If you’ve been following the news, you probably saw the headline: the U.S. is slapping 25% tariffs on all foreign-made cars and auto parts starting April 3rd. At first glance, many Tesla owners (and shareholders) saw this as a win. After all, Tesla builds its cars in the U.S.—what’s there to worry about?
But Elon Musk just stepped in to clarify: Tesla is not getting off easy.
In a post on X (formerly Twitter), Musk said the impact of these new tariffs is “significant” for Tesla—even though final vehicle assembly happens stateside.
“Important to note that Tesla is NOT unscathed here. The tariff impact on Tesla is still significant.” – @elonmusk, March 26, 2025
Wait, how does this affect Tesla?
Let’s break it down. Tesla may assemble vehicles in the U.S., but a big portion of the parts used in production still come from abroad:
Over 20% of parts come from Mexico (and will be subject to tariffs starting May 3rd unless something changes)
Components from China and Europe are now facing the full brunt of the 25% import tax
Tesla also produces much of its manufacturing equipment in Canada
So, while Tesla might dodge some of the pain compared to traditional automakers like GM and Ford (who assemble a lot of vehicles overseas), it’s still facing higher production costs. That means Tesla’s pricing—and possibly timelines for new models—could be impacted.
What does this mean for Tesla owners?
If you already own a Tesla, you’re not directly affected just yet. But if you’re thinking about upgrading, or if you’re keeping an eye on the used market, here’s what to consider:
Prices may go up: If the cost of parts rises, it’s likely Tesla will pass some of that cost along to buyers.
Supply chain slowdowns: The tariffs could make it harder (or more expensive) for Tesla to get certain components, potentially delaying service or new model launches.
Market volatility: Tesla stock jumped after the tariff announcement—likely because investors assumed Tesla had the home-field advantage. But now that the full picture is out, things could get bumpy again.
What about Canada?
Here’s another twist: in response to the tariffs, Canada just froze Tesla’s access to EV rebates and is holding back pending payments. This is likely political—Musk’s role in Trump’s new Department of Government Efficiency (DOGE) has made Tesla a target. As trade tensions rise, other countries might follow suit.
So, is there any upside?
In the short term, this is a mixed bag. While traditional automakers are scrambling, Tesla’s U.S. assembly operations give it a relative advantage. But in the bigger picture, tariffs introduce uncertainty, added cost, and global friction—all of which are bad news for a company with global supply chains and ambitions.
If you’re a Tesla owner or fan, it’s important to stay clear-eyed. Yes, Tesla’s domestic production is a strength—but it’s not a force field. These new tariffs could ripple through everything from service center parts to vehicle prices.
Good morning, good afternoon, and good evening wherever you are in the world, welcome to EV News Daily, your trusted source of EV information. It’s Thursday 13 March, I’m Martyn Lee and I go through every EV story so you don’t have to. Patreon supporters get the episodes ad free. Be like them by clicking […]
Tula Technology, a propulsion efficiency company, has presented new results from tests of its Dynamic Motor Drive technology as applied to an electric vehicle.
Last year, at the SIA Powertrain 2024 International Congress in Lille, France, Tula showed off its technology in an EV that had been retrofitted with the company’s DMD software and an externally excited synchronous motor by allowing attendees to take test drives, demonstrating how Tula was able to reduce energy consumption and boost overall system efficiency.
Dynamic Motor Drive, Tula said, eliminates reliance on rare earth elements and provides more efficiency at a lower cost. When a vehicle’s torque requests are low, the DMD software directs the magnetic field of the motor to pulse at optimal efficiency.
Working with drivetrain specialist BorgWarner, Tula implemented and tested DMD on a luxury SUV that also had an engine for range extension. The SUV was equipped with internal permanent magnet motors on both the front and rear axles. When DMD was applied to the rear axle only, vehicle range increased 0.6% using the China Light-Duty Vehicle Test Cycle, Tula said. The company said that applying DMD to both axles should increase vehicle range by 1.5%.
Given that 90% of EVs today utilize permanent magnet motors that rely on rare earth elements, this efficiency improvement can be directly translated into reduced battery size and cost, or alternatively, increased range.
“DMD is a software-only technology that improves the efficiency of electric drives at low loads by pulsing torque near peak efficiency,” Tula explained.
Fuest said the company initially focused on applying its DMD technology to battery-electric vehicles, but that it has also seen interest from makers of plug-in hybrids. According to Fuest, a number of the world’s automakers are working with Tula to implement Direct Motor Drive on their platforms.
The recent trade tensions between the United States, Canada, and Mexico have sent ripples across multiple industries, and Tesla is no exception. With President Trump imposing a 25% tariff on most Mexican imports and Canada retaliating with similar measures, the electric vehicle (EV) giant faces new challenges in its supply chain, production costs, and market competitiveness.
Tesla’s Supply Chain: A Direct Hit
Tesla sources a significant portion of its vehicle components from Mexico—over 20%, according to industry reports. Some of the critical parts include:
Battery materials and electronics
Interior components like seats
Structural elements such as steel and aluminum
With a 25% tariff on these imports, Tesla’s cost of production is set to rise sharply. While the company has been working on localizing supply chains, Mexico remains a vital part of its manufacturing ecosystem. This increased cost could translate to higher vehicle prices or tighter profit margins.
Stock Market and Financial Impact
Tesla’s stock has already experienced volatility following the announcement of the tariffs. Key financial updates include:
A 4% drop in Tesla’s share price immediately after the news, followed by a 2.1% rebound amid trade negotiations.
Bank of America reduced Tesla’s price target from $490 to $380, citing concerns over increased production costs and potential declines in consumer demand.
Investors are wary that these added costs could lead tohigher vehicle prices, reducing Tesla’s competitive edge.
Canada’s Retaliatory Tariffs: Another Challenge for Tesla
In response to the U.S. tariffs, Canada has introduced a 25% tariff on $30 billion worth of U.S. imports, including electric vehicles.
This means that Tesla cars sold in Canada will now be more expensive, potentially driving customers toward domestic or European alternatives.
Canadian officials are also reportedly considering a 100% tariff specifically targeting Tesla, citing Elon Musk’s support for President Trump as a political factor in the trade war.
Tesla has a strong customer base in Canada, and these new tariffs could significantly slow down sales in the region.
Consumer Impact: Higher Prices, Lower Demand
Analysts predict that tariffs could lead to an average price increase of $2,700 per new car across the U.S. auto market. For Tesla, the impact could be even more pronounced, as EVs already carry a premium price tag compared to gas-powered vehicles.
Consumers looking to buy a Tesla may delay purchases or switch to competitors offering more affordable options.
If demand drops, Tesla may have to consider absorbing some of the costs rather than passing them entirely onto customers.
What’s Next for Tesla?
Tesla faces a crucial period ahead as it navigates these economic and political hurdles. Some possible responses include:
Expanding U.S.-based production to reduce reliance on imported parts
Lobbying for exemptions or negotiating reduced tariff rates
Adjusting pricing strategies to maintain competitiveness despite rising costs
With Tesla’s profitability and market presence at stake, how the company responds to these tariffs will determine its resilience in an increasingly turbulent economic landscape. One thing is clear—this trade war has put new pressures on Tesla that could shape its strategies for years to come.
Good morning, good afternoon, and good evening wherever you are in the world, welcome to EV News Daily, your trusted source of EV information. It’s Friday 28 February, I’m Martyn Lee and I go through every EV story so you don’t have to. Patreon supporters get the episodes ad free. Be like them by clicking […]
It’s still the Ioniq 5 you know and love, with some useful tweaks plus hot-rod and XRT versions.
The Hyundai Ioniq 5 crossover utility vehicle is now a familiar site in regions where electric cars are popular. Entering its fourth model year in North America, the square-edged hatchback gets some minor updates to styling, inside and out, and to its mechanical specs and charge port.
It also adds two new versions that greatly expand the range. The Ioniq 5 N is the wild-child, high-performance hot rod version—one so well executed and such fun to drive that it’s won multiple awards in multiple countries. For a different audience, the Ioniq 5 XRT is an off-road-inflected model with more ground clearance, brawnier tires, and an added overlay of butch in its trim. So far it’s sold only in North America.
Ioniq 5 XRT. Photos by John Voelcker.
Rather to the industry’s surprise, Hyundai sold more EVs in the US in 2024 than any maker except Tesla—beating Ford, GM, and BMW in volume. Its electric mainstay, the Ioniq 5, had its best year ever in 2024, with sales up 31 percent to 44,400 (note the Tesla Model Y sold nine times that number). And the company, long one to watch in EVs, isn’t letting up at all on its battery-powered efforts. To that end, all 2025 Ioniq 5s sold in North America except the 5 N are now built at its new Metaplant in Ellabell, Georgia, about 25 miles outside Savannah.
We’ve only gotten an hour or so with the 5 N, but eagerly await the loan of one in late February. Meanwhile, we spent Valentine’s Day driving both the updated 2025 Ioniq 5 and new Ioniq 5 XRT in and around Palm Springs, California.
Photo Couresty of Hyundai.
Mild style evolution … very mild
You’ll be forgiven for not noticing the exterior changes in the 2025 Hyundai Ioniq 5. There are new wheel designs, and the front fascia—the plastic shield below the sheet metal—is slightly taller and squarer, with a protruding lower edge that makes it “more robust, more crossover-like,” in the words of Brad Arnold, head of exterior design. The best way to tell a 2025 from its older brethren, in fact, may be the presence of a rear wiper—a much-requested item among owners.
2025 Ioniq 5. Photos by John Voelcker.
The interior got somewhat more substantial changes. The company responded to owner feedback by adding knobs and buttons for audio volume and HVAC (heating, ventilation, air conditioning) controls like heated seats and steering wheel. That puts Hyundai very on trend: hard controls are coming back after years of makers moving everything possible into the central touchscreen, often distracting drivers at speed who must hunt through menus for a specific function.
All 2025 Ioniq 5 versions now get dual 12.3-inch screens and USB-C ports—and Android Auto and Apple CarPlay remain standard, both wirelessly and via cable. They also get Hyundai Pay, which the company suggests will soon be usable to pay for parking and/or charging. We’d still prefer standard Plug and Charge, but we’ll hold off on that judgment until we try it.
A bit more battery, a bit more range
The 2025 Ioniq 5 range gets new and updated cells. Battery capacity and EPA-rated range improve across the board. The Standard Range pack goes from 58 to 63 kilowatt-hours, while the Long Range pack grows from 77.4 to 84 kWh. Rated range for all-wheel-drive versions rises accordingly, from 260 to 290 miles (SE and SEL) or 269 miles (Limited). All three trims with rear-wheel-drive go from 303 to 318 miles, while the Standard Range version with its smaller pack stretches from 220 to 245 miles. Finally, the new-for-2025 Ioniq 5 XRT with standard AWD is EPA-rated at 259 miles.
On the road, the latest Ioniq 5 feels … well, pretty much like the previous three years’ worth. The ride is just this side of soft, in contrast to Tesla’s more BMW-like suspension tuning. But the Ioniq 5 hung on perfectly well as we tossed it through twisty mountain roads—at least until we rose above the snow line around 6,000 feet.
Photos Couresty of Hyundai.
Hyundai continues to offer three levels of regenerative braking, as well as its “i-Pedal” one-pedal drive mode. Annoyingly, while the regen level persists through power cycles, i-Pedal doesn’t. You have to remember to ask for it each time you start the car, something that GM, Ford, and others conquered as much as a decade ago. Why? Hyundai execs couldn’t say.
In the off-road portion of our test day, the Ioniq 5 XRT—it stands for ‘Extreme Rugged Terrain’—coped fine with rutted, ridged, bumpy trails in soft sand, and an occasional rocky path as well. It’s hardly a rock-climbing monster like a Jeep Wrangler, however, and isn’t meant to be. Instead, it’s probably best suited to people like this reviewer. In snowy winter weather, my steep, curving, uphill driveway in the Catskill Mountains is steep enough that it’s pretty much impossible for any front-wheel-drive vehicle to climb—and ground clearance gets a lot more important.
For more details on the Ioniq 5 XRT, stay tuned for a comparison of that model against the Ford Mach-E Rally, the equivalent trim for the electric Mustang SUV (which outsold the gasoline Mustang last year … but we digress).
NACS port and a free charging station
A final note on equipment: All US-built Ioniq 5s—meaning the whole lineup except the hot-hatch 5 N version, built only in South Korea—come with NACS charging ports as standard. Hyundai moves fast; those cars are the very first ones offered in the US with native NACS ports other than Teslas. Laudably, Hyundai includes a CCS-to-NACS adapter with every new Georgia-built Ioniq 5—and it will soon announce a program to allow owners of its CCS-equipped EV models to get a free NACS-to-CCS adapter, letting them take advantage of the Supercharger network too.
Using the adapter provided with a 2025 Ioniq 5, a CCS charging cable capable of delivering 257 kW can charge any Ioniq 5 from 10 to 80 percent in just 20 minutes. Hyundai has also added the ability for drivers to pre-condition the battery if they’re headed for a charging station—even if they haven’t put it into the navigation as a destination, which triggers battery conditioning if needed.
Ioniq 5s will still charge faster at CCS fast-charging stations than at Tesla Superchargers, though, due to the E-GMP platform’s 800-volt battery architecture. Version 3 Tesla Superchargers charging an Ioniq 5 will peak at roughly 135 kW, meaning they will take 30 minutes from 10 to 80 percent for a Long Range Ioniq 5 or 24 minutes for a Standard Range model. (Upcoming Version 4 Superchargers switch from low-voltage, high-current power delivery to higher voltage with lower current, meaning they should charge just as fast as CCS.)
As for overnight charging, with an 11-kilowatt onboard charger, Hyundai quotes Level 2 charging times from 10 to 100 percent at 7 hours, 20 minutes for the Long Range pack and 5 hours, 40 minutes for the Standard pack.
Hyundai believes the offer of free home charging sells more EVs. To that end, it includes a free ChargePoint Level 2 charging station with every Ioniq 5—or, for owners who can’t use it or already have one, a $400 credit to use at public charging stations. Hyundai does not, however, go as far as Ford. The Dearborn maker throws in not just the free charging station but free “standard” installation as well—and it credited its Ford Power Promise program with its highest-ever quarterly sales of the Mach-E crossover in Q4 2024.
From $44K to $60K
The 2025 Hyundai Ioniq 5 range starts with the SE Standard Range, with its lower-capacity battery and no all-wheel-drive option, priced at $43,975. Rear-wheel-drive SE and SEL trims are $48,025 and $50,975 respectively; AWD adds $3,500 to each. The top-of-the-line Limited model costs $53,675 (RWD) or $59,575 (AWD), and the new XRT model is $56,875 with AWD standard. At present, Hyundai isn’t offering a la carte options for the lineup. All prices quoted include the mandatory delivery fee of $1,475.
All 2025 Ioniq 5 SE, SEL, Limited, and XRT versions are built in Georgia and come with a NACS port as standard. Hyundai expects to switch to battery packs with US-built cells for those models, perhaps as soon as March, which would qualify them for the full EV purchase incentive—if it remains in force. The 2025 Ioniq 5 N performance model is built only in South Korea; it continues with a CCS port “for the moment,” though Hyundai execs hinted it will be updated to align more closely with the US-built cars in future.
Hyundai provided airfare, lodging, and meals to enable Charged to bring you this first-person drive report.
Cummins, an American multinational that designs, manufactures and distributes internal combustion engines and power generation products, has acquired the assets of Seattle-based First Mode, a company known primarily for its combined fuel cell/battery drive intended for use as a hybrid retrofit for mining haul trucks.
The deal ends several years of uncertainty over the future of First Mode, which, after being founded in 2018, was in a three-year partnership with mining corporation Anglo American to develop a non-fossil fuel engine for the company’s fleet of mining haul trucks. The company introduced a hydrogen-powered mine haul truck, at which point Anglo American announced plans to fuse First Mode with its nuGen team. However, Anglo American stopped funding the subsidiary in December, forcing First Mode to file for bankruptcy. In its filing, First Mode stated it had been unable to find a buyer for its assets.
At the start of 2025, Cummins stepped in and said it would acquire First Mode’s assets including the brand, its hybrid mining and rail product lines, its intellectual property portfolio and First Mode’s operations in Australia, the US and Chile.
First Mode said that it will continue to serve customers through the transition. It plans to ship product to customers in the first quarter of 2025.
The purchase price for First Mode was not disclosed by Cummins in its announcement; however, bankruptcy filings show that Cummins did put in a stalking-horse bid of $15 million for some of First Mode’s assets.
“This acquisition is an important step forward in our goal to lead our Power Systems customers through the energy transition,” said Jenny Bush, President of Power Systems at Cummins. “With First Mode’s hybrid retrofit technology, we are accelerating our ability to provide decarbonization solutions that meet miners’ need to drive down operating costs today.”
Cummins, which is now developing bridge technologies that it says will “enable miners to maximize the life of existing fleets while reducing carbon emissions,” will, with the addition of First Mode’s intellectual property and experience, also be in a position to help miners more fully decarbonize operations without having to completely replace technologies and infrastructure.
Tesla has officially set its sights on India. After years of speculation and regulatory hurdles, the EV giant is now actively hiring and scouting locations for showrooms in Mumbai and New Delhi. This marks a major shift in Tesla’s global strategy and could significantly impact the electric vehicle market—not just in India, but worldwide.
Why India?
India is one of the fastest-growing automotive markets, with a strong push towards electrification. The country aims for 30% of its car sales to be electric by 2030, making it a prime target for Tesla’s expansion. However, until now, high import duties (up to 100% on foreign-made cars) have kept Tesla from entering the market competitively.
That might be changing. Following a recent meeting between Elon Musk and Indian Prime Minister Narendra Modi, Tesla has accelerated its hiring efforts, posting job openings in Mumbai across sales, customer support, and operations. At the same time, reports suggest Tesla is finalizing plans for its first showrooms, with sites in Mumbai’s Bandra Kurla Complex and New Delhi’s Aerocity.
A Game-Changer for EV Adoption in India
Tesla’s presence in India could have a ripple effect, boosting EV adoption in a market historically dominated by gasoline-powered vehicles. India has already seen strong demand for electric two-wheelers, but the entry of a premium EV brand like Tesla could redefine consumer expectations and encourage local manufacturers to step up their game.
Additionally, Tesla’s presence might influence government policies on EV incentives and charging infrastructure expansion, making it easier for both domestic and international players to thrive.
How Does This Impact Tesla Owners in North America?
For EV enthusiasts in North America, this move could bring some exciting changes:
Cheaper Tesla Models? With India being a price-sensitive market, Tesla might introduce more affordable variants to compete with local players like Tata Motors and Mahindra. If successful, these cost-efficient models could make their way to global markets.
New Supply Chain Opportunities: Tesla’s India expansion could mean new manufacturing and battery partnerships, potentially reducing costs and improving supply chain efficiency.
Supercharger Network Growth: Tesla’s entry into India may encourage a faster expansion of fast-charging networks, which could serve as a model for improving infrastructure in other emerging markets.
What’s Next?
While Tesla has yet to announce exact launch dates, its recent hiring spree and showroom plans indicate that the company is moving quickly. If things go smoothly, we might see Tesla’s first deliveries in India by late 2025 or early 2026.
As Tesla continues its global expansion, its India entry could be one of its most significant moves yet—one that shapes the future of EV adoption in emerging markets while strengthening its position as the world’s leading electric automaker.
Would you consider buying a Tesla built for the Indian market if it came with a lower price tag? Drop your thoughts in the comments!
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