It’s hard to miss all the headlines about the United States’ trade war with China, the stock market’s reaction to it, and the various industry struggles in response to it if you spend any decent amount of time online. Honestly, I’m not much of a finance person, i.e., I only learned what a ‘short seller’ was by following Tesla. But being a reporter on all things Elon Musk, I couldn’t help but wonder how the discord was going to affect the all-electric carmaker in both China sales and its Gigafactory 3 project in Shanghai.
Then, my wondering seemed to stumble upon an answer thanks to a fellow Teslarati writer’s coverage of the expansion of China’s Shanghai Free Trade Zone (FTZ) to Lingang, the area where Tesla’s newest facility is located. (Thanks, Simon!) As part of a continuing effort to open the country’s markets to economic globalization, Shanghai and Lingang are intended to form a free market region similar to Hong Kong. Goods entering the FTZ will be tax-exempt for the most part.
On its face, it appears Tesla will get to avoid most of the arguments between Presidents Trump and Xi Jinping.
The company was already moving towards Chinese tax reductions by being a local manufacturer, but some supplies will still need to come from its facilities in the US, not to mention the high-end variants of the Model 3 as well as the Model S and Model X, risking import games and the like – something an FTZ would eliminate. The FTZ will also come with promised cuts to corporate tax rates for preferred industries. I mean, it certainly sounds like a great deal for a company like Tesla.
“Customs authorities are supposed to ensure all the goods inside the zone are duty-free to boost commercial activities in the area,” Huang Yejing, a research professor at the Institute of World Economy at the Shanghai Academy of Social Sciences, was quoted as saying in the South China Morning Post. So, anything Tesla imports to Giga 3 will be free from fee baggage on China’s side. However, Huang also said this:
“But they also need to make sure that those duty-free goods do not flow out of the zone and are sold on the domestic market. It is still an unanswered question facing regulators.”
Does that mean the benefits of the FTZ are eliminated once Tesla’s cars leave the area to be sold at stores? It sounds like it. Well, maybe not all the benefits. Their cars can be built under the best free-trade policies China has to offer (for now), and residents within the Shanghai area will probably have the best prices on their Tesla cars. Does this deal kind of operate like when city residents purchase their cars outside their cities to avoid higher taxes? Since Tesla sells its cars online, will that create a loophole to sell anywhere in the country under FTZ deals?
China has been very generous to Tesla and Musk in their Shanghai endeavors thus far, and with that under consideration, it seems the goodwill may last at least for the immediate future. Musk is also bringing The Boring Company to China at the end of August, so China’s leadership obviously sees good things for China coming from his ventures.
Lifestyle
Tesla brings perhaps the coolest interior feature to cars in latest update
Tesla adds on to the “fun” aspect of its vehicles.
Tesla has brought perhaps the coolest interior feature to its cars in a new update that is rolling out to vehicles now.
The feature will require a newer vehicle that has interior ambient lighting, which is present on the new Model S, Model X, Model 3 “Highland,” and Model Y “Juniper.” The Cybertruck also has ambient lighting strips throughout.
Tesla Model Y’s ambient lighting design changes revealed in leaked video
With the Version 2025.26+ Software Update, Tesla is rolling out a new “Sync Accent Lights w/ Music” feature, which is available on the Tesla Toybox:
Turn your Tesla into a rave cave with the new Light Sync feature 🎶
Rolling out now in software update 2025.26+ pic.twitter.com/IIsQxZ9jDP
— Tesla (@Tesla) July 29, 2025
To enable the feature, you’ll access the Toybox, choose “Light Sync,” and then choose “Sync Accent Lights w/ Music.”
Although it does not improve the performance of the vehicle, it is yet another example of Tesla making one of the coolest cars out there. This is truly a cool add-on that can be used to impress your friends and family.
Elon Musk
xAI, Musk Foundation helps schools near Memphis supercomputer site
Reports of xAI and the Musk Foundation’s work were recently posted by local news media.
Elon Musk’s artificial intelligence startup xAI and the Musk Foundation have been supporting Memphis-Shelby County Schools with HVAC repairs and facility upgrades, while also funding youth programs for students in the area.
Reports of xAI and the Musk Foundation’s work were recently posted by local news media.
xAI’s school visits lead to facility repairs
Representatives from xAI visited John P. Freeman Optional School, Fairley High School, and Westwood High School, all of which are located near its Colossus supercomputer site, to assess HVAC systems, plumbing, gym facilities, and athletic fields. The visits resulted in a list of priority repairs, some of which were completed in April and May.
In addition to the repairs, xAI also shared a number of initiatives that are planned for students in the area, as stated in a Commercial Appeal report.
“xAI is working on providing STEM workshops for local students, donating equipment to technical training programs, and supporting job fairs to boost employment opportunities. These initiatives reflect xAl’s commitment to fostering education and economic growth in Memphis,” xAI noted in a statement.
Musk Foundation donation
Apart from xAI, the Musk Foundation also donated $350,000 to the Boys & Girls Clubs of Greater Memphis, enabling the reopening of two club sites located at Booker T. Washington High School and Westwood High School. Both locations had closed earlier this year due to lapses in funding. As per xAI, the Musk Foundation’s donation allows clubs to reopen for almost 1,000 students.
The donation will fund staffing, supplies, and transportation, among others. “Kids are the future of humanity,” Elon Musk said in a statement, adding that students need “every chance to shoot for the stars.”
“We’re honored to support the Boys & Girls Clubs of Greater Memphis in reopening these sites, giving kids in underserved communities the tools to build brighter futures,” Musk said.
The gift was praised by local officials, including Boys & Girls Clubs board chair Michael Garriga, who stated that the “commitment will ensure the youth of our community have the opportunities they need to develop their skills and talents to become successful students and future citizens.”
Lifestyle
EV fans urge Tesla to acquire Unplugged Performance for edge in fleet and security industry
Unplugged Performance has built a name for itself by producing performance upgrades for Tesla vehicles.
A growing number of Tesla enthusiasts and longtime community voices are calling on the electric vehicle maker to acquire Unplugged Performance, a California-based aftermarket company best known for tuning Tesla vehicles and developing specialized government fleet solutions under its UP.FIT division.
The idea was once considered a niche proposal among EV fans, but it is now gaining serious attention not just as a performance play but as a strategic move to deepen Tesla’s roots in the fleet and security industry.
A strategic fit
Unplugged Performance has built a name for itself by producing performance upgrades for Tesla vehicles, from track-optimized components to visual and aerodynamic upgrades. But in recent years, its UP.FIT division has pivoted toward a more functional future by outfitting Tesla vehicles like Model Ys for police, military, and government use.
That work has sparked growing calls for closer collaboration with Tesla, especially as the EV maker increasingly leans into autonomy, AI, and fleet services as core components of its next chapter.
“I posted this four years ago, but I think it’s more true now than ever,” wrote Whole Mars Catalog, a well-known Tesla investor and FSD Beta tester, on X. “Tesla should buy Unplugged. But not just as a Performance division. What they are doing with UP.FIT unlocks large government and commercial fleet purchases that can improve utilization.”
Tesla fans such as shareholder Sawyer Merritt echoed the sentiment, calling Unplugged a “great fit within Tesla.” adding, “They are literally located directly next to Tesla’s design studio in Hawthorne.”
Enabling the next wave
Supporters of the idea noted that integrating Unplugged into Tesla’s corporate structure could help accelerate the adoption of autonomous technologies in government sectors. With UP.FIT patrol cars already in use across some U.S. police departments, Tesla fans envisioned a future where self-driving Teslas could potentially revolutionize law enforcement, search-and-rescue, and public service logistics.
“Just imagine how autonomous patrol cars could transform policing and bring us into a safer future,” the veteran FSD tester wrote.
The benefits could also extend to Tesla’s existing consumer base. “They also have some incredible products in the works that I think will appeal to many ordinary Tesla drivers — not just those looking for performance or mods. Stuff that’s so good it should have come straight from the design studio next door,” Whole Mars Catalog noted.
Unplugged Performance, founded in 2013, shares not just a product vision with Tesla, but also geography. Its Hawthorne headquarters sits directly adjacent to Tesla’s design studio, and the two companies have maintained a close working relationship over the years. The aftermarket firm has long positioned itself as a “mission-aligned” partner to Tesla.
In response to the recent calls for acquisition, Unplugged Performance acknowledged the support from the community. “Our very existence is to support the Tesla mission with @UpfitTesla and @UnpluggedTesla,” Unplugged CEO Ben Schaffer posted on X. “We love working with Tesla and are grateful for the community’s support since 2013!”
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