From Tesla’s ambitious push into self-driving robotaxis to SpaceX’s crucial NASA missions, and even the future of Musk’s social media platform, X, the fallout depends largely on how far Trump wants to take this grudge match.

Tesla’s Robotaxi Dream Hangs in the Balance

Tesla was gearing up for a big moment: testing its driverless taxis in Austin, Texas — a potential game-changer as sales of its electric vehicles falter in some markets. But Trump could throw a wrench in the works by pushing federal safety regulators to scrutinize Tesla’s robotaxis more aggressively.

In fact, even before tensions flared, the National Highway Traffic Safety Administration (NHTSA) was already probing how Tesla’s self-driving cars handle tricky, low-visibility conditions. This follows a major investigation last year into over 2 million Teslas after several crashes — including a fatal pedestrian accident.

A NHTSA spokesperson says the probe is ongoing and that the agency will “take any necessary actions to protect road safety.”

The Department of Justice has also investigated Tesla’s safety record, though details remain murky.

Tesla’s stock had jumped 50% in anticipation of the robotaxi rollout, but the Trump-Musk feud sent shares tumbling over 14% on Thursday — recovering only slightly the next day.

Morningstar analyst Seth Goldstein summed it up: “Tesla’s recent rise was almost entirely driven by robotaxi enthusiasm. Elon’s feud with Trump could be a negative.”

The Carbon Credit Blow

One lesser-known but vital part of Tesla’s business is selling carbon credits — regulatory allowances that help other automakers meet environmental standards. This side hustle raked in nearly $600 million in the first quarter alone.

But Republican senators, aligned with Trump, inserted language into a budget bill that could eliminate penalties on gas-guzzling cars, potentially undercutting Tesla’s lucrative carbon credit sales.

Musk has downplayed the importance of this business, but such changes could hurt Tesla as it already faces boycotts from environmentally conscious buyers put off by Musk’s political leanings.

Sales Slump and a Shaky Comeback

Musk’s political flirtations with Trump have cost Tesla dearly among the green-minded, who once championed the electric car revolution. While distancing himself from Trump might bring some buyers back, it’s far from guaranteed.

Earlier this year, some analysts hoped Tesla might gain traction in conservative areas, but recent developments have dimmed that outlook.

TD Cowen analyst Itay Michaeli put it plainly: “There are more questions than answers. It’s too early to tell the lasting impact.”

Michaeli recently downgraded Tesla’s stock target from $388 to $330. Tesla shares hovered around $300 as of Friday.

SpaceX Faces Threats to Vital Government Contracts

The feud isn’t just about cars. Trump has openly threatened to cut government contracts to SpaceX, Musk’s private rocket company — a move that could cripple a firm valued at roughly $350 billion.

SpaceX is critical to NASA, ferrying astronauts to the International Space Station with its Dragon capsules and preparing for a moon mission next year.

If SpaceX falters, the U.S. risks relying again on Russian Soyuz capsules for space travel — a politically and strategically sensitive fallback.

Musk fired back with a dramatic threat to retire the Dragon spacecraft but later softened his stance, leaving many unsure how serious he was.

Starlink’s Future Could Shift Too

SpaceX’s satellite internet service, Starlink, has recently scored international deals, some possibly boosted by Musk’s once-close ties to Trump. For example, Saudi Arabia approved Starlink services during a recent Middle East trip with Trump, and India just granted a key license, opening access to millions without internet.

It’s unclear how much politics influenced these wins, and how much pure business.

Advertisers on X: Back and Forth

After a mass advertiser exodus from Musk’s social platform X — driven by concerns over conspiracy theories and content moderation — many big brands started creeping back, wary of a conservative backlash if they stayed away.

Musk called the boycott “illegal” and sued advertisers, while the Trump administration pushed for an FTC investigation into possible coordination among them.

But now, with Trump’s souring relationship with Musk, advertisers might again see X as too politically risky.

Cornell political scientist Sarah Kreps cautions: “The risk of a new exodus depends heavily on how the conflict unfolds, how long it lasts, and how it ends.”

What’s Next?

The Musk-Trump showdown is far from over — and its ripple effects could reshape key industries from electric vehicles and space exploration to global internet access and social media.

For Elon Musk, the price of this feud could run into the billions, but for the U.S. and its technological future, the risks are just as profound.

Source: AP News – Musk could lose billions of dollars depending on how spat with Trump unfolds

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According to the European Automobile Manufacturers’ Association (ACEA), Tesla sold just 7,261 vehicles in 32 European countries in April, down from 14,228 in the same month last year. Meanwhile, sales of battery-electric vehicles from all other manufacturers surged by about 28%. Gasoline and diesel car sales continued to decline, highlighting the shift toward electric cars—but Tesla isn’t benefiting.

This trend confirms earlier reports from countries like Sweden, the Netherlands, and Denmark, where Tesla sales had already shown a steep decline earlier this month.

What’s Driving Tesla’s Decline?

Tesla’s falling numbers aren’t just about politics. While Musk’s outspoken views have sparked protests and boycotts, the company faces several other challenges:

• Aging Model Lineup: Tesla’s current vehicles are getting older, and competitors are catching up with fresh, appealing designs.
• Rising Competition: Chinese electric vehicle brands, known for affordable prices, are gaining ground fast. For example, SAIC—owner of UK-based MG with its low-cost EV models—saw a 54% sales jump in Europe last month.
• Factory Shutdowns: Tesla paused production at its factories for several weeks this year to upgrade its popular Model Y SUV, limiting supply and hurting sales.
• Trade Tensions: The ongoing U.S.-EU trade tensions, including threats from former President Trump to impose hefty tariffs on European goods, have soured European consumers on American brands.

Tesla’s Overall European Performance

Looking at the first four months of 2025, Tesla’s European sales are down roughly 39%, totaling around 61,320 vehicles sold. In contrast, Europe’s overall auto market remained mostly steady, showing little change during the same period.

Interestingly, despite the economic uncertainty worldwide, overall car sales in the European Union nudged up 1.3% in April compared to last year, indicating a market slowly recovering.

What This Means for Tesla

Tesla’s deep sales slump in Europe suggests the company is losing its grip on a critical market. The growing backlash against Elon Musk’s political stances, combined with stiff competition and production challenges, is driving customers toward other brands.

While the European electric car market continues to expand, Tesla’s struggle shows that even a market leader can face significant hurdles when public opinion shifts and competitors innovate.

Source: AP News – Tesla’s monthly sales in Europe plunge by half, signaling backlash against Musk runs deep

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From electric batteries that charge in just five minutes, to futuristic flying cars and highly advanced assisted driving technology, the event was a high-energy spectacle that captivated both crowds and live-streaming audiences. But this year, unlike previous shows dominated by legacy brands like GM, Volkswagen, and BMW, the spotlight belonged to China’s EV innovators.

One of the most talked-about moments at the show was the unveiling of the Denza Z, an electric sports car from BYD, China’s largest carmaker. Known for its “extreme performance” and “pure emotional design,” the Denza Z drew applause from the crowd, a testament to how far Chinese automakers have come. The excitement was palpable, with attendees cheering and shouting “We love you” in support of the cutting-edge EV.

Meanwhile, in another part of the exhibition, tech giant Xiaomi, traditionally known for smartphones and electronics, showcased its EV offerings. Nio, another Chinese powerhouse, revealed its luxurious ET9 sedan, which rivals top-tier European models like the BMW 7-Series and Porsche Panamera.

These reveals underscore a shift in the global automotive landscape. China, once seen as a producer of low-cost knock-offs, is now at the forefront of the rapidly expanding global EV market. And the world is taking notice.

The rise of China’s EV industry is especially significant given the ongoing U.S.-China trade war. President Trump’s tariffs on imported vehicles have created uncertainty for American automakers. However, Chinese EV makers are relatively insulated from this because they have already shifted their focus to international markets beyond the U.S. After all, China controls more than 60% of the global EV market, according to energy analytics firm Rho Motion.

While the U.S. pushes for a revival of its auto industry, China’s EV sector is gaining a significant competitive edge. With foreign automakers like Tesla, General Motors, and Volkswagen grappling with tariffs and trade restrictions, China’s electric carmakers are positioning themselves as global players.

The competition among Chinese EV makers is intense, driving rapid innovation. Just last month, BYD released a battery that could charge its cars in five minutes, providing 250 miles of range. But the company was quickly upstaged by Chinese battery giant CATL, which revealed a new battery capable of delivering 320 miles in the same time.

Tech firms like Huawei and Momenta are also pushing forward with advancements in intelligent driving technology, while BYD is adding more features to its cars, including its “God’s Eye” driver-assistance system at no extra charge. The speed at which China is innovating has taken even foreign companies by surprise.

As one industry veteran remarked, “We came back after the country reopened, and we immediately realized: Wow, China has changed so much.” This rapid pace of development is transforming the automotive landscape, with Chinese automakers now leading the charge in both technology and value for money.

Chinese consumers have become increasingly discerning, seeking out vehicles that offer not only cutting-edge technology but also affordability. The Shanghai Auto Show demonstrated this perfectly. Carmakers showcased cars equipped with luxurious features like heated seats, massage functions, and advanced entertainment systems—at a fraction of the cost of their foreign counterparts.

One American businessman attending the show was shocked to find a car with a moonroof, voice control, and ample legroom for just $20,000. “We were expecting a much higher price,” he said, highlighting the value Chinese automakers offer compared to their Western counterparts.

Despite the fierce competition, Chinese EV makers are not deterred. Many are looking to expand into global markets, with Chinese exports growing steadily. In the first quarter of this year, Chinese manufacturers exported 441,000 EVs, including hybrids—up more than 40% from the same period last year.

Foreign automakers, such as Volkswagen, are also recognizing China’s dominance in the EV sector. Volkswagen’s CEO, Ralf Brandstätter, emphasized the company’s “in China, for China” approach, ramping up its EV efforts and forging partnerships with Chinese tech firms to stay competitive in the market.

China’s automotive transformation has been nothing short of remarkable. Just two decades ago, China had little to no car culture. The country was known as the “kingdom of bicycles.” However, with rapid economic growth and the rise of a middle class, China became a key player in the global auto market. Today, half of all cars sold in China are electric or hybrid models, a far cry from just a few years ago.

This shift has been driven by a combination of government support, private investment, and visionary entrepreneurs like Wang Chuanfu, the founder of BYD. Since its early days in the 1990s, BYD has become a global force in the EV market, surpassing Tesla in 2024 to become the world’s largest EV maker in terms of sales.

China’s dominance in the EV sector is reshaping the global automotive industry. For the U.S. and other Western nations, this shift represents both a challenge and an opportunity. As Chinese automakers continue to innovate and expand their reach, foreign brands are scrambling to catch up. Partnerships with Chinese firms are becoming increasingly common, as companies look to tap into China’s growing tech and EV expertise.

But the ongoing trade tensions between the U.S. and China could make the future uncertain. As tariffs continue to increase, Chinese automakers may face additional hurdles when trying to enter Western markets. However, their ability to innovate rapidly and deliver high-quality, affordable vehicles positions them to thrive in an increasingly electric world.

The rise of China’s EV industry is not just a passing trend. It’s a seismic shift in the global automotive market, one that promises to reshape the way the world thinks about electric vehicles. With China’s focus on affordability, technological advancements, and global expansion, its EV sector is poised to dominate the future of transportation.

As China continues to lead the charge in the EV revolution, the question remains: Is the rest of the world ready to keep up?

Source: CNN – China’s electric vehicle industry is preparing to take on the world. Is America ready?

The post Shanghai Auto Show Reveals China’s Electric Future appeared first on Journos News - Breaking News, World News, Top Stories, Todays Headlines and Flash Reports.

Tesla’s latest earnings report sent shockwaves through investors, revealing a major slump in profits and sales — the worst the company has seen in years. At the center of the storm: Elon Musk’s controversial government role and a trade climate riddled with uncertainty.

But now, Musk says he’s coming home.

During Tuesday’s earnings call, Elon Musk announced he’ll be significantly cutting back on his time with the Department of Government Efficiency (DOGE) starting in May, devoting just “a day or two a week” to the role.

“Starting next month, my time allocation to DOGE will drop significantly,” Musk told investors, signaling a renewed focus on Tesla.

Musk defended his tenure at DOGE, saying his efforts to eliminate “waste and fraud” were necessary for the country’s long-term stability — and indirectly, for Tesla’s success.

“If the ship of America goes down, Tesla will go with it,” Musk said. “I think the right thing to do is fight the waste and fraud and try to get the country back on the right track.”

Tesla’s numbers painted a grim picture:

• Revenue down 9%
• Automotive revenue down 20%
• Adjusted income down 39%
• Net income plunged 71% year-over-year

Tesla also confirmed a massive sales decline, with 50,000 fewer vehicles delivered in Q1 — the largest drop in its history and the lowest quarterly sales in nearly three years.

This downturn comes after years of explosive growth that once propelled Tesla to become the world’s most valuable automaker.

Compounding the pain is growing trade uncertainty. Despite building its U.S. cars domestically, Tesla still relies on imported parts — leaving it exposed to the new tariffs imposed by the Trump administration.

“It is difficult to measure the impacts of shifting global trade policy,” the company said, acknowledging that it may need to revise its guidance if the trade war drags on.

Musk, while avoiding direct criticism of Trump, reiterated his stance: “Lower tariffs are a good idea for prosperity… I’ll continue to advocate for that.”

Musk’s political involvement hasn’t just made headlines — it’s also sparked protests, showroom vandalism, and backlash overseas. Critics have tied Tesla’s plummeting sales, particularly in Europe, to Musk’s alignment with far-right political parties and his high-profile DOGE role.

While Musk denied that his politics have damaged the brand, he offered no proof to support his claim that protesters were only upset because DOGE cut off their “fraudulent” income streams.

Despite the controversy, Musk insisted that the foundation of DOGE is now laid, allowing him to return his focus to Tesla.

Investors seemed encouraged — Tesla stock rose 4% in after-hours trading on the news of Musk’s return.

Musk shrugged off concerns about brand damage and said sales issues are tied more to broader economic woes than anything specific to Tesla.

“Absent from macro issues, we don’t see any reduction in demand,” he said, maintaining that the long-term outlook for Tesla remains strong.

He promised big things ahead, from autonomous robotaxis launching as soon as this spring to affordable new EV models “by the end of June.” But critics note that Tesla hasn’t shown any production capacity for those affordable models in 2025.

Musk also teased Tesla’s ongoing work in humanoid robotics and self-driving tech — areas where he has made big promises before, but little has materialized so far.

“This is a happy future,” Musk said. “A period of sustainable abundance for all.”

Even with Musk’s return, Tesla faces stiff headwinds. Competition in the EV space has never been fiercer — especially from Chinese giant BYD, which once again edged out Tesla in quarterly EV sales.

Tesla still leads in annual global sales, but that could change by 2025 if current trends continue.

China remains a crucial market — Tesla’s second-largest after the U.S. — but specific figures from China were noticeably absent in this week’s report.

Tesla shares have been on a wild ride. After doubling post-election on hopes of EV-friendly policies, the stock has now lost all of those gains — down 50% from its December peak.

With Musk stepping back from politics and vowing to double down on Tesla, investors are hopeful the company can stabilize and regain momentum. But with trade tensions simmering, political distractions lingering, and competitors gaining ground, the road ahead won’t be smooth.

Source: CNN – Tesla profits plunge as Musk promises he’s ready to step away from role at DOGE

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The two companies have signed a memorandum of understanding (MOU) and are working toward unifying their operations under a joint holding company. According to Honda’s president, Toshihiro Mibe, Honda will initially lead the new company, ensuring that both brands maintain their principles. The goal is to finalize the merger by June and have the holding company listed on the Tokyo Stock Exchange by August 2026. While the discussions are still in the early stages, Mibe cautioned that there are many points still to be addressed, and the possibility of the merger not going ahead is not out of the question.

A Response to Industry Pressures

The automotive sector is undergoing profound changes, and Japanese automakers, in particular, have been struggling to keep pace with their global competitors in the electric vehicle (EV) market. In addition to aiming for cost savings and operational efficiency, the merger will help the combined company compete against the likes of Toyota and Germany’s Volkswagen. Together, Honda, Nissan, and Mitsubishi could form a $50 billion behemoth with the scale needed to challenge these industry giants.

However, despite the potential for growth, Toyota—having sold 11.5 million vehicles in 2023—would remain the leader among Japanese automakers. The three companies, if merged, would collectively produce around 8 million vehicles annually. Honda produced 4 million vehicles in 2023, while Nissan’s output was 3.4 million, and Mitsubishi produced just over 1 million.

How Technology and Strategy Play a Role

The merger comes after months of collaboration between Honda, Nissan, and Mitsubishi. In August, they announced plans to share components, including batteries for electric vehicles, and jointly research autonomous driving technology. This cooperation follows a preliminary agreement between Honda and Nissan in March, as the companies work to adapt to electrification trends and meet the demands of a fast-evolving market.

Despite the promising collaboration, Nissan has been facing its own challenges. The company has struggled financially following the scandal surrounding former chairman Carlos Ghosn, who was arrested in late 2018 on charges of fraud and misuse of company assets. The company has been reshuffling its management to address these issues, and CEO Makoto Uchida recently took a significant pay cut to assume responsibility for Nissan’s financial troubles.

In November, Nissan announced it would be cutting 9,000 jobs—about 6% of its global workforce—and reducing global production capacity by 20%. This decision followed a quarterly loss of 9.3 billion yen ($61 million). Despite these setbacks, Nissan maintains a strong financial structure, with cash reserves of 1.44 trillion yen ($9.4 billion). This has led some analysts to view the company’s shares as a bargain, and on Monday, its stock gained 1.6%. After news of the merger broke, Nissan’s shares surged by over 20%.

What the Merger Could Mean for the Future

If the merger goes ahead, the collaboration could provide both Nissan and Honda with significant benefits. For Honda, Nissan’s expertise in truck-based SUVs, hybrid technology, and electric vehicles could be crucial in helping the company catch up with the industry’s electrification push. According to Sam Fiorani, vice president at AutoForecast Solutions, Honda could gain access to Nissan’s expertise in large SUVs, including the Armada and Infiniti QX80, models Honda currently lacks.

For Nissan, the merger could help strengthen its competitive position in the electric vehicle market. The combined company could also benefit from economies of scale and the ability to pool resources to address rising costs and market changes.

Industry Consolidation and Global Competition

The move toward consolidation reflects a broader trend in the automotive industry as companies strive to remain competitive in a market increasingly focused on storage batteries and software innovation. At a government briefing, Japan’s Cabinet Secretary Yoshimasa Hayashi emphasized that Japanese companies must adapt to these changes to stay competitive globally.

Though the merger is not guaranteed, both Honda and Nissan view it as a way to enhance their chances in the fast-changing auto market. If successful, the combined company will not only have a competitive edge in the EV sector but also become a force to be reckoned with in the global automotive landscape.

Source

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The investigation is looking into four accidents involving vehicles using the FSD feature. In one, a pedestrian was struck in killed, according to the agency. In another, there was an injury.

In each the accidents, the Tesla car using FSD “experienced a crash after entering an area of reduced roadway visibility….from conditions such as sun glare, fog, or airborne dust,” said the agency’s statement about the start of the probe.

FSD is at the center of Tesla’s plans for future growth and profitability. The feature, which is sold as an $8,000 option, requires drivers to stay in the driver’s seat and be ready to take control of the vehicle in order to avoid accidents. But Tesla and CEO Elon Musk insist the feature is already safer than human-controlled driving, and the company has announced plans for true self-driving cars that would come without steering wheels, accelerators or brake pedals.

Musk last week unveiled plans for a fleet of self-driving “robotaxis” and a service that allows Tesla owners to rent out their cars for a ride service in order to make money when they aren’t using their cars. But while Musk has insisted such offerings would enable Tesla to become the most valuable company in the world, investors were mostly unimpressed with the presentation, sending shares of Tesla down nearly 9% the day after the evening presentation.

This is not the first time that the NHTSA has announced it is investigating Tesla’s self-driving features. In February 2023 the agency ordered a recall to change the FSD software on all of the more than 360,000 Teslas then on US roads with the feature. It found FSD “led to an unreasonable risk to motor vehicle safety based on insufficient adherence to traffic safety laws.” And it warned that FSD could violate traffic laws at some intersections “before some drivers may intervene.”

“The FSD Beta system may allow the vehicle to act unsafe around intersections, such as traveling straight through an intersection while in a turn-only lane, entering a stop sign-controlled intersection without coming to a complete stop, or proceeding into an intersection during a steady yellow traffic signal without due caution,” said the recall notice, posted on NHTSA’s website.

In December it ordered another recall of all 2 million Teslas on US roads to make software changes to limit the use of a less robust suite of driver-assist features known as Autopilot, following a two-year probe by the agency of roughly 1,000 crashes in which the feature was engaged.

Source

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