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Tesla's Profit Strategy Fizzles Out, Major Revenue Sourcebraces for Imminent Demise: TDS (Translation: The core profit source of Tesla, previously its stronghold, appears to be on the verge of collapse, according to TDS)

Trump's regulatory credit phase-out threatens to eliminate Tesla's primary source of profitability.

Tesla's Main Profit Source Failing, Significant Profit Hub Expected to Crumble: TDS Report
Tesla's Main Profit Source Failing, Significant Profit Hub Expected to Crumble: TDS Report

Tesla's Profit Strategy Fizzles Out, Major Revenue Sourcebraces for Imminent Demise: TDS (Translation: The core profit source of Tesla, previously its stronghold, appears to be on the verge of collapse, according to TDS)

Published by our platform, The Downshift is a weekday early-morning quick-hit news roundup about automotive news from around the globe. Each story in The Downshift is summarized in a single sentence with a link for further information.

In today's edition, we bring you updates on the 2026 Jeep Cherokee, Tesla's regulatory credit earnings, and the latest developments from Nissan, Lucid, Rivian, and Ram.

The upcoming 2026 Jeep Cherokee will feature a 1.6-liter turbo-four hybrid powertrain, capable of up to 38 mpg combined, and can tow up to 3,500 pounds. Standard all-wheel drive, a rear-axle disconnect system, and four driving modes make this SUV suitable for various terrains, including snow, sand, and mud. With an EPA-rated combined fuel economy of 37 mpg, a driving range of over 500 miles on a single tank, and a starting MSRP around $36,995, the 2026 Cherokee is positioned as a larger, more efficient, hybrid-only compact SUV.

Tesla has stopped earning $11 billion from selling regulatory credits due to Trump's Big Beautiful Bill allowing automakers to sell Hellcats and Hemis without penalty. This move could impact Tesla's revenue, as regulatory credits have been a significant source of income for the electric vehicle manufacturer.

The 2026 Nissan Armada Nismo will cost $81,720 including a $2,190 destination charge. This top-of-the-line SUV offers a luxurious ride with upgraded interiors and performance enhancements.

The Lucid Gravity X concept, an off-road focused version of the electric three-row SUV, was debuted in Monterey ahead of Pebble Beach. This concept showcases Lucid's commitment to innovation and versatility in the electric vehicle market.

Rivian's first one-off, the R1S Quad Pebble Beach Edition, was sold at auction for $175,000 with proceeds being donated to WaterAid and #TeamWater charities. This unique Rivian SUV, designed specifically for the Pebble Beach Concours d'Elegance, showcases the brand's commitment to sustainability and charitable causes.

Lastly, the Ram Dakota, initially debuted in South America, has returned but is not intended, at least in this form, for America. This midsize pickup truck is popular in South America but may undergo changes to meet the demands and regulations of the North American market.

While The Downshift gathers all the latest automotive news and puts it in one place, it does not provide full-featured stories or in-depth reporting. It's important to note that The Downshift is not hands-free for the entire drive, as the user mentions using Super Cruise mostly hands-free to drive up north to the lake last night.

Stay tuned for more updates from The Downshift as we continue to bring you the latest news in the automotive world.

  • In today's finance sector news, it was revealed that Tesla's revenue stream from selling regulatory credits has been affected by Trump's new bill, which allows automakers to sell Hellcats and Hemis without penalty.
  • Meanwhile, in the technology and lifestyle intersection, the Lucid Gravity X concept, an off-road focused version of the electric three-row SUV, was unveiled at Monterey, signifying Lucid's dedication to innovation and versatility in the electric vehicle market.

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