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Tesla on the winning end of proposed U.S. import tax

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8 years ago

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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.

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  • 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.

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.

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Carolyn Fortuna is a writer and researcher with a Ph.D. in education from the University of Rhode Island. She brings a social justice perspective to environmental issues. Please follow me on Twitter and Facebook and Google+

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Elon Musk

Elon Musk confirms Tesla is already rolling out a new feature for in-car Grok

Tesla is already making in-car Grok more robust with a simple but effective feature that CEO Elon Musk says is “coming.”

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6 hours ago

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July 16, 2025

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Credit: Tesla

Tesla CEO Elon Musk has confirmed that the company will roll out a new feature for in-car Grok as it is rolling out to vehicles for the first time.

Grok was just recently added as a feature to Tesla vehicles within the past week, but owners are already requesting some small changes to make it more convenient to use.

Tesla debuts hands-free Grok AI with update 2025.26: What you need to know

The first is already on the way, Musk confirmed, as WholeMarsBlog requested a simple, but useful feature for Grok as it is used within Tesla vehicles.

Whole Mars requested that “Hey Grok” be used as a wake word, automatically activating the AI assistant without having to touch any buttons. Musk confirmed it is already in development and on the way to vehicles:

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This feature is incredibly similar to that of “Hey Siri” with iPhones and other iOS devices. The phone will recognize your voice and hear that prompt, automatically activating Siri. Apple’s assistant will then perform whatever task it is asked to perform. It’s a simple but effective performance feature.

Grok is already getting its first reviews from owners as it rolls out to owners for the first time. It is a long time coming, too. Tesla has been hinting that Grok would be enabled in the vehicles for a while now, and it just started its initial rollout last week.

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Grok is available in vehicles with the AMD chip and requires Premium Connectivity or a WiFi connection to use.

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Elon Musk

Tesla reveals key detail of Supercharger Diner, but it’s bigger than you think

Tesla has finally released one key detail about the Supercharger Diner, and it is bigger than what it appears at face-value.

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8 hours ago

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July 16, 2025

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tesla-diner-supercharger
Credit: Tesla

Tesla has revealed a key detail of its Supercharger Diner as its launch date appears to be nearing, based on what we are seeing at the site currently.

The Supercharger Diner is located on Santa Monica Boulevard in Los Angeles and was first proposed as an idea by CEO Elon Musk back in 2018. Musk envisioned a drive-in movie-style 1950s-inspired diner that would feature elements such as servers on roller skates, large movie screens, and a menu inspired by classic treats from several decades ago.

A project that first broke ground in 2023, the Supercharger Diner has been in development for over two years, as Tesla performed demolition work at the site back in February of that year.

It has slowly moved forward, and drone footage shot this week seems to show things are nearly up and running. Musk even mentioned that he had eaten at the Diner Supercharger this week.

There are still details that Tesla has yet to announce and confirm. The most important thing is regarding the menu that will be served at the diner.

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Tesla has not hinted at what it will be making for patrons at the restaurant, but Musk commended the food and said the diner would be one of the coolest spots in LA.

However, we now have details on another important thing about the restaurant: the hours.

Images taken by Aaron Cash of ABetterTheater.com show the diner will be open 24/7, as it appears on the front doors of the diner:

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At first thought, it seems this will operate like any other diner, as many are open for 24 hours a day. Diners typically serve large menus with numerous options, catering to the tastes and moods of anyone who walks in.

People of all walks of life eat at diners, as the food is typically affordable, tasty, and available at any hour to serve those who are night owls or those who work non-typical schedules.

However, Tesla is a bit different, and it seems that this new venture into food service could eventually transition from human servers and cooks to robots, most notably the company’s in-house project of Optimus.

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It is something straight out of a Star Wars movie. I can think of Obi-Wan Kenobi visiting Dex in his diner in Attack of the Clones to figure out where a poison dart was sourced from:

Eventually, Optimus will likely be working as an employee in the Tesla Diner, and 24/7 operation will be performed by the humanoid robot that aims to eliminate trivial tasks from humans.

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First glimpse of Tesla Model Y with six seats and extended wheelbase

It’s longer and taller than the regular Model Y, and it has a cool new badge.

Published

11 hours ago

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July 16, 2025

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Credit: Tesla China

Tesla’s extended wheelbase Model Y has been announced by the electric vehicle maker on its official Weibo page in China. At the same time, details of the upcoming vehicle have been listed in the China Ministry of Industry and Information Technology’s (MIIT) new regulatory catalog.

The extended wheelbase Model Y

Tesla announced the upcoming vehicle on its official Weibo page, with the company noting that the new car will be called the “Model Y L.” Images posted by the company showed that the Model Y L will feature a “Model Y” badge with a stylized “Y” graphic. A teaser image of the vehicle taken from its side also emphasizes the extra space that was gained from its extended wheelbase.

The MIIT listing for the Model Y L indicated that the vehicle would be 4,976 mm long, 1,920 mm wide, and 1,668 mm high. Its wheelbase was listed in the MIIT’s catalog as 3,040 mm. In comparison, the new Model Y is currently 4,797 mm long, 1,920 mm wide, and 1,624 mm high, with a wheelbase of 2,890 mm. 

Six seats and some power

Most notably, the extended wheelbase Model Y was listed in the MIIT regulatory catalog as a six-seat model. The vehicle is also listed with the product model number TSL6500BEVBA0, as noted in a CNEV Post report. And as hinted in Tesla China’s Weibo post, the vehicle will be released sometime in the fall.

The Model Y L is listed as a dual motor vehicle with peak power outputs of 142 kW and 198 kW for the front and rear motors. The vehicle is also listed with ternary batteries supplied by LG Energy Solution, and it reportedly weighs 2,088 kilograms (4603 pounds). In comparison, the new Model Y Dual Motor AWD weighs 4391 pounds.

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Tesla China has not hinted at the price of the new Model Y L, though expectations are high that the vehicle will be priced at about RMB 400,000 ($55,764). It also remains to be seen if the Model Y L will also be produced in Tesla’s vehicle factories in the United States and Germany.

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