
The Faraday Future FF91 actually exists, and I was the first media to drive it
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2 years agoon
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Faraday Future, the oft-delayed electric vehicle startup, has finally brought the FF91 to market, and we were the first media to drive a real production-spec version of the car, around Willow Springs raceway no less.
Faraday invited us to Willow Springs to attend its latest “delivery co-creation day,” where race car driver and Le Mans class winner Justin Bell took delivery of his FF91 2.0 Futurist Alliance limited-edition vehicle. This is the seventh car the company has delivered since the official start of production in March and the start of shipping in May. Faraday is showing a video on its website to recap the events of the day, which should be live as this article is published.
Willow Springs was a fitting location since the event was also the launch of Faraday’s “Racetrack Conqueror Plan,” where the point is to visit racetracks around the world to set track records with its electric car.
Bell and his father, Derek (a multiple Le Mans winner and ex-F1 driver who also has an FF91 on order), say they’re going to work on developing a racing package for the FF91, which will help it on its way to these records. Faraday also plans to engage with other racing drivers in the future – Romain Dumas was one example given.

Faraday also invited other VIPs, including various supercar owners, to come out and challenge the FF91 on the track. A Bugatti Chiron, a Ferrari SF 90 PHEV, a Mercedes GTS AMG Black, and others were in attendance. Faraday did manage to set a record on the day and beat the various other cars at the track.
The FF91 set a lap time of 1:28.13, which beat out the Lamborghini Urus for the fastest lap by an SUV (gas or electric) by more than two seconds. According to fastestlaps.com, that puts the FF91 just behind the Porsche 911 GT3, McLaren 570S and Tesla Model S Plaid by less than a second each and just ahead of the BMW M4 CSL and the 760hp supercharged V-8 Shelby Mustang GT500.
And then, five years after Faraday’s initial production intent and with several attempts at restructuring the company and finding contingent funding inbetween, we finally got a chance to hop behind the wheel.
While Faraday has offered some media drives before, those were in prototype vehicles, whereas this is the first time in a real production vehicle and the first time on a track. We drove production VIN #1, the car belonging to Faraday Future’s founder, Yueting “YT” Jia.
First drive: 1,050 mind-blowing, silent horsepower
This was definitely just a first drive – we didn’t get any street time with the car, just a few laps on the track and a little time sitting in it and messing around with the interface.
But the track time meant we could really get a sense of what the FF91’s 1,050 horsepower (yes, you read that right, one thousand and fifty horsepower) can really do.
On the front straight, it started pulling, and then it kept pulling, and then it kept pulling. It just never stopped pulling. I got up to about 145mph (of its electronically limited 155mph), and it didn’t feel like it was petering out.
And I felt like I was taking it easy. Even at that high speed, the car showed no sign of drama. It was quiet and smooth inside, and there weren’t any theatrics on the way to achieving a faster land speed than most people will ever see.
And even better, in my opinion, was the complete lack of drama on the exterior of the car. The car was not screaming loudly as it blasted by the grandstands. (In fact, it was perhaps easier to hear the motorcycles at the neighboring Streets of Willow track than the FF91 on the big track.)
Some prefer the belching theatrics of a loud exhaust, but beyond the obvious health and climate effects and the inefficiency of noise replacing actual kinetic energy, honestly, they’re just so gauche. It was more pleasant and exciting to see the FF91 whip through the air silently than it was to smell the noisy Spoon Racing Honda idling and giving everyone a headache while it waited to take the track.
All that said, the car was maybe even too quiet. Not on the engine side of things, but with Faraday’s focus on offering a luxurious ride, extensive sound dampening meant it was hard to hear the tires working outside the vehicle.
When tracking an electric car, being able to hear the tires working is a real performance benefit compared to louder motors, as it gives you another sense to help you understand your vehicle’s dynamics. Maybe the Bell performance package will remove some sound-dampening material, which will also help to save weight.
It’s heavy, but Faraday, please stop calling it an elephant
This brings up the FF91’s big disadvantage when it comes to the track: All that size and luxury means it weighs a whopping 6,442 pounds (2,922kg).
That’s an enormous vehicle, even compared to other supercars and hypercars, which lately have seen a trend forsaking weight savings for more raw power (while the late Colin Chapman rolls in his grave). For comparison, the 1,020hp Model S Plaid is 4,700 pounds, and the 1,500hp Bugatti Chiron (one of which was in attendance) is 4,400 pounds. But then again, those vehicles don’t have reclining rear seats. More on that in a moment.
Weight is one of the worst things for vehicle performance. The heavier your car, the harder it is to accelerate, brake, and turn. That is, it’s harder to do all of the things a car is meant to do. When legendary race car designer Colin Chapman was asked what to add to make a car faster, he responded, “Add lightness.”
This heavy weight was apparent in the car’s performance, but not as much as you’d think. The car’s heaviest portion, its 142kWh(!!!) battery, is placed at the floor between the wheels, which helps to keep a low center of gravity and low-ish moment of inertia (compared to its 206-inch length) and increases chassis rigidity. As a result, even in the flatter corners (most of Willow’s corners are banked), we felt very little body roll from the car, which is especially abnormal for an SUV.
In corners, the car was a little floaty when jumping on the throttle on corner exit, again owing to its high weight. It just takes a lot of effort to get such a big car turned. Its tri-motor system is arranged with three equally-sized motors, one in front and two in rear, with a slight rear/oversteer bias to the handling, which I actually enjoyed. I do prefer rear-wheel drive – it’s just more fun to be able to steer the car on the throttle – but everyone’s going AWD because it’s faster and easier to drive, so at least the car will still let me have a little fun.
And as for the brakes, they felt fine, but it certainly did take some real effort to get the car stopped. There’s just so much car behind them. On a track-performance basis, this is probably the car’s weakest point. Not that they felt too small or that the car didn’t behave well under them – just that the car is heavy, and when you have that much kinetic energy, it takes time to shed all of it.
Despite the weight, the car still held its own on the track on the day, setting the aforementioned SUV record and beating other supercars that were brought out to set laps. YT has repeatedly used a metaphor along the lines of “an elephant dancing with cheetahs,” and while I understand the meaning he’s getting at here, I encourage Faraday to stop calling its car an elephant. Nobody wants to hear that.

Another track weakness that I didn’t personally encounter is in the battery temperature management. While my three laps were unbothered, the next driver apparently was unable to coax full performance out of the car, as it had gone into a protection mode from the high temperatures I left it with on this warm-but-not-hot track day.
We saw a lot of this with early Teslas, which could only do a limited number of laps or sometimes couldn’t even complete a full lap of a longer track like the Nurburgring Nordschleife before derating due to temperature. By now, Tesla’s cooling systems and software have improved enough that this isn’t a problem, and there are plenty of racing-focused EVs that don’t have a problem with derating after multiple laps (Formula E, for example, where Faraday was involved in a team in season 3).
Faraday got another car out for the other driver and says that it has some ideas about how to tweak the software to avoid temperature derating, but we suspect it will take a good amount of focused effort (or perhaps a compromise of reducing peak power) to get there.
But if your car does need a break, or if you do, at least you’ve got a nice place to sit.
It’s also a luxury car
That’s the thing about the FF91: It’s not really a sports car. We’ve talked a lot about track performance because that’s where we drove it, but Faraday calls it an “all-ability” car, which merges the capabilities of a luxury car, family car, and sports car.
So its deficiencies as a sports car – namely, its weight and size – are a result of its strengths as a luxury car.
The main focus of the vehicle since its introduction has been the rear Zero-G seats, which have gobs of legroom and are capable of reclining at a 60° angle. These seats are enormous and comfortable, a class above even the Audi e-tron SUV, which is the previous most comfortable car I’ve enjoyed sitting in and even better than the original Lucid prototype rear seats, which had a similar style but were abandoned come production. (Faraday has already floated that there may eventually be a bench seat version of the FF91.)
These Zero-G seats are largely targeted at people with personal drivers and, therefore, target people who spend more time in the rear seat of their own vehicle – not so common in the US, where Faraday is based, but quite common in China, where the founder is from and which the company is clearly targeting much of its strategy at (though it would not tell me when Chinese deliveries would commence).
Upon sliding into position in the back, I immediately and subconsciously went into “comfort mode.” Think of the blue-collar dad, getting home from a hard day of work, popping a beer, kicking off his shoes, plopping into his favorite La-Z-Boy and pulling the recline handle to enter maximum relaxation mode.
Truly, this gives a new definition to the common phrase “living room on wheels.” An employee told us that his kid and wife now fight over who gets the back seat, not the front seat. I can see it.
It’s a startup, after all
And yet, despite being in the first production vehicle, a number of production features were not available to test out. The car was festooned with gear that blocked the rear 27-inch screen from folding down, and the seat massagers were not activated (I’d probably still be sitting there if they were, having melted across the divide into the plane of pure relaxation). And while the software worked well, it was still waiting for some future features (but I’m no stranger to cars like that).
One of its characteristic whiz-bang startup-like features is something we’ve seen on many concepts recently (and production cars, too): funky doors. The FF91’s doors have no handles whatsoever, and are instead opened by a touch gesture either on exterior car window sill or a touchscreen on the B-pillar.
I’m okay with some door handle experimentation, but this seems like a bridge too far. The sill gesture was not reliable in my initial experience, though the touchscreen gesture worked well. This could be solved with, perhaps, auto-opening doors on walk-up or something of the sort. Handles, a button, anything along those lines would be nice. But, at least you can close them manually.
Faraday says that it will engage with early owners, whom it is calling “co-creators,” in an active feedback loop to improve its software and fit it to the needs of its owners. The company wants to offer frequent software updates and says it has much more computing power onboard than it is currently using, so it has plenty of headroom to add more capabilities.
While we didn’t get deep into using the software, the basic interface already does work pretty well. Most importantly, the interface is snappy and responsive, unlike virtually every other OEM interface that isn’t made by Apple/Android or another EV startup.
In terms of interface layout, some of the controls take one too many submenus to reach, and there was some lag between pressing certain digital controls and translating them into hardware movement (e.g., adjusting seats and steering wheel), but you should only have to do that once anyway. Faraday says its software will remember your settings and wants to eventually detect not just who’s in the car but what seat they’re in and set each seat to whatever the occupant’s preferred settings are.
The main screen is vertically oriented between the front seats, and myriad car settings can be controlled from there. There are additional touchscreens on the rear doors, which allow independent controls (such as climate control) for each back seat.
The screens themselves were a little darker than I’d like, though admittedly, it was a bright day, and I was wearing sunglasses, which brings up another point – the FF91’s HUD struggles with polarized sunglasses, something that I have noticed in other HUDs, since the whole point of polarized glasses is to reduce reflections (though the Mercedes EQS, through some black magic, still makes it work).
But even worse, the main screen didn’t look great with polarized glasses either. This is common for screens, though usually it only works when you tilt your head 90° away from the normal viewing angle (and some screens, like phone screens, avoid the problem completely). But in this case, it seemed to darken when my head was just at a diagonal angle, which strikes me as a far bigger oversight than a difficult-to-see HUD.

The driver instrument display and the passenger infotainment display, though, both did not have this problem. But each had a gloss finish on them, which made it difficult to see if there was a bright reflection – which there often was, especially as the strong California desert sun got lower in the sky. They could stand to be both brighter and closer to the driver/passenger, as they are set quite far back into the dash.
But the software also got a big win when I tried pairing my device with the in-car Wi-Fi system. All I had to do was scan a QR code, and my device immediately joined without needing to enter my phone’s settings, and all of a sudden, a bunch of notifications came through on my phone, which I hadn’t been getting due to poor reception at the track. So, score one for FF91’s triple-antenna cell system and a great and easy-to-use software experience.
But we didn’t have a chance to test any driver aids or semi-autonomous software at all. Like most cars on the road today, Faraday’s driver aids are SAE level 2, which means you are still responsible for driving the car. The car has 30 sensors, with cameras and LiDAR, and is powered by NVIDIA’s Orin architecture.
Faraday talked a lot about being autonomous-ready, both in their 2017 reveal and in May of this year, though at this event, it was much quieter about all that – in fact, explicitly telling me that it doesn’t want to make promises it can’t keep, unlike some other companies. This statement would be a refreshing sign of maturity if Faraday hadn’t been making those exact promises about its “FF aiHypercar+” system just a few months ago, which will be able to generate custom maps of private grounds which will allow level 4 driverless operation, and which it said it plans to charge $15k per year for.
And that’s one thing about my conversations with Faraday employees on the day. In Faraday’s marketing presentations, it has made a lot of claims about what its car is and will be capable of. These claims have also been buried under mountains of buzzwords, and the short presentation given by YT was no different.

But in direct conversations, employees mostly spoke in normal human terms, forgoing the buzzwords and just talking about what the car can do, what it will hopefully be able to do in the near future, and what it seems like will come further down the timeline. And at times, the employees recognized the need to distance themselves from promises and designs generated long ago before many of them were with the company.
These conversations were refreshing to experience, but I would like to see them reflected in Faraday’s higher-level messaging. Maybe I’m completely missing the market here, but I just don’t think anyone is served by phrases like “FF aiHyper 6×4 Architecture 2.0.” It doesn’t mean anything to anyone. Focus.
Now it’s time to focus
Putting three cars in one was always going to be a challenge. I’ve written a lot of words about Faraday’s “kitchen sink” approach, reaching all the way back to its original reveal in 2017. In short, I think it’s dangerous to try to make a car that’s everything to everybody. You have to eventually sit down, focus, and trim the fat somehow.

Since that reveal, Faraday has moved from benchmarking itself against the Tesla Model S in its original announcement in 2017 (this wasn’t explicit, but it was still obvious) to now benchmarking itself against Maybach and Ferrari. This latter benchmark surely helps it to justify its $309,000 price tag on these first vehicles, but in the interim, we’ve seen Mercedes announce a starting price of $180,000 on its Maybach EQS SUV, which is quite the undercut compared to FF91’s announced pricing.
Faraday’s less-limited-edition FF91 2.0 Futurist model will start at a lower $249,000 base price, and the base-model FF91 2.0 will be lower still, though that last price point has not yet been announced. We’ll see how close it gets to the Maybach.
Faraday also says that it has one big advantage over the Germans, which is that, as a tech company, it can move faster and has a much better understanding of how people are engaging with technology and devices today.
On this point, I don’t disagree. One thing I love about my early Model 3 is that it is a better car today than it was when it was released due to software updates (and the rollout of the Supercharger network); the same can’t generally be said about cars from traditional OEMs. But I am not the target market for a $309,000 (or $249,000) car, so what I think about this doesn’t particularly matter.
The question is: Will people buying Maybachs want to spend a similar amount of money – or more – on a car that doesn’t have a name with as long of an established history? Will the status gained from having early access to a rare and expensive new brand outstrip the status from having a car with a logo everyone (with money) knows about already and has for a hundred years? Surely, for some people, but are there enough buyers out there of that description to fund Faraday’s operations?
Those operations are the primary focus of Faraday Future’s new CEO, Matthias Aydt, appointed last month after less than a year under the previous temporary CEO, Xuefeng Chen, who is now back to his prior position as FF China CEO.
Aydt said he is focusing on cost-down and ramp-up, with the company targeting .5 cars an hour worth of output in the short term and hoping to reach two cars per hour output around the beginning of 2025.

Those numbers annualize to 2,500 cars a year and 10,000 cars a year, respectively – which is quite a shout from the seven that have been delivered so far this year (though more have been produced and many were brought out to the track). It’s the difference between a real car company producing cars in volume and literally being able to name every owner off the top of your head, the latter of which is possible now.
Aydt gave a public update on Faraday’s progress on October 15, primarily focused toward concerned investors who have seen the stock price fall significantly lately. The company will give more updates on its progress on this front at its quarterly update on November 13 and investor day at its HQ in Gardena, California, on November 15.
So the story of Faraday is one that, despite a lot of ink already being spilled, is still being written – and the company and its investors hope that we are still writing the early pages of that story. Getting here, bringing a competent vehicle to the road, is an achievement that many, myself included, thought would never happen. Faraday deserves credit for that, not only for getting the car to road but for getting it to the road with specs similar to what was promised (minus some of the more hopeful software features… which may still come in updates).
This is why I titled this article “the Faraday Future FF91 actually exists.” This may sound like I am damning the company with faint praise, but it truly is an achievement to have brought this car to market and to have managed some superlatives along the way. Its power is incredible, its rear seat comfort is beyond compare, and its software shows promise. But its strategy at times seems rudderless, and despite the superlatives, its price is still tough to justify. (But hey, I’m not spending over $200,000 on a car; what do I know about what that group wants?)
So now comes the time to focus, to separate the wheat from the chaff, to turn this dream into reality.
And, for goodness sake, stop calling your car an elephant.
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Environment
All the best EV and PHEV rebate deals we could find for April 2025 [update]
Published
53 mins 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
1 hour 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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PayPal kicks off fintech earnings as investors fear impact of Trump tariffs on consumer spending
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2 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.
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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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