Tesla Named as Key Beneficiary in Proposed US Auto Tariff Relief Plan

According to a Reuters report published on Friday, the Trump administration is considering a new tariff relief package that would directly benefit automakers with major manufacturing operations in the United States.

In an interview, Republican Senator Bernie Moreno explicitly named Tesla as one of the top five domestic producers that would be “immune to tariffs” under the new plan, which would be a meaningful boost to the company’s gross margins and help alleviate recent tariff pressures.

The Tariff Proposal

The proposal seeks to extend and expand an existing tariff offset program. As announced by the Commerce Department in June, an import adjustment offset equal to 3.75% of a vehicle’s suggested retail price is in place for eligible US-assembled vehicles through April 2026. This is designed to cancel out the costs automakers pay for tariffs on imported parts used in their American factories.

According to Senator Moreno, President Trump is now considering keeping the offset at 3.75%, extending the program for a full five years, and expanding its scope to include US engine production.

Tariff Offsets

So, how does this offset actually work? It functions as a credit or rebate for the automaker, not as a direct discount to the consumer. 

The credit is calculated as 3.75% of the vehicle’s Manufacturer’s Suggested Retail Price (MSRP). For example, on a $50,000 vehicle, the offset would be $1,875. This amount is intended to cancel out or “offset” the tariffs the manufacturer paid on the various imported components, such as cells, computers, cameras, trim, or any other materials used to build the vehicle in the United States.

The result is a lower cost of goods sold for the automaker, which directly boosts the profit margin on that vehicle or lets the manufacturer lower prices.

Rewarding Made in America

The policy is explicitly designed to incentivize domestic production. 

“The signal to the car companies around the world is look, you have final assembly in the US: we’re going to reward you,” Senator Moreno told Reuters.

He listed Ford, Toyota, Honda, Tesla, and GM as the top five domestic content producers who would benefit the most.

For Tesla, which operates the massive Fremont and Gigafactory Texas facilities in the United States, this policy would strengthen its pre-existing competitive advantage. By effectively eliminating a portion of the costs associated with tariffs on imported components, Tesla could see a direct, positive impact on the profitability of every car it builds in the United States.

While a final decision hasn’t been made quite yet, Senator Moreno believes a decision could be made soon. However, a senior White House official cautioned that any discussion remains speculative until President Trump approves it.

For a company as focused on manufacturing efficiency, cost reduction, domestic onshoring, and vertical integration as Tesla, this tariff relief would be a significant financial win.

For Model 3 owners in Europe who have been struggling with the controversial steering wheel buttons, Tesla has finally launched an official solution. The Model 3 Turn Signal Stalk Retrofit is now available for purchase in the European Tesla Shop. 

The package was made available for €660 (approx. $775 USD), but quickly sold out. It includes the stalk hardware, shipping to a local service center, and the cost of installation.

Compatibility and Details

According to the product page, the retrofit is compatible with all Model 3 vehicles produced in 2023, 2024, and 2025 that were originally built without a turn stalk. That covers the full time frame since Tesla introduced the refreshed Model 3 in 2023, which means this retrofit applies to all refreshed Model 3s.

The purchasing process is straightforward. Owners can simply purchase the part directly from the Tesla Shop through their Tesla App, and it will then be shipped to their preferred Service Center. At the time of payment, you’ll also be prompted to book a service appointment for the installation.

Based on the related service procedures in the Model 3’s Service Manual, the entire process should take between 1.5 and 2 hours.

Not Just a Turn Signal Stalk

This purchase isn’t just for the addition of a turn signal stalk. While Tesla will add the new style turn signal stalk to the left side of the steering wheel, it doesn’t include all the functions a buyer may be used to with the older style stalks. The stalk is simply used for turn signals, just like the new Model Y. It can not be used for high beams, short/long presses, and it does not include the button for the windshield wiper. Those other functions remain on the steering wheel.

However, since Tesla is relocating the turn signal functionality to the stalk, the purchase also includes a new steering wheel with updated buttons that don’t have the redundant turn signal buttons.

A Welcome Course Correction

The removal of the indicator stalks on the refreshed Model 3 was one of the most contentious design decisions of the refresh. Without a yoke or steer-by-wire system that limits steering rotation, the wheel-mounted buttons were often described by users as clumsy and unintuitive. This was especially true when navigating complex European roundabouts.

This retrofit, combined with the recent news that new Model 3s shipping to Europe now include stalks by default (and front bumper camera), signals a clear and welcome course correction from Tesla in response to customer feedback.

While the retrofit provides a solution for existing owners, the question now turns to the North American market. New Model 3s produced in Fremont are still being delivered without this minor refresh, and as of now, there is no news of an official retrofit for North America.

However, we still expect this retrofit to become available for North American owners as well, likely alongside the launch of the minor refresh that also introduces the bumper camera to the Model 3.

The long wait is nearly over. After more than 300 days without a major architectural update to FSD, Tesla is finally on the verge of releasing FSD v14. Following the discovery of a last-minute bug this week, the rollout was delayed until Monday.

Elon Musk has now confirmed that the release is slated for tomorrow, October 6th, noting that the extra time has allowed the Tesla AI team to sneak in a few extra features while also fixing the bug.

The Robotaxi FSD UI was recently updated, possibly giving us a sneak peek at some of the changes to expect with FSD v14.

This update is arguably the most anticipated FSD release since the revolutionary launch of V12 and its end-to-end networks. V14 is expected to bring a host of foundational changes and new features, so let’s take a look at everything that’s coming up.

Last minute bug cropped up with V14. Released is pushed to Monday, but that gives us time to add a few more features.

— Elon Musk (@elonmusk) October 4, 2025

The 10x Architectural Leap

The immense hype for V14 began months ago with the promise of a massive architectural upgrade. The new version of FSD is being built on a neural network with a 10x parameter count increase. This represents a huge leap in the complexity and capability of FSD, and is the technical underpinning for many of the upcoming improvements.

This is the key to what Elon was referring to when he previously mentioned that V14 feels alive.

Key Improvements

Beyond the core architecture, V14 is expected to bring significant quality-of-life improvements for drivers. One of the most talked about changes is the upcoming reduction in the strictness of driver monitoring. Tesla recently reduced the time it takes for an FSD strike to be forgiven, cutting it in half from 7 days to 3.5 days, suggesting that there is some flexibility in driver attention monitoring.

Of course, that’s just one of many items. The 10x parameter count increase will likely bring new capabilities to FSD, potentially including some of the ones listed below:

• Seeing and avoiding potholes

• Significantly better parking lot navigation

• Better finding of parking spaces and self-parking

• Improved understanding of pickup and drop-off zones

• Improved lane selection and path planning

• Improved edge-case handling, such as first responders or construction workers directing traffic

• Better handling of high-density situations, like crowds of pedestrians or busy airport terminal zones

• Smoother and more confident driving

Release notes in FSD v13.2.9 list improvements such as a larger FSD model, audio inputs for handling emergency vehicles, and improvements to false braking as coming soon, which could also be included.

Tesla @Robotaxi ride-hail navigates the most crooked street in San Francisco—now with a new GOLD leading line and underglow on the touchscreen ⚡

Could this be our first look at FSD V14? https://t.co/QvlrTuGXe3 pic.twitter.com/s8iRwTfbiG

— The Kilowatts 🚗⚡️ (@klwtts) October 4, 2025

Addressing the Cyber-brain

The Cybertruck, while it is Tesla’s halo vehicle, has been sorely lagging behind in FSD capabilities since its launch. FSD didn’t arrive on the Cybertruck until nearly 10 months after its launch, and has continued lagging behind in features and capabilities since then.

Tesla’s executive team has confirmed that V14 is supposed to bring some significant updates to FSD for the Cybertruck and hopefully introduce the full suite of features many owners have been waiting for, including Smart Summon.

The Rollout Plan

Tesla has a fairly standard rollout plan, but we’ve also got some insight into some initial details thanks to Elon’s posts from last week, including a multi-update path for V14 that’ Tesla has already outlined.

We expect this to be a fairly standard rollout of an FSD build. That means that early-access influencers will likely receive the update tomorrow, barring any delays. Once they’ve spent a few days testing and working out the kinks, Tesla will issue some point releases and then eventually begin a slow, measured rollout of V14 to an increasing number of vehicles.

In reality, for the average customer, our guess is that FSD V14 will arrive on most vehicles closer to the end of October, assuming Tesla follows its standard release cycle.

FSD V14.1

About two weeks after the initial release of V14, Tesla is expecting to launch V14.1. This version is expected to bring bug fixes for issues discovered during the initial release period, and we expect that V14.1 is likely the first update that will go into wide release and give owners their first taste of FSD v14.

FSD V14.2

Elon also mentioned that V14.2 would eventually follow, but didn’t note an explicit timeline. This is the version that he expects to begin to feel sentient in its decision-making and smoothness.

Updated Visualizations

One of the “few more features” added during the delay appears to be the first visual branding for Tesla’s Robotaxi network. Robotaxis in the Bay Area seem to be running an updated build, which replaces the familiar blue driving path tentacle in the visualization with one in a distinctive golden color.

When the Robotaxi is stopped or parked, a golden glow appears underneath the vehicle, including on the parked display.

While this is an exciting little update on the Robotaxi side of the house, the core focus for most drivers will be the foundational driving improvements V14 is set to deliver.

We’ll all be keeping a close eye out for the launch of FSD v14.