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Tesla’s stock (TSLA) has surged to a $1 trillion valuation – seemingly over the assumption that the Trump and Musk relationship is going to benefit the automaker.

The company is virtually worth more than the next 10 biggest automakers combined.

Tesla has extended its post-election rally another 7% this morning – resulting in its valuation surpassing $1 trillion for the first time in years.

The company has long been the most valuable automaker in the world, but it is now worth more than the next 10 biggest automakers combined:

Considering there has been no significant news concerning Tesla this week other than the US elections, it’s fairly clear that the latest rally is related to the election and the close relationship between Tesla CEO Elon Musk and President Elect Donald Trump.

What is Trump going to do for Tesla?

Tesla added over $200 billion to its valuation since the election. That’s a whole Toyota added to its valuation.

What does justify that? What can Trump do that will help Tesla that much?

It’s hard to tell exactly as what Trump says he will do and what he actually does aren’t always the same things, but there are a few theories.

The President Elect made it clear that he wanted to remove the EV incentives that kept Tesla’s sales from falling in the US over the last few years. This will make Tesla’s vehicles more expensive, but some Tesla shareholders are hoping that it will cripple other EV competition, leaving Tesla alone in the future.

They are expecting something similar with the tariffs that Trump has been promising to impose on goods coming from other countries.

The auto industry is globalized and US automakers rely on parts from other countries, but on average, Tesla is more vertically integrated than other automakers.

While all automotive costs are likely to go up, Tesla investors believe the company will be able to stomach the tariffs better than the competition.

Finally, on the automotive manufacturing front, there’s also the more conspiratorial theory that Trump could carve out exceptions built especially for Tesla now that Musk has his ear.

While automotive manufacturing is still the bulk of Tesla’s business, Musk was clear that he believes that “Tesla is worth nothing without self-driving.” Trump can’t help Tesla achieve self-driving, but Musk has hinted that he could build a federal framework to get self-driving systems approve at the federal level rather than state-by-state.

This would help Tesla more easily roll out when/if it solves self-driving.

Electrek’s Take

They have some good points about Tesla being more competitive than other EV automakers in a harsher cost environment.

Tesla has already proved it during the supply chain crisis amid the pandemic.

My problem with it is that it’s not good for electric vehicles. It’s only good for Tesla. At Electrek, we are for the acceleration of EV adoption in order to help ensure the transportation and energy industries are on an accelerated path to sustainability.

Tesla used to be for that too.

Within a scenario where EV incentives are removed and automotive costs increase due to tariffs, EV adoption goes down in the US. Electric vehicles will be more expensive at the sticker price and historically, that has always resulted in fewer sales.

It’s going to be true of Tesla and all other EV automakers. The only way you can see that as been good for Tesla is if that kills the other automakers and only Tesla survives.

That’s a real possibilities, but it would be bad for the mission to accelerate electric transportation.

It goes against Tesla’s original mission, which was to accelerate the entire industry’s transition.

In a way, it feels like Tesla was early and took advantage of the incentives and as other companies are trying to catch up, Tesla, or rather Musk, aims to close the door behind them. This goes against the original mission.

If that’s really what is going on, Tesla is not mission driven anymore. It has become all about the stock.

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It’s back: Hyundai IONIQ 5 qualifies for $7,500 tax credit – again!

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It's back: Hyundai IONIQ 5 qualifies for ,500 tax credit – again!

The Hyundai IONIQ 5 got a raft of upgrades and sporty, rally-focused XRT trim level for 2025 – but the biggest upgrade for the Made in America Hyundai might be this: the 5 has regained eligibility for the full $7,500 federal EV tax credit!

Despite being assembled at Hyundai’s Georgia meta plant for the last four month, the 2025 Hyundai IONIQ 5 was nowhere to be found on the EPA’s list of rebate-eligible vehicles. But that was then – with a fresh updated to the list coming online May 1st, Hyundai’s new-age electric hot hatch is back in the rebate game.

It’s worth noting that lease customers had been able to access the incentive under some circumstances, but this latest update to the EPA list makes it possible for cash and payment buyers to take advantage of the full Federal incentive, too – as long as they earn less than $300,000 as a married couple filing jointly, less than $225,000 as a head of household, or less than $150,000 as an individual.

With the $7,500 federal tax credit in the equation, you can get a new 2025 IONIQ 5 for somewhere in between $36,575 and $49,475, well under the $80,000 Federal MSRP cap.

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Victory lap

As if to celebrate, Hyundai announced that it was taking on the celebrate One Lap of America road rayy and race event in a factory collaboration with the track-focused enthusiasts at Grassroots Motorsports this week with One Lap veterans Andy Hollis and Tom Suddard campaigning a stock, 601 hp 2025 Hyundai IONIQ 5 N in the Alternative Fuels class.

“After winning our class in a gutted, caged race car last year, we wanted to compete in the best-of-all worlds this year: A vehicle that’s incredibly fast, incredibly comfortable on a road trip, and incredibly capable on a racetrack,” explains Suddard. “Electrification means it’s finally possible to have huge power without huge compromises in a street car, and the IONIQ 5 N promises to pair that huge power with the durability and capability to survive a week of racing.”

One Lap is widely regarded as one of the toughest street-legal motorsports events in the world, pitting amateur and professional drivers alike compete in stock and heavily modified vehicles of every description, battling it out in a series of scored challenges, including timed events at road courses, drag strips, skid pads, and autocross courses.

In between tracks, competitors safely travel thousands of miles around the country, proving the mettle and durability of the vehicles and the teams that drive them. This year, 86 teams from all over the country will compete in 17 scored events over the course of eight days at tracks like Virginia International Raceway and NCM Motorsports Park.

The Tire Rack One Lap of America is currently underway – you can track the Hyundai’s progress here, then let us know what you think of this new tax development in the comments.

SOURCES | IMAGES: Hyundai, One Lap of America; FuelEconomy.gov.


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E-quipment highlight: Kenworth T880E vocational electric semi truck

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E-quipment highlight: Kenworth T880E vocational electric semi truck

With the launch of the first-ever Class 8 vocational EV in the North American market, PACCAR Kenworth is raising the battery-electric bar and underscoring just how far the market has come since the Tesla Semi made its debut nearly a decade ago.

When Tesla pulled the wraps off its all electric Semi truck all the way back in November of 2017, the rest of the industry was hardly thinking about BEVs. Nearly a decade later, the world is still waiting for the Semi to begin regular production, and PACCAR is launching its second generation of HDEVs with the debut of this, the all-new Kenworth T880E vocational truck.

“The Kenworth T880E marks a groundbreaking milestone in Kenworth’s history as we bring to market the first Class 8 battery-electric solution built for vocational applications,” explains Kevin Haygood, Kenworth assistant general manager for sales and marketing. “The T880E is engineered to meet the evolving needs of operators and vocational fleets while still providing the durability, reliability and customization our customers expect.”

The new electric K-whopper is motivated by PACCAR’s in-house ePowertrain platform, capable of putting up to 605 hp and 1,850 lb-ft of peak torque to work, while delivering the same levels of drivability and dependability fleets expect from a Kenworth – but power and torque are only part of the T880E’s work-ready résumé.

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Open to work

Kenworth T880E; via PACCAR.

In addition to a stout, Class 8 electric chassis fitted with heavy-duty Kenworth brakes and axles, the T880E’s central drive eMotor allows for significant wheelbase flexibility so fleet buyers can spec out exactly the machine they need to get the job done. The T880E was also designed to enable lift axle installations from trusted Kenworth upfitters for a vocational-friendly BEV integration.

Additionally, the T880E features a wide selection of factory-installed options that include both high- and low-voltage ePTO (electric Power Take Off) ports, mechanical ePTOs, and the same wide array of body configurations as the ICE version.

Speaking of the ICE version, the electric T880E also can also be had in the same set-back front axle and set-forward front axle configurations with the same multi-piece hood construction. Inside the cab, the latest in driver-focused technology includes the Kenworth SmartWheel and a new 15″ DriverConnect digital touchscreen. Dash and vocational features like RAM Mounts and factory-installed PTO switches are available. The T880E is also offered with Kenworth ADAS packages for customers interested in DigitalVision Mirrors, Bendix Fusion, and Lane Keeping Assist.

It’s so big, you guys

Kenworth T880E; photo by the author.

The T880E was on static display at last week’s ACT Expo in Anaheim, California. Check with your local Kenworth dealer for availability.

SOURCE | IMAGES: Kenworth.


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Xiaomi SU7 Ultra gets its groove back with all 1,548 hp available NOW

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Xiaomi SU7 Ultra gets its groove back with all 1,548 hp available NOW

The tire-blistering SU7 Ultra has been the Xiaomi brand’s flagship super sedan since its launch, but a controversial software setting has limited the car to “just” 900 hp in regular driving – resulting in an outcry from owners who ponied up for the big boy numbers. With its latest software update, that missing 648 hp is back on tap!

The SU7 Ultra made waves throughout the performance car world when a bright yellow striped example lined up alongside a white quarter mile king, the 1,000+ hp Tesla Model S Plaid, and promptly smoked it.

That wasn’t all. A preproduction SU7 Ultra prototype lapped the legendary Nürburgring circuit in just 6 minutes and 46.874 seconds, firmly stamping the 1,500+ hp Xiaomi’s alphanumeric into the track’s record books with a time nearly fifteen seconds quicker than a Rimac Nevera or, on the ICE front, either a Corvette ZR1, Viper ACR, or Porsche 918 (take your pick).

It’s hardly any wonder, then, that the customers who signed up – in droves, too – were disappointed to learn that the SU7 they were allowed to buy had been neutered by the safety nannies to the tune of nearly 650 hp. (!)

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We’re so back

The outrage from SU7 Ultra owners was immediate. And, facing mounting pressure online and on social media, Xiaomi ultimately decided to withdraw the performance-limiting features while acknowledging the need for more transparent communication about future software updates they messed up, saying in a statement, “we appreciate the passionate feedback from our community and will ensure better transparency moving forward.”

So, rich people can rocket themselves down the road in 9 second hypercars again and all is right with the world. A happy ending – but one that sort of illuminates a fresh set challenges for automakers peddling “software-defined vehicles” to a market that still thinks of their cars as very much hardware defined products.

That’s evidenced by the resistance to pay for features by subscription and complaints by more informed customers that “software locked” range and convenience features just subsidize the cost of more expensive trim levels and pad profits for manufacturers and suppliers.

The new reality is playing out in real time now, and the Jeff Bezos-backed $20,000 electric compact pickup from Slate Auto is going the other way entirely – time will tell whether more, or less tech is the answer.

SOURCE | IMAGES: Xiaomi, via CarNewsChina.


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