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With gas phase-out in view, Europe could lose $160 billion in fuel taxes
With Europe’s gas phase-out plans now within view, the countries there could be set to lose significant funding from fuel taxes in the coming years.
Last year, the European Union (EU) officially approved a mandate to end the sale of new gas cars by 2035, in order to help reduce greenhouse gas emissions and slow down the warming of Earth’s atmosphere. Still, the change could have some latent effects, especially as most countries get crucial revenue from taxes on gas.
In 2023, the top five economies in Europe earned over €150 billion ($163 billion) in fuel levies, representing as much as 2 percent of the countries’ total taxes, according to Bloomberg. In the United Kingdom, gas and diesel duties are predicted to amount to £24.3 billion ($31 billion) between last year and this year—or more than alcohol and tobacco taxes combined.
Many of these taxes go toward important societal needs such as hospitals, schools, and road maintenance, highlighting the need for the income to continue, even as electric vehicles (EVs) take over the market in the coming years. Instead of allowing this revenue to disappear as battery-electrics become the new norm, it might be time to start planning for replacement options now.
There are multiple potential options for ensuring this revenue remains with the transition to EVs, including the fact that these sectors could generate funding elsewhere, like through income taxes. However, some also argue that this approach, not unlike the option of taxing car sales outright, wouldn’t account for how much a person uses their vehicle, potentially increasing congestion, and removing incentives to buy more efficient vehicles.
As such, taxing driving specifically may be a better alternative. Still, taxing electricity rates would require some houses to add meters for this purpose, and it may risk offering wealthier households, who can afford to install home-charging equipment, lower taxes than those charging at public charging stations. Add in the element of the increasing rollout of residential solar power, and this could even further exacerbate the issue.
Instead, taxing as fairly as possible on the actual road use would be ideal, which isn’t unlike many areas’ use of toll roads. Whether using annual checkups and registration practices to determine how many miles a given vehicle drives per year, or using something else like GPS, this approach seems like it could offer a more level playing field across socioeconomic lines.
In any case, beginning to consider these options now will be imperative for government officials to avoid losing this funding in the future, and delaying this process could result in a tougher transition period.
How do you think EVs should be taxed in Europe? What about in other countries? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.
Tesla (NASDAQ: TSLA) reported its earnings for the first quarter of 2026 on Wednesday afternoon. Here’s what the company reported compared to what Wall Street analysts expected.
The earnings results come after Tesla reported a massive beat on vehicle deliveries for the second quarter, delivering 489,126 vehicles and building 451,758 cars during the three-month span.
This was a major shock for those on Wall Street as they anticipated somewhere around 400,000 deliveries for the quarter, and showed Tesla still has plenty of demand for its vehicles around the world and in the U.S. despite losing the $7,500 EV Tax Credit last year.
Tesla Q2 2026 Earnings Results
- Non-GAAP EPS – $0.33 reported vs. $0.53 expected
- Revenues – $28.236 billion reported vs. $26.4 billion expected
- Free Cash Flow- -$1.092B
- Profit -$ 4.751B
Tesla (beat/missed) analyst expectations, so the market response to the company’s quarter is what we will look for next.
Tesla shares closed today down just over 1 percent, trading at $374.01.
In the past, it has been anyone’s guess with what Tesla shares will do after they report earnings. Strong quarters have resulted in sharp drops, while lackluster quarters have seen the stock shoot up considerably.
Tesla will hold its Q2 2026 Earnings Call in about 90 minutes at 5:30 p.m. on the East Coast. Remarks will be made by CEO Elon Musk and other executives, who will shed some light on the investor questions that we covered earlier this week.
You can stream it below. Additionally, we will be doing our Live Blog on X and Facebook.
Q2 2026 Earnings Call https://t.co/zZS6ii2TWK
— Tesla (@Tesla) July 22, 2026
Tesla is about to make parking in busy parking lots at businesses and other points of interest less stressful than ever by allowing drivers more control over where they park and how, CEO Elon Musk confirmed on X.
Tesla has been working to improve the parking performance of vehicles utilizing the Full Self-Driving suite, but now it is looking to add more customization, allowing drivers to choose the specific space they park in, but also potentially the orientation the car pulls into the spot:
It’s coming soon
— Elon Musk (@elonmusk) July 21, 2026
Musk has reiterated on X twice over the past several weeks that Tesla is working to make things with the FSD suite based more on the driver’s specific preferences and behaviors that were seen in past drives.
Essentially, it sounds like if you tend to park away from a business to avoid other vehicles, Tesla FSD will soon recognize that preference of yours and start parking further away as well. Additionally, the prospect of assigned parking spaces has been something many owners have voiced concerns about.
Living in a community with assigned parking spaces makes using FSD incredibly difficult as it will rarely park in the correct spot when there are so many to choose from. This is also pertinent in work settings where there are sometimes assigned parking spaces.
The updates to Tesla’s Full Self-Driving suite in terms of listening to driver preferences with parking are also extending to routing. Tesla announced yesterday that with the release of its 2026 Summer Update, it was adding Automatic Navigation and Preferred Routes:
Tesla reveals 2026 Summer Update with crazy fixes to Nav and more
Tesla has always maintained the idea that any human input is bad input, and that, ideally, Tesla Full Self-Driving will always make the right decision. Of course, this is all in theory, but the issue is that so many of Tesla’s interventions have come because it does something that is not necessarily wrong, but perhaps not what the driver would prefer.
Taking these preferences into account will help Tesla alleviate some of the potentially unnecessary interventions that drivers perform.
Tesla is starting to prepare for the launch of the Optimus robot in its smartphone app, new coding strings show. Elon Musk has referred to Optimus as what will be the greatest-selling product of any kind of all time, and now, Tesla is getting ready for its launch.
Tesla’s smartphone app had several first-time mentions of the Optimus program, according to Tesla App Updates, who intially reported on the appearance. Here’s what they found:
A Dedicated “Robot” Phone Key Authentication
Tesla is working on a Bluetooth Low Energy, or BLE, authentication that is specifically for robots. This does not only apply to Optimus, though, as Robotaxi, which is Tesla’s autonomous ride-hailing platform, might also identify vehicles within the fleet as robots as well.
Tesla shows rapid teardown of Model S and X lines, paving the way for Optimus at Fremont
Essentially, pairing your phone as a key to anything Tesla identifies as a robot to a “whitelist” of authorized devices. Optimus, Robotaxi, or other products that fall into this category will only respond if the device trying to communicate with it is authorized.
This is a great security feature that will eliminate at least face-value and low-level threats.
Home Data Collection and System Alerts
This appears to be somewhat of a neural network for Optimus within your house. There will be a dedicated screen that asks for consent to collect both video and spatial data while Optimus performs in-home tasks. Everything from vacuuming, washing dishes, dusting, and other activities will be tracked.
There will also be a comprehensive alert system that will track everything from low battery to mechanical issues.
Other Changes
Most of the changes tracked in this particular app update are related to Tesla’s 2026 Summer Update, and include things such as image assets for new features, a preview of the new custom wraps feature, and other unique features.
You can check out our coverage on what is included with the 2026 Summer Update here:
Tesla reveals 2026 Summer Update with crazy fixes to Nav and more
Tesla (TSLA) Q2 2026 earnings results:
Tesla is about to make parking in busy lots less stressful than ever
