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Stellantis CEO: EV transition costs are “beyond the limits” the auto industry can sustain
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.
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.”
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.
Elon Musk
Tesla to launch in India in July with vehicles already arriving: report
Tesla is finally making serious moves toward launching in India, with showrooms opening in July, a report claims.

Tesla is finally bringing its business to India, a new report indicates, as the company is already shipping vehicles from China to the market where it has attempted to launch business for several years.
We first heard of Tesla planning to launch in India about a decade ago when CEO Elon Musk and Indian Prime Minister Narendra Modi met in California at the Fremont Factory in 2015.
Over the years, the two have hinted that the automaker would eventually land in India, but issues with import duties have delayed Tesla’s attempts.
Now, there seems to be some serious movement in Tesla’s plans, as it has reportedly shipped the first batch of vehicles from China to India, according to Bloomberg. The outlet says these are Model Y Rear-Wheel-Drive configurations.
Tesla is also planning for other parts of the launch, like preparing for Supercharging, aftermarket parts and merchandise purchasing for vehicle owners and fans, and spare parts from various regions, including the United States, China, and the Netherlands.
The company and the Indian government must have come to some sort of agreement that was catalyzed by Musk and Modi’s meeting in February in the U.S.
It is a long time coming, and it now gives Tesla access to an incredibly vast market in India, where a very small percentage of 2024’s total automotive sales were comprised of electric vehicles.
Another interesting tidbit about the launch is that the vehicles will be coming from Gigafactory Shanghai and not Gigafactory Berlin as previously thought. Reports from other publications, like Reuters, indicated the German production facility was building vehicles for India early last year.
India has a very strict policy that favors domestic manufacturing, which is why the import duties were so high for foreign automakers looking to bring their product into the market. These duties were reduced from 110 percent to just 15 percent, as long as companies aim to invest in India and meet certain investment and sales targets.
News
SpaceX and Elon Musk share insights on Starship Ship 36’s RUD
Starship Ship 36 experienced a Rapid Unscheduled Disassembly during a static fire attempt.

Elon Musk and SpaceX provided an explanation for the Rapid Unscheduled Disassembly (RUD) of Starship Ship 36 on Wednesday. As per Musk, preliminary data suggests that a nitrogen composite overwrapped pressure vessel (COPV) in the vehicle’s payload bay failed below its proof pressure.
On Wednesday evening, Ship 36 experienced a RUD during a static fire attempt. Videos of the incident that were shared online showed Starship Ship 36 exploding into a massive fireball at its launchpad in Starbase, Texas. Images taken in the aftermath of the explosion showed significant damage to the plumbing in the area. The site’s pad structure was also destroyed.
Elon Musk shared some information immediately after the incident. In a response to a post from space enthusiast @Erdayastronaut, Musk stated that “Preliminary data suggests that a nitrogen COPV in the payload bay failed below its proof pressure.”
Musk also noted that, “If further investigation confirms that this is what happened, it is the first time ever for this design.”
SpaceX provided more insight into the incident in a post on its official website.
“After completing a single-engine static fire earlier this week, the vehicle was in the process of loading cryogenic propellant for a six-engine static fire when a sudden energetic event resulted in the complete loss of Starship and damage to the immediate area surrounding the stand.
“The explosion ignited several fires at the test site, which remains clear of personnel and will be assessed once it has been determined to be safe to approach. Individuals should not attempt to approach the area while safing operations continue,” SpaceX wrote in its post.
SpaceX highlighted that despite Starship Ship 36’s RUD, the incident will not result in any hazards to the surrounding communities in the Rio Grande Valley. And in a post on X, SpaceX also confirmed that everyone in the Starship team was safe and accounted for after Ship 36’s explosion.
While Ship 36’s RUD is a speed bump for the Starship program, SpaceX is a company that is known to grow stronger with every adversity. Thus, it would not be surprising if SpaceX implemented numerous improvements to Starship after this incident–improvements that would make the vehicle more reliable and safer than before.
News
Tesla has started rolling out initial round of Robotaxi invites
Tesla is putting safety above all in its initial Robotaxi rollout.

Tesla has started rolling out an initial round of invites for its upcoming Robotaxi service in Austin, Texas.
Screenshots shared by several Tesla community members who received the invites provided a quick overview of the autonomous ride-hailing service.
As noted in a techAU report, the initial round of Robotaxi service invites has gone to longtime Tesla owners and active members of the EV community. These include owners such as @SawyerMerritt, @BLKMDL3, @WholeMarsBlog, @ItsKimJava, and @HerbertOng, all of whom shared screenshots of the invitation that Tesla has sent about the upcoming service.
You’re Invited to Early Access of Tesla Robotaxi!
The Future is Now! You’re invited to Early Access of Tesla’s Robotaxi service in Austin, TX!
As an Early Access rider, you can be among the first to use our new Robotaxi App and experience an autonomous ride within our geofenced area in Austin. Through this exclusive preview, you’ll have the opportunity to provide valuable feedback on our Robotaxi service.
Based on Tesla’s message, it appears that participation in the service would be strictly invite-only for now. Participants must also download Tesla’s dedicated Robotaxi App to hail a ride. Rides can also be requested and initiated to and from any location within a geofenced area of Austin.
The robotaxi service will be available from 6:00 AM to 12:00 AM, seven days a week, though these hours may change depending on factors such as inclement weather. Interestingly enough, Tesla is inviting the first participants of the Robotaxi program to share photos and videos of their experience with the service.
While the vehicles themselves are autonomous and would operate without human input, the Robotaxis would still be accompanied by a Tesla staff member to monitor the vehicle. This strategy suggests that Tesla is really putting safety above all in its initial Robotaxi rollout.
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