Tesla Faces Challenges as Tariff Turmoil Unfolds and EV Startup Celebrates Major Milestone – TechCrunch Mobility Report
Welcome to the latest edition of TechCrunch Mobility, your go-to source for news and insights on the evolving landscape of electric vehicles (EVs) and transportation. Stay updated by signing up for free updates from TechCrunch Mobility!
The Rollercoaster Journey of Tesla and Elon Musk
Over the past 13 years, I have closely followed the tumultuous journey of Tesla and its visionary CEO, Elon Musk. This period has seen the company experience significant highs and lows, including near-bankruptcy before a remarkable turnaround.
Musk’s Impact on Public Perception
The “us versus them” narrative has transformed Musk into a symbol of innovation. His political alignment, particularly with former President Trump, has influenced public perception, but Tesla faces challenges such as:
- A significant drop in Q1 sales
- Global protests against Tesla
- A declining stock price
As traditional automakers catch up with Tesla in the EV market, they are leveraging this opportunity to attract customers with enticing trade-in offers and incentives.
Can Tesla Overcome Current Challenges?
Recent tariffs announced by Trump may provide some relief to Tesla, as many of its vehicles and components are manufactured in the U.S. However, this protection may not be enough to halt the company’s struggles, particularly as tariffs could adversely affect Tesla’s energy storage business.
Automakers Respond to Market Changes
The chaos surrounding the new tariffs is prompting automakers to rethink their strategies. Companies like Ford are proactively offering discounts to stimulate short-term sales, while Volkswagen has announced plans to implement an import fee on vehicles sold in the U.S., according to The New York Times.
Tesla’s Robotaxi Service Launch
There are rumors that Tesla is set to launch a robotaxi service in Austin this summer. However, outreach efforts to local authorities have been minimal. In contrast, companies like Waymo and Cruise have actively engaged with city stakeholders prior to launching their services.
Safety concerns regarding Tesla’s autonomous technology have also emerged, particularly due to its reliance solely on cameras rather than more comprehensive systems like lidar and radar.
Funding Updates in the EV Sector
Despite a quieter week for deals, a few noteworthy funding rounds have been announced:
- EVident Battery: This Massachusetts-based startup raised $3.2 million in seed funding led by Ibex Investors.
- Fourier: The hydrogen startup secured $18.5 million in a Series A funding round, with General Catalyst leading the investment.
- Windrose Technology: This Belgian EV maker plans to file for a $400 million IPO in the U.S., as reported by The New York Times.
Recent Highlights and Innovations
In the realm of autonomous vehicles, TechCrunch reporter Maxwell Zeff recently interviewed San Francisco Mayor Daniel Lurie, discussing the future of AVs. Watch the interview here.
In collaboration with Dubai’s Road and Transport Authority, Uber is set to operate autonomous vehicles in the UAE, partnering with Chinese company WeRide.
On the production front, Harbinger, a medium-duty EV manufacturer, has commenced production and delivered its first 100 units to customers, including RV manufacturer Thor Industries.
Meanwhile, Rivian reported delivering only 8,640 vehicles in the first quarter of 2025, its lowest quarterly delivery since 2022, although the company remains optimistic about achieving annual delivery targets.
Lastly, Redwood Materials, founded by former Tesla CTO JB Straubel, has launched a new R&D center in San Francisco to enhance its battery materials and recycling efforts.
For more updates on electric vehicles and the future of transportation, stay tuned to TechCrunch Mobility.
