As expected, the transition team for President-elect Donald Trump is now reportedly looking to slash support for electric vehicle (EV) and charging programs set up by the Biden administration, along with lodging global tariffs and pushing to ease regulations on fossil-fuel emissions.
The Trump transition team is now looking at plans to ease regulations on the fossil fuel industry and to cut many EV programs, including the $7,500 EV tax credit, along with lodging tariffs on battery material imports worldwide, according to a document seen by Reuters this week.
As part of efforts to bolster the domestic supply chain for battery materials, many of which are produced in China and are heavily subsidized in the U.S., the transition team has recommended imposing tariffs on all battery materials around the world, before negotiating individual exemptions with allies, as the document shows.
“When he takes office, President Trump will support the auto industry, allowing space for both gas-powered cars and electric vehicles,” said Karoline Leavitt, spokesperson for the Trump transition team, in a statement.
RELATED: U.S. Supreme Court to hear challenge on California emission rule waiver
Although Trump campaigned on promises to end the $7,500 federal EV credit and official plans to kill the subsidy were reported last month, the transition team has also called for rolling back the $7.5 billion plan passed under Biden to help aid the buildout of charging stations for EVs.
Instead, the team has said that it would shift this and other funding currently going toward making EVs more affordable toward national defense efforts, including the initiative to secure battery supplies without relying on China. The document notes that these efforts would focus on shifting money toward battery material production, as well as the “national defense supply chain and critical infrastructure.”
The document suggested that the team utilize Section 232 tariffs, which are intended to limit the import of any items related to potential national security threats. Biden recently increased tariffs on several imports related to charging technology and critical minerals for EV batteries, including graphite, “permanent magnets” used in EV motors and in military applications, and lithium-ion batteries, among others, though the tariffs were issued on economic grounds, rather than on those in national security.
The transition team is also looking to waive environmental reviews to accelerate “federally funded EV infrastructure projects,” such as those in battery production and recycling, charging deployment, and manufacturing of critical minerals. Other proposals detailed in the document include:
- Ditching federal requirements for electrifying government fleets, including Biden’s policy to mandate all federal purchases by zero-emission vehicles by the end of 2027
- Using the Export-Import Bank of the U.S. to provide financial support for U.S. batteries for EVs
- Utilizing tariffs as a “negotiating tool” to encourage other markets to consider U.S. auto exports including both gas cars and EVs
- Ending restrictions on exports of EV battery technology to countries deemed adversaries
- Ending programs for the Department of Defense attempting to buy or develop electric military vehicle options
How will ending the $7,500 EV tax credit affect Tesla? Musk calls it a benefit
While many have said that ditching the $7,500 tax credit and other policies intended to help spur on the adoption of EVs could hurt Tesla, CEO Elon Musk and others have argued that it may only benefit the company by harming other automakers even more. Wedbush analyst Dan Ives said last month that the change would only “enable Tesla to further fend off competition from Detroit,” given its already decisive advantage in EV scale.
In his latest statement regarding EV subsidies, made on X last month, Musk called for the U.S. to “end all government subsidies, including those for EVs, oil and gas.”
Musk also campaigned with Donald Trump during the election and created the political action committee (PAC), dubbed America PAC, to support his candidacy financially. He has since gained a position in what the team has called the Department of Government Efficiency, and he’s expected to play a major role in the upcoming administration.
In a report last week, it was said that the Trump transition team is also considering getting rid of a mandatory reporting measure for automated driving systems, as part of a larger effort to remove regulations and push self-driving vehicle development forward more quickly. An additional report from last month also suggests that Trump is already looking to create federal rules surrounding the rollout of autonomous vehicles, expected to accelerate the deployment of commercial robotaxis and other self-driving technologies.
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.
Analysts weigh in on Trump presidency’s effects to U.S. auto sector
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Tesla AI5 chip nears completion, Elon Musk teases 9-month development cadence
The Tesla CEO shared his recent insights in a post on social media platform X.
Tesla’s next-generation AI5 chip is nearly complete, and work on its successor is already underway, as per a recent update from Elon Musk.
The Tesla CEO shared his recent insights in a post on social media platform X.
Musk details AI chip roadmap
In his post, Elon Musk stated that Tesla’s AI5 chip design is “almost done,” while AI6 has already entered early development. Musk added that Tesla plans to continue iterating rapidly, with AI7, AI8, AI9, and future generations targeting a nine-month design cycle.
He also noted that Tesla’s in-house chips could become the highest-volume AI processors in the world. Musk framed his update as a recruiting message, encouraging engineers to join Tesla’s AI and chip development teams.
Tesla community member Herbert Ong highlighted the strategic importance of the timeline, noting that faster chip cycles enable quicker learning, faster iteration, and a compounding advantage in AI and autonomy that becomes increasingly difficult for competitors to close.
AI5 manufacturing takes shape
Musk’s comments align with earlier reporting on AI5’s production plans. In December, it was reported that Samsung is preparing to manufacture Tesla’s AI5 chip, accelerating hiring for experienced engineers to support U.S. production and address complex foundry challenges.
Samsung is one of two suppliers selected for AI5, alongside TSMC. The companies are expected to produce different versions of the AI5 chip, with TSMC reportedly using a 3nm process and Samsung using a 2nm process.
Musk has previously stated that while different foundries translate chip designs into physical silicon in different ways, the goal is for both versions of the Tesla AI5 chip to operate identically. AI5 will succeed Tesla’s current AI4 hardware, formerly known as Hardware 4, and is expected to support the company’s Full Self-Driving system as well as other AI-driven efforts, including Optimus.
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Tesla Model Y and Model 3 named safest vehicles tested by ANCAP in 2025
According to ANCAP in a press release, the Tesla Model Y achieved the highest overall weighted score of any vehicle assessed in 2025.
The Tesla Model Y recorded the highest overall safety score of any vehicle tested by ANCAP in 2025. The Tesla Model 3 also delivered strong results, reinforcing the automaker’s safety leadership in Australia and New Zealand.
According to ANCAP in a press release, the Tesla Model Y achieved the highest overall weighted score of any vehicle assessed in 2025. ANCAP’s 2025 tests evaluated vehicles across four key pillars: Adult Occupant Protection, Child Occupant Protection, Vulnerable Road User Protection, and Safety Assist technologies.
The Model Y posted consistently strong results in all four categories, distinguishing itself through a system-based safety approach that combines structural crash protection with advanced driver-assistance features such as autonomous emergency braking, lane support, and driver monitoring.
This marked the second time the Model Y has topped ANCAP’s annual safety rankings. The Model Y’s previous version was also ANCAP’s top performer in 2022.
The Tesla Model 3 also delivered a strong performance in ANCAP’s 2025 tests, contributing to Tesla’s broader safety presence across segments. Similar to the Model Y, the Model 3 also earned impressive scores across the ANCAP’s four pillars. This made the vehicle the top performer in the Medium Car category.
ANCAP Chief Executive Officer Carla Hoorweg stated that the results highlight a growing industry shift toward integrated safety design, with improvements in technologies such as autonomous emergency braking and lane support translating into meaningful real-world protection.
“ANCAP’s testing continues to reinforce a clear message: the safest vehicles are those designed with safety as a system, not a checklist. The top performers this year delivered consistent results across physical crash protection, crash avoidance and vulnerable road user safety, rather than relying on strength in a single area.
“We are also seeing increasing alignment between ANCAP’s test requirements and the safety technologies that genuinely matter on Australian and New Zealand roads. Improvements in autonomous emergency braking, lane support, and driver monitoring systems are translating into more robust protection,” Hoorweg said.
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Tesla Sweden uses Megapack battery to bypass unions’ Supercharger blockade
Just before Christmas, Tesla went live with a new charging station in Arlandastad, outside Stockholm, by powering it with a Tesla Megapack battery.
Tesla Sweden has successfully launched a new Supercharger station despite an ongoing blockade by Swedish unions, using on-site Megapack batteries instead of traditional grid connections. The workaround has allowed the Supercharger to operate without direct access to Sweden’s electricity network, which has been effectively frozen by labor action.
Tesla has experienced notable challenges connecting its new charging stations to Sweden’s power grid due to industrial action led by Seko, a major Swedish trade union, which has blocked all new electrical connections for new Superchargers. On paper, this made the opening of new Supercharger sites almost impossible.
Despite the blockade, Tesla has continued to bring stations online. In Malmö and Södertälje, new Supercharger locations opened after grid operators E.ON and Telge Nät activated the sites. The operators later stated that the connections had been made in error.
More recently, however, Tesla adopted a different strategy altogether. Just before Christmas, Tesla went live with a new charging station in Arlandastad, outside Stockholm, by powering it with a Tesla Megapack battery, as noted in a Dagens Arbete (DA) report.
Because the Supercharger station does not rely on a permanent grid connection, Tesla was able to bypass the blocked application process, as noted by Swedish car journalist and YouTuber Peter Esse. He noted that the Arlandastad Supercharger is likely dependent on nearby companies to recharge the batteries, likely through private arrangements.
Eight new charging stalls have been launched in the Arlandastad site so far, which is a fraction of the originally planned 40 chargers for the location. Still, the fact that Tesla Sweden was able to work around the unions’ efforts once more is impressive, especially since Superchargers are used even by non-Tesla EVs.
Esse noted that Tesla’s Megapack workaround is not as easily replicated in other locations. Arlandastad is unique because neighboring operators already have access to grid power, making it possible for Tesla to source electricity indirectly. Still, Esse noted that the unions’ blockades have not affected sales as much.
“Many want Tesla to lose sales due to the union blockades. But you have to remember that sales are falling from 2024, when Tesla sold a record number of cars in Sweden. That year, the unions also had blockades against Tesla. So for Tesla as a charging operator, it is devastating. But for Tesla as a car company, it does not matter in terms of sales volumes. People charge their cars where there is an opportunity, usually at home,” Esse noted.
Tesla AI5 chip nears completion, Elon Musk teases 9-month development cadence
Tesla Model Y and Model 3 named safest vehicles tested by ANCAP in 2025
