US senators want Biden to go further in blocking Chinese EVs
Just as the EU is considering tariffs on Chinese EVs imported into Europe, three US Democratic senators are urging that the Biden administration hike import tariffs on Chinese EVs to address national security risks.
In the US, American drivers have about 50 EVs to choose from, with Europe having about double that. But in China, it’s a pure embarrassment of riches, with 235 different models to choose from, filling every niche, whim, or price range. And of course, we’ve been covering the price war in China here at Electrek, with prices on BYD vehicles dropping to extremely low prices, even as low as $10,000, which can leave Americans feeling frustrated – when will we get truly low-cost EVs?
Answer: Probably not soon, at least if it comes from China.
As it stands, Chinese EV makers are bypassing the US due to trade barriers that already impose a 25% tariff on their cars, introduced by Donald Trump during his presidency. And now pressure is building to increase that even more, to completely block the possibility of a Chinese EV brand taking hold on US soil.
And Europe is serving as a warning sign, certainly for legacy automakers. “Allowing heavily subsidized Chinese vehicles to enter the U.S. marketplace would endanger American automotive manufacturing,” said a letter from Senators Gary Peters and Debbie Stabenow of Michigan and Sherrod Brown of Ohio, first reported by Reuters.
“Artificially low-priced Chinese EVs flooding the U.S. would cost thousands of American jobs and endanger the survival of the U.S. automotive industry as a whole.”
In Europe this week, the European Commission says it has found evidence that China has been “unfairly” subsidizing the EVs it exports to Europe. Possible “remedies” on the table include retroactive tariffs on Chinese EVs. Meanwhile, Chinese EVs are arriving by the shipload as European automakers are struggling to stay in the game.
The European Commission says China hasn’t been playing fair in that its government has been paying subsidies through direct transfer of funds, which the EC says tips the balance in China’s favor and leaves European automakers out to dry. Of course, China’s access to cheap labor and cheap batteries, where it dominates the supply chain, also increases its gains.
Probe into EV national security threat
Last week, the Commerce Department opened its own formal investigation into whether Chinese vehicle imports pose a threat to US security in that the huge amount of data they collect could be sent to China.
US Commerce Secretary Gina Raimondo said that electric and autonomous vehicles are “collecting a huge amount of information about the driver, the location of the vehicle, the surroundings of the vehicle,” reports Bloomberg. “Do we want all that data going to Beijing?”
Of course, the US has already been tightening up restrictions. Last December, the US Treasury Department released a new list of guidelines for federal subsidies that excluded vehicles containing battery components manufactured or assembled by a “foreign entity of concern” (aka China). As of 2025, vehicles whose batteries contain certain “critical minerals” extracted or processed in China will also be ineligible for the tax credit.
But some lawmakers say this isn’t enough, with Raimondo adding: “If China is subsidizing the vehicles in a way that puts American workers at a disadvantage we have to do something about that.
This isn’t unprecedented, of course. Back in 2022, the FCC cited national security as the reason for banning the sale of communications equipment from Huawei and ZTE and restricted the use of some China-made video surveillance systems. A number of European allies have banned the use of Huawei’s 5G equipment. Not to mention DJI being blacklisted for federal use in the US.
Biden lays low on EVs in State of the Union address
In last night’s State of the Union address, Biden’s last before the election in November, he sidestepped his EV policies and refrained from boasting about his achievements at accelerating EV adoption in the country and establishing a homegrown battery supply chain, which are major points of contention in a tense election year.
“I’m taking the most significant action ever on climate in the history of the world. I’m cutting our carbon emissions in half by 2030,” he said succinctly, only adding a quick mention of his goal of building a public EV infrastructure.
Biden’s $7.5 billion EV infrastructure plan has been a crucial part of his policies, which includes adding 500,000 publicly available chargers by 2030 – and ensuring they are working properly. Meanwhile, EV sales have quadrupled in the US, with the number of publicly available charging ports rising by nearly 70%. Today, more than 4 million EVs are on US roadways, with the goal for half of the country’s car sales to be electric by 2030.
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In the US in 2024, wind and solar accounted for 17% of total electricity generation, surpassing coal, which fell to a record low of 15%, according to a new report from global energy think tank Ember.
Since US coal power peaked in 2007, wind and solar have overtaken coal in 24 states, with Illinois the latest to join the ranks in 2024, following Arizona, Colorado, Florida, and Maryland in 2023, the report finds. It’s the first analysis of full-year US electricity data, which was published by the EIA on February 26.
After being stagnant for 14 years, electricity demand started rising in recent years and saw a 3% increase in 2024, marking the fifth-highest level of rise this century. The increase in demand and fall in coal was met with higher solar, wind, and gas generation. Natural gas grew three times more than the decline in coal, increasing power sector CO2 emissions slightly (0.7%). Coal fell by the second smallest amount since 2014, as gas and clean energy growth met rising electricity demand, whereas historically, they have replaced coal.
Despite growing emissions, the carbon intensity of electricity continued to decline. The rise in power demand was much faster than the rise in power sector CO2 emissions, making each unit of electricity likely the cleanest it has ever been.
Solar grew faster than natural gas
Solar generation rose by 64 TWh in 2024, compared to natural gas, which rose 59 TWh. It remained the fastest-growing source of electricity, with its generation rising by 27% in 2024, surpassing hydropower generation for the time. It made up 81% of all new annual power capacity additions in the US. Gas added no net capacity, as new plants were offset with closures.
California and Nevada both surpassed 30% annual share of solar in their electricity mix for the first time (32% and 30%, respectively). California’s battery growth was key to its solar success. It installed 20% more battery capacity than it did solar capacity, which helped it transfer a significant share of its daytime solar to the evening. Texas installed more solar (7.4 GW) and battery capacity (3.9 GW) than even California. Yet the growth of solar was uneven – 28 states generated less than 5% of their electricity from solar in 2024, highlighting significant untapped potential – even before adding battery storage.
As solar grew massively, wind saw a modest 7% increase in generation, adding the least capacity in 10 years. However, it still generated 50% more power than solar in 2024, making 10% of the US electricity mix.
Solar and wind can meet rising demand
With the adoption of EVs, air conditioning, heat pumps, and rapid expansion of data centers, demand for electricity is guaranteed to grow in the coming years.
To meet the rise in demand, clean generation needs to grow faster. Unlike solar, wind’s growth has been slow. Clean energy is able to meet rising electricity demand alone – without raising bills, sacrificing security of supply, or further relying on gas.
“As the demand remained unchanged for years, solar, wind, and gas together worked to replace coal, transforming the US electricity system,” Dave Jones, chief analyst at Ember, said. “But now that electricity demand is rising fast, the battle is between solar and gas to meet this. And solar is winning – it added more generation than gas in 2024, and batteries will ensure that solar can grow more cheaply and quickly than gas.”
Daan Walter, principal at Ember, said, “Electricity demand is rising as new uses emerge across the US economy, from data centers to transportation and heating. This makes the case for solar and wind today even stronger – they are not only fast to deploy and cheap but also help stabilize energy costs in the long run.”
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Elon Musk said today that Tesla will double its electric vehicle production in the US in the next two years.
What would that look like? Let’s do the math.
Today, during a press conference to promote Tesla at the White House, Tesla CEO Elon Musk said the following:
“As a function of the great policies of President Trump and his administration, and as an act of faith in America, Tesla is going to double vehicle output in the United States within the next two years.”
This raises many questions, as Musk’s phrasing of the statement suggests that Tesla is planning to add previously unannounced production capacity in response to Trump’s policies.
However, the reality could be different.
What is Tesla’s current production capacity in the US?
We only know Tesla’s installed capacity, which is much different than its actual production rate.
This is Tesla’s latest disclosed global production capacity at the end of 2024:
| Region | Model | Capacity | Status |
|---|---|---|---|
| California | Model S / Model X | 100,000 | Production |
| Model 3 / Model Y | >550,000 | Production | |
| Shanghai | Model 3 / Model Y | >950,000 | Production |
| Berlin | Model Y | >375,000 | Production |
| Texas | Model Y | >250,000 | Production |
| Cybertruck | >125,000 | Production | |
| Cybercab | — | In development | |
| Nevada | Tesla Semi | — | Pilot production |
| TBD | Roadster | — | In development |
In the US, it adds up to 1,025,000 vehicles per year.
In reality, Tesla’s factories are operating at a much lower capacity.
Based on sales and inventory from 2024, Tesla is currently building fewer than 50,000 Model S/X vehicles per year compared to an installed capacity of 100,000 units.
As for Model 3 and Model Y, Tesla is currently building them in the US at a rate of about 600,000 units per year compared to claimed installed capacity of over 800,000 units.
Finally, the Cybertruck is being produced at a rate of less than 50,000 units per year compared to an installed capacity of over 125,000 units.
This adds up to Tesla producing 700,000 units per year in the US in 2024.
What will be Tesla’s new capacity?
Considering Musk mentioned that it will happen “within the next two years”, it is unlikely that he is referring to installed capacity.
The CEO is most likely talking about Tesla’s actual production, which would also make sense, especially considering he mentioned “output.”
Tesla currently outputs roughly 700,000 vehicles per year in the US.
Doubling that would mean bringing the total to 1.4 million units per year, which would be an incredible feat, but it’s not entirely a new plan for Tesla.
First off, Tesla has already announced plans to unveil two new, more affordable models this year. These models are going to be built on the same production lines as Model 3/Y, which would potentially enable Tesla to fully utilize its installed capacity for those vehicles.
That’s another 200,000 units already.
As already mentioned in Tesla’s installed capacity table, the company is currently developing its production facility for the Tesla Semi electric truck in Nevada.
Production is expected to start later this year and ramp up next year. Tesla has previously mentioned a goal of 50,000 units per year. It would leave Tesla roughly a year and half to ramp up to this capacity, which is ambitious, but not impossible.
Then there’s the “Cybercab”, which was unveiled last year.
The Cybercab is going to use Tesla’s next-gen vehicle platform and new manufacturing system, which is already being deployed at Gigafactory Texas.
Production is expected to start in 2026, and Musk has mentioned a production capacity of “at least 2 million units per year”. However, he said that this would likely come from more than one factory and it’s unclear if the other factory would be in the US.
Either way, Tesla would need to ramp up Cybercab production in the US to 450,000 units to make Musk’s announcement correct.
It’s fair to note that all of this was part of Tesla’s plans before the US elections, Trump’s coming into power, or the implementation of any policies whatsoever.
Electrek’s Take
Based on my analysis, this announcement is nothing new. It’s just a reiteration of Elon’s plans for Tesla in the US, which were established long before Trump came to power or even before Elon officially backed Trump.
It’s just more “corporate puffery” as Elon’s lawyers would say.
Also, if I wasn’t clear, we are only talking about production here. I doubt Tesla will have the demand for that, especially if Elon remains involved with the company.
The Cybercab doesn’t even have a steering wheel, and if Tesla doesn’t solve self-driving, it will be hard to justify producing 450,000 units per year.
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