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Indonesia seeks limited free trade agreement with US for battery-related minerals: report

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

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Indonesia is expected to propose a limited free trade agreement (FTA) for specific battery-related minerals that are shipped to the United States. The proposal seeks to allow companies involved in the electric vehicle battery supply chain in the country to benefit from the US’ tax credits under the Inflation Reduction Act (IRA). 

Indonesia’s proposal for a limited free trade agreement was mentioned by a senior Indonesian minister on Monday, according to a Reuters report. Indonesian minister Luhut Pandjaitan alluded to the idea during a news conference. 

“We do not have an FTA with them. Now we’re proposing a limited FTA with them,” the official said. He also stated that he intends to meet with Ford and Tesla executives during an upcoming visit to the United States. 

Septian Hario Seto, the official’s deputy, also stated that the FTA proposal would probably be similar to a deal that the United States had signed with Japan on EV battery minerals. The United States and Japan had previously reached an agreement on a rapidly negotiated trade deal involving battery minerals such as lithium, nickel, cobalt, graphite, and manganese, the publication noted.

“It’s the same in essence, that for critical minerals there will be free trade with requirements on processing, such as for nickel, aluminium, cobalt, copper,” Seto noted. 

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The Inflation Reduction Act (IRA) recently issued new guidance for EV tax credits. This guidance requires a certain value of battery components to be produced or assembled in North America or a free trade partner. Indonesia does not currently have a free trade agreement with the US.

Being home to the world’s largest nickel reserves, Indonesia has the potential to be a powerhouse in the electric vehicle era. It is then unsurprising to see the country putting in a lot of effort to secure deals with the giants of the EV sector, such as Tesla. 

Indonesia has been working hard to attract an investment from Tesla for some time. Almost a year ago, Tesla CEO Elon Musk accommodated a delegation of Indonesian officials at Gigafactory Texas. Musk and Indonesian officials have maintained warm relations since, with President Joko “Jokowi” Widodo noting last February that the country has a good chance at securing a deal with the electric vehicle maker.

The Teslarati team would appreciate hearing from you. If you have any tips, contact me at maria@teslarati.com or via Twitter @Writer_01001101

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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.

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Tesla announces massive new achievement with 8 million cars produced

Tesla’s 8 millionth car comes just 8 months after it built its 7 millionth car.

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Credit: Tesla

Tesla announced a massive new achievement in relation to its automotive division as it has officially built 8 million cars globally.

The 8 millionth car rolled off production lines at Gigafactory Berlin on Friday, the company announced. The car was an Ultra Red Model Y, images show:

The car comes just about eight months after Tesla built its 7 millionth car at the Fremont Factory last October, a major accomplishment considering the claims of a lack of demand from the media.

Tesla celebrates 7 million vehicles produced

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Additionally, Tesla was able to achieve this major threshold with a stoppage in production at each of its four production facilities earlier this year. The manufacturing halt was attributed to a production line changeover for the new Model Y crossover.

The car has been the best-selling vehicle in the world for two consecutive years, and the company pausing production for two weeks, yet still managed to produce one million cars in eight months is impressive.

Tesla currently only produces the Model Y at Gigafactory Berlin, but the car is also manufactured at Gigafactory Shanghai, Gigafactory Texas, and the Fremont Factory.

It is the only model to be produced at all four of Tesla’s global manufacturing plants, which span across three different continents.

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Elon Musk

Elon Musk and Donald Trump to speak with each other Friday: report

White House aides have scheduled a call between the CEO and U.S. President on Friday.

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The White House, Public domain, via Wikimedia Commons
President Donald J. Trump purchases a Tesla on the South Lawn, Tuesday, March 11, 2025. (Official White House Photo by Molly Riley)

Elon Musk and Donald Trump’s feud seems to be thawing, at least to some degree.

As per a recent Politico report, White House aides have scheduled a call between the CEO and U.S. President on Friday.

Musk vs. Trump

Musk turned into a staunch critic of Trump amidst the administration’s efforts to pass the “Big Beautiful Bill,” which the CEO claimed would add trillions to the country’s deficit. Trump, for his part, claimed that Musk turned on him due to the adverse effects of the proposed bill on his companies.

The spat between the two powerful men became so notable that Musk called for the impeachment of Trump on X. He also claimed that Trump was in the Epstein list. The U.S. President, for his part, threatened to cancel billions of dollars worth of government contracts with Musk’s companies such as SpaceX.

Potential Truce

As per Politico, however, White House aides have stepped in to temper the tensions and broker peace between the two powerful men. When asked by the outlet about his ongoing feud with the CEO, Trump reportedly stated that “it’s okay” and that “it’s going very well, never done better.” The U.S. President also highlighted his favorability ratings, stating that his “numbers are through the roof.”

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While the CEO was very aggressive against Trump in his X posts, he did back down somewhat after some time. When hedge fund manager Bill Ackman argued that Trump and Musk should make peace for the benefit of the United States, the CEO responded with, “You’re not wrong.” Musk also walked back on his decision to decommission SpaceX’s Dragon spacecraft, which is essential to NASA’s operations.

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Investor's Corner

Goldman Sachs reduces Tesla price target to $285

Despite Goldman Sach’s NASDAQ: TSLA price cut to $285, Tesla boasts $95.7B in revenue & nearly $1T market cap.

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(Credit: Tesla)

Goldman Sachs analysts cut Tesla’s price target to $285 from $295, maintaining a Neutral rating.

The adjustment reflects weaker sales performance across key markets, with Tesla shares trading at $284.70, down nearly 18% in the past week. The analysts pointed to declining sales data in the United States, Europe, and China as the primary driver for the revised outlook. In the U.S., Tesla’s quarter-to-date deliveries through May fell mid-teens year-over-year, according to Wards and Motor Intelligence.

In Europe, April registrations plummeted 50% year-over-year, with May showing a mid-20% decline, per industry data. Meanwhile, the China Passenger Car Association (CPCA) reported a 20% year-over-year drop in May, despite a 5.5% sequential increase from April. Consumer surveys from HundredX and Morning Consult also shaped Goldman Sachs’ lowered delivery and EPS forecasts.

Goldman Sachs now projects Tesla’s second-quarter deliveries to range between 335,000 and 395,000 vehicles, with a base case of 365,000, down from a prior estimate of 410,000 and below the Visible Alpha Consensus of 417,000. Despite these headwinds, Tesla’s financials remain strong, with $95.7 billion in trailing twelve-month revenue and a $917 billion market capitalization.

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Regionally, Tesla’s challenges are stark. In Germany, the German road traffic agency KBA reported Tesla’s May sales dropped 36.2% year-over-year, despite a 44.9% surge in overall electric vehicle registrations. Tesla’s sales fell 29% last month in Spain, according to the ANFAC industry group. These declines highlight shifting consumer preferences amid growing competition.

On a positive note, Tesla is making strategic moves. The Model 3 and Model Y are part of a Chinese government campaign to boost rural sales, potentially mitigating losses. Piper Sandler analysts reiterated an Overweight rating, emphasizing Tesla’s supply chain strategy.

Alexander Potter stated, “Thanks to vertical integration, Tesla is the only car company that is trying to source batteries, at scale, without relying on China.”

As Tesla navigates these delivery challenges, its focus on innovation and supply chain resilience could help it maintain its edge in the electric vehicle market despite short-term hurdles.

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