Good morning! It’s Wednesday, April 23, 2025, and welcome to The Morning Shift, your essential summary of the leading automotive news from around the globe, all in one place. Here, you’ll discover the most significant stories influencing how Americans drive and navigate their transportation needs.
In today’s edition, we’re diving into where Tesla CEO Elon Musk is focusing his efforts, alongside the auto sector’s cautions to President Trump regarding tariffs. Additionally, a dealer group from California has filed a lawsuit against Tesla concerning direct sales of Scout vehicles, while India is considering reducing tariffs on Harley-Davidson motorcycles.
Read more: These Are The Dumbest Car Crashes You’ve Ever Seen
1st Gear: Musk’s Commitment to Spend More Time on Tesla Comes With Divided Focus
Billionaire businessman Elon Musk arrives for a town hall wearing a cheesehead hat at the KI Convention Center on March 30, 2025 in Green Bay, Wisconsin. The town hall is being held in front of the state’s high-profile Supreme Court election between Circuit Court Judge Brad Schimel, who has been financially backed by Musk and endorsed by President Donald Trump, and Dane County Circuit Court Judge Susan Crawford. – Scott Olson/Getty Images
Elon Musk has been dedicating a large portion of his recent time to the Department of Government Efficiency, reminiscent of the infamous chainsaw consultants from “Office Space.” Musk, for reasons not quite clear, seems to admire these individuals. However, investors in Tesla are increasingly worried that his focus on “disassembling the federal government” might divert too much of his attention from the automotive sector, a concern he attempted to reassure during the investor call. According to Reuters:
Musk’s engagement with the Department of Government Efficiency, a role in which he has spearheaded federal job cuts, has become a political flashpoint, inciting protests and acts of vandalism against Tesla showrooms. Investors are expressing unease over Musk’s seeming lack of attention toward Tesla, where sales have significantly declined.
“The substantial amount of work required to establish the DOGE team and collaborate with the government to improve financial stability is mostly complete,” Musk informed analysts during a conference call. He also mentioned that he plans to allocate about 40% of his time to DOGE.
Musk’s 40% time commitment to DOGE suggests this figure refers to his waking hours, leaving the remaining 60% for his various roles at Tesla, SpaceX, The Boring Company, Twitter, XAI, Neuralink, and his habitual posting on X. It’s reasonable to assume that he can manage an adequate amount of focus on each of these entities individually.
2nd Gear: Auto Industry Warns Trump About Layoffs and Bankruptcy Due to Parts Tariffs
President Donald Trump – Win Mcnamee/Getty Images
With the Trump administration imposing a 25% tariff on auto parts, American automakers are in a state of panic. Their anxiety has led them to collectively send a letter to the White House, pleading for the reconsideration of this decision. From the Detroit Free Press:
“The tariffs on auto parts are set to disrupt the global automotive supply chain, initiating a chain reaction that will elevate vehicle prices for consumers, lead to decreased sales at dealerships, and complicate vehicle servicing and repairs, making them both costlier and less reliable,” articulated the letter.
“Many auto suppliers lack the financial resilience for a sudden tariff-driven disruption. Many are already struggling, facing production halts, layoffs, and potential bankruptcy,” the letter continued, noting that “the downfall of a single supplier can bring a complete automaker’s production line to a standstill.”
While it’s generally tough to sympathize with corporations that prioritize executive bonuses over worker retention during challenging times, I can comprehend the shock surrounding this decision. Trump has historically favored tariffs, yet usually in the context of safeguarding American businesses—not imposing additional costs on them.
3rd Gear: California Dealers Sue VW Over Direct Scout Sales
A Scout SUV – Scout
Volkswagen’s revitalized Scout brand intends to bypass dealers in the car sales process, a move that is favorable to almost everyone except the dealers. Unsurprisingly, the dealers are pushing back. Recently, a group representing California dealers has filed a lawsuit aiming to compel VW to include dealers. From Automotive News:
The lawsuit, filed on April 21 in the San Diego County Superior Court, represents the latest confrontation between a powerful dealer association and the Scout brand. The lawsuit also includes defendants like Volkswagen of America and Volkswagen Group of America.
…
The legal action claims that Scout’s direct-to-consumer sales model violates a California law that was amended and became effective on January 1, 2024. The dealer association views Scout, which is fully owned by Volkswagen AG, as an affiliate brand of VW, and asserts that the amended law mandates affiliated brands to utilize franchises for sales and services.
Dealers tend to add more hassle than value to the car-buying process, making their legal move for an enforced presence in sales somewhat understandable. Although no one truly wants them involved, it seems everyone may end up needing to tolerate them. Therefore, the current situation appears to be less than ideal.
4th Gear: India Considers Tariff Reductions for Harley-Davidson
Various models of the US motorcycle manufacturer Harley Davidson are displayed in the showroom of the Harley Davidson Store on March 13, 2025 in Berlin, Germany. – Carsten Koall/Getty Images
India presents a challenging environment for automotive brands to establish themselves, primarily due to protective tariffs shielding the local industry. Moreover, the country has a substantial inclination toward two-wheeled transportation, which could make it a lucrative market for brands like Harley-Davidson—if not for the aforementioned tariffs. Therefore, to mitigate trade tensions, India is contemplating a reduction in tariffs for Harley. According to Bloomberg:
The administration led by Narendra Modi is contemplating a proposal to eliminate import duties on motorcycles with an engine capacity of 750cc or larger, based on insights from unnamed sources familiar with the internal deliberations. There’s no assurance that this proposal will be included in the final US-India trade agreement, as it depends on the evolving nature of the negotiations, they added.
This offer seeks to dismantle tariff barriers, particularly for the esteemed American manufacturer Harley-Davidson Inc., and will expand on earlier concessions made during India’s budget period when duties on motorcycles up to 1600cc were reduced from 50% to 40%. The market for such high-capacity motorcycles is a mere fraction of nearly 16 million units sold each year, making this concession relatively manageable for the domestic industry.
Whether Harley can establish a viable market in India remains uncertain, especially given the country’s preference for smaller, more affordable motorcycles. A large cruiser in India is exemplified by the Royal Enfield Super Meteor 650—an appealing model adorned with chrome and style akin to a Harley, but at a lower price point and displacement. Will such premium motorcycles find success in this market?
Reverse: Celebrating 20 Years of YouTube
Today marks the 20th anniversary of the first-ever YouTube video. A time when no one envisioned it as a career platform, and before its algorithms began to shape political discourse—back when it was simply a site for sharing videos with friends. How did it all escalate into this?
On The Radio: Rage Against The Machine – ‘Testify’
They should innovate and create cigarettes that are beneficial for health.
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