Part 8/11:
The European Union is contemplating a regulation requiring EVs to be assembled in the EU with at least 70% of components sourced locally to qualify for subsidies. This policy aims to counter Chinese dominance in battery manufacturing and vehicle imports but could raise costs and create supply bottlenecks if local supply chains are not fully developed.
Meanwhile, traditional automakers like Stellantis and Aston Martin are struggling financially. Stellantis reported its first annual loss, citing overestimated energy transition timelines and rising costs, while Aston Martin has cut jobs and reported billions in losses since 2019. Some companies are turning to Chinese partners for EV technology to reduce costs, signaling struggles within legacy automakers to keep pace with Tesla's innovation.