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.
China & EU agree to settle differences over EV import tariffs
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.
Dept. of Energy takes $3b step to combat Chinese EV batteries in U.S.
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News
Tesla China breaks 8-month slump by selling 71,599 vehicles wholesale in June
Tesla China’s June numbers were released by the China Passenger Car Association (CPCA) on Tuesday.
Tesla China was able to sell 71,599 vehicles wholesale in June 2025, reversing eight consecutive months of year-over-year declines. The figure marks a 0.83% increase from the 71,599 vehicles sold wholesale in June 2024 and a 16.1% jump compared to the 61,662 vehicles sold wholesale in May.
Tesla China’s June numbers were released by the China Passenger Car Association (CPCA) on Tuesday.
Tesla China’s June results in focus
Tesla produces both the Model 3 and Model Y at its Shanghai Gigafactory, which serves as the company’s primary vehicle export hub. Earlier this year, Tesla initiated a changeover for its best-selling vehicle, the Model Y, resulting in a drop in vehicle sales during the first and second quarters.
Tesla’s second-quarter China sales totaled 191,720 units including exports. While these numbers represent a 6.8% year-over-year decline for Tesla China, Q2 did show sequential improvement, rising about 11% from Q1 2025, as noted in a CNEV Post report.
For the first half of the year, Tesla sold 364,474 vehicles wholesale. This represents a 14.6% drop compared to the 426,623 units sold wholesale in the first half of 2024.
China’s competitive local EV market
Tesla’s position in China is notable, especially as the new Model Y is gaining ground in the country’s BEV segment. That being said, Tesla is also facing competition from impressive local brands such as Xiaomi, whose new YU7 electric SUV is larger and more affordable than the Model Y.
The momentum of the YU7 is impressive, as the vehicle was able to secure 200,000 firm orders within three minutes and over 240,000 locked-in orders within 18 hours. Xiaomi’s previous model, the SU7 electric sedan, which is aimed at the Tesla Model 3, also remains popular, with June deliveries surpassing 25,000 units for the ninth straight month.
While China’s EV market is getting more competitive, Tesla’s new Model Y is also ramping its production and deliveries. Needless to say, Tesla China’s results for the remaining two quarters of 2025 will be very interesting.
Elon Musk
Tesla reveals it is using AI to make factories more sustainable: here’s how
Tesla is using AI in its Gigafactory Nevada factory to improve HVAC efficiency.
Tesla has revealed in its Extended Impact Report for 2024 that it is using Artificial Intelligence (AI) to enable its factories to be more sustainable. One example it used was its achievement of managing “the majority of the HVAC infrastructure at Gigafactory Nevada is now AI-controlled” last year.
In a commitment to becoming more efficient and making its production as eco-friendly as possible, Tesla has been working for years to find solutions to reduce energy consumption in its factories.
For example, in 2023, Tesla implemented optimization controls in the plastics and paint shops located at Gigafactory Texas, which increased the efficiency of natural gas consumption. Tesla plans to phase out natural gas use across its factories eventually, but for now, it prioritizes work to reduce emissions from that energy source specifically.
It also uses Hygrometric Control Logic for Air Handling Units at Giafactory Berlin, resulting in 17,000 MWh in energy savings each year. At Gigafactory Nevada, Tesla saves 9.5 GWh of energy through the use of N-Methylpyrrolidone refineries when extracting critical raw material.
Perhaps the most interesting way Tesla is conserving energy is through the use of AI at Gigafactory Nevada, as it describes its use of AI to reduce energy demand:
“In 2023, AI Control for HVAC was expanded from Nevada and Texas to now include our Berlin-Brandenburg and Fremont factories. AI Control policy enables HVAC systems within each factory to work together to process sensor data, model factory dynamics, and apply control actions that safely minimize the energy required to support production. In 2024, this system achieved two milestones: the majority of HVAC infrastructure at Gigafactory Nevada is now AI-controlled, reducing fan and thermal energy demand; and the AI algorithm was extended to manage entire chiller plants, creating a closed-loop control system that optimizes both chilled water consumption and the energy required for its generation, all while maintaining factory conditions.”
Tesla utilizes AI Control “primarily on systems that heat or cool critical factory production spaces and equipment.” AI Control communicates with the preexisting standard control logic of each system, and any issues can be resolved by quickly reverting back to standard control. There were none in 2024.
Tesla says that it is utilizing AI to drive impact at its factories, and it has proven to be a valuable tool in reducing energy consumption at one of its facilities.
Elon Musk
Tesla analysts believe Musk and Trump feud will pass
Tesla CEO Elon Musk and U.S. President Donald Trump’s feud shall pass, several bulls say.
Tesla analysts are breaking down the current feud between CEO Elon Musk and U.S. President Donald Trump, as the two continue to disagree on the “Big Beautiful Bill” and its impact on the country’s national debt.
Musk, who headed the Department of Government Efficiency (DOGE) under the Trump Administration, left his post in May. Soon thereafter, he and President Trump entered a very public and verbal disagreement, where things turned sour. They reconciled to an extent, and things seemed to be in the past.
However, the second disagreement between the two started on Monday, as Musk continued to push back on the “Big Beautiful Bill” that the Trump administration is attempting to sign into law. It would, by Musk’s estimation, increase spending and reverse the work DOGE did to trim the deficit.
Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame!
And they will lose their primary next year if it is the last thing I do on this Earth.
— Elon Musk (@elonmusk) June 30, 2025
President Trump has hinted that DOGE could be “the monster” that “eats Elon,” threatening to end the subsidies that SpaceX and Tesla receive. Musk has not been opposed to ending government subsidies for companies, including his own, as long as they are all abolished.
How Tesla could benefit from the ‘Big Beautiful Bill’ that axes EV subsidies
Despite this contentious back-and-forth between the two, analysts are sharing their opinions now, and a few of the more bullish Tesla observers are convinced that this feud will pass, Trump and Musk will resolve their differences as they have before, and things will return to normal.
ARK Invest’s Cathie Wood said this morning that the feud between Musk and Trump is another example of “this too shall pass:”
BREAKING: CATHIE WOOD SAYS — ELON AND TRUMP FEUD “WILL PASS” 👀 $TSLA
She remains bullish ! pic.twitter.com/w5rW2gfCkx
— TheSonOfWalkley (@TheSonOfWalkley) July 1, 2025
Additionally, Wedbush’s Dan Ives, in a note to investors this morning, said that the situation “will settle:”
“We believe this situation will settle and at the end of the day Musk needs Trump and Trump needs Musk given the AI Arms Race going on between the US and China. The jabs between Musk and Trump will continue as the Budget rolls through Congress but Tesla investors want Musk to focus on driving Tesla and stop this political angle…which has turned into a life of its own in a roller coaster ride since the November elections.”
Tesla shares are down about 5 percent at 3:10 p.m. on the East Coast.
Tesla China breaks 8-month slump by selling 71,599 vehicles wholesale in June
Tesla reveals it is using AI to make factories more sustainable: here’s how
Tesla analysts believe Musk and Trump feud will pass
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