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Tesla’s Shanghai gallery sells out entire Model X inventory in 24 hours

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A Tesla gallery in Shanghai has managed to sell out its entire Model X 75D inventory in 24 hours, after the Customs Tariff Commission under China’s cabinet announced that it would reduce car import duties from 20-25% to just 15% starting July 1.

According to a report from local news outlet The Paper, workers at a Tesla store in Shanghai worked overtime on Wednesday to sign more than 10 new deals with customers, clearing out their Model X 75D inventory. In a statement to the publication, a Tesla employee at the Shanghai gallery stated that the all-electric SUVs were sold for $11,000 less than their previous price.

“The cars available were all imported from the States in April and May this year. After selling all of them, we’ll replenish stock when the new tariffs come in. We were losing out on profit with the lowered price as the cars were imported at the old tariff rate — the Model S 75D was CNY70,000 ($11,000) cheaper,” the Tesla employee said.

Tesla is among the first automakers in China that responded to the government’s announcement on Wednesday, with the electric car maker promptly adjusting its vehicles’ prices despite the tariffs not taking effect until July 1.

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Tesla’s operations in China have struggled due to a steep 25% import tax placed on their vehicles, forcing the company to sell its electric cars at a price much higher than local competitors. Earlier this year, CEO Elon Musk likened the electric car market in China to a race where automakers such as Tesla are competing while wearing “lead shoes.”

Since then, however, the Chinese government has taken steps to reduce import tariffs for vehicles entering the country. Ownership restrictions for foreign-owned facilities were also lifted, finally allowing Tesla to establish its own facility in the region without partnering with a local-based company.

A Tesla facility in China is pivotal to the electric car and energy company’s plans to compete in the region, considering that the country is regarded as one of the largest car markets in the world. During Tesla’s Q1 2018 earnings call, Tesla CEO Elon Musk even confirmed that the next Gigafactory — one that would be equipped with the capability to manufacture vehicles — would be established in China.

Tesla has since started pushing its initiatives in the country. Less than a week after being granted a business license to independently operate a facility, Tesla Motors Hong Kong Co., LLC, the company’s HK division, started its recruitment efforts. Since May 16, Tesla’s official WeChat account has posted multiple job listings for a Shanghai site.

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Among the jobs listed were project managers, tax commissioners, government affairs managers, financial service area managers, low-voltage electrical test engineers, and IT field system administrators. Tesla has also begun issuing invitations for a summer internship program for individuals interested in working for the Elon Musk-led company.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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xAI’s Grok approved for Pentagon classified systems: report

Under the agreement, Grok can be deployed in systems handling classified intelligence analysis, weapons development, and battlefield operations. 

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Credit: xAI

Elon Musk’s xAI has signed an agreement with the United States Department of Defense (DoD) to allow Grok to be used in classified military systems.

Previously, Anthropic’s Claude had been the only AI system approved for the most sensitive military work, but a dispute over usage safeguards has reportedly prompted the Pentagon to broaden its options, as noted in a report from Axios.

Under the agreement, Grok can be deployed in systems handling classified intelligence analysis, weapons development, and battlefield operations. 

The publication reported that xAI agreed to the Pentagon’s requirement that its technology be usable for “all lawful purposes,” a standard Anthropic has reportedly resisted due to alleged ethical restrictions tied to mass surveillance and autonomous weapons use.

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Defense Secretary Pete Hegseth is scheduled to meet with Anthropic CEO Dario Amodei in what sources expect to be a tense meeting, with the publication hinting that the Pentagon could designate Anthropic a “supply chain risk” if the company does not lift its safeguards. 

Axios stated that replacing Claude fully might be technically challenging even if xAI or other alternative AI systems take its place. That being said, other AI systems are already in use by the DoD. 

Grok already operates in the Pentagon’s unclassified systems alongside Google’s Gemini and OpenAI’s ChatGPT. Google is reportedly close to an agreement that will result in Gemini being used for classified use, while OpenAI’s progress toward classified deployment is described as slower but still feasible. 

The publication noted that the Pentagon continues talks with several AI companies as it prepares for potential changes in classified AI sourcing.

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Elon Musk denies Starlink’s price cuts are due to Amazon Kuiper

“This has nothing to do with Kuiper, we’re just trying to make Starlink more affordable to a broader audience,” Musk wrote in a post on X.

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Credit: Starlink

Elon Musk has pushed back on claims that Starlink’s recent price reductions are tied to Amazon’s Kuiper project.

In a post on X, Musk responded directly to a report suggesting that Starlink was cutting prices and offering free hardware to partners ahead of a planned IPO and increased competition from Kuiper.

“This has nothing to do with Kuiper, we’re just trying to make Starlink more affordable to a broader audience,” Musk wrote in a post on X. “The lower the cost, the more Starlink can be used by people who don’t have much money, especially in the developing world.”

The speculation originated from a post summarizing a report from The Information, which ran with the headline “SpaceX’s Starlink Makes Land Grab as Amazon Threat Looms.” The report stated that SpaceX is aggressively cutting prices and giving free hardware to distribution partners, which was interpreted as a reaction to Amazon’s Kuiper’s upcoming rollout and possible IPO.

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In a way, Musk’s comments could be quite accurate considering Starlink’s current scale. The constellation currently has more than 9,700 satellites in operation today, making it by far the largest satellite broadband network in operation. It has also managed to grow its user base to 10 million active customers across more than 150 countries worldwide. 

Amazon’s Kuiper, by comparison, has launched approximately 211 satellites to date, as per data from SatelliteMap.Space, some of which were launched by SpaceX’s Falcon 9 rocket. Starlink surpassed that number in early January 2020, during the early buildout of its first-generation network.

Lower pricing also aligns with Starlink’s broader expansion strategy. SpaceX continues to deploy satellites at a rapid pace using Falcon 9, and future launches aboard Starship are expected to significantly accelerate the constellation’s growth. A larger network improves capacity and global coverage, which can support a broader customer base.

In that context, price reductions can be viewed as a way to match expanding supply with growing demand. Musk’s companies have historically used aggressive pricing strategies to drive adoption at scale, particularly when vertical integration allows costs to decline over time.

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Tesla Giga Berlin makes a statement of solidarity amid IG Metall conflict

The display comes as tensions between Tesla and IG Metall continue to escalate.

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Creidt: Andre Thierig/X

Tesla Giga Berlin is sending a strong message of solidarity amid its ongoing legal dispute with German union IG Metall.

In a post on social media platform X, Giga Berlin plant manager André Thierig shared an image of the facility’s lobby covered with a large banner that reads: “Progress. Innovation. Success.” He added that the slogan reflects what the facility has stood for since Day One.

“Our lobby at Giga Berlin covered in a huge banner these days. Progress. Innovation. Success – this is what we stand for since we started production in 2022 and how we will go into our future!” Thierig wrote in his post on X. 

The display comes as tensions between Tesla and IG Metall continue to escalate.

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The dispute began after Tesla accused a union representative of secretly recording a works council meeting at Giga Berlin. Tesla stated that it filed a criminal complaint after the alleged incident. Police later confirmed they had seized a computer belonging to an IG Metall member as part of their investigation.

“What has happened today at Giga Berlin is truly beyond words! An external union representative from IG Metall attended a works council meeting. For unknown reasons he recorded the internal meeting and was caught in action! We obviously called police and filed a criminal complaint!” Thierig wrote on X at the time

IG Metall denied the accusation and characterized Tesla’s move as an election tactic ahead of upcoming works council elections. The union subsequently filed a defamation complaint against Thierig. Authorities later confirmed that an investigation had been opened in connection with the matter.

Giga Berlin began production in 2022 and has since become one of Tesla’s key European manufacturing hubs, producing the Model Y, the company’s best-selling vehicle. The facility has expanded capacity over the past years despite environmental protests, labor disputes, and regulatory scrutiny.

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