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Rivian grapples with challenges from Trump’s auto tariffs
Rivian CEO warns Trump’s auto tariffs will squeeze the EV industry. Scaringe says auto tariffs threaten rising costs & slower production.
Rivian is grappling with challenges arising from President Trump’s auto tariff. Rivian CEO RJ Scaringe recently enumerated the difficulties automakers face and elaborated on the impact of Trump’s auto tariffs on the electric vehicle (EV) industry.
President Trump’s auto tariffs were announced last month, imposing 25% tariffs on imported vehicles effective April 3, 2025, and levies on auto parts starting in May.
Scaringe talked a bit about the complexity of the automotive supply chain with Fox Business. Rivian’s R1T pickup, R1S SUV, and commercial electric van are manufactured at its Normal, Illinois plant. Scaringe boasted that Rivian has a “very U.S.-centric supply chain.
Yet, the complex global supply chain poses hurdles for U.S. automakers who want to comply with Trump’s auto tariffs.
“One of the things with automotive is the supply chain is so complex, where we have hundreds of suppliers providing parts from, say, a headlight or a tow hook or tires or the structure under the skin here that are coming from not only a set of suppliers that supply to us, but those suppliers have suppliers, and then in turn, those suppliers have suppliers, so there’s tier two, tier three,” Scaringe explained.
China’s restrictions on rare-earth material exports–in response to Trump’s 145% tariff on Chinese imports–further complicate matters. Rare-earth materials are critical for EV motor magnets and batteries. Nearly all rare-earth materials are processed exclusively in China.
“The trade restrictions and what we’re seeing in terms of rare earth metals out of China, that’s a real challenge for electric vehicles,” Scaringe noted.
Batteries comprise up to 40% of an EV’s cost. Goldman Sachs noted that battery costs have been falling in recent years. The investment bank estimated EV battery costs would drop by 50% between 2023 and 2026. However, China’s decision to restrict rare-earth materials may increase battery costs.
Wedbush analyst Dan Ives called the tariffs a source of “pure chaos” for the auto industry, stating, “A U.S. car made entirely with U.S. parts is a fictional tale.”
Ives warned automakers could increase car prices between $5,000 to $10,000. Wedbush predicts a potential change in Trump’s auto parts tariffs could ease disruptions.
For Rivian, starting prices near $70,000 limit room for cost increases without impacting sales. As trade tensions escalate, Rivian faces rising costs and potential production slowdowns, threatening its growth in a shifting EV landscape.
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Tesla launches hiring for Robotaxi program in its twentieth country
Overall, the hiring signals Tesla’s aggressive timeline for global dominance in autonomous mobility.
Tesla has launched a hiring initiative for its Robotaxi program in its twentieth country, as the company posted two new jobs in Thailand this week.
Tesla is hiring in Bangkok and Kowloon for the Vehicle Operator position, which is related to data collection, and is the first in Thailand, but the twentieth country overall, as the company tries to expand into other markets.
🚨 BREAKING: Tesla is hiring additional full-time Vehicle Operators in Bangkok, Thailand.
Previous openings were 6-month, part-time roles. These are equivalent to AI Safety Operator roles in the U.S. pic.twitter.com/R6LzoU1bos— Tesla Yoda (@teslayoda) January 5, 2026
Tesla has had active job postings for Vehicle Operator positions in the United States, India, Israel, Taiwan, Germany, the Czech Republic, Hungary, the UK, Finland, Switzerland, Sweden, the Netherlands, Austria, Spain, Norway, Italy, and Turkey in past listings.
These postings are not all currently available, likely because the roles have been filled.
Thailand is the most recent, and broadens the company’s potential path to expanding its ride-hailing program, which is only active in the United States in Austin, Texas, and the California Bay Area, so far.
These roles typically involve data collection, which assists in improving Autopilot and Full Self-Driving operation. Tesla’s self-driving programs utilize real-world data that is accumulated and stored, observing vehicle and traffic behavior, as well as tendencies that are performed by human drivers to help increase safety and overall performance.
Overall, the hiring signals Tesla’s aggressive timeline for global dominance in autonomous mobility. Although the company has several high-profile rivals and competitors in the field, it has established itself as a main player and a leader in the development of autonomous technology, especially in the U.S., as its FSD suite is refined on almost a weekly basis.
The Full Self-Driving suite is available in seven countries and territories currently, including the U.S., Canada, China, Mexico, Puerto Rico, Australia, and New Zealand. Its biggest goal for expansion is currently the European market, where regulatory hurdles have been the main bottleneck prolonging its launch on the continent.
Tesla has performed months of testing in various European countries, including France and Spain, and does have support in some areas from various regulatory agencies. However, the company is hoping to get through this red tape and offer its suite in Europe for the first time, hopefully this year.
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Tesla China rolls out Model Y upgrades, launches low-interest financing
These strategies are aimed at improving the ownership experience and keeping vehicle pricing competitive in the world’s largest electric vehicle market.
Tesla has rolled out minor updates to the five-seat Model Y in China, upgrading the vehicle’s center display to a higher-resolution 16-inch 2K screen. The electric vehicle maker also introduced attractive financing options, including 7-year low-interest rates, to offset the new purchase tax on EVs.
These strategies are aimed at improving the ownership experience and keeping vehicle pricing competitive in the world’s largest electric vehicle market.
Five-seat Model Y gets larger, better display
With its recent update, all three variants of the five-seat Model Y now feature an upgraded 16-inch 2K resolution center display, which replaces the vehicle’s previous 15.4-inch 1080p panel. This screen was already used in the six-seat Model Y L, and it offered improved visual clarity. Tesla China has also updated the Model Y’s headliner to black, giving the vehicle a sleeker appearance.
Prices of the five-seat Model Y remain unchanged at RMB 263,500, RMB 288,500, and RMB 313,500 for the respective trims. This update enhances the cabin experience as domestic rivals are already adopting high-resolution screens. As noted in a CNEV Post report, some domestic automakers have begun rolling out vehicles equipped with 3K-resolution displays.
New financing offers
Tesla also launched ultra-long-term financing offers for its locally produced models in China, which include the Model 3 sedan, the five-seat Model Y, and the six-seat Model Y L, through January 31, 2026. The 7-year option features an annualized fee rate as low as 0.5%, which is equivalent to 0.98% interest. This is expected to save customers up to RMB 33,479 ($4,790) compared to standard rates.
A 5-year zero-interest plan is also available, and it has been extended to the Tesla Model Y L for the first time. These incentives help offset China’s new 5% purchase tax on New Energy Vehicles (NEVs) in 2026-2027. Some of Tesla’s rivals in China have announced in recent months that they would be covering the purchase tax owed by buyers early this year.
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Tesla Model Y’s new feature lands driver in hot water from police officer
“He gave me a warning and told me to get it fixed.”
Tesla Model Y received a slew of both interior and exterior upgrades when the company refreshed its best-selling vehicle last year.
However, one of the more notable changes from an exterior perspective landed a driver in hot water with a local police officer, who was confused about the situation with the taillight bar and its ability to alert other drivers of a reduction in speed.

The new Tesla Model Y taillight with taillight glow
A Tesla Model Y owner in Indiana recently noted in a Facebook post that he was pulled over because a police officer thought the vehicle’s taillights were not turned on. However, the Model Y’s new rear light bar, which spans across the entire width of the vehicle, is more than visible in both light and dark conditions.
The incident, which was first spotted by Tesla Oracle, brings to light the interesting changes and perception of vehicle design that Tesla has brought forth with the new Model Y. We know some things might be head-scratching to some drivers, notably the Matrix Headlight technology present on the car, but this one truly baffled us.
The post stated:
“Just got pulled over for my tail lights not being “on” i told the officer it’s brand new. It has 1100 miles. I told him the red light bar is the taillight. The brake lights, both turn signals, and the red bar was on/worked. He told me that where the brake lights are, it should be illuminated there also. He gave me a warning and told me to get it fixed. Had anyone else had this kind of issue?”
Having the police officer tell a driver to “get it fixed” when it is a completely legal and functional design is pretty crazy.
However, the rear taillight bar, which glows and really gives the new Model Y a distinct difference between its previous iteration, is more than recognizable as a brake light and an indication of a reduction in speed.
Regulatory language for vehicle designs indicates that the light has to reach a certain number of lumens, or brightness. Lars Moravy indicated this on an episode of Jay Leno’s Garage when he and Tesla Chief Designer Franz von Holzhausen explained some of the details of the new Model Y.
This issue sparks some interesting dialogue people can have about vehicle design, and as more and more companies are adopting these futuristic looks, it seems law enforcement will have to get with the times and familiarize themselves with the regulations regarding exterior lights.