• BYD is chasing down Tesla on EV sales, but the Chinese giant is much more than just a car company.
• As well as cheap EVs, BYD also makes batteries, buses, trains and even some iPhones and iPads.
• BYD is following in the footsteps of Elon Musk's company, which also has lucrative side hustles.

BYD has fast become one of the world's biggest electric-vehicle makers — but the Chinese giant is much more than just a car company.

Like its rival Tesla, BYD, which was founded in 1995 as a battery manufacturer, makes and sells a variety of products alongside its car business, from solar panels to buses.

The EV giant's manufacturing expertise allows it to make nearly all of the components of its vehicles in-house, cutting down costs and enabling BYD to sell EVs for as little as $10,000.

That versatility has proven a crucial advantage, helping BYD to expand rapidly in China's cut-throat EV industry and even briefly overtake Elon Musk's automaker and become world's largest producer of EVs by sales last year.

Here are all of BYD's side hustles.

iPads and iPhones

Apple has long turned to China to assemble its tablets and smartphones, and it is reportedly increasingly relying on BYD.

The EV maker's manufacturing arm, BYD Electronic, now assembles more than 30% of Apple's iPad tablets and is part of the supply chain for the iPhone, according to industry executives and analysts cited by The Wall Street Journal earlier this month.

Apple CEO Tim Cook praised its partnership with BYD during a visit to China in March, and Apple isn't the only company that relies on BYD Electronic.

EV rivals Xiaomi as well as other smartphone manufacturers Huawei and Samsung are also customers.

Batteries

China dominates the global battery industry, and BYD is one of its biggest success stories.

The automaker is the world's second-largest battery producer, behind fellow Chinese firm CATL, per data released in September by Korean market research SNE Research.

In 2020, BYD rolled out its Blade battery, which the company said had "maximum safety, while offering outstanding strength, range, longevity and power."

The Blade battery is now incorporated into all BYD vehicles, and the automaker also sells it to rivals such as Toyota, which uses BYD's batteries in its cars sold in China.

In October, Bloomberg reported Apple had worked with BYD on designing long-range batteries for its project to build its own car, which it ultimately scrapped.

Energy storage

Just like its rival Tesla, BYD has been able to turn its battery know-how into a lucrative side hustle in energy storage.

Tesla's energy business includes solar panels and its megapack and powerwall batteries, which provide a backup power supply for homes and businesses.

BYD also sells solar panels and its battery-box system — a stack of Lithium Iron Phosphate (LFP) batteries that the company markets for home and commercial usage.

BYD's energy storage business has grown rapidly in recent years, but the automaker may be about to face more competition from Musk with Tesla set to begin megapack production at its factory in Shanghai early next year.

Buses

BYD may not sell its cars in the US market thanks to tariffs — but the company has been making buses and commercial vehicles in its Lancaster, California factory since 2013.

BYD's commercial vehicle business, which makes everything from school buses to forklifts, has often entered new markets before the company's automotive arm.

BYD has also been contracted to provide London's famous red double-decker buses and has struck a deal to provide Mexico City with a fleet of electric buses.

The company's November figures showed it had sold around 16,400 commercial vehicles, including around 4,200 buses, in 2024 so far.

Monorails

In addition to buses, BYD has also branched out into mass transit with its "Skyrail" monorail.

The company unveiled its first single-track electric train in the Chinese city of Yinchuan in 2017. The company said the Skyrail is cheaper and easier to build than traditional subway systems.

BYD has a contract to build a Metro system in the Brazilian city of São Paulo, and it is also part of a consortium developing a proposal for a monorail system in Los Angeles.

• Andy Palmer, the "godfather of EVs," explains how China took the lead in the electric-car race.
• Palmer got the moniker after developing the Nissan Leaf, the world's first mass-market EV.
• He said Chinese EVs offered "remarkable" value for money and better battery tech than Western rivals.

The man often known as the "godfather of EVs" has a warning for automakers thinking of ditching electric vehicles for hybrids.

Andy Palmer, a former Aston Martin CEO and Nissan exec, told Business Insider that delaying transitioning to EVs in favor of selling hybrids was a "fool's errand" and warned that automakers doing so risked falling even further behind Chinese EV companies.

Palmer's moniker comes from his time as chief operating officer at Nissan.

He led the development of the Nissan Leaf, the world's first mass-market electric car, which has sold more than half a million units since it launched in 2010.

"I wish I could say that it was driven by a motivation to better the world. But actually, it was driven by the Toyota Prius kicking our ass," Palmer told BI.

Rather than copying the success of the hybrid Prius, Palmer said, he pushed Nissan to build a fully electric vehicle, eventually securing the support of the CEO at the time, Carlos Ghosn.

Over a decade later, he's skeptical of automakers — including Aston Martin, the company Palmer ran as CEO from 2014 to 2020 — who have taken the opposite path and turned to hybrids as EV adoption has slowed.

"Hybrids are a road to hell. They are a transition strategy, and the longer you stay on that transition, the less quickly you ramp up into the new world," Palmer said.

"If you just delay transitioning to EVs by diluting it with hybrids then you are more uncompetitive for longer, and you allow the Chinese to continue to develop their market and their leadership. I honestly think it's a fool's errand," he added.

China races ahead

Over the past few years, the auto industry has been shaken by the booming growth of Chinese brands such as BYD, which have conquered their home market with a range of affordable and high-tech EVs and hybrids and are now rapidly expanding abroad.

"The Chinese cars are bloody good. The Chinese vehicles offer remarkable value for money for what they deliver," Palmer said.

"Their battery technology's class-leading, and they've concentrated very much on their software," he said.

Palmer told BI that the success of China's EV industry was down to the country's long-running industrial strategy.

One study found that the Chinese government had spent at least $230 billion on subsidies for EV makers since 2009.

Palmer, who previously served on the board of Dongfeng Motor Company, a joint venture between Nissan and the Chinese state-owned automaker Dongfeng, said he saw firsthand how aggressive China's EV strategy was.

"The edict [from the Chinese government] was to move to new energy vehicles," he said.

"It starts with an industrial strategy. That's the big thing to learn. For the best part of 14 years, we have not had an industrial strategy," Palmer added.

Both the US and Europe have responded to the rise of Chinese automakers by imposing tariffs aimed at protecting their own auto industries, but Palmer said tariffs would only harm Western companies' ability to compete with their Chinese rivals.

"My experience with tariffs is it just makes your indigenous industry lazy. The gap becomes even bigger," he said.

Instead, he argued that automakers should prepare for a "survival of the fittest" battle with Chinese automakers, especially in Europe, where the likes of BYD and Xpeng have ambitious expansion plans.

"I think the Chinese firms will learn from competing in Europe, because that's the toughest market in the world. If they can do that, then they're going to be unbeatable," Palmer said.

Japanese carmakers stumble

The surging growth of China's EV giants has put Palmer's former employer Nissan and its Japanese rivals Toyota and Honda under severe pressure.

Nissan announced it would lay off 9,000 workers in November, while both Toyota and Honda are facing declining sales in China and slumping profits. In December, it was reported that Nissan and Honda were in merger talks.

Palmer said that while Toyota's decision to focus on hybrids paid off initially, it had left it and other Japanese automakers exposed as key markets such as China transition quickly to EVs.

"Toyota took the Japanese industry down a cul-de-sac, which it is going to struggle to recover from," he said.

The former Nissan executive said his old company, meanwhile, had "shot itself in the foot" and squandered a promising lineup of electric vehicles and a 10-year lead in EV tech.

"My last board meeting in July 2014, I was under enormous attack from the bean counters who were saying; these things don't make money, we are going too fast. I managed to win the day in that meeting, but I left the company," Palmer said.

"Nissan finds itself now with a very poor lineup of products and without obvious leadership in EVs, and that's the direct result of poor management," he said.

How to get EVs moving again

The past year has been tough for electric vehicles. While sales are still growing, the pace of adoption has been slower than expected, causing automakers across the globe to roll back investments.

For Palmer, the reason some consumers have proven reluctant to go electric is simple: EVs are too expensive.

"Prices have got to align to those of internal combustion engines. And to make that happen, you've got to be able to offer cars with smaller batteries," Palmer said.

The average price of an electric vehicle in the US in October was $56,902, according to Kelley Blue Book, compared with $48,623 for gas-powered vehicles.

Palmer said selling cheaper vehicles with smaller batteries and less range would require governments to incentivize the rollout of charging networks to alleviate range anxiety.

He added that the West could learn from China's approach to industrial strategy — especially when it comes to batteries, an industry that China dominates.

"If the West wants to catch up, I would advocate copying the Chinese," Palmer said.

"The alternative is everything is Chinese at the moment — even if you were building your own battery cells, you've still got to get all the minerals from China," he said. "The whole supply chain is stuck."

• Sam Altman isn't done firing shots at Elon Musk.
• The OpenAI CEO said the Tesla boss was "clearly a bully" who likes to pick fights with rivals in an interview with The Free Press.
• Musk is in a lengthy legal battle with OpenAI and Altman, and refiled a lawsuit against both earlier this year.

Sam Altman and Elon Musk once started OpenAI together — but now their relationship is a lot more complicated.

In an interview with The Free Press on Thursday, Altman said his OpenAI cofounder was "clearly a bully" and said that Musk's high-profile feud with his former company had become a "sideshow."

Since stepping down from OpenAI in 2018, Musk has been highly critical of the AI startup and CEO Altman.

The Tesla boss refiled a lawsuit in August, arguing he had been "deceived" into starting the company by Altman and fellow cofounder Greg Brockman.

Musk has also asked a federal court to block OpenAI from transitioning into a for-profit entity, with OpenAI firing back by releasing a cache of emails showing Musk pushed for the AI startup to be for-profit while working at the company.

In the interview, Altman described Musk as a "legendary entrepreneur" who did a lot to help OpenAI in its early days.

"He's also clearly a bully, and he's also someone who clearly likes to get into fights," added the OpenAI CEO, pointing to the billionaire's high-profile spats with Jeff Bezos and Bill Gates.

Altman also said he believes much of Musk's animosity is rooted in OpenAI's recent success and the fact that he now runs a direct competitor.

Musk announced xAI, his own AI startup, last year, and the company has since released several versions of its chatbot Grok.

"Everything we're doing, I believe Elon would be happy about if he were in control of OpenAI," said Altman.

"He left when he thought we were on a trajectory to certainly fail, and also when we wouldn't do something where he had total control over the company," he added.

Altman's comments come as Musk prepares to occupy an increasingly prominent role in the second Trump administration. Though Musk will have an influential political position, Altman said he did not believe Musk would use his power to go after his rivals.

"I think there are people who will really be a jerk on Twitter who will still not abuse the system of the country," he said.

OpenAI and Musk did not respond to requests for comment, sent outside normal working hours.

• Jeff Bezos had dinner with Donald Trump and Elon Musk at Mar-a-Lago on Wednesday evening.
• Musk confirmed the dinner took place, describing it as a "great conversation."
• Bezos is the latest tech giant to meet Trump in Florida, after Mark Zuckerberg and Sundar Pichai both visited.

Jeff Bezos seems to be trying to patch up his feud with Donald Trump and Elon Musk.

The former Amazon CEO was pictured at Mar-a-Lago with fiancé Lauren Sánchez on Wednesday night in images circulating on social media, as he joined the president-elect for dinner.

Trump had previously told NBC's "Meet the Press" that he and Bezos were planning to have dinner.

Tesla CEO Elon Musk was also in attendance, confirming that the meeting had taken place in a post on X, describing it as a "great conversation."

Bezos, who also owns rocket company and SpaceX rival Blue Origin, is the latest tech figure to try to make nice with Trump in recent weeks.

Meta CEO Mark Zuckerberg and Google boss Sundar Pichai have both met with Trump at his Florida resort in recent weeks. Meta, Amazon, and OpenAI CEO Sam Altman have all donated $1 million to the incoming president's inauguration fund.

Bezos has had a rocky relationship in the past with both Trump and Musk.

The Washington Post owner clashed with Trump in his first term over his newspaper's coverage of his presidency.

However, Bezos praised Trump following an assassination attempt in July and said he was "very optimistic" about a second Trump term at the NYT's Dealbook conference earlier this month.

Bezos has also previously sparred with Musk, who is set to play an active role in the Trump administration after donating over $200 million to pro-Republican campaign groups during the election.

Musk wrote in a post on X last month that Bezos had told people they should sell Tesla and SpaceX stock because Donald Trump would lose the election, which the Amazon founder denied as "100% not true."

Blue Origin competes with SpaceX for lucrative NASA and federal contracts. In the leadup to the election, the billionaire came under fire over The Washington Post's failure to endorse a candidate, with multiple reports suggesting Bezos made the decision to do so.

Amazon and Elon Musk did not respond to requests for comment, sent outside normal working hours.

• Three of Japan's iconic car companies are struggling.
• Toyota, Honda, and Nissan have seen sales in China slump, and now Nissan and Honda are considering merging.
• Japanese automakers, which have prioritized hybrids, are facing pressure from China's EV giants like BYD.

Japan's iconic auto industry is going through a rough patch, and now two of its most important companies are considering merging as they fight for survival.

Nissan and Honda are set to negotiate a possible merger, according to multiple reports on Tuesday, as they mull combining forces to stave off the growing threat of Tesla and China's electric vehicle makers.

It comes after the two companies and major rival Toyota reported slumping profits in their most recent earnings, as they grapple with ferocious competition in China and a bumpy transition to electric vehicles.

Nissan announced it would cut 9,000 workers amid falling sales, while Honda reported a 15% drop in operating profit in the second quarter.

Toyota, the world's largest automaker, saw profits for the quarter ending in September drop to 573.7 billion yen ($3.7 billion), down from nearly 1.28 trillion yen ($8.3 billion) over the same period last year.

All three companies face a similar problem; they are failing to sell enough cars in China.

Toyota's sales in China were down just over 10% in the first nine months of the year, with the company blaming "severe market conditions" such as "intensifying price competition."

Still, a Toyota spokesperson told Business Insider that its declining profits were not only attributable to China; it also saw weakness in Japan and North America.

Honda flagged a decline in sales in China in its most recent quarter, dragging down its total group sales. While Nissan reported a drop of over 5% in retail sales in China in the first half of the fiscal year — the largest drop of any of its regions.

Like other foreign automakers, Japan's car giants are being squeezed in China by local rivals. These rivals have rapidly gained market share by offering a range of affordable but high-tech EVs and hybrids.

BYD, Zeekr, and Nio have reported bumper sales recently, as European automakers like Mercedes-Benz and BMW are being squeezed in this region.

Many of China's EV champions are now expanding overseas, something Felipe Munoz, auto analyst at JATO Dynamics, told BI was putting the likes of Toyota and Honda under growing pressure.

"The real battle is happening in the emerging markets. And that's exactly where the Japanese car makers are suffering the most," said Munoz, pointing to the rapid expansion of the likes of BYD in Southeast Asia and Latin America.

"Japanese carmakers have a strong presence in Southeast Asia. And Southeast Asia right now is a hot market for Chinese cars," he said.

Electric woes

Japanese automakers have taken a broadly cautious approach to the transition to EVs, focusing instead on hybrid vehicles.

That approach has mostly paid off as EV demand has slowed, with Toyota reporting bumper profits on the back of strong hybrid sales in the US earlier this year.

However, Munoz said that while the hybrids-first strategy may have worked out in the US and Europe, it has created problems for Japanese automakers in China, leaving them without a strong lineup of EVs that can compete with local offerings that can cost less than $10,000.

"China is definitely shifting to fully electric. And this leaves out all of the car makers that are not competitive with their electric cars," said Munoz.

He added that Toyota, Honda, and Nissan are at risk of becoming overly dependent on US and European markets, which are experiencing stagnating growth while losing out in expanding markets like China.

"At the end of the day, the hybrid strategy worked in Japan, worked in the US, and worked very well in Europe, but that's not the case in China," he added.

There are signs that Japan's auto giants are changing their strategies.

Nissan has pledged to accelerate the introduction of new EVs in China and hybrids in the US, while Toyota is reportedly planning to expand production in China as it attempts to take on local firms.

A Nissan spokesperson told BI that the company is taking measures to meet the market's and customers' needs, including introducing new products.

They added that the US remains a priority market for Nissan, and that the company was expecting an increase in sales from new models.

Shares of the carmaker jumped after news of the potential merger with Honda broke, rising as much as 24% in early trading on Wednesday. Nissan's shares are down nearly 25% this year.

Japanese automakers will likely face new challenges in the coming years, especially in the wake of Donald Trump winning the US presidential election.

Speaking on an earnings call in November, Honda executive vice president Shinji Aoyama warned that Trump's proposed tariffs on vehicles imported from Mexico could have a huge impact on Japanese automakers, many of whom have factories in the country.

Honda did not respond to a request for comment, sent outside normal working hours.

• The European Union has finalized plans to build a satellite network to rival Elon Musk's Starlink.
• The $11 billion Iris² network aims to provide high-speed internet to remote locations in Europe.
• Musk has frequently clashed with European politicians and has faced scrutiny over Starlink's role in Ukraine.

Elon Musk's Starlink could have a new rival after the European Union confirmed it will join the race to provide high-speed internet to remote locations.

The EU said Monday it had finalized plans to build a €10.6 billion ($11.1 billion) satellite network that will take on SpaceX's Starlink. The bloc said the Iris² satellite constellation will include 290 satellites in low and medium-Earth orbit, with the service expected to be up and running by 2030.

European politicians have previously expressed concerns about the dangers of becoming overly reliant on Starlink.

SpaceX's satellite internet service has around 7,000 satellites in orbit, according to expert estimates, and has seen traffic surge in recent years as it has expanded its operations to over 100 countries.

Starlink has also played a vital role in the war in Ukraine, with Ukrainian military forces relying on the service for military communications.

That reliance has caused tensions with SpaceX's billionaire owner. In September 2023, Musk said he had denied a request to activate Starlink in Crimea, thwarting an attack on Russia's Black Sea fleet.

Musk has also frequently clashed with European regulators, who have launched proceedings against his social media platform, X, over the platform's blue checkmark system, which the EU says is misleading.

Europe has also been trying to cut its dependence on SpaceX's rockets with the Ariane 6, a reusable rocket that rivals SpaceX's Falcon 9 and had a successful first flight in July.

The EU is not the only one building their own Starlink rival. Amazon is working on its own network of internet-providing satellites, called Project Kuiper, with the first satellites expected to be deployed next year.

• SpaceX is petitioning local authorities to incorporate its "Starbase" launch site as a city.
• The Texas facility has been the site of some of SpaceX's most ambitious launches, including the recent Starship rocket catch.
• Elon Musk said Starbase will also be SpaceX's new HQ, after he moved the rocket firm out of California earlier this year.

Elon Musk wants to build a city on Mars — but for now, he may have to make do with one in Texas.

SpaceX has submitted a petition requesting an election on incorporating the company's Starbase launch site as a city, according to a letter sent to local officials on Thursday.

The sprawling rocket facility near Boca Chica, Texas, has been a hub for SpaceX's rocket production since 2014.

Starbase has been the site of some of the company's most high-profile launches, including the recent Starship test flight, which saw SpaceX catch the spacecraft's booster rocket with giant "mechazilla" robot arms.

Musk has been floating the idea of turning the launch site into a city for several years, with SpaceX first approaching officials in Cameron County, Texas, about the plan in 2021.

Holding an election to incorporate Starbase is the next step. In the letter to local officials, Starbase general manager Kathryn Lueders wrote that the goal of the site was to make South Texas "a gateway to Mars."

She said thousands of SpaceX employees work at the launch facility, with several hundred living on-site.

Reposting the letter on X, SpaceX founder Elon Musk said the "city of Starbase" will also be the site of the company's new headquarters.

Musk announced in July that he would officially move the HQs of SpaceX and his social media site X from California to Texas.

The billionaire said the move was in response to a California law prohibiting rules requiring teachers to notify parents if a child changes their name, pronouns, or gender identity at school.

Musk has also frequently clashed with local regulators. SpaceX sued the California Coastal Commission after members criticized his political views and denied a request to increase the number of launches in the state.

SpaceX did not respond to a request for comment, sent outside normal working hours.

• Tesla's director of engineering for Autopilot has left the company for robotaxi rival Zoox.
• Zheng Gao becomes the latest senior employee to leave the automaker in a tumultuous year for Tesla.
• Elon Musk laid off over 10% of the company in April and is trying to pivot Tesla toward autonomous vehicles.

Tesla's executive exodus is showing no signs of slowing down.

Zheng Gao, Tesla's director of engineering for Autopilot hardware and an eight-year veteran at the Elon Musk-run automaker is departing for rival robotaxi builder Zoox, the Amazon-backed company announced on Wednesday.

Gao, who led hardware design for Tesla's Autopilot assisted-driving system, is the latest senior employee to leave the company.

Four of CEO Elon Musk's direct reports previously announced their departures the week before Musk unveiled Tesla's Cybercab robotaxi in a glitzy Los Angeles event.

Those departures included Tesla's global vehicle automation and safety policy lead, Marc Van Impe, and Chief Information Officer Nagesh Saldi.

Musk has lost at least eight of his direct reports at the company this year.

The billionaire has radically overhauled Tesla in 2024, cutting more than 10% of its global workforce in April.

Senior Vice President Drew Baglino and Rebecca Tinucci, the head of Tesla's supercharging division, left around the time of those layoffs.

The departures have come as Musk increasingly pivots the company toward autonomous vehicles.

The Tesla chief has said the automaker hopes to have fully self-driving vehicles on the road in California and Texas next year, and is planning to begin mass producing the self-driving Cybercab, which has no steering wheel or pedals, by 2027.

Experts have warned that Tesla faces an uphill struggle to make Musk's robotaxi dreams a reality, and the company faces competition from fellow robotaxi firms Waymo and Zoox.

Google-backed Waymo says its fleet of driverless Jaguar I-Paces is now doing 150,000 paid rides a week. At the same time, Zoox, which was acquired by Amazon for $1.2 billion in 2020, has begun rolling out its toaster-shaped robotaxi in San Francisco and Las Vegas.

Tesla did not respond to a request for comment, sent outside normal US working hours.

Do you work at Tesla or have any information to share? Get in touch with this reporter via email at [email protected].

• General Motors just pulled the plug on Cruise's robotaxi dreams.
• The self-driving venture has been in doubt since a pedestrian was seriously injured last year.
• GM's decision shows that time and money may not be enough when it comes to robotaxis.

General Motors' decision to pull the plug on Cruise shows that building a robotaxi business is hard, really expensive — and fraught with risk.

The automaker invested more than $10 billion in Cruise since taking control of the self-driving startup in 2016.

Along with Google-backed rival Waymo, Cruise moved quickly to get its fleet of driverless Chevrolet Bolt robotaxis on the road.

Both companies got the green light from regulators to operate their robotaxis as a ride-hailing service in San Francisco in August 2023. Just months later Cruise was banned from operating in California after one of its driverless cars seriously injured a pedestrian.

The incident prompted Cruise to recall its entire fleet of robotaxis. An investigation by California's justice department subsequently found Cruise had failed to disclose key details about the crash to regulators.

The company struggled to recover, while rival Waymo raced ahead. CEO Kyle Vogt resigned in November 2023, and Cruise laid off nearly a quarter of its staff a month later.

Cruise restarted testing its self-driving technology earlier this year, and even announced a partnership with Uber to offer robotaxi rides on the Uber app in August, but that wasn't enough to stop GM from pulling the plug.

CEO Mary Barra cited "the considerable time and expense required to scale a robotaxi business in an increasingly competitive market" on a call with analysts.

John McDermid, professor of software engineering at the University of York in the UK, said: "I think it's a recognition of how challenging it is and how hard it is to make money in the robotaxi business. Even if you can solve the technical problems, it's a tough place to be."

Saber Fallah, professor of safe AI and autonomy and director of the Connected Autonomous Vehicle Research Lab at the UK's Surrey University, told Business Insider that Cruise had moved too quickly in deploying its driverless robotaxis at scale in San Francisco.

He said the AI technology underlying robotaxis such as Cruise's and the regulatory processes for certifying driverless cars were not advanced enough to ensure they could handle the kind of complex scenarios often found in urban environments.

Rivals may have 'better tech'

Analysts at Bank of America said in a Wednesday note: "We believe GM's move also potentially implies that other companies (Tesla & Waymo) have better tech and/or that the market may not be appealing for later entrants. Waymo is already offering a robotaxi service across several US cities and Tesla plans to launch its service in 2025."

Waymo has been by far the most successful, with the robotaxi startup now offering 150,000 paid rides a week and planning to expand into a host of cities next year.

Waymo has also faced regulatory scrutiny. It issued two recalls this year after incidents in which its robotaxis collided with a towed pickup truck and a telephone pole.

Amazon-backed Zoox, which has begun rolling out its toaster-shaped robotaxis in San Francisco and Las Vegas, is also facing regulatory investigations over two crashes involving its self-driving tech and whether its steering wheel-less robotaxis comply with federal safety rules.

Tesla's Cybercab is on the horizon

Tesla, meanwhile, has perhaps the most ambitious plans of all. In October Elon Musk unveiled the "Cybercab," an autonomous robotaxi with no steering wheel or pedals, in October.

Musk said the $30,000 vehicle would enter production in 2027, and that Tesla owners would be able to operate a fleet of Cybercabs as their own ride-hailing business.

Tesla also plans to have unsupervised fully-autonomous Model 3 and Y vehicles on the road in California and Texas next year.

Experts previously told BI Musk's plan would face huge regulatory challenges, with the EV maker also facing a federal probe into its Full-Self Driving assisted driving system after a number of crashes.

Fallah said companies such as Tesla and Waymo looking to build robotaxi fleets were likely to face similar problems to Cruise.

"The idea of robotaxis that can be driven anywhere, anytime without human involvement is really more hype than reality," he said. "We need much more advanced AI in order to solve this problem."

Some industry players may be starting to agree. GM said it would switch its focus from robotaxis to advanced driver assistance systems that require driver supervision.

General Motors declined to comment.

• Starlink is booming and probably coming to a plane, cruise ship, or RV near you.
• Internet traffic from Elon Musk's satellite web service more than tripled in 2024, per Cloudflare data.
• Starlink has expanded to a host of new countries and struck deals with airlines and cruise providers.

Elon Musk's Starlink is taking over planes and cruise ships, and traffic is booming as a result.

Global internet traffic from SpaceX's satellite internet service more than tripled in 2024, according to data from IT service provider Cloudflare.

Starlink, which uses a network of thousands of low-orbit satellites to provide high-speed internet to areas with limited web access, has expanded rapidly over the past year.

The service has launched in a host of new countries, including Chad, Mongolia, and Argentina, and has also become increasingly visible on planes and cruises.

United Airlines announced in September it had struck a deal to begin offering free WiFi using Starlink on all its flights from next year after Hawaiian Airlines began offering free Starlink access earlier in 2024.

Qatar Airways also launched its Starlink service, which Business Insider's Pete Syme found offered impressively quick internet speeds when he tested it in October.

Several major cruise companies have begun offering Starlink on their ships, with Carnival Cruises announcing in May that all of its cruise liners are now equipped with Starlink.

SpaceX also launched a laptop-sized version of Starlink's satellite dish called Starlink Mini in June, with the company offering a mobile "Roam" package for RV users and van-life enthusiasts.

Cloudflare said Starlink has seen rapid growth in areas with "pent-up demand" for alternative internet services. Traffic in Georgia and Paraguay, where Starlink launched in November and December 2023, has increased by 100 and 900 times this year, respectively.

It marks a second consecutive year of rapid growth for Starlink. It also almost tripled traffic in 2023.

Starlink has become a key part of SpaceX's business, though it has occasionally entangled the rocket company and Elon Musk in political controversy.

SpaceX is reportedly in talks to sell shares in a deal that would value the NASA contractor at around $350 billion. This would make SpaceX one of the most valuable private companies on the planet and double its $175 billion valuation at the end of 2023.

• Rivian and Tesla are among the least reliable car brands, according to Consumer Reports' survey of 300,000 owners.
• Their drivers don't seem to mind, with both EV companies ranking highly for customer satisfaction.
• Tesla has faced scrutiny over vehicle reliability, with the Cybertruck being recalled six times this year.

Rivian and Tesla may not have the most reliable vehicles on the market — but their drivers don't care.

The two electric vehicle brands have some of the highest customer satisfaction despite being among the least reliable vehicle brands, according to Consumer Report's 2025 Automotive Report Card.

EV startup Rivian was ranked as the worst vehicle brand for reliability, while Tesla was voted the 6th least reliable of the 22 major brands surveyed.

Japanese brands Subaru, Lexus, and Toyota led the rankings, which are based on surveys of around 300,000 vehicle owners.

Percieved unreliability hasn't affected Tesla and Rivian owner's enjoyment of their vehicles, however.

86% of the Rivian owners surveyed by Consumer Reports said they would buy their Rivian EV again, giving it the highest owner satisfaction rating of any brand surveyed.

Tesla was not far behind, with 72% of owners saying they would buy their vehicle again.

The Elon Musk-run company has faced scrutiny over vehicle reliability in recent years.

Tesla's most recently launched vehicle, the Cybertruck, has been recalled six times in 2024.

The angular electric pickup, which Musk previously said would be "apocalypse-proof," has faced issues with its drive inverter, rearview camera, and famously large wiper.

In April, Tesla recalled almost 4,000 Cybertrucks over fears the accelerator pedal could become jammed at full throttle.

Consumer Reports found that conventional hybrids remain more reliable than EVs and plug-in hybrids, which had 42% and 70% more problems on average than combustion engine vehicles and hybrids, respectively, according to owners surveyed.

Rivian and Tesla did not respond to requests for comment from Business Insider, sent outside normal working hours.

• General Motors expects to take a hit of more than $5 billion on its struggling China business.
• The automaker said it would write down the value of its Chinese operations by as much as $2.9 billion.
• GM and other foreign automakers have been hit hard by the rise of Chinese rivals such as BYD.

General Motors is set to take a hit of more than $5 billion on its operations in China amid an onslaught of competition from local rivals.

The Detroit automaker said on Wednesday that it would write down the value of its joint venture with SAIC Motor by as much as $2.9 billion and incur a further $2.7 billion in charges as it looks to restructure the China business.

The restructuring costs would include charges for plant closures and portfolio optimization, the majority of which the automaker expects to record before the end of the year.

GM's Chinese operations lost $347 million in the first nine months of the year.

The company said in a statement: "We expect our results in China in 2025 to show year-over-year improvement as a result of the actions our SGM joint venture is taking to make the business sustainable and profitable."

Shares fell 1.3% in premarket trading, but the stock is up almost 50% this year.

The announcement has come as foreign automakers face rising pressure in China's brutally competitive auto market from local rivals. Sales for the likes of BYD are booming because of their affordable EV and hybrid options.

Conversely, European manufacturers such as BMW and Mercedes-Benz have reported slumping sales in recent months.

Japanese automakers such as Toyota and Nissan are also struggling to maintain market share in the world's largest auto market, with analysts previously telling Business Insider they were suffering because of an underwhelming lineup of EVs.

GM has tried to adjust its strategy in China as a result of the growing demand for EVs and hybrids.

Sales in China rose 14% in the third quarter of 2023, its best result since 2022, with CEO Mary Barra praising the success of Buick's GL8 plug-in hybrid luxury minivan.

Barra said in October that the number of companies selling EVs in China was driving an unsustainable price war.

• China's EV companies are turning to hybrids, which are becoming increasingly popular with drivers.
• Tesla rivals such as Zeekr plan to launch their first hybrid models.
• Hybrids could help them avoid European tariffs on Chinese EVs.

China's Tesla rivals have a new trick up their sleeve: hybrids.

China is the world's largest electric vehicle market in terms of sales. But many of its battery-powered pioneers are now turning to hybrids and extended-range vehicles as they vie for a slice of a highly competitive market and expand overseas.

Xpeng, which rivals Tesla in EVs and humanoid robots, recently unveiled its Kunpeng Super Electric System, a new powertrain system that Xpeng says will allow future vehicles to travel 1,400 kilometers (870 miles) without stopping to charge or refuel. It's unclear when it will launch new models with this technology, though its first hybrid model could arrive early next year.

Rival Zeekr also plans to release its first hybrid, an SUV, in the second half of 2025.

There's a reason these companies are abandoning their all-electric strategy: hybrids and extended-range vehicles are becoming increasingly popular in China — and could make it easier for Chinese EV makers to dodge tariffs overseas.

Hybrids are having a moment

BYD, China's largest EV maker, has reported booming growth in recent months, largely due to its hybrid lineup.

Its hybrid sales jumped were almost 70% higher in November compared with the same month last year. BYD says its latest hybrids can go up to 1,250 miles without stopping for gas or charging.

Tu Le, managing director of consultancy Sino Auto Insights, told Business Insider that China was now "well past the first movers" when it comes to battery electric vehicles.

That has led EV companies to increasingly target customers with limited access to charging infrastructure who may be more skeptical of pure battery-powered vehicles. "There's a huge market for those people," Le said.

He added that diversifying into hybrids made financial sense for EV startups still searching for profits, as hybrids and extended-range vehicles are generally cheaper to produce than battery electric equivalents due to their smaller batteries.

Despite delivering record numbers of cars in recent months, Xpeng, Zeekr, and Nio continue to rack up heavy losses amid a bruising price war in China's cut-throat EV market.

Above all, Le said the likes of Xpeng and Zeekr did not want to miss out on the booming popularity of hybrids.

"They've seen the success BYD has had. BYD basically gives you a full menu — they have offerings at $10,000, $15,000, $30,000 on battery electric or hybrid. That's a compelling reason to buy a BYD," he said.

Overseas ambitions

There are other advantages to selling hybrids, especially for Chinese manufacturers with one eye on overseas expansion.

BYD, Xpeng, Nio, and Zeekr are all seeking to grow beyond the pressure cooker of China's brutally competitive EV market by selling new models and setting up factories in foreign markets.

This expansion push has increasingly encountered hurdles as Western nations have imposed trade protections to protect their auto industries from a wave of cheap Chinese EVs.

The European Union followed in the footsteps of the US by finalizing steep tariffs on imported Chinese electric vehicles in October, with some manufacturers facing a maximum tariff of 35.3% on top of an existing 10% levy.

The new EU tariffs, however, do not apply to hybrids, giving China's EV upstarts a crucial opening.

BYD is already looking to take advantage, with president Stella Li telling Autocar the company was planning to launch three hybrid models in Europe next year alongside three battery EVs.

Fellow EV maker Nio, meanwhile, is reportedly developing its first hybrid model exclusively for the overseas market.

Auto experts have said that European tariffs could ultimately boost imports of plug-in hybrids. S&P Global Mobility analyst Ian Fletcher recently wrote that Chinese automakers are likely to replace some pure EVs in Europe with more hybrids and petrol vehicles.

"I think BYD is going to go to town on the lack of a higher tariff on plug-in hybrids in Europe," said Le. "And the Europeans are going to eat up plug-in hybrids, full stop."

BYD, Zeekr, and Nio did not respond to requests for comment from Business Insider.

• DOGE is set to examine multibillion-dollar federal loans to two Tesla rivals.
• Vivek Ramaswamy said the cost-cutting body would "carefully scrutinize" loans to Stellantis and Rivian.
• There are concerns Musk may use his role to interfere with his companies' rivals, and regulators.

Vivek Ramaswamy said DOGE would investigate a federal loan worth about $7.5 billion to a Tesla rival.

The Biden administration said Monday it would help finance two battery factories in Indiana being built in a joint venture involving the Jeep owner Stellantis and Samsung.

The announcement provoked a furious reaction from one of the incoming Trump administration's chief cost-cutting advisors.

Vivek Ramaswamy, who was tapped to lead the Department of Government Efficiency alongside Tesla CEO Elon Musk, called the Stellantis loan "illegitimate" and said it should be rescinded.

The former Republican presidential candidate, who has been one of Donald Trump's most vocal supporters, also criticized a $6.6 billion loan to help finance a Rivian electric-vehicle plant in Georgia, which was announced last week.

"DOGE will carefully scrutinize every one of these questionable 11th-hour transactions, starting on Jan 20," he wrote on X.

Announcing the loan, the Department of Energy said the Stellantis-Samsung factories would support up to 2,800 jobs once operational and hire 3,200 workers during construction.

Ramaswamy's comments will likely add to fears that Musk, who runs companies including Tesla and SpaceX, could use DOGE to interfere with rivals and regulators.

Rivian and Stellantis, which owns brands such as Dodge and Citroën, both compete with Tesla in the US market.

Musk has already signaled his support for cutting the $7,500 tax incentive for new EVs, a move The New York Times said the incoming Trump administration was considering.

The Tesla CEO and analysts have both said that scrapping the tax credit would disproportionally affect Tesla's rivals, including legacy automakers such as Ford and General Motors as well as EV startups like Rivian and Lucid.

Musk and Ramaswamy aim to cut about $2 trillion in government spending and slash the federal workforce through DOGE, which is planned to be an advisory group, not a government department.

DOGE and the Department of Energy did not immediately respond to requests for comment.

• BYD just smashed its annual delivery target a month ahead of schedule.
• The automaker has thrown down a gauntlet for Tesla, which faces a battle to beat 2023's record sales.
• Tesla and its Chinese rival are locked in a battle to become the world's largest EV company.

BYD and Tesla are locked in a fierce battle to become the world's biggest EV company — and the Chinese automaker has just landed a major blow.

BYD has surpassed its annual sales target a month ahead of schedule, throwing down a gauntlet for Tesla as Elon Musk's company scrambles to meet its own annual goal.

The Chinese EV giant delivered 504,000 passenger vehicles in November, according to figures released on Sunday.

BYD has now sold over 3.7 million cars this year, meaning it has smashed its annual target of 3.6 million sales with a month to go.

Its sales have taken off in recent months, with the automaker selling half a million cars in October and November.

The company has benefited from the booming popularity of its hybrid vehicles.

Sales of plug-in hybrids have risen nearly 70% this year from 2023, with BYD releasing new technology over the summer that it says allows its latest hybrids to go up to 1,250 miles without stopping for gas or charging.

BYD's success has heaped the pressure on Tesla, which has been fighting the Chinese company for the title of the world's largest EV producer.

CEO Elon Musk has said he expects Tesla to sell more than the record 1.8 million vehicles it sold last year in 2024.

However, the US carmaker will need a record quarter in Q4 to do that. Tesla has sold 1.29 million cars so far this year.

Tesla is fighting hard to meet that lofty goal, offering a string of end-of-year deals, including free Supercharging and Full Self-Driving trials to US customers.

Tesla's sales in China have struggled in recent months, however. The company is facing brutal competition not just from BYD but also from EV startups such as Zeekr and Nio, which both registered record deliveries in Q3.

While Tesla, which doesn't sell hybrids, has no chance of matching BYD's total vehicle sales, the race to sell the most EVs is still on. BYD has sold 1.56 million battery-electric vehicles this year so far.

• Stellantis is facing more upheaval after CEO Carlos Tavares resigned on Sunday.
• The Jeep and Chrysler owner is battling sliding sales and fierce competition from Chinese rivals.
• Analysts say Stellantis' problems are unlikely to be solved anytime soon.

The owner of Jeep and Chrysler is facing further upheaval after its CEO departed on Sunday.

Shares in Stellantis fell by almost 9% in Milan on Monday after Carlos Tavares, who had been due to step down in 2026, announced he would leave immediately. The stock has now fallen 45% this year, valuing the company at about $36 billion — $8 billion less than Ford.

Tavares has had a bumpy ride at the head of the company that owns brands such as Jeep, Chrysler, and RAM as well as European carmakers Fiat and Peugeot — and analysts warned his exit was unlikely to solve any of Stellantis' many problems.

"Although not a surprise, the early and immediate departure of CEO Carlos Tavares leaves the group without leadership at a time of critical decisions on brand management to reverse market share loss and excess industrial capacity in Europe and North America," wrote Jeffries analysts in a note on Monday.

Here are some of the many speed bumps facing whoever succeeds Tavares in one of the auto industry's toughest jobs:

1. US model range

Stellantis' US sales have plummeted in recent months, and dealers previously told Business Insider that a lack of affordable models was affecting sales of Jeep and Ram vehicles.

Tavares trimmed product lineups at Stellantis' US brands during his time as CEO, but the decision to discontinue so many models appears to have left the company out of step with consumer demand.

Jeep, Chrysler, and Ram all have an oversupply problem, with the three brands having more than 100 days of supply at the end of summer compared to the industry average of 77, according to Cox automotive data.

2. Union battles

Stellantis is facing an ongoing battle with the powerful United Auto Workers (UAW).

The union has threatened to walk out over a scaling-back of product commitments it says breaches the 2023 contract struck with management after a historic strike.

Stellantis has filed its own legal action against the UAW, accusing it of violating that contract with votes to authorize strikes.

The union welcomed Tavares' resignation, with president Shawn Fain criticizing the Portuguese executive's "reckless mismanagement" of the company in comments to The Detroit Free Press.

3. Competition from China

Like its rivals, Stellantis is under pressure from a wave of affordable Chinese EVs.

Speaking at an event on the sidelines of the Paris auto show in October, Tavares said the likes of BYD could produce EVs for about a third of the cost of their European rivals, and described competing with them as a "matter of survival."

Stellantis has partnered with China's Leapmotor to sell EVs outside China, but the company will still face stiff competition from Chinese upstarts eyeing expansion in Europe.

4. Stuttering EV sales in Europe

Stellantis sales are in free fall on both sides of the Atlantic, with Europe down 17% in the third quarter compared with last year.

It's been hit by slowing EV sales in Europe, with a lack of affordable models and the end of subsidy programs in markets such as Germany affecting demand.

Stellantis is suspending production at a factory in Italy as a result, and the company also announced it would shut down a factory in the UK amid concern over EV sales targets in Britain.

5. Trump tariffs

Trump's election victory poses peril for automakers in the US and abroad, and Stellantis is no exception.

The president-elect has floated tariffs on European companies that could affect Stellantis' European brands.

Trump has also said he will impose blanket 25% tariffs on all goods imported from Mexico and Canada.

Such charges could have a huge impact on Stellantis, which has about a third of its full-size pickup truck production in Mexico, according to Morningstar analyst David Whiston.

Stellantis did not immediately respond to a request for comment from Business Insider.

• The Biden administration said in 2021 it would invest $7.5 billion in building a national EV-charging network.
• Officials are now racing to approve the next round of funding before Donald Trump takes office.
• Trump has vowed to crack down on government spending and roll back support for EVs.

The Biden administration is racing to approve funding for the US EV charging network before Trump takes office.

The government announced it would invest $7.5 billion toward charging infrastructure in 2021, with the aim of building 500,000 electric vehicle chargers by 2030.

The money is distributed through two programs: the National Electric Vehicle Infrastructure (NEVI) program, which apportions $5 billion out to individual states over five years to deploy EV chargers initially on highways, and the $2.5 billion Charging and Fueling Infrastructure (CFI) grant program.

Those programs are now under threat, however, with the incoming president, Donald Trump, blasting the government's EV charger rollout and vowing to scrap incentives to promote the adoption of electric vehicles as president,

A spokesperson for the Department of Transportation told Business Insider that $2.4 billion of the funding for the NEVI program had been approved so far.

As of late November, 37 states had received approval for a third round of funding under the program, the department said, unlocking an additional $586 million for the 2025 fiscal year.

Funds for the additional 13 states plus DC and Puerto Rico are expected to be approved before the end of the year.

Kelsey Blongewicz, a policy analyst at Atlas Public Policy, told Business Insider that if those funds are released before Trump takes office on January 20th, as they have been in previous years, then it is unlikely the new administration could revoke them.

"If that funding is released before then, in theory, it is safe," Blongewicz said.

"It would be not impossible, but very hard for the new administration to claw that back," she added.

The clock is ticking

If the funding is approved, an estimated $3.3 billion of the total pot for the NEVI program will be committed, according to a Department of Transportation breakdown, effectively putting it beyond the reach of the Trump administration.

The Biden administration has also awarded over $1.3 billion of the $2.5 billion in funding for the CFI program so far, according to the Department of Transportation, with bidding for another $779 million in grants currently open.

Blongewicz said that the new administration will likely be able to take steps to slow down or frustrate the rollout of those remaining funds, especially for the competitive grants of the CFI program.

Scrapping both programs entirely would require congressional approval, however. NEVI is an advanced appropriations budget authority that can only be undone by Congress.

It seems likely that the incoming administration may still try to claw back some of the already approved funds.

Vivek Ramaswamy, who along with Elon Musk is set to head a Department of Government Efficiency that will scrutinize government spending, said officials were approving funding and new regulations "to get ahead" of January 20th on Wednesday.

"All midnight-hour expenditures & new regulations will get special scrutiny and should be rescinded where appropriate," he wrote in a post on X in late November.

A patchwork solution

The NEVI and CFI programs, introduced as part of the $1.2 trillion Bipartisan Infrastructure Law in 2021, were key pillars of the Biden administration's plan to build a national network of EV chargers.

Despite being announced with much fanfare, that rollout has been criticized for proceeding slowly.

The DoT says that over 24,700 federally funded chargers are "underway" across the country, but only 31 NEVI-funded charging station sites are currently operational, according to the program's latest quarterly update.

A DoT spokesperson said the department expects to have hundreds of federally funded chargers operational this year, with thousands more coming in 2025.

That push could be put at risk under Trump. The president-elect has vowed to cut back government support for electric vehicles and is reportedly set to scrap a $7,500 tax credit for new US-built EVs.

Blongewicz said the loss of federal support would be a blow to the development of a national EV charging network, and EV charging startup executives told BI the question marks over funding were already fuelling uncertainty in the industry.

"We had this big, clear framework, and that is all going to go down now," Tiya Gordon, cofounder and COO of Brooklyn-based urban charging startup ItsElectric, told BI.

"A lot of the funds that have already been awarded are protected and out there in the world. With the other funding that has yet to be deployed, there is definitely a lack of clarity right now in terms of what can happen," she added.

Carter Li, CEO and cofounder of EV charging startup SWTCH, said that it was likely that much of the initiative for building America's charging network would move to the states.

"I suspect that if there is a drop in terms of federal incentive dollars, we will potentially see a pickup at state level. That's something we saw in the last Trump administration as well," he said.

Some states have already pledged to replicate EV subsidy schemes that could be ditched under Trump, with California governor Gavin Newsom suggesting the state will revive its own EV-buyer credit if the incoming president scraps the $7,500 subsidy.

That raises the prospect that Americans will have to deal with a fragmented landscape when it comes to buying and charging their EVs, which could put consumers off from going electric.

"Adoption of electric vehicles will slow because of the fact that there's be conflicting messages that are happening on a government level versus on a business or a consumer level," said Gordon.

"We're going to have a more state-by-state solution rather than a national solution," she added.

• Elon Musk and Donald Trump have been inseparable since the election and spent Thanksgiving together.
• The Tesla CEO joined the Trump family at a star-studded dinner at Mar-a-Lago in Florida.
• Sylvester Stallone also attended, and Mark Zuckerberg visited Trump's resort on Wednesday.

Elon Musk and Donald Trump have been inseparable since the latter's election victory — and the Tesla CEO was one of several celebrity guests for Thanksgiving at Mar-a-Lago.

Videos circulating on social media showed Musk, who has been regularly spotted at Trump's resort base and is reported to be playing a role in selecting the incoming president's cabinet picks, attending the event alongside his mother, Maye, and the actor Sylvester Stallone.

Musk posted on X that he discussed Stallone's 1993 film "Demolition Man" with the actor, as well as taking part in a rendition of "YMCA," a staple at Trump's campaign rallies.

Musk has been tapped by Trump to help run a "Department of Government Efficiency" in his incoming administration after donating at least $119 million toward Trump's election campaign.

Along with his fellow DOGE head, Vivek Ramaswamy, Musk has floated mass layoffs of federal workers and suggested the new administration should "delete" a federal agency set up to help prevent another financial crisis.

The billionaire and his mother dined with Trump's family members, including his wife, Melania, and youngest son, Barron.

Musk isn't the only tech boss to be spending time at Mar-a-Lago this Thanksgiving.

Meta CEO Mark Zuckerberg dined with Trump on Thanksgiving eve, the company told Business Insider in a statement.

The Facebook cofounder doesn't appear to have made any mention of the visit on his own social-media platform Threads.

Zuckerberg has had a rocky relationship with Trump, who threatened to jail Zuckerberg earlier this year if he was reelected.

The Meta chief previously described Trump's reaction to an assassination attempt in July as "badass" and congratulated the former president on his "decisive victory" after the election.

• The Biden administration is set to loan Rivian $6.6 billion to finish an EV factory in Georgia.
• Vivek Ramaswamy criticized the move as a "political shot across the bow" at fellow DOGE boss Elon Musk.
• President-elect Donald Trump has tapped Musk and Ramaswamy to help cut government spending.

Rivian secured a vital loan from the outgoing Biden administration — and one of the leaders of DOGE isn't happy about it.

The Tesla rival was granted a $6.6 billion loan from the Department of Energy to restart construction of a stalled electric vehicle factory in Georgia, which the government said would create 7,500 jobs by 2030.

Vivek Ramaswamy, who is set to lead the "Department of Government Efficiency" along with Elon Musk in the second Trump administration, criticized the loan in a post on X.

"One 'justification' is the 7,500 jobs it creates, but that implies a cost of $880k/job which is insane," wrote Ramaswamy. "This smells more like a political shot across the bow at Elon Musk and Tesla."

A Department of Energy spokesperson said the Advanced Technology Vehicles Manufacturing Loan Program, which the Rivian deal is part of, reinforced America's position as a global automotive powerhouse.

They said the program also loaned $465 million to Tesla in 2010, which the company repaid early, as evidence of its success.

Musk and Ramaswamy have said they aim to cut about $2 trillion in government spending and slash the federal workforce through DOGE, which will not be an official government department.

The pair's mandate to "slash excess regulations" has raised fears that Musk may be tasked with shaking up regulatory agencies that oversee and have frequently clashed with his companies.

The Biden administration has attempted to boost electric vehicle adoption with a series of policies in recent years. They include tax incentives of up to $7,500 for new EVs made in the US, and $7.5 billion in federal grants to build hundreds of thousands of EV chargers by 2030.

Much of that spending is expected to be rolled back under Trump.

The new administration is reportedly set to scrap the $7,500 tax credit, a move that economist Felix Tintelnott told Business Insider could lower EV sales in the US by up to 27% in the short to medium term.

The Biden administration is also attempting to finalize funding for infrastructure and the US microchip industry before its term ends. , The Commerce Department said on Tuesday that Intel will receive about $7.9 billion in federal grants under the CHIPS Act.

Ramaswamy warned that DOGE will attempt to scrutinize these grants too, criticizing them as "11th-hour gambits" in another X post.

The Department of Energy did not respond to a request for comment from Business Insider.

• Nissan is facing a fight to turn around its ailing business after sales and profits plunged.
• Trump's proposed tariffs on Mexico could make that difficult.
• Nearly one in four Nissan vehicles were made in Mexico last month, the company said on Thursday.

Nissan has had a tough 2024, and proposed tariffs from the incoming Trump administration are yet another obstacle to its turnaround plans.

The Japanese automaker has slashed its workforce as sales and profits have plunged amid growing competition from Chinese rivals, and its latest production figures for October make for particularly difficult reading.

Figures released on Thursday showed that vehicle production has dropped dramatically in all of Nissan's major markets this year except Mexico, where it rose nearly 10% compared to 2023. Overall, global production was down 7.1% in the first 10 months of 2024 compared to the previous year.

Nearly one in four Nissan vehicles made globally last month were built in Mexico, meaning the Japanese manufacturer is highly exposed to the tariffs proposed by incoming US president Donald Trump.

The president-elect has said he would impose blanket import taxes of 25% on all goods entering the US from Mexico and Canada on his first day in office and floated the idea of imposing 200% tariffs on vehicles imported from Mexico on the campaign trail.

Experts previously told Business Insider that any tariffs on trade with Mexico would have a dire impact on the US auto industry and likely increase vehicle prices.

Nissan would be one of the automakers worst-hit by the tariffs. The company has four production sites in Mexico, where it makes models including the Sentra, Versa, and Kicks.

Nissan's global sales in October were down nearly 2.7% from the previous year. The carmaker recorded double-digit drops in both China and Europe but saw sales rise in the US for the first time in three months.

The looming threat of tariffs adds to Nissan's considerable list of problems.

The automaker announced earlier this month that it would cut 9,000 jobs and 20% of its manufacturing capacity. Profit for the quarter ending in September fell to around $210 million, down from $1.4 billion over the same period last year.

Nissan is reportedly searching for extra investors after European partner Renault sold some of its holdings. A senior official close to the company told The Financial Times that Nissan has "12 or 14 months to survive."

Japan's automakers face a reckoning

Along with rivals Honda and Toyota, Nissan has come under pressure from Chinese automakers. These companies are eating into Nissan's market share in China with affordable EVs and rapidly expanding into developing markets dominated by Japanese companies.

Toyota, Honda, and Nissan are also facing a reckoning over their handling of the transition to electric vehicles. The three automakers have prioritized hybrids over pure battery-electric vehicles, a strategy that has boosted sales in the US but left them lagging behind local rivals like BYD in China.

"At the end of the day, the hybrid strategy worked in Japan, worked in the US, and worked very well in Europe, but that's not the case in China," analyst Felipe Munoz previously told Business Insider.

Nissan did not immediately respond to a request for comment from Business Insider, sent outside normal working hours.