Tesla's CEO is no stranger to government regulation. He's talked ad nauseam about the sweeping fines his companies have received, the hoops Tesla's autonomy programs need to go through for approval, and the inefficiencies that he intends to correct alongside the incoming administration. And all that aside, Tesla still pushes for stricter regulation when it could mean enforcement in its favor.
Welcome back to Critical Materials, your daily roundup for all things electric and automotive tech. Today, we're chatting about Tesla's mission to convince the UK to tighten emission regulations, Cybertruck China launch looking like a possibility, and Ferrari's plans to always keep its production in Italy. Let's jump in.
30%: Tesla's Secret Lobbying To Strengthen UK's Emission Regulations
Tesla has been quietly lobbying the U.K.'s Labor Party in an effort to further vehicle emission mandates on passenger cars and commercial vehicles. The finding comes from The Fast Charge newsletter, which uncovered a private letter penned by Tesla to the British government via freedom of information laws.
An analysis of the letter shows Tesla's EMEA (Europe, Middle East, and Africa) unit urging the British government to not just maintain course with its current directive for zero-emissions vehicles but to consider increasing mandates for both passenger cars and Heavy Goods Vehicles (semi-trucks) "as soon as possible."
The letter, which was authored in July, comes to light just after the UK government announced that it would loosen regulations on its ZEV mandate (in stark contrast to Tesla's ask) despite staying the course for a 2030 phase-out of combustion-only passenger cars. The government's decision came after pushback from major automakers revealed projected costs of around $7.6 billion related to the mandate in 2024 alone and a warning that the continued rapid momentum could threaten the UK's status as a manufacturing hub.
In its letter, Tesla says that the UK is "falling behind" at its current pace.
Tesla CEO Elon Musk has been a large proponent of setting fire to what he calls "nonsense regulations." In fact, it's a core promise that he's instilled in the formation of the new program he's tasked with co-leading in the U.S. under the incoming Trump administration, the Department of Government Efficiency.
Musk pledged to push for sweeping deregulation of "government overreach," of which he has scrutinized the U.S. government for imposing on his vast array of companies—often for environmental-related infractions.
For example, SpaceX was recently fined $148,378 for wastewater violations, The Boring Company received a small fine in Texas for erecting an air-polluting facility without authorization, and Tesla settled with the EPA for $275,000 in 2022 over violations of the Clean Air Act in California as well as a $1.5 million settlement earlier this year to 25 separate counties regarding the mishandling of hazardous waste across the state. Separately, Tesla is repeatedly in hot water with the German government over pollution stemming from Giga Berlin, including claims that the factory has contaminated drinking water with "six times more hazardous pollutants into the water system than its permits allow."
And, of course, we can't ignore the timing here, either. Tesla seems to be gearing up for a potential European launch of the Tesla Semi—something it debuted seven years ago in the U.S. and has yet to reach large-scale production for commercial customers in its home market. Trucks were spotted at Tesla's German Gigafactory back in August, just a few months after Musk said that "it makes sense to produce the Semi truck ... at Giga Berlin."
Tesla also has a long punch card of taking advantage of government-sponsored funds to grow its business. From the same types of Department of Energy loans that it recently slammed rival Rivian for, to selling off regulatory tax credits for billions of dollars in revenue, and even building a version of its Model 3 with just 94 miles of range to qualify for a Canadian tax credit—Tesla is no stranger to utilizing government programs to its benefit. And if given the opportunity to push policy in its favor, why stop now?
Perspective is everything here. On the one hand, Tesla's push for more emissions moves progress towards a cleaner future with more sustainable cars, a mission that Tesla has claimed to support from the start. But on the other, it's impossible to disregard the hypocrisy of proposing more rules abroad in the name of progress while also promising to tear them down at home—regulation for thee, if it benefits me.
60%: Tesla Cybertruck Could Be Coming To China
Tesla's polarizing Cybertruck could soon be hitting the streets of China. A new certification from the country's Ministry of Industry and Information Technology suggests that Tesla could be interested in launching its EV pickup in the Far East despite previously denouncing the possibility.
The automaker began shipping over a small army of Cybertrucks to China in January. However, Tesla wasn't bringing the trucks there to sell—instead, it was just a tease to show off its shiny metal marvel in a market where it couldn't be sold and had no plans of homologation. Well, until recently, that is. A new report from CNEV suggests that Tesla could be in the early phases of launching the product in one of its biggest markets.
Here's what CNEV has to say:
Tesla made a filing with China's Ministry of Industry and Information Technology (MIIT) to measure the energy consumption of the Cybertruck, and today it received an Automobile Energy Consumption Label.
[...]
Tesla is making improvements to the Cybertruck to comply with domestic market access requirements for pedestrian collision protection, local media outlet Yiche said in a report today, without mentioning further details.
It's worth noting that obtaining the Automobile Energy Consumption Label is just one of a number of compliance efforts car companies need to do for a model in China. The Cybertruck's receipt of the label may not necessarily mean that it will be introduced to China anytime soon.
This news comes as a bit of a surprise given how adamant Tesla has been that it wouldn't bring the Cybertruck to the Chinese market. Just days ago, Tesla's media team in China squashed the rumor. According to CNEV, which cites a report from another local publication, Tesla reportedly said it had "no plans" to launch the truck in China.
For argument's sake, there are a few good reasons why this could be the case. For starters, China classifies pickups as light trucks and imposes significantly more restrictions than passenger cars and SUVs. For example, light trucks are not permitted to exceed 62 MPH at highway speeds, often have restrictions on local roads, and may require tweaks to the body for safety regulations. And perhaps the biggest blow of all is that China's road laws require light trucks to be scrapped after 15 years of use.
CEO Elon Musk has also touched on the subject in the past. Musk mentioned that it would be "very difficult" to bring the truck into compliance with the overseas market:
Whether or not the Cybertruck actually makes it to China is anybody's guess right now. However, the fact that Tesla went through the trouble of obtaining an Automobile Energy Consumption Label is a step towards the possibility of seeing these shiny steel trapezoids hitting some more foreign streets. Plus, let's be real, Tesla could use an uplift from other countries to make the Cybertruck a success and keep its EV crown away from BYD. It seemingly blew through its backlog of U.S. reservation holders in just months which led to a quick launch in Canada and Mexico.
90%: Ferrari Will Always Make Its Cars, Including EVs, In Italy
Automakers across the globe are worried about what the next era of Trump could mean for industry tariffs. The incoming administration has threatened to levy heavy duty fees on imports of all kinds—that is, of course, unless goods are built domestically. It's only natural that the uncertainty of tariffs and federal support for EVs has the auto industry shaking in their boots.
Well, that is, of course, unless you're Ferrari—then you know that your customers aren't sweating about a few thousand bucks for tariffs. In fact, the prancing horse is so certain that any potential tariffs won't impact its sales that it will continue to make all of its vehicles in Italy, including its first EV that's due to hit the streets next year.
That confirmation comes straight from the mouth of Ferrari's CEO, Benedetto Vigna. The former tech bro turned automotive head knows what the brand's customers want, and that's a made-in-Maranello Ferrari.
"We make cars in Maranello," said at Reuter's NEXT conference. "We will sell cars in U.S., but we will make cars in Maranello."
Ferrari sold 3,262 cars in the U.S. last year, which is about a quarter of the total number of vehicles it produced in 2023. Impressively, nearly half of those sales were hybrids—and future Ferrari buyers are undoubtedly ready to throw piles of cash at the brand's first EV (which, by the way, will receive a last-minute final price but is expected to cost upwards of $525,000).
And while Trump hasn't explicitly said that Europe would be subject to his tariff plans, European automakers fear that it will be just a matter of time, especially since Canada and Mexico could be subject to additional tariffs of up to 25% despite being the U.S.'s largest trading partners.
Ferrari, however, knows its customers and is largely unfazed by any such existential threat.
"Our order book is pretty strong," said Vigna. "He decides what to do here, we will cope with those new rules... there will be tariffs for us, for everyone. It's good because when you have the realities changing around you, it's a way to foster more and more innovation."
A Ferrari isn't a logical purchase—it's an emotional one. You buy one for status, you buy one for speed, you buy one because it's a Ferrari. It's not like you're cross-shopping an SF90 and a Toyota Camry. So what are a few thousand, or tens of thousands (or more), dollars when you're already spending Ferrari money?
Yeah, that's what I thought.
100%: Tax Credits And Tariffs For All, Or For None?
We talk about the future of the EV industry a lot. It's actually kind of insane how intertwined the entire field is with politics. You know, tariff-this, or EV-tax-credit-that—it's kind of exhausting what kind of mental gymnastics go into the entire automobile manufacturing business and it makes me wonder if a blanket "all or none" policy would be in the consumer's best interest.
Should the U.S. implement an all-or-none policy for tariffs? On the EV tax credit? On Both?
Now, I know there's a lot more than what's on the surface here. But let me know your thoughts and reasoning in the comments. I'll be reading.
