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Pete Buttigieg responds to Tesla’s Elon Musk, defends Biden’s EV federal spending plan
Tesla CEO Elon Musk recently made waves after he boldly declared that he is actually against the Biden administration’s plan to roll out an updated set of union-friendly EV incentives and build out an EV charging network across the United States. During an interview at The Wall Street Journal’s CEO Council Summit, Musk noted that such programs were “unnecessary,” while stating that he is an advocate of a system where there are zero subsidies for EVs and fossil fuels alike.
In his appearance at the same event on Tuesday, US Secretary of Transportation Pete Buttigieg responded to the Tesla CEO’s comments. Defending the Build Back Better Act, which grants an additional $4,500 incentive to EVs that are produced in a union factory, Buttigieg argued that while the electric revolution is inevitable, there are still things that will need help from the government.
“I think it’s very important to fund EV charging stations and to also make sure what’s in the next Build Back Better Act to bide down the cost of electric vehicles. Let me explain why. The market is going electric already. That’s gonna happen. The automotive sector is headed that way. We’re not here to cause that technological adoption to happen. We’re here because there are three things that will not happen on their own.
“One, for it to happen quickly enough to meet our climate challenges. Two, for it to happen in equitable terms that will actually reach the Americans who stand theoretically to benefit the most from EVs. Low-income, urban Americans, rural drivers — but they only capture those benefits if they can afford to buy them in the first place. And third, the importance of making sure that this electric-vehicle revolution is made in America and creating good-paying jobs. And, of course, we believe in the benefits of union jobs,” the Secretary of Transportation said.
Buttigieg further highlighted that the proposed EV incentives, which could amount to $12,500, could help mainstream American buyers acquire electric cars that would otherwise be out of their reach.
“These are things that don’t happen on their own. They require policy attention, and that’s part of our focus both in the charging network that is supported out of the infrastructure bill that the president signed, and the tax credits that will make these vehicles more affordable, that are proposed in Build Back Better. Look, if you take, for example, a $40,000 electric truck, a good quality electric truck, and you have up to a $12,500 tax credit to buy down that cost, moving that cost to the high 20’s.
“Especially for those drivers in the rural areas who drive the most and therefore spend the most money on gas, we’re talking about millions of more Americans who can get in on the electric vehicle revolution without having to wait for all of those economies of scale to kick in and bring that price point down over the next decade, which we think will happen. We think this is incredibly important, and it’s certainly a very, very important part of meeting our climate commitments and our climate responsibilities as a country,” Buttigieg concluded.
Watch the US Secretary of Transportation’s segment at the WSJ’s CEO Council Summit in the video below.
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Tesla earns top honors at MotorTrend’s SDV Innovator Awards
MotorTrend’s SDV Awards were presented during CES 2026 in Las Vegas.
Tesla emerged as one of the most recognized automakers at MotorTrend’s 2026 Software-Defined Vehicle (SDV) Innovator Awards.
As could be seen in a press release from the publication, two key Tesla employees were honored for their work on AI, autonomy, and vehicle software. MotorTrend’s SDV Awards were presented during CES 2026 in Las Vegas.
Tesla leaders and engineers recognized
The fourth annual SDV Innovator Awards celebrate pioneers and experts who are pushing the automotive industry deeper into software-driven development. Among the most notable honorees for this year was Ashok Elluswamy, Tesla’s Vice President of AI Software, who received a Pioneer Award for his role in advancing artificial intelligence and autonomy across the company’s vehicle lineup.
Tesla also secured recognition in the Expert category, with Lawson Fulton, a staff Autopilot machine learning engineer, honored for his contributions to Tesla’s driver-assistance and autonomous systems.
Tesla’s software-first strategy
While automakers like General Motors, Ford, and Rivian also received recognition, Tesla’s multiple awards stood out given the company’s outsized role in popularizing software-defined vehicles over the past decade. From frequent OTA updates to its data-driven approach to autonomy, Tesla has consistently treated vehicles as evolving software platforms rather than static products.
This has made Tesla’s vehicles very unique in their respective sectors, as they are arguably the only cars that objectively get better over time. This is especially true for vehicles that are loaded with the company’s Full Self-Driving system, which are getting progressively more intelligent and autonomous over time. The majority of Tesla’s updates to its vehicles are free as well, which is very much appreciated by customers worldwide.
Elon Musk
Judge clears path for Elon Musk’s OpenAI lawsuit to go before a jury
The decision maintains Musk’s claims that OpenAI’s shift toward a for-profit structure violated early assurances made to him as a co-founder.
A U.S. judge has ruled that Elon Musk’s lawsuit accusing OpenAI of abandoning its founding nonprofit mission can proceed to a jury trial.
The decision maintains Musk’s claims that OpenAI’s shift toward a for-profit structure violated early assurances made to him as a co-founder. These claims are directly opposed by OpenAI.
Judge says disputed facts warrant a trial
At a hearing in Oakland, U.S. District Judge Yvonne Gonzalez Rogers stated that there was “plenty of evidence” suggesting that OpenAI leaders had promised that the organization’s original nonprofit structure would be maintained. She ruled that those disputed facts should be evaluated by a jury at a trial in March rather than decided by the court at this stage, as noted in a Reuters report.
Musk helped co-found OpenAI in 2015 but left the organization in 2018. In his lawsuit, he argued that he contributed roughly $38 million, or about 60% of OpenAI’s early funding, based on assurances that the company would remain a nonprofit dedicated to the public benefit. He is seeking unspecified monetary damages tied to what he describes as “ill-gotten gains.”
OpenAI, however, has repeatedly rejected Musk’s allegations. The company has stated that Musk’s claims were baseless and part of a pattern of harassment.
Rivalries and Microsoft ties
The case unfolds against the backdrop of intensifying competition in generative artificial intelligence. Musk now runs xAI, whose Grok chatbot competes directly with OpenAI’s flagship ChatGPT. OpenAI has argued that Musk is a frustrated commercial rival who is simply attempting to slow down a market leader.
The lawsuit also names Microsoft as a defendant, citing its multibillion-dollar partnerships with OpenAI. Microsoft has urged the court to dismiss the claims against it, arguing there is no evidence it aided or abetted any alleged misconduct. Lawyers for OpenAI have also pushed for the case to be thrown out, claiming that Musk failed to show sufficient factual basis for claims such as fraud and breach of contract.
Judge Gonzalez Rogers, however, declined to end the case at this stage, noting that a jury would also need to consider whether Musk filed the lawsuit within the applicable statute of limitations. Still, the dispute between Elon Musk and OpenAI is now headed for a high-profile jury trial in the coming months.
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Tesla Giga Shanghai celebrates 5 million electric drive unit milestone
The milestone was celebrated by the company in a post on its official Weibo account.
Tesla China has reached another manufacturing milestone at Gigafactory Shanghai, rolling out the facility’s 5 millionth locally produced drive unit.
The milestone was celebrated by the company in a post on its official Weibo account. In its post, the Giga Shanghai team could be seen posing with the 5 millionth drive unit.
Giga Shanghai’s major benchmark
The milestone drive unit was produced at Gigafactory Shanghai, which produces the Model Y and the Model 3. In a release, Tesla China noted that its three-in-one integrated electric drive system combines the motor, gearbox, and inverter into a single compact assembly. This forms a powerful “heart” for the company’s electric cars.
Tesla China also noted that its drive units’ integrated design improves energy conversion efficiency while reducing overall weight and complexity, benefits that translate into stronger performance, improved handling, and longer service life for its vehicles.
The new milestone builds on earlier achievements at the same site. In July 2024, Tesla announced that its 10 millionth electric drive system globally had rolled off the line at the Shanghai plant, making it the first self-produced Tesla component to reach that volume.
More recently, the factory also produced its 4 millionth China-made vehicle, a Model Y L. The factory has also continued hitting global production milestones, rolling out Tesla’s 9 millionth EV worldwide late last year, with the landmark vehicle being a Tesla Model Y.
Tesla China’s role
Construction of Giga Shanghai began in January 2019, with production starting by the end of that year. This made it the first wholly foreign-owned automotive manufacturing project in China. The facility began delivering Model 3 vehicles locally in early 2020 and added Model Y production in 2021. The plant is now capable of producing about 1 million vehicles annually.
Throughout 2025, Giga Shanghai delivered 851,732 vehicles, representing a 7.08% year-on-year decline, according to data compiled by CNEVPost. Even so, recent months showed renewed momentum.
In December alone, Tesla China recorded wholesale sales of 97,171 vehicles, including domestic deliveries and exports, making it the company’s second-best monthly total on record, per data from the China Passenger Car Association. Retail sales during December reached roughly 94,000 units, up about 13% year over year.
Tesla earns top honors at MotorTrend’s SDV Innovator Awards
Judge clears path for Elon Musk’s OpenAI lawsuit to go before a jury
