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Global EV Sales Jump 24% in May as China Reaches Record High

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Global electric and plug-in hybrid vehicle (EV) sales surged by 24% in May year-over-year, according to market research firm Rho Motion. The strong performance was led by China, where monthly EV sales exceeded one million units for the first time this year, driven by robust domestic demand and aggressive export strategies.

Chinese automaker BYD played a key role in expanding EV sales, exporting large volumes to markets such as Mexico, Southeast Asia, and Uzbekistan. “BYD’s exports to Mexico and Southeast Asia, along with Uzbekistan, have significantly boosted sales in these regions,” noted Charles Lester, data manager at Rho Motion.

In Europe, fleet incentives in Germany and strong growth in Southern European markets contributed to a 36.2% rise in EV sales, reaching 330,000 units. However, North America showed more modest growth, with sales increasing just 7.5% to 160,000 units, partly due to the expiration of Canadian subsidies and broader policy uncertainties.

Global automakers continue to face challenges in the U.S., where new 25% import tariffs have prompted several companies to reconsider their 2025 forecasts. Tesla’s Berlin-based Model Y production remains shielded from these tariffs, but the company faces intensifying global competition as production volumes increase worldwide.

Meanwhile, President Donald Trump’s policies on emissions standards and tariff uncertainties have further slowed EV adoption in North America. U.S. tax credits for EVs remain in place but are scheduled to begin phasing out in 2026, adding another layer of hesitation for potential buyers.

By the numbers, global sales of battery-electric vehicles and plug-in hybrids totaled 1.6 million units in May. China’s sales grew over 24% year-over-year to 1.02 million vehicles. Europe recorded a 36.2% increase, while North America lagged with a 7.5% gain. The rest of the world saw a 38% rise, reaching 150,000 vehicles.

Summing up the global picture, Charles Lester stated, “The story this month with global vehicle sales is the continued chasm between Chinese market growth versus the faltering market in North America.”

Consumer Reports Calls on Congress to Reject Proposed Electric Vehicle Tax Fees

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Consumer Reports, a leading consumer advocacy organization, urged Republican lawmakers on Wednesday to abandon a proposal to impose an annual fee on electric vehicles (EVs) aimed at funding road repairs. The plan initially calls for a $250 yearly fee on EVs, with Senator Bernie Moreno proposing to increase this to $500 for electric cars and $250 for plug-in hybrids.

Consumer Reports warned the fees would impose a disproportionate financial burden on EV owners, who could pay between three and seven times more than owners of comparable gasoline-powered vehicles in federal gas taxes. The proposed fees could notably affect owners of Tesla, General Motors, and other electric vehicle brands.

Chris Harto, a senior policy analyst at Consumer Reports, criticized the fees as “punitive taxes designed to confiscate fuel savings from consumers who just want to save money for their families.”

The broader legislative context includes the U.S. House dropping a previously proposed $20 federal vehicle registration fee for all vehicles starting in 2031. The House bill also seeks to end the $7,500 new EV tax credit by the end of 2024 for most automakers, repeal a $4,000 used EV tax credit, dismantle vehicle emissions regulations, and terminate an Energy Department loan program that supports green vehicle technology development. Additionally, it aims to phase out EV battery production tax credits by 2028.

Ford has expressed concern about the bill’s provisions, particularly the elimination of EV battery production credits tied to Chinese technology, which jeopardizes its $3 billion investment in a Michigan plant currently 60% complete and expected to employ 1,700 workers.

Separately, President Donald Trump plans to sign resolutions that block California’s EV sales mandates and diesel engine regulations, according to industry and House aides.

Tesla Aims to Launch Public Robotaxi Rides on June 22, CEO Musk Announces

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Tesla plans to begin offering public rides on its self-driving robotaxis starting June 22, CEO Elon Musk said Tuesday, marking a significant milestone in the company’s autonomous vehicle ambitions. The initial rollout will take place in Austin, Texas, with about 10 to 20 Model Y SUVs operating within a limited area under remote human supervision.

Musk emphasized Tesla’s cautious approach to safety, noting that the date might change as the company remains “super paranoid about safety.” He also revealed that starting June 28, Tesla vehicles will be able to autonomously drive themselves from the factory to customers’ homes.

This robotaxi service is critical for Tesla’s future as electric vehicle sales face increasing competition and controversies surrounding Musk, particularly his political views and associations. The company intends to expand the robotaxi service to other states later in the year, including California, which has more stringent autonomous vehicle regulations.

Tesla has been testing its Full Self-Driving (FSD) software in Austin, with Musk sharing videos showing Model Y vehicles navigating public streets without a human driver. However, details remain scarce about the exact operational zones, the level of remote oversight, or how consumers will access the service.