| Thanks for reading Hyperdrive, Bloomberg’s newsletter on the future of the auto world. As the global car industry descended on Shanghai last week for China’s premier auto show, attendees of an event organized by electric-car maker Zeekr took in sweeping views of the city’s skyline from the rooftop of the landmark Peace Hotel. As patrons sipped sparkling wine and downed fresh oysters, a band played a cover version of Jessie J’s “Price Tag.” Contrary to the chorus — It’s not about the money, money, money — the talk of the town was tariffs. In other words, it was all about the money. There was no escaping the upheaval wrought by President Donald Trump’s trade war. The fallout is likely to linger for years, with the US leader’s protectionist policies leading companies to shy away from investing in building facilities in the country. As Nio’s CEO William Li put it, major investments require continuity and stability of policies. “We don’t have any understanding of that,” Li said. For many Chinese automakers, being effectively shut out of the US will lead executives to shift their focus to other markets, including Southeast Asia and the Middle East. Even Europe is proving attractive, despite the imposition of tariffs as high as 45.3% on Chinese EVs. Signs are emerging of a détente as European Union officials consider adopting minimum price quotas in lieu of the duties. Some of China’s biggest names, including EV leader BYD and battery giant CATL, already have factories in the region, and others are set to join them.  Leapmotor B01 electric vehicles on display at the Shanghai auto show. Photographer: Qilai Shen/Bloomberg Leapmotor announced during the show that it plans to start producing in Europe next year. Hongqi, the state-owned purveyor of cars to China’s political elite, is also exploring potential production partnership in the continent, and Changan Auto previously has said it’s considering such a move. A lot is still up in the air when it comes to US tariffs, including the actual levies applied to particular vehicles and whether Trump will exempt certain auto parts. But the uncertainty is already reshaping supply chains, and some see China only emerging stronger. “It’s not just building one factory, it’s building a whole network of a supply chain in other markets,” Bill Russo, CEO of the consultancy Automobility, told Bloomberg Television in an interview. “I don’t know if the intended consequence was to accelerate the globalization of Chinese supply chains, but that’s what’s going to happen.” While tariffs were the topic du jour, cutting-edge technology that’s now standard fare in China’s EVs was similarly inescapable. The latest must-have: voice-command systems enhanced by DeepSeek, the Chinese startup that generated enormous buzz earlier this year with its open-source AI model that mimics human reasoning. Local media have reported at least 20 automakers have embedded or plan to integrate the company’s model into their systems, including FAW-Volkswagen and SAIC-GM. Chinese smartphone giant Huawei is meanwhile cementing itself as a major provider of intelligent-driving software by supplying to the likes of BYD. The company says its technology has played a role in preventing 2 million potential collisions. Safety is top of mind in China for drivers and regulators alike after a fatal accident involving a Xiaomi SU7 EV that had the autopilot function turned on when it crashed.  A Xiaomi SU7 Ultra EV at the Shanghai show. Photographer: Qilai Shen/Bloomberg The incident prompted a tightening of rules for driver-assistance systems, particularly around what manufacturers say they can and can’t do. While this set back the launch of Xiaomi’s debut SUV, the company says it’s still on track for release in June or July, and interest in its vehicles remains intense. Speaking of interest, the crowd that thronged BYD’s stand exhibited the enduring popularity of the homegrown juggernaut. It’s by far China’s No. 1 auto brand and at the forefront of the global EV revolution, a far cry from its first-ever offering – the gas-powered F3 that bore a strong resemblance to the Toyota Corolla. Now, BYD has grand plans to take on luxury and sports cars segments. Chief designer Wolfgang Egger unveiled a concept for BYD’s premium sub-brand Denza that looked like a Porsche 911 fighter. The company’s high-end Yangwang brand offered a first look at the U8L, a 5.4 meter-long SUV that’s set to be launched in the second half.  A Yangwang U8L electric SUV on display at the show. Photographer: Qilai Shen/Bloomberg While BYD has yet to reveal the price, it’s set to retail for more than 1 million yuan ($150,000) — the cost of the existing U8 model. The company is optimistic about the appetite of big-spending EV aficionados: It wants to not only introduce more mainstream models within its current price range of 600,000 yuan to 2 million yuan, but launch ultra-premium products at even higher price points.  Toyota Chairman Akio Toyoda. Photographer: Bridget Bennett/Bloomberg While Akio Toyoda’s $42 billion bid to take Toyota Industries private is being cheered by investors — the company’s stock soared 23% on Monday, while Toyota Motor jumped as much as 5.6% — some are concerned the move could set back the Toyota group’s corporate governance reforms. “It’s unclear whether this will become a trigger for further unwinding of Toyota group firms’ cross-shareholdings or, to the contrary, a trigger for maintaining their cross-shareholdings,” said Masayuki Murata, general manager of balanced portfolio investment at Sumitomo Life Insurance. | 
