Weekly News

Biden Quadruples Tariffs on Chinese EVs to 100%

In a move aimed at strengthening domestic manufacturing and job creation, President Biden increased tariffs on EVs imported from China from 25% to 100%. This decision is part of a broader strategy to ensure the future of EVs is deeply rooted in American production by union workers. Former President Trump initially introduced these tariffs, which the Biden administration has now intensified, including those on solar cells, batteries, and other critical components.

The government’s rationale behind these steep tariffs is to provide U.S. industries the opportunity to develop and compete without the pressure of cheaper products, including some EVs that retail for just $10K in China.

While other global manufacturers might be affected as well, only two EVs in the US are currently made in China – the Polestar 2 and Volvo S90 Recharge Plug-in Hybrid. Both companies (owned by Chinese automotive conglomerate Geely) is already planning to shift manufacturing to its new manufacturing plant in South Carolina.

Subaru and Toyota to Collab on 3 New Electric SUVs

Subaru and Toyota are intensifying their collaboration by co-developing three new electric SUVs, a move aimed at mitigating the risks associated with the EV market as said by Subaru’s leadership.

Last fiscal year, Subaru's operating profits surged by 75%, yet the company's solo electric venture, the Solterra, saw modest sales of 14K units globally, with just ~9K in the U.S., representing 1.6% of their total vehicle deliveries. Addressing this shortfall, Subaru is setting an ambitious target to achieve a 50% EV sales share by 2030, marking a significant increase from the previous goal of 40%.

The companies plan to introduce four fully electric SUVs by 2026, including the current Solterra, and add four more by the end of 2028. This expansion aims to boost Subaru's U.S. EV sales to 400,000 by 2028, a dramatic rise from current figures.

The three new EV models will be jointly developed and produced, leveraging Toyota's expertise and resources, which include a 20% ownership stake in Subaru. This collaboration not only spreads the developmental risks but also ensures compliance with local manufacturing requirements to take advantage of U.S. federal EV tax credits, potentially increasing consumer demand.

Tesla’s Continued FSD Progress - No Nag

Tesla is set to roll out a significant update to its Full Self-Driving (FSD) system next week, as confirmed by Elon Musk on X. The upcoming FSD 12.4 release will feature fully retrained models. A key change with this update is the removal of the "steering wheel nag," a frequent reminder for drivers to apply torque to the steering wheel to confirm their presence.

Historically, Tesla's system required physical feedback to ensure driver engagement, but the incorporation of cabin-facing cameras for monitoring driver attention has made this feature less critical. These cameras can detect if a driver looks away from the road for more than a few seconds and issue alerts accordingly.

The decision to remove the steering wheel nag, which some users found bothersome, reflects Tesla's confidence in its ability to monitor driver attention through more advanced technology. However, this change raises questions about road safety and regulatory response, especially given past concerns expressed by authorities like the US National Highway Traffic Safety Administration (NHTSA) regarding the need for continuous driver engagement.

As Tesla pushes further into autonomous driving technology, the removal of the nag could be seen as a milestone in achieving greater vehicle autonomy. This update comes after a promo offer from Tesla, which extended a one-month free trial of FSD to all drivers.

Polestar 3 Coming to Market

Polestar is gearing up to introduce its Polestar 3 electric SUV. The new entry-level model, slated to roll out in the U.S. within months, follows the initial production of the Polestar 3 in Chengdu, China, and anticipates additional production in South Carolina by mid-2024.

The new variant, dubbed the Long Range Dual Motor, was initially priced at $83,900, promising up to 300 miles of EPA range. However, recent updates from Polestar have set the starting MSRP at $73,400, including the Pilot Pack as a standard feature across all trims. The standard configuration of this model is expected to begin delivery in the second quarter of 2024. The vehicle is expected to qualify for federal tax credit, potentially reducing the price to $65,900.

Later this year, Polestar plans to introduce a single-motor version of the Polestar 3 as the new base model. This rear-wheel-drive variant will utilize a 180 kW electric motor and is expected to offer an even more competitive price point and increased range due to its efficient setup.

Polestar seems to be trying to offer a mix between luxury electric SUVs like the Macan and more affordable options like the Model Y. It remains to be seen if consumers recognize and embrace Polestar as a brand that successfully demands its premium price point.