A Tesla/SpaceX merger might lead to significant complications in China, according to TDS.
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Welcome to The Downshift, known as TDS, which is The Drive’s morning news summary highlighting the top automotive news from around the globe.
The Downshift provides brief news recaps with links to full articles for those wanting more details. Here’s your update for Friday, July 31, 2026.
✂️ Tesla is reportedly considering the sale of its Chinese operations due to potential implications from a merger with SpaceX. Since SpaceX is involved in military contracts and Tesla operates significantly in China, this could attract regulatory scrutiny. Both Tesla China and CEO Elon Musk have denied the claims. [Wall Street Journal, CarNewsChina]
📈 Rivian has reported a strong second quarter, with a 27% rise in revenue compared to last year, exceeding Wall Street forecasts. The company now aims for 70,000 deliveries by year-end, an increase from the previous goal of 65,000, thanks to a successful launch of the R2. [Automotive News]
🏭 The recent earthquake in Japan has led to production halts at facilities of Toyota, Nissan, Mitsubishi, and Daihatsu, along with a Honda motorcycle plant, as key suppliers like Renesas and Aisin handle the disruptions. These halts are anticipated to continue into the first week of August. [Automotive News]
🌏 Ford CEO Jim Farley informed employees in a town hall meeting that the company predicts the arrival of Chinese manufacturers in the U.S. market within the next five to ten years, despite ongoing legislative efforts to block their entry. [Automotive News]
🚖 The NHTSA has approved Zoox for limited commercial operations of its driverless robotaxis. This allows the company to start charging for rides, beginning first in Las Vegas before expanding to other locations. [Reuters]
⚡ New data reveals that 22% of new-car buyers in California opted for hybrids in the first half of 2026, while 16% chose battery electric vehicles (EVs). [Automotive News]
🏁 Weekend races to keep an eye on (all times Eastern):
WRC Rally Finland: All weekend on Rally.TV
Supercars Championship at Perth (Race 1): Saturday at 12:20 a.m. on Racer Network
Formula Drift Pro Class Top 16 at Indianapolis: Saturday at 7 p.m. via livestream
IMSA SportsCar 6 Hours of Road America: Sunday at 11:30 a.m. on Peacock
Have a tip or feedback for TDS? Contact us at tips@thedrive.com.
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