our ability to competitively operate the plant,” Ford said. “We haven’t made any final decision about the planned investment there.”

The Detroit automakers have offered contracts with 20-percent raises over the next four and a half years, though the UAW is reportedly still asking for 40-percent wage hikes over a four-year period, in addition to 32-hour work weeks. The union is also demanding the restoration of defined pension benefits and an end to a tiered wage system that requires a certain amount of time to reach top wages.

Workers at an additional 20 Stellantis and 18 GM parts distribution centers walked off the job on Friday due to a lack of progress in UAW contract negotiations. The walkouts are straining other Stellantis and GM manufacturing facilities, rendering them unable to receive the necessary parts to continue production. The expanded strikes totaled around 5,600 workers, joining the initial wave of 12,700 workers who walked out a week prior.

The UAW represents roughly 150,000 workers total, and this is the first time in history that the union has lodged strikes against all three of the Michigan automakers simultaneously.

Last week, GM said it was forced to lay off around 2,000 workers at a Fairfax, Kansas plant, citing a lack of available work due to the UAW strikes. The automaker went on to call the UAW demands “untenable,” adding that it wouldn’t be able to offer unemployment for the laid-off employees.

As the Detroit Free Press reports, one auto supplier in Wixom, Michigan also announced plans to lay off 230 workers on Monday. The figure represents 75 percent of employees at Eagle Industries, Inc., which makes a material used in car door components along with other non-automotive products. While the company hasn’t explicitly disclosed its clients, a separate analysis noted that its product had been used in Ford’s vehicles.

“As a result of unforeseen business circumstances, we are providing information in anticipation of a potential layoff at the worksite,” wrote the company in a note to the state of Michigan. “The estimated number of workers is subject to change due to evolving business circumstances.”

Some predict that the ongoing strikes will likely result in higher vehicle prices due to increased costs for parts. Another analysis from the University of Michigan noted that as many as 150,000 workers could be subject to layoffs if the strikes last an entire month, highlighting the situation’s far-reaching effects until the parties can finalize a deal.

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“These growing spillover effects across the automotive supply chain produce successively larger spillovers to the broader economy, as well,” states the analysis, “as laid-off workers in the supply chain lose purchasing power and cut back on spending in other parts of the economy.”

Update: Updated to include the Monday afternoon report from Reuters, in which Ford said it was pausing construction on a Michigan battery plant.

Tesla’s ghost hangs over UAW’s ongoing strike

What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.

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Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Cybertruck

Tesla begins Cybertruck deliveries in a new region for the first time

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Credit: @derek1ee | X

Tesla has initiated Cybertruck deliveries in a new region for the first time, as the all-electric pickup has officially made its way to the United Arab Emirates, marking the newest territory to receive the polarizing truck.

Tesla launched orders for the Cybertruck in the Middle East back in September 2025, just months after the company confirmed that it planned to launch the pickup in the region, which happened in April.

I took a Tesla Cybertruck weekend Demo Drive – Here’s what I learned

By early October, Tesla launched the Cybertruck configurator in the United Arab Emirates, Qatar, and Saudi Arabia, with pricing starting at around AED 404,900, or about $110,000 for the Dual Motor configuration.

This decision positioned the Gulf states as key early international markets, and Tesla was hoping to get the Cybertruck outside of North America for the first time, as it has still been tough to launch in other popular EV markets, like Europe and Asia.

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By late 2025, Tesla had pushed delivery timelines slightly and aimed for an early 2026 delivery launch in the Middle East. The first official customer deliveries started this month, and a notable handover event occurred in Dubai’s Al Marmoom desert area, featuring a light and fire show.

Around 63 Cybertrucks made their way to customers during the event:

As of this month, the Cybertruck still remains available for configuration on Tesla’s websites for the UAE, Saudi Arabia, Qatar, and other Middle Eastern countries like Jordan and Israel. Deliveries are rolling out progressively, with the UAE leading as the first to see hands-on customer events.

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In other markets, most notably Europe, there are still plenty of regulatory hurdles that Tesla is hoping to work through, but they may never be resolved. The issues come from the unique design features that conflict with the European Union’s (EU) stringent safety standards.

These standards include pedestrian protection regulations, which require vehicles to minimize injury risks in collisions. However, the Cybertruck features sharp edges and an ultra-hard stainless steel exoskeleton, and its rigid structure is seen as non-compliant with the EU’s list of preferred designs.

The vehicle’s gross weight is also above the 3.5-tonne threshold for standard vehicles, which has prompted Tesla to consider a more compact design. However, the company’s focus on autonomy and Robotaxi has likely pushed that out of the realm of possibility.

For now, Tesla will work with the governments that want it to succeed in their region, and the Middle East has been a great partner to the company with the launch of the Cybertruck.

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BREAKING: Tesla launches public Robotaxi rides in Austin with no Safety Monitor

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Tesla has officially launched public Robotaxi rides in Austin, Texas, without a Safety Monitor in the vehicle, marking the first time the company has removed anyone from the vehicle other than the rider.

The Safety Monitor has been present in Tesla Robotaxis in Austin since its launch last June, maintaining safety for passengers and other vehicles, and was placed in the passenger’s seat.

Tesla planned to remove the Safety Monitor at the end of 2025, but it was not quite ready to do so. Now, in January, riders are officially reporting that they are able to hail a ride from a Model Y Robotaxi without anyone in the vehicle:

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Tesla started testing this internally late last year and had several employees show that they were riding in the vehicle without anyone else there to intervene in case of an emergency.

Tesla has now expanded that program to the public. It is not active in the entire fleet, but there are a “few unsupervised vehicles mixed in with the broader robotaxi fleet with safety monitors,” Ashok Elluswamy said:

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Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing

The Robotaxi program also operates in the California Bay Area, where the fleet is much larger, but Safety Monitors are placed in the driver’s seat and utilize Full Self-Driving, so it is essentially the same as an Uber driver using a Tesla with FSD.

In Austin, the removal of Safety Monitors marks a substantial achievement for Tesla moving forward. Now that it has enough confidence to remove Safety Monitors from Robotaxis altogether, there are nearly unlimited options for the company in terms of expansion.

While it is hoping to launch the ride-hailing service in more cities across the U.S. this year, this is a much larger development than expansion, at least for now, as it is the first time it is performing driverless rides in Robotaxi anywhere in the world for the public to enjoy.

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Investor's Corner

Tesla Earnings Call: Top 5 questions investors are asking

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(Credit: Tesla)

Tesla has scheduled its Earnings Call for Q4 and Full Year 2025 for next Wednesday, January 28, at 5:30 p.m. EST, and investors are already preparing to get some answers from executives regarding a wide variety of topics.

The company accepts several questions from retail investors through the platform Say, which then allows shareholders to vote on the best questions.

Tesla does not answer anything regarding future product releases, but they are willing to shed light on current timelines, progress of certain projects, and other plans.

There are five questions that range over a variety of topics, including SpaceX, Full Self-Driving, Robotaxi, and Optimus, which are currently in the lead to be asked and potentially answered by Elon Musk and other Tesla executives:

SpaceX IPO is coming, CEO Elon Musk confirms

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  1. You once said: Loyalty deserves loyalty. Will long-term Tesla shareholders still be prioritized if SpaceX does an IPO?
    1. Our Take – With a lot of speculation regarding an incoming SpaceX IPO, Tesla investors, especially long-term ones, should be able to benefit from an early opportunity to purchase shares. This has been discussed endlessly over the past year, and we must be getting close to it.
  2. When is FSD going to be 100% unsupervised?
    1. Our Take – Musk said today that this is essentially a solved problem, and it could be available in the U.S. by the end of this year.
  3. What is the current bottleneck to increase Robotaxi deployment & personal use unsupervised FSD? The safety/performance of the most recent models or people to monitor robots, robotaxis, in-car, or remotely? Or something else?
    1. Our Take – The bottleneck seems to be based on data, which Musk said Tesla needs 10 billion miles of data to achieve unsupervised FSD. Once that happens, regulatory issues will be what hold things up from moving forward.
  4. Regarding Optimus, could you share the current number of units deployed in Tesla factories and actively performing production tasks? What specific roles or operations are they handling, and how has their integration impacted factory efficiency or output?
    1. Our Take – Optimus is going to have a larger role in factories moving forward, and later this year, they will have larger responsibilities.
  5. Can you please tie purchased FSD to our owner accounts vs. locked to the car? This will help us enjoy it in any Tesla we drive/buy and reward us for hanging in so long, some of us since 2017.
    1. Our Take – This is a good one and should get us some additional information on the FSD transfer plans and Subscription-only model that Tesla will adopt soon.

Tesla will have its Earnings Call on Wednesday, January 28.

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