News
‘Average Americans’ can’t afford EVs: Former White House official, others rip Buttigieg
The all-too-common myth that electric vehicles are not affordable to the average American is now being reignited by former Trump White House Communications Official Mercedes Schlapp, among others, who ripped Transportation Secretary Pete Buttigieg for suggesting that the answer to rising gas prices was to buy an electric car.
Sec. Buttigieg appeared on MSNBC on Sunday to suggest that American consumers can avoid soaring gas prices by purchasing an electric vehicle. Buttigieg said to Jonathan Capehart in an interview on “The Sunday Show” that EV owners will have a “$12,500 discount” thanks to the new EV incentive plan that was included in the House-passed “Build Back Better” plan from President Joe Biden. While only the Chevrolet Bolt EV will qualify for the full $12,500 amount, nearly every EV built in the United States will qualify for a $7,500 tax credit.
Buttigieg also went on to say that those in rural areas would be most likely to benefit from the purchase of an EV. “The people who stand to benefit most from owning an EV are often rural residents who have the most distances to drive, who burn the most gas, and underserved urban residents in areas where there are higher gas prices and lower-income,” Buttigieg claimed. “They would gain the most by having that vehicle. These are the very residents who have not always been connected to electric vehicles that are viewed as kind of a luxury item.”
Transportation Sec. Buttigieg: Buy an EV and ‘never worry about gas prices again’
However, not everyone was a fan of Buttigieg’s suggestion to transition to EVs. Former White House Director of Strategic Communications Mercedes Schlapp said that EVs are not widely affordable, and only people “in the world that Pete Buttigieg lives in” can afford them. “Average Americans struggling with record-high gas prices? Not so much,” she added.
“Let me assure you there is very little overlap between ‘families that can afford to buy a $50,000 electric car,” Amy Swearer of the Heritage Foundation said. “And ‘families that are worried about gas prices because an extra $50 a month is actually a week’s worth of groceries.’ Do you know what a lot of families could do with that extra $50 a month/$1300 a year?” Swearer added according to the New York Post.
Kelley Blue Book lists the average transaction price in October 2021 for a new vehicle at $46,036, with Tesla offering an average price of $54,560. It should be noted that Tesla has two Model 3 variants under the average $54,560 price. The Model Y’s Long Range variant is available for slightly more at $58,990. However, these prices are before factoring in federal incentives, gas savings, and money saved through lack of maintenance. If the minimum $7,500 EV tax credit were available right now, all but one of Tesla’s five mass-market vehicle variants would fall under the average cost of a Tesla vehicle. The Model 3’s Rear Wheel Drive and Long Range All-Wheel Drive configurations would cost less than the national average for a new car. Tesla vehicles would qualify for $8,000 in incentives: $7,500 for being built in the U.S. and an additional $500 for equipping a U.S.-made battery.
Now, if we factor in other vehicles in the United States, the Chevrolet Bolt, which has had production suspended until 2022 due to battery malfunctions, has several sub-$30,000 variants available. Ford’s Mustang Mach-E starts at $42,895 and can go as low as $35,395 after incentives. Three of Ford’s four Mach-E variants would fall under KBB’s $46,036 average price after incentives.
Unfortunately, politicians with widespread media coverage are able to spread misinformation regarding the price of electric vehicles. Many EVs are available on the market today are actually extremely affordable. Even if the price of an EV is slightly higher than a gas car, owners can expect savings through missed trips to the gas pump and a lack of oil changes. But, after all, we’ve learned that the White House, at nearly any time and under nearly any administration, has missed the mark regarding EVs, and it has not been uncommon for politicians to spread information that is not necessarily accurate.
I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.
Elon Musk
Tesla Model Y outsells all EV rivals in Europe in 2025 despite headwinds
The result highlights the Model Y’s continued strength in the region.
The Tesla Model Y was Europe’s most popular electric car in 2025, leading all EV models by a wide margin despite a year marked by production transition, intensifying competition, and anti-Elon Musk sentiments.
The result highlights the Model Y’s continued strength in the region even as Volkswagen overtook Tesla as the top-selling EV brand overall.
As per data compiled by JATO Dynamics and reported by Swedish outlet Allt om Elbil, the Tesla Model Y recorded 149,805 registrations across Europe in 2025. That figure placed it comfortably at No. 1 among all electric car models in the region.
The Model Y’s performance in Europe is particularly notable given that registrations declined 28% year-over-year. The dip coincided with Tesla’s Q1 2025 transition to the updated Model Y, a changeover that temporarily affected output and deliveries in several markets. Anti-Elon Musk sentiments also spread across several European countries amidst the CEO’s work with U.S. President Donald Trump.
Even with these disruptions, the Model Y outsold its nearest rival by more than 50,000 units. Second place went to the newly launched Skoda Elroq with 93,870 registrations, followed by the Tesla Model 3 at 85,393 units. The Model 3 also recorded a 24% year-over-year decline. Renault’s new electric Renault 5 placed fourth with 85,101 registrations.
Other top performers included the Volkswagen ID.4, ID.3, and ID.7, along with the BMW iX1 and Kia EV3, many of which posted triple-digit growth from partial-year launches in 2024.
While the Model Y dominated individual model rankings, Volkswagen overtook Tesla as Europe’s top EV brand in 2025. Volkswagen delivered 274,278 electric cars in the region, a 56% increase compared to 2024. Much of that growth was driven by the Volkswagen ID.7. Tesla, by contrast, sold 236,357 electric vehicles in Europe, representing a 27% year-over-year decline.
JATO Dynamics noted that “Tesla’s small and aging model range faces fierce competition in Europe, both from traditional European automakers and a growing number of Chinese competitors.”
Despite intensifying competition and brand-level shifts, however. the Model Y’s commanding lead demonstrates that Tesla’s bestselling crossover remains a dominant force in Europe’s fast-evolving EV landscape.
News
Starlink gets its latest airline adoptee for stable and reliable internet access
The company said it plans to “rapidly integrate Starlink into its fleet,” and that the first Starlink-equipped aircraft will enter service this Summer.
SpaceX’s Starlink, the satellite internet program launched by Elon Musk’s company, has gotten its latest airline adoptee, offering stable and reliable internet to passengers.
Southwest Airlines announced on Wednesday that it would enable Starlink on its aircraft, a new strategy that will expand to more than 300 planes by the end of the year.
The company said it plans to “rapidly integrate Starlink into its fleet,” and that the first Starlink-equipped aircraft will enter service this Summer.
Tony Roach, Executive Vice President, Chief Customer and Brand Officer for the airline, said:
“Free WiFi has been a huge hit with our Rapid Rewards Members, and we know our Customers expect seamless connectivity across all their devices when they travel. Starlink delivers that at-home experience in the air, giving Customers the ability to stream their favorite shows from any platform, watch live sports, download music, play games, work, and connect with loved ones from takeoff to landing.”
Southwest also said that this is just one of the latest upgrades it is making to provide a more well-rounded experience to its aircraft. In addition to Starlink, it is updating cabin designs, offering more legroom, and installing in-seat power to all passengers.
Southwest became one of several airlines to cross over to Starlink, as reviews for the internet provider have raved about reliability and speed. Over the past year, Hawaiian Airlines, United Airlines, Alaska Airlines, airBaltic, Air France, JSX, Emirates, British Airways, and others have all decided to install Starlink on their planes.
This has been a major move away from unpredictable and commonly unreliable WiFi offerings on planes. Starlink has been more reliable and has provided more stable connections for those using their travel time for leisure or business.
Jason Fritch, VP of Starlink Enterprise Sales at SpaceX, said:
“We’re thrilled to deliver a connectivity experience to Southwest Airlines and its Customers that really is similar, if not better, than what you can experience in your own home. Starlink is the future of connected travel, making every journey faster, smoother, and infinitely more enjoyable.”
Starlink recently crossed a massive milestone of over 10 million subscribers.
Elon Musk
Tesla nears closure of Full Self-Driving purchasing option
The move to bring FSD to this type of purchasing program comes after CEO Elon Musk noted in January that Tesla would move away from the outright purchase option.
Tesla is nearing the closure of its Full Self-Driving outright purchasing option, which will be removed on February 14, meaning Saturday will be the last time it can be bought as a non-subscription.
Tesla is aiming to move its Full Self-Driving suite to a subscription-only platform, a move that will enable people to only pay monthly for the semi-autonomous driving functionality.
The move to bring FSD to this type of purchasing program comes after CEO Elon Musk noted in January that Tesla would move away from the outright purchase option.
It is currently priced at $8,000 for the outright option to use Full Self-Driving, a substantial decrease compared to the $15,000 it was priced at one time. For the monthly subscription, it is just $99 per month, but that price will change, likely increasing as things get more advanced.
Tesla is overhauling its Full Self-Driving subscription for easier access
We say it will likely increase because there is no indication of how Tesla will price FSD. There has been some speculation that Tesla could utilize a tiered system to price FSD, which would potentially allow owners to pick and choose a set of features that would be most ideal for them.
This would potentially introduce an even more affordable option for FSD use, but this is unconfirmed. The reason many say this could be an option for Tesla is the fact that if the price goes up further, the take rate, which is currently around 12 percent at its most recent estimate, could be lower.
Musk needs 10 million active Full Self-Driving subscriptions to unlock one of the tranches of his newest compensation package.
The move to a subscription-only platform has its positives and negatives, and owners have been more than vocal about these since Musk confirmed the move.
Positives
- Lower barrier to entry and higher potential adoption
- Financially better for many users
- Easier transfers and brand loyalty
- Predictable recurring revenue for Tesla
- Access to the latest features
Negatives
- Higher long-term cost for loyal/long-term owners
- No true “ownership” or permanence
- Risk of future price hikes or even deactivation
- Perceived as of less value
- Impact on resale and used market
Overall, there is a split among the Tesla community in terms of what they see as the “right” way to handle this. Tesla is likely to shed more details on what its plans for the subscription-only platform will be, including pricing, in the coming weeks.