Tariffs for vehicles imported from China will see a steep raise in tariffs
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Today, as part of a broader change of tariff rates on Chinese goods, U.S. President Joe Biden announced that he’ll raise tariffs on electric vehicles imported from China, increasing the rate from 25% to 100%, effective this year.
This increase won’t just impact the import of vehicles, but also the rate for lithium-ion batteries produced in China, which will be moving from 7.5% to 25%.
Impact on Competition
The immediate impact of this new regulation is significant for Chinese manufacturers, who have been regarded as Tesla’s largest and greatest competition. Given the tariff hike, this means that new Chinese manufacturers, such as Nio, XPeng, or BYD, will either need to set up production in North America, or be subject to the increased import tariff.
Nio’s vehicles cost between $40,000 USD to $70,000 USD in China based on today’s conversion rates, and with an import tariff of 100%, an imported vehicle’s price would be doubled to $80,000 USD to $140,000 USD, not including other fees. Chinese manufacturers will have to closely weigh the advantages and disadvantages of opening up the North American market, with challenges including vehicle homologation, new tariffs, and a difficult EV market.
Tesla and Chinese Tariffs
Elon Musk recently visited China, engaging with officials to build a foundation for what is currently the world’s largest electric vehicle market. With the potential import of Chinese EVs becoming restricted to the United States, this places Tesla in an advantageous position over its Chinese competitors who have yet to establish their brands in North America.
On the other hand, this could also impact Tesla, as they import Chinese batteries for usage in some vehicles in the United States.
Tesla does not import Gigafactory Shanghai vehicles to the US, but has been increasing North American battery production lately, with expansions in Lathrop, California and a new facility in Sparks, Nevada.
Canadian Tariffs
In Canada, the Model 3 and Model Y are currently being imported from Gigafactory Shanghai. Given Canada’s close following of US foreign policy, this could impact either the prices of Tesla vehicles in Canada or have Tesla shipping vehicles from Fremont and Texas to the United States once again, should Canada also adopt a similar tariff policy.
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In an update to the vehicle manuals to go with the 2024.14 Spring Update, Tesla has also provided new information about its Autowiper and Vision Autopark systems.
Adjust Autowiper Sensitivity
By default, the wipers are set to Auto every time FSD engages, and when on Auto, Teslas use their cameras to determine whether the windshield is wet, and to engage the wipers. It also uses the same function to determine the wiping speed and intensity automatically.
However, as we all know the Auto functionality doesn’t always work. As part of the 2024.14 update, Tesla is now adjusting the Auto Wipers’ sensitivity if the driver presses the wiper button (causing a single wipe) while the wipers are set to Auto.
Tesla outlines the feature in the manual stating: “Pressing the wiper button while the wipers are set to Auto temporarily increases the sensitivity of the wipers.”
This is a pretty interesting change, as we recently discussed how Tesla has a difficult engineering challenge with Auto Wipers with their current hardware. Leveraging user input to feed the neural net and machine learning models is a pretty important feat in solving Autowipers using just Vision.
This ignites some hope for possible future improvements to the Auto Wipers feature, even if it is limited by focal length.
It seems that Tesla has expanded its engagement parameters – but not in the way you’re probably thinking - you can’t drive any faster than before to engage Autopark. According to the previous owner’s manual, Autopark required a parking space that was at least 7.2 feet (2.2 meters) wide. This meant that only “regular” sized parking spaces were applicable for Autopark to detect, and then park in them.
However, with the new Autopark, Tesla has updated the manual and now says that the vehicle can now detect and park in any space that is at least as wide as the driven vehicle. For the Model Y – 6.3 feet (1.92m), for the S, and X, 6.5 feet (1.99m), for the 3, 6 feet (1.84m), and in the future, for the Cybertruck, 6.5 feet (1.99m) as well.
This means that the vehicles can Autopark in much tighter spaces – an improvement of nearly 20% in the case of the Model 3.
Elon Musk mentioned in May that FSD V12.4 was in the final touches stage and would probably start rolling out in mid-May. However, May is now gone and we haven’t heard an update on the FSD V12.4 timeline.
The biggest features for V12.4 include no-nag, an updated strike-out system, automatic parking spot seeking, and a reduction in interventions.
At this point, only employees have received the 2024.9.5 update. User darwizzy333 on Reddit, an employee who received the update on the Early Access Program, originally said that it was unusable, suggesting that it was the cause for the delay. He initially also provided a screenshot of his vehicle running FSD V12.4 but has since taken it down.
After giving specific reasons why FSD 12.4 was unusable a few days ago, today he stated that his cameras were the cause for the issues. After calibrating his cameras, he says that V12.4 is incredible and that his usual commute is now down to zero interventions.
This gives us some hope that Tesla may still release FSD 12.4 to public users, however, it’s not clear what could be causing the delay. Employees are still testing FSD 12.4, so Tesla is either still working on a revision or still plans to release V12.4.
Owners Unsubscribing
Unfortunately, Tesla owners who bought or subscribed to FSD are stuck on the update they’re on until Tesla releases FSD 12.4 or updates V12.4 to be based on a newer software branch. Once you subscribe to FSD, Tesla would like to send you the latest FSD updates, which we call the “FSD track.” The problem is that the latest FSD updates are usually several releases behind Tesla’s main updates. With Tesla’s redesign and beautiful new parked visualization in update 2024.14, owners are having a hard time waiting for the latest features.
Tesla even officially announced update 2024.20 yesterday, which means that users on update 2024.3.25 are now three major updates behind. Some users are now unsubscribing from FSD, not because they don’t enjoy it, but just so they can receive the newer 2024.14 update.
Once an owner unsubscribes from FSD, Tesla no longer has a reason to hold them back on an update and will push the latest update they’re eligible for — currently 2024.14. However, this requires your FSD subscription to expire, which could take several weeks depending on when you renewed. Unfortunately, owners who bought FSD don’t have much of an option.
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