Importance Score: 72 / 100 🔴
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For over a decade, our reporting on Tesla and its Chief Executive Officer, Elon Musk, has covered the company’s trajectory through periods of growth, setbacks, near failures, and subsequent resurgences. Musk, recognized for his embrace of risk-taking, has openly acknowledged the company’s precarious position prior to its significant turnaround.
This narrative of overcoming adversity significantly contributed to establishing Musk as an icon of ingenuity.
However, his political alignment and involvement in governmental efficiency initiatives have shifted public sentiment. Consequently, Tesla is experiencing repercussions, evident in declining first-quarter sales, worldwide protests, and a depreciating stock value. Automakers, traditionally lagging in the electric vehicle sector, are seizing this chance by presenting attractive trade-in opportunities and incentives.
Veteran reporter Rebecca Bellan has meticulously chronicled pivotal moments impacting Tesla over recent months. Her analysis will be regularly updated to reflect the latest developments.
The question remains: can Tesla recover? The recently introduced tariffs could potentially benefit Tesla, given that its vehicles and numerous components are manufactured domestically within the United States. Nevertheless, these measures might prove insufficient to halt current financial losses and could negatively impact Tesla’s energy storage division.
The uncertainty surrounding these tariffs persists, as the automotive industry begins to react and adapt. Companies like Ford are proactively offering discounts to stimulate short-term sales. Simultaneously, Volkswagen has communicated to its dealerships intentions to implement an import surcharge on vehicles entering the United States, according to reports from The New York Times.
Autonomous Vehicle Insights
Sources indicate that while Tesla is seemingly preparing to introduce a robotaxi service in Austin this summer, their engagement with city authorities has been minimal. In contrast, entities such as Waymo and Cruise previously prioritized establishing rapport with city stakeholders before launching similar initiatives.
Furthermore, certain officials have voiced safety concerns regarding Tesla’s approach to autonomous driving. Their apprehension stems from the perception that Tesla vehicles, relying exclusively on cameras for environmental awareness rather than incorporating lidar and radar technologies, might possess a more constrained understanding of their surroundings.
Investment Activity
Deal activity has been subdued this week, yet several transactions merit attention.
EVident Battery, a Massachusetts-based startup specializing in advanced battery inspection technology, secured $3.2 million in seed funding. The investment round was spearheaded by Ibex Investors, with participation from Nationwide Ventures, Automotive Ventures, and Avesta Fund.
Fourier, a company focused on hydrogen technology, successfully completed an $18.5 million Series A funding round. General Catalyst and Paramark Ventures co-led the round, which also included investments from Airbus Ventures, Borusan Ventures, GSBackers, MCJ Collective, and Positive Ventures.
Windrose Technology, an electric vehicle producer with Belgian origins and Chinese connections, intends to file for a U.S. Initial Public Offering (IPO) aiming to raise $400 million, as reported by The New York Times.
Further Developments and News
Developments in Autonomous Driving
TechCrunch correspondent Maxwell Zeff recently interviewed San Francisco Mayor Daniel Lurie, and the topic of autonomous vehicles emerged during their discussion. The full interview is available here.
Uber has formed a partnership with Dubai’s Road and Transport Authority, paving the way for the ride-sharing company to operate autonomous vehicles within the city in the United Arab Emirates. Uber, lacking its own autonomous vehicle fleet, will depend on collaborations, beginning with a partnership with the Chinese firm WeRide.
In related news, WeRide has also been granted authorization for driverless public road testing and operation in France.
Electric Vehicle & Battery Sector Updates
Harbinger, a manufacturer specializing in medium-duty electric vehicles, has officially initiated production, with the completion of its first 100 commercially ready units, as confirmed to TechCrunch. This milestone marks significant progress for the California-based startup established in 2021. These initial vehicles are slated for delivery to various customers, including RV industry leader Thor Industries.
Concurrently, Harbinger has become involved in the bankruptcy proceedings of electric vehicle startup Canoo. Harbinger has formally objected to the proposed sale of Canoo’s assets to its CEO, potentially complicating the ongoing bankruptcy case.
Rivian reported delivering 8,640 vehicles in the first quarter of 2025, representing the company’s weakest quarterly performance since late 2022. Despite this, the company maintains its projection of delivering between 46,000 and 51,000 electric vehicles by the close of 2025.
Redwood Materials, the battery recycling and materials company founded by former Tesla CTO JB Straubel, has inaugurated a new research and development center in San Francisco. The 15,000-square-foot facility situated in the city’s Design District is equipped with advanced laboratory spaces to support engineers working across the entire battery ecosystem, encompassing chemical engineering, cathode technology, software development, and electrical engineering disciplines.