The author says the U.S. still produces breakthroughs such as Tesla's newly unveiled Roadster, but struggles to turn innovation into affordable products at scale. Chinese brands are gaining ground in Britain, where the Jaecoo 7 became the best-selling new vehicle in September and Chinese brands took nearly a quarter of the new-car market. The author argues the 100% U.S. tariff on Chinese EVs imposed in 2024 shields American automakers but cannot improve productivity, noting that Chinese battery pack prices fell about 30% in 2024 versus 15% in the U.S. Recalling Japanese competition in the 1970s and 1980s, the author says the U.S. needs stronger incentives for innovation, such as the federal R&D tax credit and better access to capital for smaller manufacturers. The author also notes that some states' decision not to adopt the federal rule allowing immediate deduction of domestic research costs leaves local businesses with less money to invest.
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electric vehiclesChinatariffsTSLA
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Related tickers and likely impact
TSLA
▼ Likely negativeTesla, Inc.
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Automobile Manufacturers |
| Market cap | $1.4T |
| Close on 10/23/2026 | 372.21 |
| Change that session | -0.63% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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