“So basically, what's going to be left is you're going to be left with the -- with auto parts tariffs that don't have offset steel and aluminum, in particular, and that's going to be both the tariffs of steel and aluminum as well as any of the pricing impacts that come through and then any of the vehicle import tariffs that are not offset by the U.S. content offset that we're allowed.”

In context

“question, we'll go to Edison Yu with Deutsche Bank Research. Xin Yu: Can you hear me? Operator: We can. Please go ahead. Xin Yu: First one, I think you mentioned that looking at next year, the tariff impact should be similar. Can you just walk us through some of the assumptions around that? I would have thought some of maybe the changes in policy could help. Sherry House: Yes. So the changes in policy, the proclamation that happened last Friday gave us $1 billion of benefit. And that's now allowing us to offset more of our parts tariffs expense. So that's going to be the primary improvement that we saw that was driving the $1 billion that I just talked about, leading to just a $1 billion net impact for this year and enabling us to have a similar impact on tariffs and costs for next year. So basically, what's going to be left is you're going to be left with the -- with auto parts tariffs that don't have offset steel and aluminum, in particular, and that's going to be both the tariffs of steel and aluminum as well as any of the pricing impacts that come through and then any of the vehicle import tariffs that are not offset by the U.S. content offset that we're allowed. James Farley: And the time frame is different. This year was a partial year, next year is a full year. Sherry House: That's right. But when you look at the impacts, we're expecting it to be very similar this year. Xin Yu: Understood. And then just a follow-up on, I think, some of the comments you made about Model e investment. I guess how are we thinking about the Skunkworks efforts now? Obviously, you talked a lot about the emissions being a huge potential tailwind. But obviously, there's -- you spent all this effort on the next-gen EV platform. Are there -- just high level, are there kind of changes we're thinking about related to that? How does one kind of move forward? James Farley: Great question. The EV North America market we're seeing now in the fourth quarter of this year, I beli”