Connect with us

News

Tesla VP of Finance corrects critic who claims that TSLA pays no taxes

Credit: Tesla

Published

on

Tesla Vice President of Finance Sendil Palani recently addressed claims from former secretary of labor and UC Berkeley Professor Robert Reich about the electric vehicle maker’s federal tax payments. 

Reich was alleging in a post on X that some big companies and the rich are getting away with fraud by not paying federal taxes.

Tesla criticism:

  • Being a company led by the ever-polarizing Elon Musk, Tesla has been subjected to a notable amount of criticism.
  • Among the biggest critics of Tesla is Reich, who has traded barbs with Musk several times on social media.
  • In August last year, Reich penned an article in The Guardian outlining a strategy to “rein in” Elon Musk.
  • These strategies include a boycott of Tesla, a boycott of X, and regulators around the world threatening Musk with arrest.
  • In a recent post, Reich noted that Tesla earned $2.3 billion in the United States in 2024, but the company paid $0 in federal taxes.
  • “You want waste and fraud? Look at what some big corporations and the rich are getting away with,” Reich wrote in his post.

Tesla VP Response:

  • In his response, the Tesla Vice President explained to the UC Berkeley Professor that Tesla fully complies with all tax regulations in all of the regions of the world in which the company operates.
  • Palani also noted that if one were to look at Tesla’s 10-K, one could see the company’s operating loss carry-forwards, which resulted from the long period when Tesla was unprofitable.
  • Following is the Tesla VP of Finance’s full response:
  • “Professor, Respectfully, Tesla’s income taxes are not an example of fraud. Tesla complies with all tax regulations in all of the regions of the world in which we operate.
  • “Details about 2024 Income Taxes were disclosed to last month in our 10-K. Notably – we outline our net operating loss carry-forwards, which result from the fact that Tesla has been unprofitable for the significant majority of its 20+ year history.
  • “This has been a very, very difficult business to build. Looking at any one recent year in isolation, therefore, will not provide the full picture,” Palani wrote in his response.

Elon Musk’s take: 

  • In a separate post, Tesla CEO Elon Musk also noted that Tesla’s losses were high for many years, so the company’s carry forward is notable.
  • Musk also noted that the supermajority of Tesla’s profit is from production and sales overseas.
  • That being said, Musk clarified that he believes tax reform is needed.

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

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.

Comments

News

Starlink nears S Korea launch as satellite internet demand rises

Published

on

Starlink-router-fcc-approval-dish-upgrades
(Credit: Starlink)

Starlink is poised to launch in South Korea this year, pending regulatory approvals, as global demand for low-orbit satellite connectivity surges.

On April 27, South Korea’s Ministry of Science and ICT announced system improvements to facilitate low-orbit satellite communication services like Starlink and the U.K.’s OneWeb. Low-orbit satellites, operating at 300–1,500 km, enable high-speed internet without extensive ground infrastructure, serving remote areas, ships, and airplanes.

“If we start domestic services, high-speed Wi-Fi services will be available on airplanes, and we will be able to provide online video services (OTT) and video calls to crews on long-haul ships,” said Minister of Science and ICT Yoo Sang-im.

According to KMIB, OneWeb is awaiting approvals for cross-border supply agreements and terminal suitability assessments. SpaceX’s Starlink is also waiting for approval. In October 2024, South Korea’s Ministry of Science and ICT notified the public about amendments to technical standards that would prevent frequent interference. After 60 days of the notice’s publication, the South Korean government is estimated to take 3-4 months to approve Starlink’s cross-board supply agreement with SpaceX.

Advertisement

Kim Nam-cheol, director of the Radio Policy Bureau, noted, “It is certain that (the two companies) will launch services this year, but it is difficult to specify a date as changes may occur during the consultation process.”

Starlink and OneWeb’s pending approvals in S. Korea involve ensuring compliance with local regulations, including terminal assessments for new devices. The push for satellite internet reflects a broader global trend, with S. Korea positioning itself to bridge connectivity gaps in aviation, maritime, and remote regions.

Starlink’s global reach is evident, and its usefulness increases as it expands. In January, T-Mobile used Starlink Cellular to transmit emergency alerts during LA wildfires. Meanwhile, Hawaiian and United Airlines offer Starlink Aviation for in-flight video streaming and gaming.

As Starlink expands, new competitors enter the ever-growing lob-orbit satellite communications industry. For example, Amazon’s Kuiper established a corporation in South Korea last May.

Starlink’s involvement in the Ukriane-Russia war has also led world governments to consider establishing their own satellite communications network. South Korea aims to develop its own independent satellite technology by 2030. The Asian nation plans to invest 320 billion won over six years to launch two communication units via the Nuri rocket.

Ukraine is also exploring Starlink alternatives developed by the European Union. In addition, Germany’s military, Bundeswehr, plans to build its own satellite constellation to reduce dependence on foreign networks amid geopolitical tensions.

Advertisement

As Starlink expands, S Korea’s regulatory and technological efforts could shape its role in the global satellite communication market, balancing foreign services with ambitions for domestic innovation.

Continue Reading

News

Waymo considers selling robotaxis to individual owners

Tesla currently offers its Supervised Full Self-Driving to owners of its vehicles, while Waymo is the only company operating paid autonomous ride-hails at this point.

Published

on

Credit: Waymo | YouTube

Alphabet-owned robotaxi company Waymo is mulling over the possibility of selling self-driving vehicles to individual owners in the future, as highlighted last week by the Google parent company’s head executive.

On Thursday, Alphabet CEO Sundar Pichai said during the company’s first-quarter earnings update that Waymo would maintain selling self-driving vehicles to individuals as an option in the future, according to a report from Reuters. Pichai didn’t disclose any specifics about the potential to do so or a timeline, though he noted that “there is future optionality for personal ownership.”

Waymo currently operates over 700 self-driving vehicles, 300 of which are operating in San Francisco, and it’s the only company to operate a paid self-driving ride-hailing service as of yet.

The statement comes as Tesla and other companies aim to launch their own commercial robotaxi services, and while the electric vehicle (EV) giant already sells its Supervised Full Self-Driving (FSD) software to individual owners. Additionally, Tesla aims to launch an Unsupervised version in the coming months.

Waymo launched in Austin in January in a unique partnership with Uber, while its self-driving ride-hailing vehicles in California run through its in-house ride-hailing app, Waymo One. It has opened the app to the public in multiple areas of Los Angeles and in cities surrounding and including San Francisco. The company also dropped the need to sign up for a waitlist to use the service in Los Angeles in November, after doing so in the Bay Area earlier that year.

The Alphabet-owned firm also started initial testing in Japan earlier this month, marking the company’s first time in an international market.

READ MORE ON WAYMO’S ROBOTAXIS: Here’s where Waymo is launching autonomous robotaxis next

Tesla is targeting a launch its first commercial robotaxis and Unsupervised FSD around Austin in June, and CEO Elon Musk reiterated this goal during the company’s Q1 earnings call on Tuesday. When asked about how Tesla expected its commercial robotaxi services would compete with Waymo, which is already operating paid driverless rides in multiple cities, Musk highlighted how costly the company’s cars are to produce:

The issue with Waymo’s cars is it costs way more money, but that is the issue. The car is very expensive, made in low volume. Teslas probably cost 25 percent or 20 percent of what a Waymo costs, and are made in very high volume.

So, ironically, we’re the ones to make the bet that a pure AI solution with cameras, and what do you have? The car actually will listen for sirens and that kind of thing. It’s the right move.

And Waymo decided that an expensive sensor suite is the way to go, even though Google is very good at AI.

Musk also went on to predict that Tesla would eventually capture at least 90 percent of the robotaxi market, or potentially as much as 99 percent, with millions of cars on the road that are already able to run FSD.

He also highlights that Tesla’s vehicles at both the Gigafactory in Austin, Texas and the Fremont, California plant can drive themselves fully autonomously from the end of the production line to the outbound lot. Musk also said that he was “confident” that the first Model Y units to drive themselves to the customer will take place later this year, from both the Fremont and Austin factories.

Ex-Waymo CEO dismisses Tesla, Cybercab: “They’re a car company with a driver-assist system”

Continue Reading

News

Tesla China’s rumored Model Y “E80” variant: Alleged price, features, and more

The vehicle will reportedly be a more affordable variant of the best-selling Model Y crossover.

Published

on

Credit: @TeslaFrenzy/X

Recent reports from Chinese social media and news outlets have shared some rumors about an upcoming vehicle that Tesla China is reportedly developing.

Rumored to be internally codenamed as “E80,” the vehicle will reportedly be a more affordable variant of the best-selling Model Y crossover.

The Model Y “E80” Rumors

As per the recent rumors, which were initially posted on Chinese social media, the Model Y “E80” will reportedly be equipped with a 50-55 kWh battery. The vehicle’s launch will reportedly be determined by the market performance of the new Model Y, though some rumors suggest that its rollout could be as early as the second half of 2025, or sometime in 2026.

Rumors about the vehicle’s price are varied, with some news outlets stating that the “E80” will be priced at around 150,000-170,000 yuan ($20,500-$23,300), while others cited a price of 190,000–210,000 ($26,000–$28,800). For context, the new Model Y in China today is priced at 263,500-313,500 yuan ($36,160-$43,000) depending on its variant.

Being an affordable variant of the new Model Y, he “E80” will reportedly be quite different from its more premium siblings. The vehicle will reportedly be fitted with smaller wheels, single-layer windows on its sides, no rear display, half the number of speakers, single-color ambient interior lighting, fabric seats with no heating or ventilation functions, a manual trunk, and a metal roof.

Advertisement

Rumored, But Not Farfetched

While these rumors about the alleged Model Y “E80” from China are not confirmed at all, Tesla has released a pretty similar, stripped-out variant for one of its current vehicles—the Cybertruck. Just recently, Tesla introduced the Cybertruck Long Range Rear Wheel Drive (LR RWD), which costs $10,000 less than the Cybertruck All Wheel Drive (AWD). The vehicle featured smaller wheels, fabric seats, less than half the number of speakers, and no rear display, among others.

A more affordable Model Y was teased by Tesla VP of Engineering Lars Moravy, who noted that Tesla’s affordable models will likely resemble the company’s current products. “Models that come out in next months will be built on our lines and will resemble, in form and shape, the cars we currently make. And the key is that they’ll be affordable, and you’ll be able to buy one,” Moravy stated during the Tesla Q1 2025 earnings call.

Continue Reading

Trending