As an American automaker, Tesla continues to grow its production footprint (and sales sheet) in China, but the same opportunities are not currently available to Chinese EV automakers, like NIO, hoping to enter the US market. NIO CEO William Li hopes that will soon change as both he and Elon Musk stress the need for improved relations between the US and China.
Earlier this summer, Elon Musk visited China, where he was welcomed by Foreign Ministers who rolled out a Tesla red carpet to the CEO as his American company continues on pace to deliver record-setting sales overseas.
Tesla’s Gigafactory Shanghai continues to pump out EVs for the local market, which are now also being shipped to Canada, meaning Tesla electric vehicles built in China have made their way into the North American market. So why not NIO’s ET5 or XPeng’s upcoming G6? I test-drove the BYD Han in California, but that Chinese EV is not sold in the US.
While Chinese automakers continue to expand to new markets in Europe, several, including NIO, haven’t broken their gaze from the prospect of one day selling their EVs in the US. So far, however, it’s been a one-way door. That’s because the cover charge to get into the US EV market comes in the form of astronomically high tariffs that inhibit new entrants because they simply don’t make sense from a business perspective.
NIO’s CEO, William Li, has taken note of this unequal treatment across two extremely prominent automotive markets and is demanding change so US consumers can benefit from the advanced and innovative technology Chinese electric vehicles can offer.
NIO’s ET5 sedan on display at a showroom in Gothenburg, Sweden / Credit: Scooter Doll
NIO’s plans for US sales in limbo until the gov’t eases up
In a recent interview with the Financial Times, the NIO founder and CEO called on the US government to offer Chinese automakers equal access to its market – similar to China’s sales of Tesla EVs as well as countless joint ventures with American and European OEMs.
As we’ve noted numerous times in the past, the Chinese automotive market is the largest in the world and is easily the most saturated. There are over 600 startups in China specializing in EVs alone, joining an already crowded market of conglomerates like Geely, SAIC, and GAC, which each have their own arsenal of sub-brands selling vehicles.
This ultra-competitive market has been stoked by Tesla, who significantly slashed its prices earlier this year, igniting a price war that inevitably caused the China Association of Automobile Manufacturers (CAAM) to step in and demand a market-wide cooling off of price cuts between competitors, followed by a pledge that was quickly retracted as it flirted with violating Chinese anti-monopoly laws.
As a result, expansion to new markets is crucial to the survival of Chinese companies like NIO and XPeng (which are still startups, after all), hence why the US protectionism Li mentions is so frustrating, arguing that automakers should not be punished for political tensions amongst competitive countries. Per the interview:
The world should be more open and stop politicizing business. The global political climate has become totally different from that when we set up our company back in 2015, especially after the pandemic stirred up division and antagonism.
Li also made a point to say that three-quarters of NIO’s investors come from outside of China, and the automaker is currently listed on the New York Stock Exchange ($NIO), despite not selling its EVs in the US. NIO currently has a US headquarters on the West Coast – a footprint we’ve kept a close watch on as we’ve anticipated entry into the North American market – but it appears we will still have to wait until the US government eases its tariff on Chinese EVs.
New qualifying terms for federal tax credits outlined in the Inflation Reduction Act don’t make things any easier for automakers importing EVs into the US – another reason we may not see NIO hit its original target of selling EVs in North America by 2023.
NIO reported a net loss of almost $700 million in Q1 of 2023 but recently got some breathing room thanks to a $740 million investment from the Abu Dhabi government. To do what? Expand its EV business to new international markets, of course!
For now, NIO’s CEO said the company will focus its efforts on Europe and will continue to monitor developments in the US before making any further decisions about expansion.
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After nearly a year of speculation online, Rivian has confirmed it will begin offering a new purple exterior color, and we now have the name – Borealis. Inspired by its own community, Rivian’s latest color will be available for a limited time on select variants and arrives as part of a broader design initiative focused on sensory experiences.
Welp, Rivian is actually offering purple EVs.
We had a feeling that this news might be coming at some point, and the confirmation has been nearly a year in the making. Earlier in 2025, some Redditors in the Rivian community started posting images of what appeared to be a purple R1S Quad out in the wild.
We covered the news about 8 months later when fresh images once again emerged of the same truck and the same dealership plates. We could confirm there was at least one purple Rivian, still owned and operated by the American EV automaker, in existence.
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What we could not confirm was whether the Grimace-mobile was a one-off or a hint at plans for a new exterior color option. At the time, representatives for Rivian said they could not comment on speculation, but also did not dismiss any indications that a new purple exterior could be in the works.
This morning, Rivian made its presence known at Collins Park during Art Week Miami Beach, where it has set up a multi-sensory exhibition that includes scent, touch, and, of course, the sight of the new Borealis purple exterior. Check it out.
Source: Rivian
Rivian to offer customers a purple exterior option
During Art Week Miami Beach 2025, which kicked off earlier this week, Rivian has unveiled an exhibition called “Rewilding the Future,” an “immersive exploration of the natural systems” that shape Rivian’s design process.
This multi-sensory exhibit will expose visitors to a range of experiences, including a tactile “touch” where they can create their own objects from recycled and upcycled materials. Rivian also shared that it is exploring scents and has developed one for the exhibit highlighted in The Scent of Terrain. Visitors can first deconstruct the unique scent by smelling the individual top, mid, and base notes in glass flasks before sniffing an oil that combines them all into one sensory experience. Liz Guerrero, Sr. Director of Marketing Experiences at Rivian, elaborated:
Scent is uniquely memorable and we want to get to a place where we have a scent that becomes synonymous with the Rivian brand, sparking that amazing recall that you almost don’t realize you have. This is the next step in the learning process, and we’re excited to see the response.
It is unclear whether there is a specific goal in mind for Rivian’s scent-tric “learning process,” but it could involve brand-specific aromas inside or outside its EVs. Perhaps that new car smell will be “Terrain,” or you will be able to buy some Rivian cologne next holiday season. Rivian has not confirmed any of this, although we did request more information on its plans to integrate scent into design (or not).
Last but not least, Rivian’s Miami exhibit is focused on sight – more specifically, the public debut of its new Borealis purple exterior color. Per Rivian:
This color is a dynamic, deep velvety purple that shifts with the light and captures the essence of the aurora borealis, nature’s most spectacular light show. The inspiration for Borealis came directly from our community. During a 2024 solar event, a group of Rivian owners shot photos of their vehicles glowing under the surreal, purple-washed sky and it captured our design team’s imagination. Borealis pays homage to the spirit of exploration that defines our owners and celebrates the unexpected beauty found in mother nature.
In addition to Borealis, Rivian also debuted a new 20″ All-Terrain Burnished Bronze wheel (pictured above), available exclusively on its new Quad-Motor R1 lineup. As for the purple, Rivian said it is available to customers now on Tri and Quad configurations, but only for a limited time.
The Borealis debut is just one of several color stories being told at the Rivian art exhibit, and those purple EVs will be joined by the automaker’s R1S Quad Miami Edition, which will be on display at Miami Rivian Spaces in Aventura and Brickell beginning today.
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Tesla has received a brutal reality check from Germany this week. The country’s closely watched TÜV Report 2026 has not only ranked the Tesla Model Y as the absolute worst car for reliability in its age group but noted that it has the highest defect rate of any vehicle tested in the last ten years.
It’s a tough look for the world’s best-selling car, though the details paint a more nuanced picture than just “the car is falling apart.”
The TÜV Association (Technischer Überwachungsverein) is the organization responsible for mandatory vehicle safety inspections in Germany. These aren’t just consumer surveys; they are rigorous mechanical exams that every car must pass to remain road-legal.
In its latest “TÜV Report 2026,” which analyzed 9.5 million vehicle inspections, the Tesla Model Y came in dead last among all cars in the 2-to-3-year-old category.
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According to the data, 17.3% of Model Ys failed the inspection with “significant” or “dangerous” defects. For context, the average failure rate for this age group is roughly 6.5%. The Model Y didn’t just fail; it failed spectacularly, posting the worst score TÜV has seen in a decade.
The Model 3 didn’t fare much better, landing in the third-to-last spot with a 13.1% failure rate.
So, what is actually breaking?
According to the report, the main culprits are the same ones we’ve been hearing about for years: suspension components and brakes.
TÜV inspectors flagged frequent issues with axle suspension parts, such as the notorious control arm bushings that have plagued Tesla owners for a long time. They also found significant problems with brake discs. Because EVs use regenerative braking for most deceleration, the physical friction brakes rarely get used. In Germany’s wet climate, this leads to rust and corrosion on the discs, causing them to fail safety inspections even if they “work” mechanically.
Lighting defects were also a major contributor to the failure rate.
In stark contrast, other EVs performed exceptionally well. The Mini Cooper SE had a defect rate of just 3.5%, and the Audi Q4 e-tron sat at 4.0%, proving that this isn’t an “electric vehicle problem”—it’s a specific Tesla problem.
Electrek’s Take
We need to separate the signal from the noise here.
First, let’s address the brakes. Failing a safety inspection because of rusty brake discs is a known issue for all EVs, but it seems to hit Tesla harder. If that’s the case, we should look into why that’s happening.
While it’s technically a “defect” in the eyes of TUV as it doesn’t achieve the required safety standards, it doesn’t mean the car is unreliable in the sense that it will leave you stranded. That said, Tesla owners should be careful. I enjoyed one pedal driving more than anyone, but I do make an effort to use my brain regularly. You don’t want to have a problem with them when you actually need them.
The suspension issues are a different story.
We have been reporting on Tesla’s suspension problems for years. They have been NHTSA investigations about it and recalls. It is disappointing to see that even on 2-to-3-year-old Model Ys, these parts are still failing at an alarming rate. When nearly one in five cars is failing its first mandatory inspection, you can’t just wave that away as “FUD.”
The good news is that Tesla’s powertrain is solid and doesn’t contribute much to the poor reliability rate.
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Traffic on Interstate 80 in San Pablo, California, US, on Wednesday, Nov. 26, 2025.
David Paul Morris | Bloomberg | Getty Images
The White House will announce new fuel economy standards on Wednesday, according to administration sources.
The Trump administration will propose rolling back the standards implemented by former President Joe Biden last year, sources told Reuters. Biden required passenger cars and light trucks to have a fuel efficiency of about 50 miles per gallon by 2031.
President Donald Trump is scheduled to make an announcement at 2:30 p.m. ET from the Oval Office. Executives from Ford, General Motors and Stellantis are expected to attend the announcement.
The Biden fuel efficiency standards were expected to stimulate the sale of elecric vehicles in the U.S. Trump has sought to roll back all federal support for EVs since taking office.
The oil industry group the American Petroleum Institute has lobbied the Trump administration to repeal the Biden fuel economy standards, arguing that they aim to phase out liquid fuel vehicles.
The Corpoate Average Fuel Economy (CAFE) standards date back to 1975 and have been tightened over the years to make vehicles more efficient.