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Tesla and EVs didn’t brake for the pandemic, and now the age of oil is ending
During the first nine months of 2020, car sales cratered, with every major automaker seeing a steep drop in sales as the pandemic raged across the globe. That is, of course, every major automaker except Tesla. Despite the world practically stopping due to the pandemic, the Silicon Valley-based electric car maker sold more cars than ever before. Tesla even maintained its momentum from the previous year by posting five profitable quarters in a row, and it’s poised to end 2020 with an inclusion into the S&P 500 index.
A Make or Break Year, and EVs Made It
What’s quite interesting is that it was not only Tesla that saw some serious momentum this year. Even as sales of internal combustion vehicles collapsed, EVs in general managed to thrive. A good example of this could be seen in Daimler and Volkswagen’s electric car sales in 2020. Both companies saw record-setting declines in their ICE divisions, but both companies also saw their EV sales this year doubling. This, if any, further highlighted that there is a growing demand for electric cars.
Even more impressive was the fact that 2020 was a year when the electric vehicle movement could have been crushed once more. The year saw the launch of some of the most important EVs for their respective companies. In Tesla’s case, this was the Model Y, a vehicle that Elon Musk expects would outsell the Model S, Model 3, and Model X combined. Volkswagen also launched the ID.3, a car that, if successful, could very well be the second coming of the ubiquitous Beetle. Failure on the Model Y and the ID.3’s part could have resulted in the EV movement getting set back again. That did not happen.
Peak Oil
To state that 2020 was challenging would be a gross understatement. Amidst lockdowns in several countries, the world changed. Air travel all but stopped and working from home became the norm. Then in September, British oil firm BP Plc announced something remarkable: peak oil may have very well happened, and the demand for oil may never return to its prior levels. Granted, oil prices rose in November as vaccine trials continued and demand recovered somewhat in Asia. But even as the world approached a return to some form normalcy, it was evident that things would no longer be the same.
US Federal Reserve Chairman Jerome Powell echoed this sentiment last month. “We’re not going back to the same economy. We’re recovering, but to a different economy,” he said. Powell has a valid point. In the post-pandemic world, more people will likely continue to work from home. A good number of people will likely travel less as well. BP’s estimates noted that about 2/3 of the pandemic’s impact on oil demand will be from adverse effects on the global economy, and 1/3 will be due to permanent changes in human behavior. This behavior, it seems, includes a shift to electric cars.
A Point of No Return for the Internal Combustion Engine
The transportation sector accounts for a large part of the world’s oil consumption. Bloomberg notes that over half of the world’s crude is used by the transportation sector, and 3/4 of that amount is taken up by wheels on the road. With car buyers going for sustainable vehicles during a pandemic, and with sales of ICE cars dropping steeply, it is starting to seem like the transportation sector’s demand for oil is only bound to get less in the coming years. With this drop in demand comes the end of the internal combustion engine.

Signs of the ICE extinction actually started becoming notable before the pandemic hit. As early as 2018, EVs started bucking the trend in auto sales, resulting in some analysts speculating if sales of gas and diesel-powered vehicles will no longer return to levels seen in years prior. The idea of “peak oil” happening seemed farfetched then, but amidst the pandemic and the collapse of ICE sales, the end of the oil age is looking very plausible.
Batteries and a Path to ICE Extinction
The electric car age will be powered by batteries. It is then fortunate that batteries are a technology, not a consumable fuel. This means that as battery production reaches higher levels, battery prices are bound to get lower. Data tracked by BloombergNEF revealed that every time battery supplies doubled worldwide, the cost of batteries declined by about 18%. And considering that companies like Tesla are actively pursuing plans to produce batteries at unprecedented volumes, there is a good chance that battery prices will decline to such a degree that electric cars may reach price parity with gas and diesel-powered cars sooner than expected.
Price parity will likely be the final nail in the ICE coffin. Cost, after all, is the one area where the internal combustion engine still has an edge against EVs. Once this edge is taken away, and once rapid chargers become as ubiquitous as gas stations, there will quite literally be no more reason left to own a vehicle equipped with an internal combustion engine.
Elon Musk
Elon Musk argues lidar and radar make self driving cars more dangerous
The CEO is not just stating that using sensors like lidar is unnecessary to achieve self-driving.

Elon Musk is taking a firmer stance in the vision vs lidar debate for autonomous driving. In his more recent comments, the CEO is not just stating that using sensors like lidar is unnecessary to achieve self-driving.
Musk is stating that using lidar actually makes self-driving cars more dangerous.
Uber CEO’s comments
During a recent interview, Uber CEO Dara Khosrowshahi shared his thoughts on the autonomy race. As per the CEO, he is still inclined to believe that Waymo’s approach, which requires outfitting cars with equipment such as lidar and radar, is necessary to achieve superhuman levels of safety for self-driving cars.
“Solid state LiDAR is $500. Why not include lidar as well in order to achieve super human safety. All of our partners are using a combination of camera, radar and LiDAR, and I personally think that’s the right solution, but I could be proven wrong,” the Uber CEO noted.
Elon Musk’s rebuttal
In response to the Uber CEO’s comments, Elon Musk stated that lidar and radar, at least based on Tesla’s experience, actually reduce safety instead of improving it. As per the Tesla CEO, there are times when sensors such as lidar and radar disagree with cameras. This creates sensor ambiguity, which, in turn, creates more risk. Musk then noted that Tesla has seen an improvement in safety once the company focused on a vision only approach.
“Lidar and radar reduce safety due to sensor contention. If lidars/radars disagree with cameras, which one wins? This sensor ambiguity causes increased, not decreased, risk. That’s why Waymos can’t drive on highways. We turned off the radars in Teslas to increase safety. Cameras ftw,’ Musk wrote.
Musk’s comments are quite notable as Tesla was able to launch a dedicated Robotaxi pilot in Austin and the Bay Area using its vision-based autonomous systems. The same is true for FSD, which is quickly becoming notably better than humans in driving.
News
Tesla Model Y L sold out for September 2025
This was hinted at in Tesla China’s configurator for the all-electric crossover.

It appears that the Tesla Model Y L has been sold out in China for September 2025. This was hinted at in Tesla China’s configurator for the all-electric crossover.
Model Y L deliveries
Since the Model Y L’s official launch earlier this month, Tesla has been pretty consistent in the idea that the extended wheelbase variant of its best-selling vehicle will see its first deliveries sometime in September. This was quite an impressive timeframe for Tesla, considering that the Model Y L has only been launched this August.
Nevertheless, both Tesla China’s Model Y configurator and comments from company executives have noted that the vehicle will see its first customer deliveries in September. “Tesla cars are fun to drive alone, whether you have children or how many children, this car can meet all your needs. We will deliver in September and wait for you to get in the car,” Tesla China VP Grace Tao wrote on Weibo.
October 2025 deliveries
A look at Tesla China’s order page as of writing shows that the earliest deliveries for the Model Y L, if ordered today, would be October 2025 instead. This suggests that the six-seat Model Y variant has effectively been sold out for September. This bodes well for the vehicle, and it suggests that it is a variant that may be able to raise Tesla’s sales numbers in China, as well as territories where the Model Y L could be exported.
Rumors of the Model Y L’s strong sales have been abounding. After the vehicle’s launch, industry watchers estimated that Tesla China has received over 35,000 orders for the Model Y L in just one day. Later estimates suggested that the Model Y L’s orders have breached the 50,000 mark.
News
Starship Flight 10 rescheduled as SpaceX targets Monday launch
SpaceX said it is now targeting Monday evening for Starship’s 10th flight test.

SpaceX stood down from its planned Starship Flight 10 on Sunday evening, citing an issue with ground systems.
The launch attempt was scheduled during a one-hour window that opened at 7:30 p.m. ET, but it was called off just 17 minutes before the window opened. SpaceX said it is now targeting Monday evening for Starship’s 10th flight test.
Flight 10 rescheduled
A lot of excitement was palpable during the lead up to Starship Flight 10’s first launch window. After the failures of Starship Flight 9, many were interested to see if SpaceX would be able to nail its mission objectives this time around. Starship itself seemed ready to fly, with the upper stage being loaded with propellant as scheduled. Later on, SpaceX also noted that Starship’s Super Heavy booster was also being loaded with propellant.
However, 17 before the launch window opened, SpaceX noted that it was “standing down from today’s tenth flight of Starship to allow time to troubleshoot an issue with ground systems.” Elon Musk, in a post on X, further clarified that a “ground side liquid oxygen leak needs to be fixed.” Musk did state that SpaceX will attempt Flight 10 again on Monday, August 25, 2025.
Starship and SpaceX’s development goals
The fully integrated Starship system is the tallest and most powerful rocket ever built, standing over 400 feet when stacked. Composed of the reusable Super Heavy booster and the Starship upper stage, the vehicle is central to SpaceX’s long-term ambitions of lunar and Martian missions. NASA has already selected Starship as the crewed lunar lander for Artemis, with its first astronaut landing mission tentatively set for 2027, as noted in a Space.com report.
So far, Starship has flown nine times from Starbase in Texas, with three launches this year alone. Each flight has offered critical data, though all three 2025 missions encountered notable failures. Flight 7 and Flight 8 ended in explosions less than 10 minutes after launch, while Flight 9 broke apart during reentry. Despite setbacks, SpaceX has continued refining Starship’s hardware and operations with each attempt. Needless to say, a successful Flight 10 would be a significant win for the Starship program.
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