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Tesla looks to bring both its cars and solar to Israel through new subsidiary

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Tesla has registered a wholly-owned subsidiary in the Middle Eastern territory of Israel, a move that will allow the company to sell electric cars and mobile energy storage systems in the country that borders the Mediterranean Sea.

Tesla registered “Tesla Motors Israel” around two weeks ago with the country’s Registry of Foreign Companies. The reason for the registered subsidiary appears to be Israel’s strict regulations on vehicle imports in the country. Israel’s governing body of transportation, The Motor Vehicle Division of Misrad Hatachbura, does not allow vehicles to be imported from countries that are not registered in Israel.

Tesla’s attempt to bring its successful fleet of electric cars and alternative energy sources to Israel comes just six months after the Ministry of Energy is planning the construction and installation of at least 2,500 battery-powered vehicle charging stations by mid-2020, according to YNetNews.com.

The company has stated that its operation in Israel will be “importation, distribution, sale, maintenance, and repair of electric vehicles and mobile energy storage systems, energy generation systems and equipment, including solar panels, solar energy systems, and/or other solar energy conversion systems,” on the Registry of Foreign Companies.

While the company has been successful in selling its electric vehicles in countries outside its home in the United States, it will also look to bring sustainable and alternative forms of energy by using its solar roof tiles and home battery storage systems in Israel, a country with a rich history in solar energy that dates back to the 1950s.

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In the transportation sector, Tesla will be competing with the likes of BMW, Porsche, and Renault, who have supplied Israeli citizens with electric cars most recently. The most affordable electric vehicle in Israel is currently the Renault ZOE, available for 129,990 Israeli New Shekels, or $37,431 USD. Tesla will likely maintain the ability to challenge the ZOE with its Model 3, the affordable sedan it began delivering to U.S. owners in July 2017. The Model 3 Standard Range starts at about $35,000 but is only available for order in Tesla stores or through a phone call.

Israel is one of twelve countries in the world to propose a complete phase-out of fossil fuels by 2030 according to a report from the Times of Israel. The Energy Ministry says that it plans to completely halt the use of petrol-based products in favor of natural gas or electric power. Energy Minister Yuval Steinitz said, “We intend to reach a situation in which Israel’s industry will be based on natural gas, and most importantly, transportation in Israel will be based on natural gas or electricity,” during an energy conference in the most populated Israeli city of Tel Aviv. “From 2030 onwards, the State of Israel will create alternatives and will no longer allow the import of cars that run on gasoline and diesel fuel.” While they will still utilize natural gas, the overall goal is “zero pollutants,” according to Steinitz.

Tesla’s continuance of branching out to new countries and territories is an understanding that the sustainability goal will not come from simply fixing things in its home country of the United States. Musk’s goal of becoming environmentally-sustainable is a worldwide goal, and with the help of a government that seems to take the global climate change as a serious threat, Tesla and Israel can work together to fight emissions.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla rolls out most aggressive Model Y lease deal in the US yet

With the promotion in place, customers would be able to take home a Model Y at a very low cost.

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(Credit: Tesla)

Tesla has rolled out what could very well be its most aggressive promotion for Model Y leases in the United States yet. With the promotion in place, customers would be able to take home a Model Y at a very low cost.

Zero downpayment leases

The new Model Y lease promotion was initially reported on X, with industry watcher Sawyer Merritt stating that while the vehicles’ monthly payments are still similar to before, the cars can now be ordered with a $0 downpayment. 

Tesla community members noted that this promotion would cut the full payment cost of Model Y leases by several thousand dollars, though prices were still a bit better when the $7,500 federal tax credit was still in effect. Despite this, a $0 downpayment would likely be appreciated by customers, as it lowers the entry point to the Tesla ecosystem by a notable margin.

Premium freebies included

Apart from a $0 downpayment, customers of Model Y leases are also provided one free upgrade for their vehicles. These upgrades could be premium paint, such as Pearl White Multi-Coat, Deep Blue Metallic, Diamond Black, Quicksilver or Ultra Red, or 20″ Helix 2.0 Wheels. Customers could also opt for a White Interior or a Tow Hitch free of charge.

A look at Tesla’s Model Y order page shows that the promotion is available for all the Model Y Premium Rear-Wheel Drive and the Model Y Premium All-Wheel Drive. The Model Y Standard and the Model Y Performance are not eligible for the $0 downpayment or free premium upgrade promotion as of writing. 

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Tesla is looking to phase out China-made parts at US factories: report

Tesla has reportedly swapped out several China-made components already, aiming to complete the transition within the next two years.

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(Source: Tesla)

Tesla has reportedly started directing its suppliers to eliminate China-made components from vehicles built in the United States. This would make Tesla’s US-produced vehicles even more American-made.

The update was initially reported by The Wall Street Journal.

Accelerating North American sourcing

As per the WSJ report, the shift reportedly came amidst escalating tariff uncertainties between Washington and Beijing. Citing people reportedly familiar with the matter, the publication claimed that Tesla has already swapped out several China-made components, aiming to complete the transition within the next two years. The publication also claimed that Tesla has been reducing its reliance on China-based suppliers since the pandemic disrupted supply chains.

The company has quietly increased North American sourcing over the past two years as tariff concerns have intensified. If accurate, Tesla would likely end up with vehicles that are even more locally sourced than they are today. It would remain to be seen, however, if a change in suppliers for its US-made vehicles would result in price adjustments for cars like the Model 3 and Model Y.

Industry-wide reassessments

Tesla is not alone in reevaluating its dependence on China. Auto executives across the automotive industry have been in rapid-response mode amid shifting trade policies, chip supply anxiety, and concerns over rare-earth materials. Fluctuating tariffs between the United States and China during President Donald Trump’s current term have made pricing strategies quite unpredictable as well, as noted in a Reuters report. 

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General Motors this week issued a similar directive to thousands of suppliers, instructing them to remove China-origin components from their supply chains. The same is true for Stellantis, which also announced earlier this year that it was implementing several strategies to avoid tariffs that were placed by the Trump administration. 

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Tesla owners propose interesting theory about Apple CarPlay and EV tax credit

“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.

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Credit: Tesla Raj/YouTube

Tesla is reportedly bracing for the integration of Apple’s well-known iOS automotive platform, CarPlay, into its vehicles after the company had avoided it for years.

However, now that it’s here, owners are more than clear that they do not want it, and they have their theories about why it’s on its way. Some believe it might have to do with the EV tax credit, or rather, the loss of it.

Owners are more interested in why Tesla is doing this now, especially considering that so many have been outspoken about the fact that they would not use it in favor of the company’s user interface (UI), which is extremely well done.

After Bloomberg reported that Tesla was working on Apple CarPlay integration, the reactions immediately started pouring in. From my perspective, having used both Apple CarPlay in two previous vehicles and going to Tesla’s in-house UI in my Model Y, both platforms definitely have their advantages.

However, Tesla’s UI just works with its vehicles, as it is intuitive and well-engineered for its cars specifically. Apple CarPlay was always good, but it was buggy at times, which could be attributed to the vehicle and not the software, and not as user-friendly, but that is subjective.

Nevertheless, upon the release of Bloomberg’s report, people immediately challenged the need for it:

Some fans proposed an interesting point: What if Tesla is using CarPlay as a counter to losing the $7,500 EV tax credit? Perhaps it is an interesting way to attract customers who have not owned a Tesla before but are more interested in having a vehicle equipped with CarPlay?

“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.

Tesla has made a handful of moves to attract people to its cars after losing the tax credit. This could be a small but potentially mighty strategy that will pull some carbuyers to Tesla, especially now that the Apple CarPlay box is checked.

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