• BYD is halting Mexico factory plans over US trade policy concerns.
• US tariffs on Mexico-made cars are affecting automakers including Nissan and Stellantis.
• BYD is opening a factory in Brazil, its first outside Asia.

The world's largest electric vehicle maker is halting plans to build a major factory in Mexico due to concerns about US trade policies.

On Wednesday, BYD said that the company still plans to expand further into North or South America, but it does not have a timeline for the plan.

"Geopolitical issues have a big impact on the automotive industry," Stella Li, an executive vice president, said in an interview with Bloomberg. "Now everybody is rethinking their strategy in other countries. We want to wait for more clarity before making our decision."

In September, Bloomberg reported that the EV giant would not announce a major plant investment in Mexico until after the US election. In March, Mexican President Claudia Sheinbaum said BYD had not made a formal offer to invest in the country.

President Donald Trump's tariffs have been a big pain point for US and global automakers. Cars coming from Mexico to the US remain subject to a 25% tariff.

Car manufacturers have responded in various ways, from offering discounts to shoppers who hope to avoid future price hikes to adding import fees on vehicles built outside the US. Some producers, like Stellantis and Nissan, have cut back on Mexico-based production.

In the region, BYD is opening a plant in the Brazilian state of Bahia, the company's first factory outside Asia.

In December, Brazilian authorities halted the construction of BYD factory and sued the company, saying that construction workers lived in slavery-like conditions. Over 160 workers had been rescued from the working conditions, according to a statement from a Brazilian labour authority.

The statement said that workers were put in "degrading" conditions and had their passports and salaries withheld by a service provider for BYD.

At the time, BYD said affected workers had been moved to hotels. It added that it had conducted a "detailed review" of the working and living conditions for subcontracted employees and asked on "several occasions" for the construction firm to make improvements.

On Wednesday, Li said the episode prompted the company to reassess its approach to international expansion.

"We should slow down, step back from the focus on speed. We need to work more with local companies," she said. "It will take longer, but that's OK."

Chinese players, including BYD, Xiaomi, Nio, and Xpeng, have been undercutting Tesla's prices and gaining market share in China and Europe. BYD is on track to sell more than 5 million cars this year, and the company sold more EVs than Tesla in Europe for the first time in April.

BYD stock is up 38% so far this year because of strong battery technology, its affordability, and global expansion.

House Republicans broke the record Wednesday for the lower chamber's longest vote in history after more than seven hours of grueling negotiations over President Trump's "big, beautiful bill."

Why it matters: The extended vote time reflects the severe reluctance among some on the House GOP's right flank to support the marquee tax and spending package.

• The previous record was in 2021, when the House took seven hours and six minutes on a procedural vote related to then-President Biden's Build Back Better legislation.
• House Republicans overtook that record at 9:15pm ET on Wednesday, then went another 15 minutes before finally closing the vote.
• Assistant House Minority Leader Joe Neguse (D-Colo.) needled Republicans on the vote time by suggesting they were violating House rules by holding the vote open for so long.

State of play: The lengthy vote came about as a result of negotiations between House Speaker Mike Johnson (R-La.) and members of the right-wing Freedom Caucus.

• The hardliners are upset that the Senate bill adds more to the deficit than the House-passed version while also excluding several key provisions they secured to cut green energy tax credits and Medicaid.
• Some moderates have also had concerns about the bill, saying it cuts too much into Medicaid and other key programs.

Secretary of Homeland Security Kristi Noem said during a public meeting on Wednesday that she is trusting advisers to provide counsel on how to fire people who "don't like us."

Why it matters: Noem's comment sends a chilling message to the DHS, which has gone through a mass exodus and public backlash over its immigration policies.

Zoom in: During the first Homeland Security Advisory Council meeting held at the DHS headquarter, Noem gave opening remarks by saying there is a lot of people in the department "that don't support what we are doing."

• "What we have to be aware of is that we're working with the department that for the last four years hasn't been required to do much," Noem said.
• She then blamed former Secretary Alejandro Mayorkas for telling DHS workers "not to do a lot."

Zoom out: The Trump administration has been increasingly vocal about drastically restructuring the DHS.

• Noem has privately supported the idea of shrinking FEMA's role in disaster planning, per CNN. She later walked back the claim.
• Officials staffing the U.S. legal immigration system have been asked to volunteer to help deportation operations spearheaded by ICE, according to CBS.

Context: The advisory council consists of 22 members appointed by President Trump and Secretary Noem. The council provides the secretary of Homeland Security with real-time, real-world and independent advice on homeland security operations.

• Notable members include former New York City Mayor Rudy Giuliani, billionaire Marc Andreessen, and Fox News host Mark Levin.

• Rivian Automotive reported its 2025 second-quarter production and delivery results.
• Rivian produced 5,979 vehicles and delivered 10,661 vehicles this quarter, a year-over-year decline from Q2 2024.
• Tesla's deliveries also dropped in Q2, just missing analysts' expectations.

It's not just Tesla.

Rivian Automotive's Q2 deliveries were also down. The company shared its production and delivery results on Wednesday. It delivered 10,661 vehicles in the quarter ending on June 30. That's a noticeable drop compared to the same time last year, when Rivian delivered 13,790 vehicles. Reuters reported a 22% decline.

Its stock dipped on Wednesday and closed down 4.45%.

The company shared that it produced 5,979 vehicles at its Illinois-based manufacturing facility during the last quarter. The company produced 9,612 vehicles during the same time in 2024.

"Production was limited during the second quarter in preparation for model year 2026 vehicles expected to launch later this month," the company said on Wednesday. "Production and delivery results for the quarter are in line with Rivian's outlook."

Rivian said it received a $1 billion equity investment from Volkswagen Group as part of a joint venture between the two companies.

Tesla, led by Elon Musk, also shared delivery numbers on Wednesday.

The company delivered 384,000 electric vehicles during its second quarter, which missed Wall Street analysts' expectations. It marks the largest quarterly decline in pure numbers in Tesla's history.

The electric vehicle industry faces headwinds as it navigates consumers' uncertainty and the fallout from President Donald Trump's tariffs.

Tariffs and consumer concerns aren't the only obstacles that could trip up the electric vehicle industry.

Trump's domestic tax and spending bill would also affect the clean energy sector. The bill, if passed and signed into law, could end the $7,500 EV tax credit on new leases and electric vehicle sales by the end of September, according to Reuters. Although Rivian didn't qualify for the tax credit, the company relied on a leasing loophole to utilize it. The potential loss of the tax credit could impact companies like Tesla, though.

Representatives for Rivian did not respond to a request for comment from Business Insider.