Connect with us

News

Stellantis CEO: EV transition costs are “beyond the limits” the auto industry can sustain

(Credit: Stellantis North America/Twitter)

Published

on

Stellantis CEO Carlos Taveres stated that the pressure for legacy automakers to accelerate the shift to electric vehicles could threaten jobs and vehicle quality as traditional carmakers struggle to manage the higher costs of producing EVs. 

Taveres said that the costs of transitioning to electric vehicle production are “beyond the limits” of what the current auto industry can sustain in an interview with Reuters Next. He also highlighted the pressure legacy OEMs get from governments and investors to speed up the transition to electric vehicles. 

“What has been decided is to impose on the automotive industry electrification that brings 50% additional costs against a conventional vehicle,” he said.” “There is no way we can transfer 50% of additional costs to the final consumer because most parts of the middle class will not be able to pay.”

He noted that traditional automakers would have to either charge higher prices and make fewer cars or accept lower profit margins to keep up with the additional costs of transitioning to electric vehicles. Taveres emphasized that both paths lead to cutbacks. 

Many union leaders in Europe and North America agree that thousands of people could lose their jobs if the auto industry transitioned to EV production. US President Joe Biden is trying to tread the line between pushing legacy OEMS towards transitioning to EVs and providing job security in the auto industry. 

Advertisement

Biden has openly supported the Detroit Big Three’s — Ford, General Motors, and Stellantis — EV goals, while puzzlingly ignoring Tesla’s role in the current electric vehicle revolution. The US President seems keen on only promoting automakers that are affiliated with unions in his bid to make the United States of America a powerhouse in the global electric vehicle market, all while ignoring the powerhouse that is Tesla, which already operates within the country.

In the summer, the Detroit Big Three announced their commitment to increase each of their electric vehicle sales by about 40% by 2030. Some may argue that the Detroit Big Three’s EV transition goals go against the current tides, considering that a few countries have already committed to banning fossil fuel cars by the end of this decade, while others are seriously considering the move. 

In his recent interview, Tavares noted that automakers need time to test and ensure electric vehicle technology works. He said that speeding up the process “is just going to be counterproductive. It will lead to quality problems. It will lead to all sorts of problems.”

So far, Ford seems to be the only automaker in the Detroit Big Three taking serious steps to becoming an electric vehicle producer. The Ford Mustang Mach-E has proven to be quite a favorite amongst the OEM’s customers. The Mustang Mach-E is still far from perfect, though, as some owners do have critiques about the vehicle and its infrastructure support. 

However, Ford seems to be failing forward and learning from its mistakes and improving on the fly — similar to Tesla in some ways. As for Stellantis, it has invested €30 billion into its electrification strategy. On Tuesday, the company invested in solid-state battery startup Factorial. 

“We can invest more and go deeper in the value chain,” Tavares said. “There may be other (investments) in the near future.”

Advertisement

In July, the company held Stellantis EV Day 2021, where it announced intentions to become a market leader in low emissions vehicles (LEV) by 2030. Stellantis aims to make over 70% of its sales in Europe and 40% in the United States be comprised of LEVs. The company also stated that all 14 of its brands are committed to offering best-in-class fully electrified solutions. 

“Over the next five years, we have to digest 10% productivity a year … in an industry which is used to delivering 2 to 3% productivity” improvement, Tavares said. 

It wasn’t clear whether he was referring to productivity in electric vehicle development only. Stellantis stills seem adamant in slowly transitioning into an electric vehicle producer. However, the CEO did get one thing right on the bullseye.

“The future will tell us who is going to be able to digest this and who will fail,” Tavares said. “We are putting the industry on the limits.”

The Teslarati team would appreciate hearing from you. If you have any tips, reach out to me at maria@teslarati.com or via Twitter @Writer_01001101.

Advertisement

Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

Advertisement
Comments

Elon Musk

USDOT Secretary visits Tesla Giga Texas, hints at national autonomous vehicle standards

The Transportation Secretary also toured the factory’s production lines and spoke with CEO Elon Musk.

Published

on

Credit: Elon Musk/X

United States Department of Transportation (USDOT) Secretary Sean Duffy recently visited Tesla’s Gigafactory Texas complex, where he toured the factory’s production lines and spoke with CEO Elon Musk. In a video posted following his Giga Texas visit, Duffy noted that he believes there should be a national standard for autonomous vehicles in the United States.

Duffy’s Giga Texas Visit

As could be seen in videos of his Giga Texas visit, the Transportation Secretary seemed to appreciate the work Tesla has been doing to put the United States in the forefront of innovation. “Tesla is one of the many companies helping our country reach new heights. USDOT will be right there all the way to make sure Americans stay safe,” Duffy wrote in a post on X. 

He also praised Tesla for its autonomous vehicle program, highlighting that “We need American companies to keep innovating so we can outcompete the rest of the world.”

National Standard

While speaking with Tesla CEO Elon Musk, the Transportation Secretary stated that other autonomous ride-hailing companies have been lobbying for a national standard for self-driving cars. Musk shared the sentiment, stating that “It’d be wonderful for the United States to have a national set of rules for autonomous driving as opposed to 50 independent sets of rules on a state-by-state rules basis.”

Duffy agreed with the CEO’s point, stating that, “You can’t have 50 different rules for 50 different states. You need one standard.” He also noted that the Transportation Department has asked autonomous vehicle companies to submit data. By doing so, the USDOT could develop a standard for the entire United States, allowing self-driving cars to operate in a manner that is natural and safe.

Advertisement
Continue Reading

News

Tesla posts Optimus’ most impressive video demonstration yet

The humanoid robot was able to complete all the tasks through a single neural network.

Published

on

Credit: Tesla Optimus/X

When Elon Musk spoke with CNBC’s David Faber in an interview at Giga Texas, he reiterated the idea that Optimus will be one of Tesla’s biggest products. Seemingly to highlight the CEO’s point, the official Tesla Optimus account on social media platform X shared what could very well be the most impressive demonstration of the humanoid robot’s capabilities to date.

Optimus’ Newest Demonstration

In its recent video demonstration, the Tesla Optimus team featured the humanoid robot performing a variety of tasks. These include household chores such as throwing the trash, using a broom and a vacuum cleaner, tearing a paper towel, stirring a pot of food, opening a cabinet, and closing a curtain, among others. The video also featured Optimus picking up a Model X fore link and placing it on a dolly.

What was most notable in the Tesla Optimus team’s demonstration was the fact that the humanoid robot was able to complete all the tasks through a single neural network. The robot’s actions were also learned directly from Optimus being fed data from first-person videos of humans performing similar tasks. This system should pave the way for Optimus to learn and refine new skills quickly and reliably.

Tesla VP for Optimus Shares Insight

In a follow-up post on X, Tesla Vice President of Optimus (Tesla Bot) Milan Kovac stated that one of the team’s goals is to have Optimus learn straight from internet videos of humans performing tasks, including footage captured in third person or by random cameras.

“We recently had a significant breakthrough along that journey, and can now transfer a big chunk of the learning directly from human videos to the bots (1st person views for now). This allows us to bootstrap new tasks much faster compared to teleoperated bot data alone (heavier operationally).

Advertisement

“Many new skills are emerging through this process, are called for via natural language (voice/text), and are run by a single neural network on the bot (multi-tasking). Next: expand to 3rd person video transfer (aka random internet), and push reliability via self-play (RL) in the real-, and/or synthetic- (sim / world models) world,” Kovac wrote in his post on X.

Continue Reading

News

Starship Flight 9 nears as SpaceX’s Starbase becomes a Texan City

SpaceX’s launch site is officially incorporated as Starbase, TX. Starship Flight 9 could launch on May 27, 2025. 

Published

on

spacex-starship-flight-9-starbase-city
(Credit: Jenny Hautmann/Wikimedia Commons)

SpaceX’s Starbase is officially incorporated as a city in Texas, aligning with preparations for Starship Flight 9. The newly formed city in Cameron County serves as the heart of SpaceX’s Starship program.

Starbase City spans 1.5 square miles, encompassing SpaceX’s launch facility and company-owned land. A near-unanimous vote by residents, who were mostly SpaceX employees, led to its incorporation. SpaceX’s Vice President of Test and Launch, Bobby Peden, was elected mayor of Starbase. The new Texas city also has two SpaceX employees as commissioners. All Starbase officials will serve two-year terms unless extended to four by voters.

As the new city takes shape, SpaceX is preparing for the Starship Flight 9 launch, which is tentatively scheduled for May 27, 2025, at 6:30 PM CDT from Starbase, Texas.

SpaceX secured Federal Aviation Administration (FAA) approval for up to 25 annual Starship and Super Heavy launches from the site. However, the FAA emphasized that “there are other licensing requirements still to be completed,” including policy, safety, and environmental reviews.

Advertisement

On May 15, the FAA noted SpaceX updated its launch license for Flight 9, but added: “SpaceX may not launch until the FAA either closes the Starship Flight 8 mishap investigation or makes a return to flight determination. The FAA is reviewing the mishap report SpaceX submitted on May 14.”

Proposed Texas legislation could empower Starbase officials to close local highways and restrict Boca Chica Beach access during launches. Cameron County Judge Eddie Trevino, Jr., opposes the Texas legislation, insisting beach access remain under county control. This tension highlights the balance between SpaceX’s ambitions and local interests.

Starbase’s incorporation strengthens SpaceX’s operational base as it gears up for Starship Flight 9, a critical step in its mission to revolutionize space travel. With growing infrastructure and regulatory hurdles in focus, Starbase is poised to become a cornerstone of SpaceX’s vision, blending community development with cutting-edge aerospace innovation.

Advertisement
Continue Reading

Trending