A new essay in Works in Progress Magazine argues that Europe's failure to produce a Tesla or a Waymo stems not from insufficient research spending or high taxes -- problems California shares in abundance -- but from labor laws that make it devastatingly expensive for companies to unwind failed bets. According to estimates, corporate restructuring costs the equivalent of 31 months of salary per employee in Germany, 38 in France, and 62 in Spain, compared to seven in the United States. The downstream effects are visible across Europe's flagship industries. When Audi closed its Brussels factory after cancelling the E-Tron SUV in 2024, severance ran to $718 million -- over $235,000 per employee and more than the cost of writing off the plant's physical assets. Volkswagen spent $50 billion on its electric vehicle lineup, failed to develop competitive software internally, and ultimately paid up to $5 billion for access to American startup Rivian's technology. Between 2012 and 2016, 79% of all startup acquisitions tracked by Crunchbase took place in the US. The essay points to Denmark, Austria and Switzerland as countries that have found a middle path -- generous unemployment insurance and portable severance accounts that protect workers without penalizing employers for taking risks.

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An anonymous reader quotes a report from the Financial Post: In 2024, the Ethiopian government banned the import of fossil fuel-powered vehicles and slashed tariffs on their electric equivalents. It was a policy driven less by the country's climate ambitions and more by fiscal pressures. For years, subsidizing gasoline for consumers has been a major drag on Ethiopia's budget, costing the state billions of dollars over the past decade. The country defaulted on its sovereign bonds in 2023 after rising interest rates drove up the costs of servicing its debts, and it received a $3.4 billion bailout from the International Monetary Fund the following year. In the two years since the ban on internal combustion engine vehicles, EV adoption has grown from less than 1% to nearly 6% of all of the vehicles on the road in the country -- according to the government's own figures -- some way above the global average of 4%. "The Ethiopia story is fascinating," said Colin McKerracher, head of clean transport at BloombergNEF. "What you're seeing in places that don't make a lot of vehicles of any type, they're saying: 'Well, look, if I'm going to import the cars anyway, then I'd rather import less oil. We may as well import the one that cleans up local air quality and is cheaper to buy.'" For decades, Ethiopia's high import tariffs on vehicles put new car ownership out of the reach of most of the country's population. Per capita gross domestic product is only about $1,000, and even by the standards of low-income countries, it has among the lowest car ownership rates. At 13 vehicles per 1,000 people, it's a fraction of the African average of 73. With few cars manufactured in the country, the vast majority are imported, and most are bought used. The government's import policy has upended the market. In parallel, tariffs for EVs were dropped to 15% for completed cars, 5% for parts and semi-assembled vehicles, and zero for "fully knocked down" -- vehicles shipped in parts and assembled locally. That has made new EVs cost-competitive with old gasoline cars.

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Uber plans to invest $100 million in EV charging infrastructure to support current and future robotaxi fleets in cities like Los Angeles, the Bay Area, and Dallas, "eventually partner[ing] with multiple robotaxi companies on actual robotaxi deployment -- WeRide, Waabi, Lucid, Nuro, May Mobility, Momenta, and Waymo of course," reports CleanTechnica. From the report: "Cities can only unlock the full promise of autonomy and electrification if the right charging infrastructure is built for scale. That infrastructure needs to work for today's drivers and the fleets of the future," said Uber's global head of mobility, Pradeep Parameswaran. In addition to building some infrastructure itself, the company is making "utilization guarantee agreements" with EVgo for various major US cities as well as Electra, Hubber, and Ionity in Europe. On Uber's latest shareholder call, CEO Dara Khosrowshahi said that the company would make "targeted growth-oriented investments aligned with the 6 strategic areas of focus." That includes self-driving vehicles/robotaxis. "With the benefit of learning from multiple AV deployments around the world, we're more convinced than ever that AVs will unlock a multitrillion-dollar opportunity for Uber. AVs amplify the fundamental strengths of our platform, global scale, deep demand density, sophisticated marketplace technology, and decades of on-the-ground experience matching riders, drivers, and vehicles, all in real time," Khosrowshahi added.

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