Technology
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Technology
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Companies hit the brakes on EVs, lay off thousands |
In recent weeks, automakers and other companies in the vehicle space are pulling back their investments in electric vehicles, including laying off workers in multiple states. |
The moves come in the wake of Republicans’ One Big Beautiful Bill Act, which repealed incentives for consumers to buy electric cars.
GM in particular is set to lay off 1,200 workers from its Detroit plant and another 550 from its Ultium Cells plant in Ohio. Meanwhile, another 850 are being temporarily laid off from the Ohio Ultium Cells plant, and another 710 are being temporarily let go from an Ultium factory in Tennessee. While those layoffs were the largest that were recently announced, they’re not the only ones.
Last month, EV-maker Rivian told staff it would let go of about 4.5 percent of its workforce. Reuters reported that this represents more than 600 jobs.
“With the changing operating backdrop, we had to rethink how we are scaling our go-to-market functions,” Rivian CEO RJ Scaringe said in a note to staff seen by The Hill. Meanwhile, Freudenberg e-Power Systems said this week that it will close two EV battery facilities in Michigan, laying off 324 workers. “We have reached this difficult decision due to the decrease in demand for heavy-duty electric and hybrid electric vehicles in North America,” the company said in a statement.
The moves come after this year’s tax and spending bill eliminated a tax credit for consumers that brought down EV prices by up to $7,500.
The Hill's Rachel Frazin has more here. |
Welcome to The Hill’s Technology newsletter, I'm Julia Shapero — tracking the latest moves from Capitol Hill to Silicon Valley. |
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How policy will be impacting the tech sector now and in the future: |
Trump taps Isaacman to lead NASA months after pulling his nomination for same role |
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President Trump said Tuesday he was once again nominating astronaut and entrepreneur Jared Isaacman to lead NASA, roughly five months after he had withdrawn Isaacman as his choice to lead the space agency. “Jared’s passion for Space, astronaut experience, and dedication to pushing the boundaries of exploration, unlocking the mysteries of the universe, and advancing the new Space economy, make him ideally suited to lead … |
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Energy Department announces $625M for quantum research centers |
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The Department of Energy announced $625 million in funding Tuesday to renew five quantum research centers established under the first Trump administration. Each research center is set to receive $125 million in funding over the next five years, as they study different facets of quantum science and technology, which rely on the principles of quantum mechanics. This includes the Co-design Center for Quantum Advantage at Brookhaven … |
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US, UAE sign agreement to expand cooperation on AI and energy |
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The United States and United Arab Emirates (UAE) signed a memorandum of understanding Sunday to expand cooperation on AI and energy as the Trump administration increasingly embraces Abu Dhabi as a partner in the AI race. Interior Secretary Doug Burgum and Sultan Ahmed Al Jaber, UAE’s minister of industry and advanced technology, inked the agreement in the Emirati capital amid Burgum’s visit for the ADIPEC energy conference. … |
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Big Tesla investor will vote against Musk’s massive pay package |
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Norway’s sovereign wealth fund, one of Tesla’s biggest investors, said Tuesday that it will vote against a proposed compensation package that could pay CEO Elon Musk as much as $1 trillion over a decade. There will be more than a dozen company proposals up for a vote Thursday during Tesla’s annual meeting, but none have generated more division than Musk’s potentially massive pay package. “While we appreciate … |
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News we've flagged from the intersection of tech and other topics: |
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Appeals court dubious of FTX founder Bankman-Fried's conviction challenge (CNBC)
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IBM to cut thousands of jobs in fourth quarter amid software focus (Reuters)
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Banking industry urges Treasury to limit stablecoin rewards |
© Jon Elswick, Associated Press |
The banking industry is urging the Treasury Department to limit stablecoin rewards payments under the GENIUS Act. In a letter Tuesday, the American Bankers Association (ABA) and state bankers associations from all 50 states, Washington, D.C., and Puerto Rico called for the agency to "broadly interpret" the law's prohibition on interest. The Treasury Department put out an advance notice of proposed rulemaking in September, seeking input on implementation of various provisions of the stablecoin measure, including "prohibitions on certain issuances." The banking associations argue that a broad interpretation of the law reflects "Congress' intent for payment stablecoins to be used for transactions and not as investment vehicles."
"But while Congress's intent is clear, digital asset platforms today offer incentives to attract users to hold payment stablecoins including, high-yield rewards, token bonuses, and promotional payouts, asserting the ban on interest does not apply beyond stablecoin issuers," the letter reads. They also warn that allowing such rewards could draw deposits away from banks, placing strain on community banks in particular.
However, the crypto industry has pushed back on these arguments, contending that the banks are trying to block new competition and are overstating the impacts of deposit outflows. |
Crypto Corner is a daily feature focused on digital currency and its outlook in Washington. |
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Branch out with other reads on The Hill: |
Bill Gates defends call for climate debate refocus |
Billionaire philanthropist Bill Gates on Monday defended his call to refocus the climate debate on prioritizing human welfare. In an interview with Axios n Monday evening, in front of about 1,000 students at the California Institute of Technology, Gates stood by the controversial memo he released last week, in which he argued that climate change is a serious problem but will not bring about the end of civilization. He also … |
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