Additionally, the FBI has issued a cautionary message for Tesla owners, and China’s plans for rolling out Full Self-Driving technology have been put on hold.
It appears that the one thing as volatile as Tesla's stock price this month is the uncertainty surrounding U.S. automotive tariffs. Today they might be waived, but tomorrow they could be reinstated. This constant flip-flopping is truly draining. we're fed up with this situation, executives like Jim Farley and Mary Barra might be prepared to take action.
Welcome back to Critical Materials , your daily roundup for all things electric and tech in the automotive space. Today, it's more tariff talk, plus the FBI and ATF have formed a joint task force to fight vandalism against Teslas. Also, Tesla has halted its FSD rollout in China. Let's jump in.
30%: Auto Tariffs Are Still On The Way, Trump Assures
Remember yesterday when the The automotive sector was anticipated to catch a break. From the wider-ranging tariffs that come into play on April 2nd? This is accurate—but vehicles will still not be completely free from substantial import duties.
President Donald Trump disclosed on Monday night that tariffs impacting the automotive sector have not been eliminated as part of his administration’s trade policies. These tariffs will be implemented independently of the tariff increase scheduled for April 2nd. They are also being adjusted to provide specific advantages such as potential exemptions for unspecified countries exporting cars to the United States.
Here's what Bloomberg knows:
President Donald Trump stated that he plans to disclose new tariffs on car imports soon and suggested that countries will be granted exemptions from the reciprocal tariffs set to take effect next week.
During remarks at the White House on Monday, Trump added more uncertainty regarding his plan for an extensive tariff announcement set for April 2. He informed journalists that he intended to move forward with the previously threatened auto import tariffs "in the coming days" before releasing the larger package.
Trump said his tariff rollout next Wednesday would focus on so-called “reciprocal” tariffs, featuring rates on a country-by-country basis. The president twice on Monday signaled trading partners would receive possible exemptions or reductions.
Trump's timeline for imposing tariffs on the auto industry is rather inconclusive, but based on the president's wording, it would seem that the administration is prepared to announce it ahead of next week's tariff extravaganza, which Trump declared to be named Liberation Day .
“We are going to be doing automobiles, which you’ve known about for a long time,” said Trump during a press briefing. “We’ll be announcing that fairly soon, over the next few days probably. And then April 2 comes. That will be reciprocal tariffs.”
Once again, this situation has auto manufacturers puzzled about what lies ahead. For instance, Toyota finds itself uncertain whether merely existing and procuring components from beyond U.S. borders might lead to some form of repercussions. five automobile manufacturing facilities in the United States and donating $1 million To Trump's reelection campaign last year.
Moreover, we shouldn't overlook the component aspect. Vehicles require materials sourced globally through an intricate network of suppliers across various countries. Should the automotive sector avoid direct import taxes, the frequent international movement of these parts necessary for assembling cars within the United States might still lead to increased production expenses.
Regardless of whether you're a supplier, factory manager, or simply hoping your next vehicle doesn't come with an additional $12,000 price tag , ongoing discussions about tariffs are generating more uncertainties than clarifications. For an industry grounded in decades of unrestricted commerce, slim profit margins, and efficient production processes, nothing disrupts operations as much as stringent regulations do. one that keeps changing .
60%: FBI Alerts Tesla Owners and Dealers About Threat of Violence and Vandalism
Tesla is currently experiencing some challenges, and we're not referring to their car models. tanking stock , slipping sales , or even the critique that its FSD software fails to recognize an Looney Tunes-style fake wall . Indeed, we've reached a stage in our cultural conversation where people are breaking windows and burning electric vehicles due to their frustrations with Tesla’s alleged " absent CEO And now, with law enforcement agencies extremely vigilant, the Federal Bureau of Investigation has issued a memo to caution the general public.
In a security advisory entitled People across the country target Tesla vehicles and dealerships with arson, gunfire, and vandalism. , the FBI—which recently formed a joint task force with the Bureau of Alcohol, Tobacco, Firearms and Explosives to investigate the incidents—warns of attacks targeting Tesla vehicles, as well as Tesla-owned property (like dealerships and Supercharging stations).
Here's more info from the bulletin directly :
The FBI is alerting the public about widespread occurrences across the country involving attacks on Tesla electric cars (EVs), as well as their dealerships, parking areas, and charging facilities. From January 2025 onwards, such events have taken place in a minimum of nine different states. The acts include arson, shootings, and property damage like graffiti directed towards individuals perceived by the assailants as racists, fascists, or political adversaries. Evidence suggests these crimes were carried out individually by single attackers, with each documented incident happening during nighttime hours.
People often need minimal preparation to employ basic strategies like makeshift firebombs and guns, and they might view these assaults as harmless offenses against property rather than serious criminal acts.
The FBI asks people to stay alert and watch for unusual behavior in locations where Tesla dealerships or otherTesla-linked organizations operate.
It could be said that Tesla underwent an unexpected rebrand culturally during the last year. The outspoken political stances of CEO Elon Musk have tarnished the company’s image, leading to a politically polarized customer base that is acting true to form—by dismissing brands that do not match their political beliefs.
Activists have urged proprietors to divest their vehicles and shares as a protest against Tesla due to Musk’s ongoing engagement in international affairs. It appears these calls have been heeded, as industry statistics from Edmunds indicate that There has been a notable increase in Tesla trade-ins over the past few weeks. Not only is more being traded in, but Fewer potential purchasers are looking for pre-owned Teslas to acquire. , causing used car prices to plummet dramatically.
For others, this is not sufficient. In response, activists have decided to leverage Musk's political leanings as a pretext for carrying out harmful actions such as setting fires at Tesla showrooms or damaging customer-owned Tesla vehicles .
This entire scenario highlights the complexity surrounding electric vehicles (EVs), particularly Teslas. The discussion is no longer focused solely on software upgrades and charging infrastructure; instead, EVs have taken on a very personal and politically charged dimension. As for Tesla, they've unfortunately become the central focus where much of this scrutiny converges.
90%: Tesla Suspends FSD Deployment in China
Tesla's aggressive launch of its Full Self- Driving software in China has encountered an obstacle. Of course, not a literal one. even though you may believe otherwise ), yet Tesla appears to have voluntarily halted the broad rollout of its primary driver-assistance feature in China as of Monday.
The precise cause of the delay remains unclear. Although one could easily assume that the software may not yet be fully prepared, it's also plausible that recent guidelines from China’s Ministry of Industry and Information Technology (MIIT) regarding wireless software upgrades have contributed to this holdup.
Here's the latest from Automotive News :
Tesla said on March 24 it would release its smart driving-assistance feature in China after completing regulatory approval, following complaints that a limited-time free trial of its Full Self-Driving service had been temporarily paused.
"All parties are diligently moving the related procedures forward, and we will share updates with you once everything is prepared. We are just as eager for this as you are; thank you for your patience," stated Tesla's customer service on the social media platform Weibo.
The post appeared as a comment beneath the Weibo feed of Tesla Vice President Grace Tao.
Tesla has stated that it plans to restart rolling out Full Self-Driving capabilities to customers after receiving approval from Chinese regulatory authorities.
Tesla's deployment of Full Self-Driving in China has faced some challenges. Users who tested the software discovered that the vehicle did not always comply with local regulations. A Chinese automotive influencer succeeded in accumulate seven distinct traffic infractions In a single evening through actions such as conducting unlawful lane changes, executing right turns from bicycle paths, and committing various traffic violations that could result in citations.
This difficulty arises largely due to stringent Chinese data regulations, which pose significant challenges for training Tesla's FSD model for the domestic market. As CEO Elon Musk clarified earlier this year:
"We face certain challenges as the government does not permit us to export training videos from China. Additionally, the U.S. government restricts us from conducting training within China, which creates a bit of a deadlock," Musk explained during the company’s recent quarterly earnings call. “To address this issue, we’ve been examining online footage of Chinese streets to comprehend them better. We use publicly accessible videos featuring road signs and traffic regulations in China for training purposes and incorporate these elements into an extremely precise simulation.”
Chinese social media platforms also displayed comparable problems, such as instances of vehicles disregarding traffic signals and various other events that gained attention. On automotive websites globally .
Car News China provides additional information about MIIT's potential participation:
There are rumors suggesting that the suspension might be linked to the updated rules set forth by China's Ministry of Industry and Information Technology (MIIT). This inference comes from statements made by Xpeng about postponing their March Over-The-Air (OTA) update for the Mona M03 model. According to Xpeng, they delayed this because of MIIT’s regulation introduced on February 28th, which mandates all significant software modifications must first be publicly disclosed before implementation. Only then could formal documentation proceed.
It has likewise been suggested that Tesla's FSD software received approval. might serve as leverage for the Chinese government As a strategy for negotiations in the continuing trade dispute between the United States and China.
Currently, Tesla hasn’t directly stated that the issues highlighted online led to halting the Chinese Full Self-Driving (FSD) test program. Additionally, the Chinese authorities haven't issued any official statements criticizing the software, so there’s no clear reason behind Tesla’s decision to temporarily suspend the rollout. However, based on the phrasing used in Tao’s Weibo post, it appears that Tesla might believe the software isn’t quite “prepared” for what could be considered one of their key markets.
100%: What Will Become of All the Trade-in Teslas?
Last night, I found myself endlessly scrolling through TikTok when someone posed an intriguing open-ended query regarding the numerous Teslas currently being exchanged. With supply surpassing demand at present, the value of pre-owned vehicles is dropping significantly—a boon for potential purchasers. if people really wanted to purchase them .
The journey down this road appears far from over. With Musk remaining politically engaged and steering Tesla, the losses may persist. This leaves car dealers wondering about their next move: Should they offload vehicles at a loss? Opt for auctions instead? If discounted prices fail to attract buyers, perhaps they might adopt a patient strategy, waiting for better times ahead?
Share your opinions below in the comments section.
More Essential Information You Should Be Aware Of:
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- Tesla Is Plunging in Europe Despite Rising EV Sales in February
- A Die-Hard Tesla Fan Switched to a Rivian. Here’s His Impression
- Is Toyota Now Genuine About Electric Vehicles?
- Public EV Charging Was Already Deteriorating. Then Trump Eliminated Federal Financing
- How Tariffs and the Retreat from Electric Vehicles Affect All Americans