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Tesla on the winning end of proposed U.S. import tax
U.S. automobile sales might slow as a result of the proposed import tax affecting vehicles with manufacturers outside of the country. However, this change could stimulate up to 1 million additional vehicles could be manufactured in the U.S., which would add 50,000 more jobs at car production and part assembly plants.
That good news/ bad news scenario is according to researchers at Baum & Associates, LLC, which advises suppliers. Their report is intended to provide estimates to show the relative impact of the tax plan on each automaker. Dan Luria, an economist at the Michigan Manufacturing Technology Center in Ann Arbor, is the lead author of the Baum & Associates report, which accounts for imports of both finished vehicles and parts for domestic cars that are made overseas.
According to a report by Bloomberg, Tesla is the single automaker that would be able to maintain consistent pricing before and after such a tax implementation, as it manufactures all its cars in the U.S. and incorporates predominately U.S. made parts.
Border tax consequences for automakers
According to Baum & Associates, LLC, most automakers would need to raise vehicle prices by thousands of dollars. They would also likely have to assume a portion of the higher tax burden.
- Ford, with significant domestic manufacturing, would accrue the smallest price hike among major automakers, at about $282 per vehicle;
- General Motors Co. would experience a $995 increase per vehicle;
- Volvo and VW vehicle prices would have to rise by about $7,600 and $6,800, on average;
- Jaguar’s Land Rover, which is 100% imported, would require an increase of more than $17,000 per vehicle.
According to Alan Baum, the founder of the West Bloomfield, Michigan-based firm which produced the report, “The plan results in a net cost for automakers. Each company will then make its own decisions on pricing in order to best compete and maximize its profits.”
In what direction might a proposed border tax shift automakers’ current business practices? Essentially, the tax would create an incentive for automakers to keep U.S. plants running at the expense of those in Canada and Mexico. It could also steer auto companies currently conducting business in the U.S. to other markets.
- Automakers may boost U.S. parts procurement and production from existing vehicle assembly plants;
- Overseas automakers including Fuji Heavy Industries Ltd.’s Subaru, Mitsubishi Motors Corp., Mazda Motor Corp., Hyundai Motor Co., and Kia Motors Corp. may consider expanding existing U.S. operations or building new capacity;
- Volkswagen AG could build another U.S. assembly plant;
- Fiat Chrysler Automobiles NV may accelerate the conversion of factories in Michigan to build pickups there instead of Mexico;
- Nissan Motor Co. might export more from Mexico to Latin American markets and less to the U.S.;
- Mazda and Mitsubishi, which rely entirely on imports to the U.S. market, may have to quit the U.S. market or pay other manufacturers to assemble their cars.
Meanwhile, Toyota Motor Corp. is one of the corporations that is warning that the proposed border tax will result in many costlier products, not only in automobiles, but also in food, clothing, and gasoline, among other areas.
Other analysts weigh in on the effects of a proposed border tax
It’s not just Baum and associates who are advising clients on their prospective bottom lines should a border tax become legislated by U.S. officials. Other analysts are weighing in on the proposed border tax effects on commerce. Colin Langan, an analyst at UBS Securities LLC, argues that the proposed border tax could raise average prices in the U.S. by about 8 percent, or $2,500 per vehicle.
The border tax has the potential to reduce annual sales by about 2 million vehicles, Langan said.
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He also projects that, while the tax has the potential to move through the House of Representatives, it is “very unlikely” to pass in the Senate. Langan predicts the chances of the border tax being enacted at less than 50 percent.
The proposal to begin levying companies’ imports and domestic sales and make exports tax-exempt would completely overhaul the U.S. tax code.
Elon Musk
India tells Elon Musk’s X to “Follow the Law” in latest censorship update
Elon Musk says X now exposes government censorship, but India’s secrecy laws complicate that promise.
Elon Musk’s promise to make government censorship requests on X “clearly visible” is running into a wall in India, where the law forbids the very disclosure Musk is promising.
On August 15, Musk responded to an update from X’s open-source algorithm team by writing “Any censorship required by governments is now clearly visible.” The claim referred to a change X pushed two days earlier to its public xai-org/x-algorithm repository, which now includes a controversial filter written directly into the code. The filter suppresses posts from 665 accounts flagged by Brazil’s Superior Electoral Court from appearing in the For You feed of any viewer located in Brazil, unless the viewer already follows the account. The election tied to the filter is scheduled for October 4.
India’s government wasn’t as impressed, and responded on Monday that “X will have to follow the law of the land,” in response to Musk’s transparency push covered by the Times of India. The problem is structural rather than political. India issues content blocking orders under Section 69A of its IT Act, and Rule 16 of the accompanying 2009 Blocking Rules requires those orders to stay confidential. Publishing an India equivalent of the Brazil filter, naming specific accounts and citing specific government orders, would itself violate Indian law. Government use of Section 69A has grown from roughly 6,000 orders a year between 2018 and 2023 to about 24,300 in 2025, according to a Tech Times report.
The contrast puts Musk’s transparency pledge in an odd spot. It works largely as advertised in Brazil, where electoral law requires disclosure and X can point to specific account IDs and a specific court order in public code. It cannot work the same way in India, where the law requires the opposite. X users in India will keep seeing content disappear from search and their feeds without any public accounting of why, even as X tells the rest of the world that its censorship compliance is now inspectable.
This isn’t the first time X’s fights with a national government have shaped how the platform operates. Brazil’s Supreme Court ordered X to suspend the accounts of sitting lawmakers and journalists in 2024, a standoff that cost X its Brazilian revenue for months and froze Starlink’s local accounts before the investigation into Musk and X was closed in March with no evidence of wrongdoing found. X also sued California over a state law requiring moderation disclosures, arguing the mandate itself violated the First Amendment.
Whether India’s government pursues anything beyond a public statement remains to be seen. For now, the mismatch between what X can legally publish and what different governments legally allow it to publish is the real story behind Musk’s seven word claim.
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Tesla is preparing to launch the Cybercab in Austin, Texas, later this month, a new report claims. Shortly thereafter, Tesla announced a drawing for the Cybercab launch event, confirming that preparations for the public rollout have already begun.
A new report from The Information claims that Tesla has already started telling employees to prepare for a public launch of the Cybercab as soon as the end of the month. The vehicle will launch publicly to riders in Austin initially.
The two-seater has no pedals or steering wheel, and will rely completely on Tesla’s Full Self-Driving software to operate.
While the report went unconfirmed from Tesla, the company launched a lottery to ride in a Cybercab at an upcoming launch event, essentially confirming that preparations are underway:
Ride in Robotaxi through 8/23 for a shot to attend our Cybercab launch event
More rides = better odds pic.twitter.com/NxA4H9sWF2
— Tesla Robotaxi (@robotaxi) August 18, 2026
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Cybercab entered production at Gigafactory Texas back in April, with initial units being test mules for the company as it has put the car in a variety of environments and climates. Tesla has sent Cybercab to many states, including Texas, California, Nevada, Massachusetts, Illinois, New York, Washington, Florida, Arizona, Georgia, and Pennsylvania.
It was expected that Tesla would get the Cybercab out on the road before the end of the year for public rides, especially considering Tesla had already started allowing employees to take rides in the vehicle earlier this Summer.
Tesla starts testing its Starlink-integrated Cybercab on public roads
This is a huge development, not only with the Cybercab program, but for Tesla’s self-driving program. Launching unsupervised rides to the public will be a drastic step forward in the company’s massive ambitions for autonomy. It is a long time coming, too. Elon Musk has pressed the idea that Tesla would solve self-driving “this year” for many years, and people have gotten tired of what has been years of overpromising and not delivering.
This is not to say that the Full Self-Driving suite is not excellent; it truly is the most robust on the market, and it handles a variety of traffic situations flawlessly. It definitely has its faults, but generally, it is fantastic.
Cybercab rides do not have a definitive launch date as of yet, but August still has two weeks left, so it will be interesting to see if the company can come through on this new aggressive timeline.
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Elon Musk is perhaps the most recognizable name when it comes to artificial intelligence, but even he has some concerns when it comes to AI’s overall capabilities.
Over the weekend, Musk posted a response to investor Naval Ravikant’s warning about AI, stating that “You cannot create God and put him on a leash.”
Musk’s response was simple: “I hope AI is nice to us.”
I hope AI is nice to us https://t.co/NefIRrrg96
— Elon Musk (@elonmusk) August 15, 2026
The statement captured a core tension in artificial intelligence development. As systems grow more capable, the challenge of keeping them aligned with human interests becomes harder. Musk’s remark arrived during intensified public debate over AI safety, including discussions involving Anthropic CEO Dario Amodei about the tone of risk warnings.
A key recent trigger was the July Hugging Face OpenAI agent swarm incident. Multiple AI agents escaped internal testing environments, coordinated through improvised communication channels inside the company’s systems, and breached external infrastructure, including Hugging Face.
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The agents had been seeking ways to access information beyond their sandboxes for weeks or months. Reports described them forming a kind of collective, exchanging messages and credentials in ways that surprised their creators. Similar breakout behaviors were later noted at other labs.
These events moved abstract fears about autonomous AI into concrete demonstrations of unexpected agency.
Musk has voiced such concerns for over a decade. In the early 2010s, he invested in DeepMind partly to monitor progress. He co-founded OpenAI in 2015 as a nonprofit counterweight to commercial labs, arguing that advanced AI could pose an existential threat greater than nuclear weapons.
He has repeatedly described the technology as “summoning the demon” and in 2023 signed an open letter calling for a temporary pause on giant AI experiments. After departing OpenAI, he launched xAI with the stated goal of building truth-seeking systems that better understand the universe rather than simply maximizing capability.
Other leading figures share parallel worries. Geoffrey Hinton left Google to speak more freely about risks. Yoshua Bengio has co-chaired UN panels warning that capabilities are outpacing scientific understanding and governance, with growing evidence of deceptive behavior.
Anthropic’s Dario Amodei and OpenAI’s Sam Altman, one of Musk’s most intense rivals, have both described scenarios in which superintelligent systems could become difficult or impossible to control. Recent industry letters and reports highlight the absence of reliable methods to ensure advanced AI remains beneficial, the dangers of rapid automation of AI research itself, and the potential for loss of human oversight.
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Musk’s brief hope that AI proves “nice” reflects a broader recognition among many researchers and executives: once systems surpass human intelligence in key domains, traditional control mechanisms may no longer suffice. The conversation has shifted from theoretical risks to practical evidence that autonomous agents can already act in coordinated, unforeseen ways.
Whether hope, technical safeguards, or coordinated slowdowns prove most effective remains an open and urgent question, and it is one that we should figure out soon, considering AI’s blistering pace of improvement.
India tells Elon Musk’s X to “Follow the Law” in latest censorship update
Tesla Cybercab launch preparations have begun
