In this week's EV/AV report: A major American OEM faces regulatory hurdles as its competitors in China and India bring inexpensive EVs into previously inaccessible markets -- including Canada.
Tesla robotaxi plans face regulatory scrutiny in California
The world's most valuable electric-vehicle manufacturer and autonomous driving technology developer, Tesla, is facing two regulatory hurdles related to its driver-assistance and robotaxi ambitions.
On Feb. 24, California regulators decided not to suspend the US$600-billion OEM's licence after the company revised marketing language about Autopilot and Full Self-Driving, which officials said could mislead drivers into believing the vehicles were fully autonomous.
Regulators said Tesla agreed to modify marketing materials addressing “Autopilot terminology” to clarify that drivers must remain attentive and ready to take control.
Two days later regulators said Tesla has not applied for permits required to operate driverless ride-hailing services in California and has not logged recent testing miles under the state’s autonomous vehicle program. That program requires companies to conduct testing and obtain separate approvals before carrying passengers in fully driverless vehicles.
CEO Elon Musk has said California has “quite a long regulatory approval process,” which regulators note includes the permits and testing Tesla still needs before launching robotaxi services.
Lucid cuts about 12% of workforce while ramping Gravity SUV
On Feb. 20 and Feb. 25, 2026, Lucid Group Inc., a luxury electric-vehicle manufacturer with a market value of roughly US$7 billion ($9.5 billion), confirmed it will cut about 12% of its workforce while continuing production plans for its Gravity electric SUV.
The layoffs affect salaried employees but exclude workers in manufacturing logistics and quality roles at the company’s Casa Grande, Ariz., facility where Lucid builds the Air sedan and plans to expand production of the Gravity model.
Interim CEO Marc Winterhoff told employees the cuts were needed to “improve operational effectiveness and optimize our resources,” adding that “saying goodbye to colleagues is never easy.” Lucid said the restructuring is intended to stabilize finances while the company ramps production and invests in new vehicles and technology.
Chinese EV companies expand production and exports
On March 1 and March 4, 2026, two Chinese automakers highlighted the country’s growing presence in the global EV market. On March 1, Xiaomi Corp., a Beijing-based consumer electronics and electric-vehicle manufacturer with a market value of roughly US$60 billion ($81 billion), reported delivering more than 20,000 electric vehicles in February as it continues scaling production of its SU7 sedan introduced in 2024. Xiaomi said it aims to build a “world-class smart EV ecosystem,” combining its consumer electronics software experience with connected vehicle platforms.
On March 4, Chery Automobile Co., a state-owned Chinese automaker headquartered in Wuhu, China, announced it will launch its iCAUR electric SUV brand in South Africa beginning in May. The expansion targets Africa’s largest automotive market and reflects a broader push by Chinese manufacturers into emerging markets. Chery said the move supports its “global electric mobility portfolio,” as Chinese brands increase exports to regions where EV competition remains limited.
Stellantis reports €20-billion loss tied to EV restructuring
On Feb. 26, 2026, Stellantis N.V, a US$70 billion ($95 billion) OEM, reported a €20-billion ($31.8 billion) loss linked partly to accounting writedowns connected with its electric vehicle strategy.
Company officials say the adjustments relate to product planning changes battery investments and restructuring across brands including Jeep Peugeot Fiat and Opel. They added that the company remains committed to “restoring profitable growth through disciplined investment” even as EV adoption has progressed more slowly in some markets.
Tata Motors launches lower-priced EV in India
On Feb. 20, 2026, Tata Motors Ltd., an Indian automaker headquartered in Mumbai and part of the Tata Group with a market value of roughly US$40 billion ($54 billion), introduced an electric version of its Punch compact SUV.
The model, which costs ₹559,000 (roughly $8,285) is designed to make EV ownership more accessible in India and includes faster charging capability and a lower purchase price aimed at first-time EV buyers.
Tata Motors said the vehicle will help “democratize electric mobility,” reflecting the company’s strategy to expand EV adoption beyond premium urban buyers. India is one of the fastest-growing automotive markets globally but EV adoption has been slower because of price sensitivity and limited charging infrastructure.
Volvo highlights strong EV demand despite slower overall sales
On March 4, 2026, Volvo Cars AB said demand for its fully electric vehicles remains strong even as overall vehicle deliveries slowed early in the year. Tariffs economic uncertainty and shifting global markets contributed to weaker overall sales figures.
The Swedish automaker, which is majority owned by China’s Geely Holding Group, has a market value of roughly US$25 billion ($34 billion). It is expanding its EV lineup as part of its long-term strategy to phase out internal combustion engines. Company officials say it remains committed to “an all-electric future.”
