
Climate change made Helene 200x more likely – but just 3% of TV news said so
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7 months agoon
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Hurricane Helene has made its way through the southeast US as the strongest storm of the 2024 season and potentially the costliest storm ever recorded. But if you watch US media, you’d barely know that the true culprit behind Helene’s record-breaking strength is us – the climate change that we humans caused by burning fossil fuels.
Hurricane Helene spent the last week traveling through the Gulf of Mexico, eventually making landfall in Florida and leaving a swath of devastation as far north as Tennessee and North Carolina.
The storm was exceptional for its strength, but also for the high speed at which it traveled, reaching much farther inland than most storms.
In particular, one does not expect Asheville, North Carolina, over 400 miles from where Helene made landfall and nestled high in the Blue Ridge Mountains, to be vulnerable to hurricanes – and yet the “biblical devastation” seen there is readily apparent in photographs of the area, or in this story of a 7,000lb Rivian which was swept away (and yet, it still works).
And East Tennessee experienced a “1-in-5000 years rain event” according to a TVA spokesperson. (Thankfully, some people in the area have an electric car in the house to help keep the lights on by powering the house from their car.)


Images from CSU/CIRA & NOAA.
As of now, with 180 deaths (and counting) attributed to it, Helene is the second-deadliest hurricane to hit the US in 50 years (after Katrina), and early estimates of the amount of damage done range from ~$30 billion to ~$160 billion – the upper end of which would make it the most expensive hurricane to hit the US, ahead of Katrina and Harvey.
Much of these record costs will likely be paid by taxpayers, as FEMA funds are used for storm recovery in these areas. Congress may come back for a special session to address a shortfall in FEMA funds – and more outlays like this can be expected as climate change continues to make storms stronger. (Though if the republican Project 2025 had any say about it, hurricane-affected areas might get no help at all)
How climate change and storms are connected
As one might expect out of massive, species-wide global efforts to spew enormous amounts of heat-trapping pollution into the atmosphere, human-caused climate change tends to have a lot of varied effects on the environment.
Some of these effects are better understood than others, with scientists working every day to figure out exactly the magnitude of the effects that rising temperatures have on myriad aspects of the environment. Scientists tend to be precise in their language, so even if certain climate effects are plausible and supported by early data, scientists may still speak in a couched manner which can lead to a perception of uncertainty.
But one thing that is well-understood is that a warmer atmosphere, and warmer water, means stronger storms.
The reason behind this is fairly simple. Heat is energy, so more heat means more energy. When a hurricane crosses over warm ocean water, that warmth helps to feed the storm and make it stronger.
Currently, the world is about 1.3 degrees Celsius warmer on average than it was before humans started affecting the climate by burning fossil fuels. While that doesn’t sound like a lot, averaged over the entire ocean we have added the energy equivalent of several billion nuclear bombs in just the last couple decades. That’s a lot of extra energy to feed storms, meaning a lot more destruction when they roll through town.
That extra energy hasn’t been evenly distributed, either. Some of the places that have seen the most warming are the Gulf of Mexico and the Eastern Seaboard of the US, the most densely populated part of the world’s largest historical emitter. Around this time last year, Gulf waters might have set a world record for the hottest seawater ever recorded at 101ºF/38ºC.
Warmer water also means higher sea levels, which means more flooding due to storm surge. Much has been said about how sea level rise is caused by melting ice sheets, but a less often mentioned feature is the thermal expansion of water. As water (or any substance) gets warmer, it expands. Averaged over the entire ocean, this makes the ocean bigger and therefore contributes to rising sea levels.
Warmer air also contributes. Warmer air is able to hold more moisture than colder air, which means more precipitation.
So, combining the effects of warmer and wetter air, we have more significant storm surge and more rainfall, meaning more dangerous hurricanes. After all, in a hurricane, it’s not the wind that’s the most dangerous, it’s the water.
More warmth, more damage
All of this warmth also means a longer hurricane season, with storm season starting earlier and ending later.
The reason hurricane season comes in the warmer months is because that’s when ocean and air temperatures are higher, contributing to all the above effects. But if the atmosphere and ocean are warmer, then the period of time in the year where conditions are right for hurricanes will be wider, which means hurricane season is longer and harder to contend with.
This will also tend to mean that storms develop more rapidly. Storms typically gain energy while traveling over the ocean (due to warm water, as mentioned above), and having more energy available means they can develop faster. Faster-developing storms mean less notice to make preparations, less time to evacuate populations from danger zones, and more stress on infrastructure in making those rapid preparations and evacuations.
And most of all, stronger storms means more damage. The US has had increasingly-more “billion-dollar disasters” in recent years. Since 1980, the US averaged 8.5 natural disaster events with more than a billion dollars worth of damage per year (adjusted for inflation). But in the last 5 years, that average has ballooned to 20.4 events, with 2023 setting the record at 28 billion-dollar disasters.
It’s gotten bad enough that Florida is going through an insurance crisis, with rates skyrocketing and many homes becoming uninsurable. It’s happening in other states too.
These numbers are often ignored when it comes to the “cost” of carbon reduction. Environmental opponents say it’s too expensive to clean up humanity’s act, but in fact it’s much more expensive if we don’t take action (by sixfold, according to research).
So we now know how storms are influenced by climate change, how Helene has been historic, how its records were contributed to by climate change, and how devastating an impact these climate-affected storms have in aggregate.
High ocean temps fueling Helene were made 200-500x more likely by climate change
So this storm is more damaging than expected, and is damaging areas that were thought to be safe from storms. But was it truly “caused” by climate change? How do we account for this?
It turns out, something called climate attribution science can answer our questions.
Climate attribution science is a relatively new branch of climate science which seeks to answer the question of how much more likely extreme weather events are made by climate change.
It does this by looking at the natural variability of temperatures, then seeing how much that variability has shifted as a result of the additional heat that human fossil fuel emissions have trapped in the atmosphere and oceans.
Climate Central has packaged the information from these measurements into an online tool which can show just how much hotter ocean surface temperatures are in any given location, and how much more likely those hot ocean temperatures were made by climate change.
And, since the Gulf of Mexico has warmed faster than much of the rest of the world’s oceans, we can see that the 1.7ºC/3.1ºF warming in the area where Helene started its rapid intensification from a category 1 to category 4 storm was made 400x more likely by climate change. Other high ocean temps in the area were made 200-500x more likely by climate change, all of which helped to fuel the storm.

Notably, there is an asterisk on this data, which as you can see at the top of the screenshot is not the most current possible data. The reason for this is because the National Center of Environmental Information is headquartered in Asheville, North Carolina, a place that was previously considered relatively safe from storms. But as we learned earlier in this article, Asheville is no longer quite so safe, and the NCEI is currently underwater due to flooding from Helene.
Attribution science does not make the argument, however, that we would not have hurricanes without climate change. Clearly we would still have them, but climate change creates the conditions that make hurricanes stronger and more historic.
Dr. Friederike Otto, one of the founders of the field of attribution science, puts it this way:
“It’s not like without climate change we wouldn’t have hurricanes. But it’s the same kind of causation that we use when we talk about smoking. You would still have lung cancer in the world if people wouldn’t smoke, but if you do smoke, you have a much much higher likelihood [of getting lung cancer]. And so there is a causal relationship between that and lung cancer.”
The increased chance of storms like these happening, and higher intensity of storms when they do happen, are important to keep in mind when planning infrastructure. If infrastructure is built to withstand a 1,000-year storm, and that storm becomes not only more common but stronger and hits a wider area, then your infrastructure will be overwhelmed. Even if a storm is only 10 or 20 percent stronger, if that suddenly goes past the threshold that your infrastructure can handle, it turns a storm that would have been relatively “fine” into a big problem.
Despite these interactions being fairly well understood, and it being clear that hurricanes are getting stronger due to climate change, climate change still didn’t manage to make it into almost any TV news coverage about the storm.
According to Media Matters’ analysis, out of 1,355 minutes and 468 segments about Hurricane Helene, only 15 segments, or 3%, mentioned climate change at all. Cable news networks mentioned it 11 times, and broadcast TV networks mentioned it 4 times.
Among the cable news stations, MSNBC fared best, mentioning climate change 6 times out of 73 segments. CNN trailed with 5 mentions in 235 segments. And, as you might expect, Fox News, which is owned by climate denier Rupert Murdoch who has been a major driving force in spreading propaganda to support environmental destruction worldwide, aired 87 segments and did not mention climate change once.
Broadcast news did similarly poorly, with ABC mentioning climate 2 times in 31 segments, NBC mentioning it twice in 19, and CBS zero times in 23.
Media matters selected a few standout segments from ABC, CNN and MSNBC.
In an ABC segment, weather anchor Sam Champion explained how warmer gulf waters lead to rapid intensification of storms, and rising sea levels make storm surge more dangerous:
In an MSNBC segment, meteorologist Angie Lassman put it succinctly, citing Climate Central’s analysis showing that high surface temps, which fuel stronger storms, are made hundreds of times more likely due to human-caused climate change caused by the burning of fossil fuels:
And on a long CNN segment, meteorologist Chris Gloninger cited Climate Central’s analysis, mentioned the higher moisture content of warmer air, and said how deep ocean warming has resulted in a “new normal” where hurricanes are no longer slowed down by the churning of colder deep ocean waters to the surface:
And, as usual, climate scientist Michael Mann was involved with a standout segment when he dropped by CNN to explain what’s happening from a scientist’s perspective, and to make the important connection to the upcoming US election, where there is a stark difference between the candidates, with one wanting to solve this problem and the other denying it exists (or even trying to make it worse):
The overall lack of coverage highlights a significant issue with tackling climate change. Despite that it is the most important challenge that humanity has ever confronted – after all, nothing matters without clean air, clean water, and a livable environment – relatively few voters put the environment highest on their list of important issues.
That list is instead dominated by any number of other issues that are focused upon in media and which are less important than climate change. Or some of which are indeed related to climate change, such that approaching the climate problem could alleviate other pressures that people perceive as important.
But it’s hard for people to make these connections when media refuses to make them. If all of the media you watch tells you that something is a problem, you are likely to perceive that as a problem, whether it really is one or not. And if they never mention the problem, how are you supposed to learn about it?
This is where we get to the speculative portion of this article, wherein I try to analyze how we got where we are, and how we can solve it.
Make no mistake, the largest and richest industry in the world, the oil industry, is actively lying to you to shift your perceptions about real solutions to the problems they cause. That rich industry also happens to buy a lot of advertising, which makes it harder for ad-funded networks – especially those that are actively in favor of spreading fossil propaganda like the climate denier-run Fox – to speak up against the guys who pay the bills.
Even for algorithmically-based advertising, the same influence is there. Climate change is an issue that requires less, not more, consumption to combat. People who sell things generally like consumption. So any algorithmic news is incentivized to show you fewer climate stories, lest they get fewer sweet sweet consumer clickthroughs.
But there is a much more mundane, and less conspiratorial, explanation for why media doesn’t talk about climate change: because you, dear reader, don’t want to hear about it.
Climate change is an enormous and difficult problem that will require participation from basically everyone on Earth, and all of us will need to learn about what solutions work and how to implement them. These solutions need to be both personal and structural – everyone’s personal carbon emissions need to go down, primarily those of us in rich countries, and also new rules need to be enforced to ensure that companies and people are incentivized to pollute less and/or punished for polluting more.
Frankly, that’s hard, and thinking about it makes people feel bad. So they don’t want to hear about it, because it’s complicated and oftentimes feels impossible.
While people might want to act personally, they’ll think that it’s too expensive or difficult to do so, and they’ll see that not enough action is happening from major players and wonder whether it’s worth the time for them to do much work personally when it seems like nobody else is doing so.
Though we must understand that this attitude is also influenced by propaganda – polluters want you to feel like nothing can be done, because then they can continue the status quo. But we have to avoid this feeling.
I understand these feelings, and it is indeed hard. Trust me, my job is to talk about climate and climate solutions, which means I have to think and talk about this all the time. I see more data and reports than most about the problems with our climate and how we are not doing enough to solve these problems, even though some partial solutions can be remarkably simple.
Climate scientists also feel the call of the void when looking at how society has responded to their repeated attempts to wake the public up about this problem. For a sense of what it’s like, watch the movie Don’t Look Up, which parodizes how society responds to an imminent disaster by simply ignoring it. It’s eerily similar to real life, to the point where I often hated watching the movie because it felt too real. Which is, of course, the entire point of the movie.
So, I go and write about some climate story like this one, and spend a lot of time getting it right, and often enough, any story about climate goes over like a lead balloon (feel free to share this one far and wide to prove me wrong… pretty please, mister algorithm?). When instead, I could have spent 30 minutes writing about some dumb thing Elon did and gotten a much bigger response. As always, petty drama rules the day.
We climate reporters have bills to pay too, and writing about climate doesn’t pay them, because people don’t read them. No wonder people or newsrooms don’t cover it as much as they should when there’s less incentive to do so (as parodied in another scene in Don’t Look Up). I’m probably doing volunteer work today. You’re welcome, I guess.
How do we solve this?
But all of this doesn’t let anyone off the hook. We still need to write about it, to talk about it more, to recognize this problem, to do more to solve it, at all levels. Frankly, it’s like any problem of collective action – everyone has a reason not to act as long as they think nobody else is. Someone has to break the cycle.
Journalists need to do the right thing and connect the dots properly, especially when it’s as easy as adding one or two sentences to the hundreds of segments done about a major news event like Beryl. Say it with me: “human-caused climate change makes waters warmer, which causes stronger storms, which contributed to Beryl’s record-breaking nature.” You can have that sentence royalty-free. Have at it, networks. (You can also get more information from Covering Climate Now, a great resource for climate journalists, which tipped me to the Media Matters study to begin with, and also offered a free quote).
News consumers need to do the right thing and stay informed about this topic. I know it’s hard and annoying, but this problem gets solved better the more informed you are, and the more you talk about it with people you know and who trust you, and the more you act on lowering your personal emissions and demanding that your representatives do more on climate. Anyone reading this already took the first step by going through another one of my huge rants, and for that I thank you (but please, mister algorithm, may I have but a crumbof virality?)
Governments need to do the right thing and act more on climate change even if people don’t rank it as their most important issue. Given that climate change underlies so many other societal problems, acting to solve it can help to solve those other problems too. It’s a problem that changes are often too long-term to be captured in a single term of office, so doing these things won’t always help your re-election campaign but simply be done for the good of society – but that’s the job of a public servant anyway, so get on it.
And fossil fuel companies need to do the right thing and stop exis…. uh, stop the propaganda? I don’t know, let’s just stick with stop existing. But other companies can reduce their exposure to fossil fuels, which consumers say they want anyway (and that means you consumers need to follow up on that promise, by the way).
I understand that that’s a lot of direction I’ve just given to a lot of people, but at the very least, can we start off with acknowledging the reality of science and mentioning it when relevant, like in the case of Hurricane Beryl? Because none of the rest of this happens if we don’t at least recognize the problem and its effects in the first place.
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Environment
All the best EV and PHEV rebate deals we could find for April 2025 [update]
Published
3 hours agoon
April 28, 2025By
admin![All the best EV and PHEV rebate deals we could find for April 2025 [update]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/04/dodge_big-deal.jpg?resize=1200,628&quality=82&strip=all&ssl=1)

Cynics will point at big rebates and claim they mean the vehicle isn’t selling, but that just exposes them for the industry noobs that they are. A rebate is a powerful financial tool that helps dealers overcome obstacles like negative equity, poor credit, and down payment requirements and get you to drive home in the car of your dreams today.
So if you’re dealing with any of the above, but still hope to slide behind the wheel of a new EV before new tariffs kick in, pay attention: these EVs could get you behind the wheel of a new electric ride sooner than you think!
UPDATE: Kia really, really wants you to buy a new EV this month!
As I was putting this list together, I realized there were plenty of ways for me to present this information. “Biggest EV incentive deals ..?” Not everyone qualifies for every rebate. “Most stackable EV rebates ..?” Too confusing. In the end, I went with national cash back offers and chose to present them in alphabetical order, by make. And, as for which deals are new this month? You’re just gonna have to read the article. Enjoy!
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BMW XM

It may look like an angry space beaver on the outside, but BMW advertises itself as the Ultimate Driving Machine, not the Ultimate Style Machine — and by all accounts, the big BMW PHEV is one, if not the best-handling big SUVs out there.
With up to 30 miles of all electric range and a powerful V8 engine, it’s not savaing any trees, but now through April 30th, all versions of the plug-in hybrid offer $12,500 in lease or APR cash. If you’re financing your XM PHEV, BMW Financial is also offering 3.99% financing for up to 60 months, with a 72-month option at 4.49% APR.
Chevy BrightDrop

We recently highlighted a Costco offer that stacks a $25,500 manufacturer rebate with $3,000 in “regular” Costco Member Savings, $2,750 in “LIMITED-TIME” Manufacturer to Member Incentives, plus an additional $250 for Costco Executive members.
That’s more than $30,000 off the MSRP of one of the best, most capable commercial vans on the market – ICE or electric. And that’s before you factor in the 0% interest financing (72 mo.) being advertised on Chevy dealer websites.
Chrysler Pacifica PHEV

When the plug-in hybrid Chrysler Pacifica minivan first went on sale all the way back in 2016, it seemed to imply that the old Chrysler Corporation was going to race ahead of the other “Big Three” legacy US carmakers.
That didn’t happen, but the Pacifica is still the king of cupholders, while the van’s stow n’ go seating, and all the other practical, clever details that add up to remind you Chrysler invented these things. Through April 30th, you can get a $7,500 cash allowance plus $7,500 in Federal income tax credits on Pacific Plug-in Hybrid Select, S, and Pinnacle trim level vans.
Dodge Charger EV

As the auto industry transitions to electric, Dodge is hoping that at least a few muscle car enthusiasts with extra cash, will find their way to a Dodge store and ask for the meanest, loudest, tire-shreddingest thing on the lot.
These days, that’s the new electric Charger – and you still owed money on the Hemi you just totaled, Dodge will help get the deal done on its latest retro ride with a $6,500 rebate on 2025 models or $3,000 plus 0% financing for up to 72 months on 2024s.
Dodge Hornet PHEV

Despite objectively being one of the slowest-selling new cars in North American, the Dodge Hornet eAWD PHEV offers specs that could make a compelling case for die-hard Dodge fans who are curious about EVs, but still worried about finding charging away from home.
If that’s you, the Hornet offers over 30 miles of all-electric range from its 12 kWH battery and a decently quick 0-60 mph — then sweetens the deal even more with $6,500 in lease cash to help bring the payment down.
Jeep Wrangler 4xe

While not much of an EV with “just” a 17.3 kWh battery, the PHEV version Jeep’s iconic Wrangler is often the cheapest version of the SUV to lease – a fact that’s seen the 4xe variants become a popular choice. Now through April 30th, Stellantis is offering up to $8,000 in cash allowance (not counting dealer discounts and other local incentives) in hopes that this latest offer is one you can’t refuse.
Kia Niro EV

One of the most underrated little runabouts on the market, the Kia Niro EV is more fun to drive than you think it’ll be, with zippy acceleration, solid quality, and an approachable sort of anonymity that I think a lot of Tesla drivers would appreciate right now.
Now through April 30th, Kia is offering up to $8,500 cash back on remaining 2024 Niro EVs and $7,500 on 2025 models. If you don’t like paying interest, Kia has 0% financing for up to 72 months on ’24s and a sweet $129/mo. lease deal on ’25 models – so whatever your specific needs are, your Kia dealer probably has a Niro EV deal they can get to work for you.
Kia EV6 GT

CarsDirect is reporting 24-month leases on the positively awesome Kia EV6 GT featuring up to $19,000 in lease cash through May 1st. Other EV6 variants get decent cash back offers, too – be sure to ask your local dealer about the one you’re interested in.
Kia EV9

I’ve been seeing Kia’s excellent, hot-selling tree-row electric SUV all over the ‘burbs, lately — and it’s hardly a wonder why. In addition to being a great car, the Kia EV9 has some of the most aggressive customer incentives in the business, with $11,000 cash back for conventional financing customers and a whopping $16,000 lease cash on 24 month terms through May 1 (36 and 48 month lessors still get a pretty incredible $15,000 cash back).
Get used to seeing these around, in other words. If not in your own driveway, certainly in some of your neighbors’!
Nissan Ariya and LEAF

The inspiration for this article was a hypothetical $9,140 Nissan LEAF deal that I hastily concocted while walking the floor of the 2025 Chicago Auto Show, but the fact remains that even with “just” the $8,500 cash back being advertised through April 30, the $28,140 $19,640 Nissan LEAF is probably the most affordable new car you can buy in the US. If you can score some additional local incentives and dealer discounts, so much the better.
If you want something a bit more modern (and with Tesla Supercharger access), the bigger, more conventional Ariya crossover also packs some solid offers with up to $7,500 in Customer Cash.
Polestar 3

OK, this one’s cheating — the Swedish/Chinese love child of Volvo, Geely, and the championship-winning go-fast gurus at Cyan Racing, Polestar is announcing up to $20,000 in incentives to convince some (but, crucially, not all) customers to trade in their existing EVs on a new Polestar.
The catch? You have to trade in a Tesla to get the $20K. At the rate those cars are depreciating, though, that might be the best offer you’ll get out there!
Toyota bZ4X

It’s not breaking any sales records, but the Toyota bZ4X is a solid five-passenger crossover EV that should meet any suburbanite’s needs with enough of Toyota’s legendary quality baked in to make it a safe bet for a decade-plus of hassle-free driving. Plus, with $10,000 in TFS Lease Subvention cash and plenty of dealer discounts floating around, it might be the best deal in Toyota’s current lineup.
Volkswagen ID.4

One of the most popular legacy EVs, the ID.4 offers Volkswagen build quality and (for 2024) a Chat-GPT enabled interface. To keep ID.4 sales rolling, VW dealers are getting aggressive with discounts, making this fast-charging, 291 mile EPA-rated range, 5-star safety rated EV a value proposition that’s tough to beat.
This month, buy a Volkswagen ID.4 with up to $10,500 in Customer Bonus Cash or lease one with $7,500 in Lease Bonus cash.
Volvo C40, XC60 T8 Recharge

Volvo is offering up to $8,500 ($7,500 in customer cash, $1,000 in loyalty cash) off the price of remaining new C40s — the brand’s sporty, high-riding crossover coupe that happened to be its first dedicated EV offering in the US. If the C40 doesn’t suit you, the same deals are available on the more conventionally styled XC40 Recharge, too.
Buyers looking for one of Volvo’s excellent (IMO) T8 PHEV models can score up to $4,000 in allowances before the real discounting begins — and if, like me, your tastes run more towards Swedish sedans than SUVs, you might want to score yourself a sweet deal on a new S90 while you still can.
Disclaimer: the vehicle models and rebate deals above were sourced from sites like CarsDirect, CarEdge, USNews, and (where mentioned) the OEM websites – and were current 21APR2025. Despite my best efforts to filter these, some deals may not be available in your market, or to every buyer (the standard “with approved credit” fine print should be considered implied). Check with your local dealer(s) for more information.
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Environment
New York lawmakers are trying to shut down Tesla stores
Published
3 hours agoon
April 28, 2025By
admin

New York state lawmakers have launched an effort to shut down Tesla’s stores in the state by revoking its waiver to allow direct sales.
Several states in the US have laws prohibiting the direct sale of electric vehicles to the public without going through third-party dealerships.
These bans stem from outdated laws intended to protect car dealers from their own automakers supplying the vehicles.
The idea is that automakers cannot open a company-owned store next to a third-party car dealer after they have invested in selling and servicing their cars. It would be unfair competition.
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Now, some car dealerships are using those old laws to prevent automakers that have never had deals with third-party franchise dealers, such as Tesla and Rivian, from selling their vehicles to the public, even though it constitutes fair competition.
Tesla has been fighting those laws in many states with some success.
In New York, the anti-direct sale law remains in effect. Still, Tesla managed to obtain an exemption to open a few stores and service centers, despite its bid to expand being curtailed by the local dealership association.
Now, state legislators in New York are pushing to remove Tesla’s exemption and grant it to other electric vehicle (EV) automakers.
Senator Patricia Fahy, who was once an ally to Tesla in its fight to be allowed to sell in New York, is now leading the effort to remove Tesla’s waiver (via New York Times):
Ms. Fahy, a Democrat whose district includes Albany, and other state lawmakers are pushing to revoke a legislative waiver that has let Tesla directly operate five New York dealerships rather than sell cars through dealer franchises, as other carmakers must do.
Fahy’s effort stems from her regret of having supported Tesla in the past:
“Maybe I’m making amends,” Ms. Fahy replied when asked about her previous support for Tesla. Mr. Musk, she said, is “part of an administration that is killing all the grant funding for electric vehicle infrastructure, killing wind energy, killing anything that might address climate change. Why should we give them a monopoly?”
Many, like Fahy, believe that CEO Elon Musk’s support for Trump and their efforts to curtail EV adoption amount to Musk pulling the ladder that helped Tesla dominate the EV space, just as other EV companies need it.
To be fair, the state senator is not completely changing her stance on direct sales because of Musk’s involvement with Tesla. Instead, she changed her opinion on giving Tesla a waiver:
Ms. Fahy now views Tesla’s waiver as an unfair advantage, and wants the company to forfeit its five licenses by 2026. Under her plan, the licenses could be redistributed to rival electric-vehicle manufacturers like Rivian, Lucid and the Volkswagen affiliate Scout Motors, which also employ a direct-to-consumer sales approach.
Tesla has long outgrown its waiver allowing five stores in New York, and lately, it has started using a loophole to open stores on native land in the state.
Electrek’s Take
I’ve made my thoughts clear about direct sales. They should be allowed for any automakers who don’t use franchise dealers. That includes Tesla.
I think Tesla should be allowed to sell its vehicles in New York, and people should be allowed to boycott them.
However, I agree that Tesla getting a specific waiver is unfair. Any new automaker, like Rivian, Lucid, etc., should also be able to open stores freely in the state.
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Environment
PayPal kicks off fintech earnings as investors fear impact of Trump tariffs on consumer spending
Published
3 hours agoon
April 28, 2025By
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FILE PHOTO: A smartphone with the PayPal logo is placed on a laptop in this illustration taken on July 14, 2021.
Dado Ruvic | Reuters
PayPal, Block and Affirm are all closely tied to the health of the consumer, which has investors on edge headed into their earnings reports.
Markets broadly have been jittery to start the year due largely to concerns about President Donald Trump’s sweeping tariffs and the prospect of higher import costs leading to rising unemployment and reduced consumer spending.
Specific to e-commerce, there’s the end of de minimis trade exemptions for Chinese imports, effective May 2. That change, aimed at discount shopping apps like Temu and Shein, threatens tens of billions of dollars in low-cost cross-border e-commerce volume.
“Tariff implications and macro have added another wrinkle to ’25,” Wells Fargo analysts wrote in a note on April 16. The bank said PayPal is particularly exposed to tariff-related volatility and macro uncertainty, given that 90% of its revenue comes from consumer-driven transactions.
PayPal is the first in the group to report earnings on Tuesday. Block, the parent of Square, follows on Thursday. Affirm is scheduled to report results next Thursday. Their stock prices have been hit harder this year than the broader market. PayPal is down 23%, Block has fallen 32% and Affirm has dropped 19%, while the tech-heavy Nasdaq is down 10%.
The stocks rebounded last week as Wall Street showed some level of optimism that the Trump administration will make progress on trade agreements and that tariffs won’t be as extreme as earlier proposals suggested.
Read more about tech and crypto from CNBC Pro
Trump signed an executive order in early April imposing tariffs on more than 180 countries and territories. After markets immediately plunged, the president soon announced a 90-day pause on most tariffs, though levies on imports from China remain, and are as high as 145%. The universal tariff rate on goods imported into the U.S. from most countries is 10%.
The fintech reports land during earnings season for megcap tech, with Meta, Microsoft, Amazon and Apple all announcing results this week. Tesla and Alphabet both reported last week and talked about the potential impact of policy changes on their earnings calls.
On Alphabet’s earnings call on Thursday, Google Chief Business Officer Philipp Schindler said the end of the de minimis trade loophole will “cause a slight headwind to our ads business in 2025,” primarily from retailers in the Asia-Pacific region.
While Google is “not immune to the macro environment,” Schindler said, it has “a lot of experience managing through uncertain times.”
E-commerce challenges
With mixed messages coming from the administration, companies are reckoning with uncertainty and have little ability to provide accurate forecasts for the current quarter and remainder of the year. The volatility reached such heights in early April that Klarna, which competes with Affirm in the buy now, pay later market, and ticket marketplace StubHub delayed their long-awaited initial public offerings shortly after filing their prospectuses with the SEC.
Barclays analysts noted in a report on April 17, that significantly higher tariffs will weigh heavily on e-commerce sales, particularly for goods previously entering the U.S. duty-free. The firm estimates that Temu and Shein represent more than 30% of affected flows, much of it tied to digital wallets, buy now, pay later providers, and card processing infrastructure.
PayPal derives the vast majority of sales from consumer transactions and 40% of revenue and gross payment volume comes from international markets, according to Wells Fargo analysts. The bank trimmed its price target on April 16, to $74 from $80, citing margin pressure as e-commerce trends soften and competition rises.
PayPal has been getting a boost from Venmo, but that segment is also threatened if consumer spending declines. Growth expectations for the quarter — specifically a 5.5% increase in branded checkout volume — may be too high, Wells Fargo said, based on available nonstore retail sales data.
Analysts surveyed by LSEG estimate that PayPal will post revenue growth of just under 2% from a year earlier to $7.85 billion, and earnings of $1.16 per share.
Jack Dorsey’s Block faces pressure in multiple areas. Cash App user growth was sluggish in March, up just 1.3% from the same time last year, and Afterpay — the company’s buy now, pay later offering — is tightening its underwriting to limit credit losses. Barclays flagged Block as one of the more exposed names to small business churn and low-income volatility, noting that Afterpay volumes remain tied to highly discretionary consumer spend.
Block is expected to report revenue growth of about 4% to $6.2 billion, and earnings of 87 cents per share, according to LSEG,
Affirm reported a 30% increase in monthly active users in March, but tighter credit conditions and a broader economic cooldown may crimp near-term loan volume growth. Its business counts on purchases of electronics, apparel, furniture and other consumer goods.
Affirm is projected to report revenue growth of 36% to $783 million, and a loss of 3 cents per share, according to consensus estimates from LSEG.
Barclays analysts wrote in a note on April 15, that in March and the early part of April, much of the retail market may have experienced a “pull forward” of discretionary spending as consumers rushed to make purchases ahead of the May tariff implementation, a dynamic that could distort some backward-looking results.
“This scenario would essentially kick the sentiment can down the road,” the Barclays analysts wrote.
Representatives from PayPal, Block and Affirm declined to comment.
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