The U.S. has formally proposed a ban on Chinese- and Russian-made vehicle software after reports last month suggested that such plans could be in the works.
On Monday, the U.S. Department of Commerce proposed banning Chinese and Russian software and hardware in vehicles, citing national security threats that it considers “very real,” according to a report from Automotive News. If passed, the ban would limit both hardware and software from the countries in vehicles that use either Wi-Fi, Bluetooth, satellite, or cellular systems, which are becoming more common with the popularization of electric vehicles (EVs).
“This is not about trade or economic advantage,” Commerce Secretary Gina Raimondo told reporters. “This is a strictly national security action. We are focused on the national security threat, very real threat, that connected vehicles pose to our country and the American people.”
The ban originates from an investigation launched by President Joe Biden in March into Chinese vehicle software and related cybersecurity risks.
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The ban would effectively prohibit the import of any Chinese vehicles into the U.S., though there aren’t very many on the market being imported from the country today. In particular, connected vehicles pose a larger threat because of their susceptibility to interference from foreign entities—along with being closely tied to critical U.S. infrastructure systems.
“Cars today have cameras, microphones, GPS tracking and other technologies connected to the Internet,” Raimondo adds. “It doesn’t take much imagination to understand how a foreign adversary with access to this information could pose a serious risk to both our national security and the privacy of U.S. citizens.”
Initial talks of a ban on Chinese vehicle software were reported last month, with sources saying that the U.S. was specifically focused on self-driving software.
While the vast majority of the rules proposed are regarding software, the ban also includes some hardware stipulations, along with rules around charging stations, power generation, and energy storage systems. The proposal recommends a software ban go into effect for vehicles with a 2027 model year, while the hardware ban would go into effect on vehicles with a 2030 model year.
Chinese officials claim its products don’t pose any national security threats, but rather, they argue that the move is simply to stifle competition.
The news also comes as the U.S., Canada, and the European Union (EU) have launched high import tariffs on Chinese electric vehicles (EVs) and components to bolster domestic supply chains and prevent the import of super-affordable China-built products. Canada has also been mulling over similar legislation over the past couple of months.
Last month, the U.S. delayed plans to launch 100-percent tariffs on Chinese EVs, though the company has since moved forward with these plans.
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Elon Musk revealed new information on Tesla’s AI5, previously known as Hardware 5, chip, for self-driving, which will be manufactured by both Samsung and TSMC.
The AI5 chip is Tesla’s next-generation hardware chip for its self-driving program, Optimus humanoid robots, and other AI-driven features in both vehicles and other applications. It will be the successor to the current AI4, previously known as Hardware 4, which is currently utilized in Tesla’s newest vehicles.
Elon Musk reveals Tesla’s HW5 release date, and that it won’t be called HW5
AI5 is specially optimized for Tesla use, as it will work alongside the company’s Neural Networks to focus on real-time inference to make safe and logical decisions during operation. It was first teased by Tesla in mid-2024 as Musk called it “an amazing design” and “an immense jump” from the current AI4 chip.
It will be roughly 4o times faster, have 8 times the raw compute, 9 times the memory capacity, 5 times the memory bandwidth, and 3 times the efficiency per watt.
It will be manufactured by both TSMC and Samsung at their Arizona and Texas fab locations, respectively.
Here’s what Musk revealed about the chip yesterday:
Different Versions
Samsung and TSMC will make slightly different versions of the AI5 chip, “simply because they translate designs to physical form differently.” However, Musk said the goal is that its AI software would work identically.
This was a real concern for some who are familiar with chip manufacturing, as Apple’s A9 “Chipgate” saga seemed to be echoing through Tesla.
Back in 2015, it was found that Apple’s A9 chips had different performances based on who manufactured them. TSMC and Samsung were both building the chips, but it was found that Samsung’s chips had shorter battery life than TSMC-fabricated versions.
Apple concluded that the variance was about 2-3 percent. However, Tesla will look to avoid this altogether.
Release and Implementation into Vehicles
Musk said that some samples will be available next year, and “maybe a small number of units” would equip the chip as well. However, high-volume production is only possible in 2027.
This means, based on Tesla’s own timeline for Cybercab production in Q2 2026, early iterations of the vehicle would rely on AI4. Many believe AI4 can be utilized for solved self-driving, but the power of subsequent versions, including AI5 and beyond, will be more capable.
AI6 and Beyond
AI6 will utilize the same fabs as AI5, but there would be a theoretical boost in performance by two times with this version.
AI6 could enter volume production by mid-2028. However, AI7, which Musk only briefly mentioned, “will need different fabs, as it is more adventurous.”
News
Tesla makes a splash at China’s Import Expo with Cybercab and Optimus
It appears that Elon Musk’s vision is something that still resonates with people.
Tesla’s fully autonomous Cybercab made its first appearance in the Asia-Pacific region at the 8th China International Import Expo (CIIE) in Shanghai on November 5, becoming the centerpiece of an event that drew 12 of the world’s leading automakers.
The new model offers a glimpse into Tesla’s driverless ride-hailing future, and based on the reception of the event’s attendees, it appears that Elon Musk’s vision is something that still resonates with people.
Tesla showcases its driverless vision with the Cybercab
At this year’s expo, themed “Mobility, Infinite Possibilities,” Tesla’s futuristic two-seat Cybercab stood out as a showcase of complete autonomy. According to Tesla staff, the vehicle lacks both a steering wheel and pedals, relying entirely on Tesla’s cameras and an end-to-end neural network designed for full self-driving.
The Cybercab will ultimately serve in the company’s expanding Robotaxi fleet, a cornerstone of Elon Musk’s long-promised autonomous mobility network. During the event, a Tesla employee emphasized that the Cybercab’s model’s compact layout reflects real-world usage, as 92% of trips involve just one or two passengers, as noted in a Sina News report. Trips that require more passengers could easily be handled by the Model 3 and Model Y, which are both capable of seating four, or even five passengers.
Optimus, Tesla’s humanoid robot that is designed for both home and industrial use, was also present at the event. Similar to the Cybercab, Optimus also attracted quite a lot of attention from the event’s attendees.
Automakers reaffirm commitment to Chinese innovation
Other global automakers, including Volkswagen, Mercedes-Benz, and Honda, also displayed cutting-edge concept cars and intelligent systems, but few captured the same interest as Tesla’s bold showcase of its autonomy and robotics.
Beyond new models, this year’s CIIE highlighted a renewed focus on local innovation and collaboration in China’s rapidly evolving EV landscape. Executives from Volkswagen, Audi, and General Motors reaffirmed that their long-term strategies center on “in China, for China,” strengthening R&D operations and forming tech partnerships with domestic suppliers.
Elon Musk
Tesla gets big nod on Musk comp package from Charles Schwab
“Schwab Asset Management’s approach to voting on proxy matters is thorough and deliberate. We utilize a structured process that focuses on protecting and promoting shareholder value.”
Tesla got a big nod of approval on CEO Elon Musk’s newly-proposed compensation package from Wall Street firm Charles Schwab after many shareholders believed the company was aiming to go against the new pay structure for its frontman.
Yesterday, we reported on many Tesla investors threatening to leave Charles Schwab as their broker after it was assumed the firm would vote against Musk’s pay package. The impression was that Schwab would utilize the same voting strategies as Glass Lewis and Institutional Shareholder Services (ISS), which both said they would vote against the new compensation package.
However, Schwab reached out to TESLARATI directly yesterday to confirm that it had not made any statement on which way it would vote. It then confirmed to us that it would vote to support Musk’s pay package:
UPDATE: a Charles Schwab spokesperson has reached out to TESLARATI with the following statement:
“Schwab Asset Management’s approach to voting on proxy matters is thorough and deliberate. We utilize a structured process that focuses on protecting and promoting shareholder value.… https://t.co/gG9iFhTgdJ
— TESLARATI (@Teslarati) November 4, 2025
The statement to TESLARATI said:
“Schwab Asset Management’s approach to voting on proxy matters is thorough and deliberate. We utilize a structured process that focuses on protecting and promoting shareholder value. We apply our own internal guidelines and do not rely on recommendations from Glass Lewis or ISS. In accordance with this process, Schwab Asset Management intends to vote in favor of the 2025 CEO performance award proposal. We firmly believe that supporting this proposal aligns both management and shareholder interests, ensuring the best outcome for all parties involved.”
Schwab also came out with a new statement just after that would be released to the public, stating that its delayed decision on the compensation package was due to its “structured process that focuses on protecting and promoting shareholder value.”
The firm uses a three-step program to determine its decision on a key vote like this one:
- board composition and quality
- actions a board has taken to drive strategy, deliver performance and manage relevant risks
- clarity and accessibility of reporting on key issues
It then said it applies its own internal guidelines and does not rely on recommendations from other firms, like Glass Lewis or ISS.
It continued:
“In accordance with this process, Schwab Asset Management intends to vote in favor of the 2025 CEO performance award proposal. We firmly believe that supporting this proposal aligns both management and shareholder interests, ensuring the best outcome for all parties involved.”
Charles Schwab then received kudos from the Tesla community on their decision to vote for Musk to receive this compensation package.
Elon Musk reveals new information on Tesla’s AI5 chip for self-driving
Tesla makes a splash at China’s Import Expo with Cybercab and Optimus
Tesla gets big nod on Musk comp package from Charles Schwab
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