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Ford’s EV plans take latest backstep with European retreat in favor of hybrids

Credit: Ford

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Ford’s electric vehicle plans have taken yet another backstep as its European business head hinted that the automaker could favor hybrid electric vehicles as consumers lead in that direction.

Ford reported massive losses on its EV business in Q1, and although sales in April were at an all-time high, it is no secret consumer interest is cooling off. It also said it would scale back EV investments from $10 billion to between $8 billion and $9 billion, CEO Jim Farley confirmed.

Hybrids are becoming a thorn in the side of companies that are committed to widescale EV efforts.

Ford doubles down on EVs despite heavy losses in Q1

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Tesla even said in its Q1 Shareholder Deck that automakers are starting to put more energy and effort into hybrids, which has been a major pressure point of EV adoption, especially since late 2023 and into early 2024.

Ford is ready to adjust its game plan with EVs, especially in the European market. Today, Martin Sander, the head of its European passenger car business, told FT that hybrid EVs are definitely a potential offering, especially if consumers show interest:

“If we see strong demand, for instance, for plug-in hybrid vehicles, we will offer them.”

Regardless of whether Ford is ready to or not, it will have to transition to all-electric vehicles by 2035 due to European laws that plan to phase out gas-powered vehicles. It seems that Ford and Sander are ready for that as well, but their transition will be less aggressive than previously planned.

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Sander said Ford will “manage our way toward 100 percent electric drivetrains,” but it is well aware that the financials have to make sense.

“We are not going to pay penalties. We are not going to sell electric vehicles at huge losses just to buy compliance,” Sander said, evidently wanting to avoid any further complications and financial implications because of regulatory hurdles. “The only alternative is to take our shipments of ICE vehicles for the United Kingdom and sell them somewhere else.”

Ford is scaling back its EV plans in an effort to remain afloat. It has not been an easy road thus far, and it evidently is not ready to make a full-fledged effort to produce only EVs if consumers are not ready to adopt them. They will simply go elsewhere.

Toyota is one company that has been more hesitant to dive into a fully electric lineup, opting for other modes like hybrids and hydrogen. Ford may want to consider taking a page out of the Japanese company’s book as it needs to avoid losing more money to an overcommitted EV narrative that is costing the company millions every quarter.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla Giga Berlin dispute against IG Metall union leads to investigation

As per a report from rbb24, police seized a laptop belonging to an IG Metall member at Tesla Giga Berlin on Tuesday afternoon.

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Credit: Tesla Manufacturing/X

German authorities have opened an investigation into an IG Metall union representative following allegations that a confidential works council meeting at Tesla’s Gigafactory Berlin was secretly recorded. The probe follows a criminal complaint filed by Tesla management last week.

As per a report from rbb24, police seized a laptop belonging to an IG Metall member at Tesla Giga Berlin on Tuesday afternoon. Prosecutors in Frankfurt (Oder) confirmed that an investigation is underway into a possible unauthorized audio recording of an internal works council meeting.

Under German law, recording a non-public meeting without consent may constitute a criminal offense.

Tesla stated that Gigafactory Berlin employees alerted management after allegedly discovering that an external union representative, who was attending the event as a guest, had recorded the session. Plant manager André Thierig stated in a post on X that the representative was “caught in action,” prompting the company to contact police and file a criminal complaint.

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The seized device is now part of the investigation, and authorities will determine whether any unlawful recording had indeed occurred.

IG Metall has denied the accusation. In comments to German media, representatives rejected Tesla’s claim and described the electric vehicle maker’s allegation as an election campaign tactic ahead of upcoming works council elections.

The election at Tesla’s Grünheide plant is scheduled for March 2–4, 2026, with about 11,000 employees being eligible to vote. Regular works council elections in Germany are held every four years between March and May.

The incident comes amid tensions between Tesla and organized labor in Germany. While works councils operate independently from unions, IG Metall has been active at the plant and has previously criticized Tesla’s labor practices. Authorities, for their part, have not yet announced whether charges will be filed, though the investigation remains ongoing.

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Tesla rolls out xAI’s Grok to vehicles across Europe

The initial rollout includes the United Kingdom, Ireland, Germany, Switzerland, Austria, Italy, France, Portugal, and Spain.

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Tesla is rolling out Grok to vehicles in Europe. The feature will initially launch in nine European territories.

In a post on X, the official Tesla Europe, Middle East & Africa account confirmed that Grok is coming to Teslas in Europe. The initial rollout includes the United Kingdom, Ireland, Germany, Switzerland, Austria, Italy, France, Portugal, and Spain, and additional markets are expected to be added later.

Grok allows drivers to ask questions using real-time information and interact hands-free while driving. According to Tesla’s support documentation, Grok can also initiate navigation commands, enabling users to search for destinations, discover points of interest, and adjust routes without touching the touchscreen, as per the feature’s official webpage.

The system offers selectable personalities, ranging from “Storyteller” to “Unhinged,” and is activated either through the App Launcher or by pressing and holding the steering wheel’s microphone button.

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Grok is currently available only on Model S, Model 3, Model X, Model Y, and Cybertruck vehicles equipped with an AMD infotainment processor. Vehicles must be running software version 2025.26 or later, with navigation command support requiring version 2025.44.25 or newer.

Drivers must also have Premium Connectivity or a stable Wi-Fi connection to use the feature. Tesla notes that Grok does not currently replace standard voice commands for vehicle controls such as climate or media adjustments.

The company has stated that Grok interactions are processed securely by xAI and are not linked to individual drivers or vehicles. Users do not need a Grok account or subscription to enable the feature at this time as well.

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Tesla ends Full Self-Driving purchase option in the U.S.

In January, Musk announced that Tesla would remove the ability to purchase the suite outright for $8,000. This would give the vehicle Full Self-Driving for its entire lifespan, but Tesla intended to move away from it, for several reasons, one being that a tranche in the CEO’s pay package requires 10 million active subscriptions of FSD.

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Credit: Tesla

Tesla has officially ended the option to purchase the Full Self-Driving suite outright, a move that was announced for the United States market in January by CEO Elon Musk.

The driver assistance suite is now exclusively available in the U.S. as a subscription, which is currently priced at $99 per month.

Tesla moved away from the outright purchase option in an effort to move more people to the subscription program, but there are concerns over its current price and the potential for it to rise.

In January, Musk announced that Tesla would remove the ability to purchase the suite outright for $8,000. This would give the vehicle Full Self-Driving for its entire lifespan, but Tesla intended to move away from it, for several reasons, one being that a tranche in the CEO’s pay package requires 10 million active subscriptions of FSD.

Although Tesla moved back the deadline in other countries, it has now taken effect in the U.S. on Sunday morning. Tesla updated its website to reflect this:

There are still some concerns regarding its price, as $99 per month is not where many consumers are hoping to see the subscription price stay.

Musk has said that as capabilities improve, the price will go up, but it seems unlikely that 10 million drivers will want to pay an extra $100 every month for the capability, even if it is extremely useful.

Instead, many owners and fans of the company are calling for Tesla to offer a different type of pricing platform. This includes a tiered-system that would let owners pick and choose the features they would want for varying prices, or even a daily, weekly, monthly, and annual pricing option, which would incentivize longer-term purchasing.

Although Musk and other Tesla are aware of FSD’s capabilities and state is is worth much more than its current price, there could be some merit in the idea of offering a price for Supervised FSD and another price for Unsupervised FSD when it becomes available.

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