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Tesla Effect: Expert dives into EV adoption and the internal combustion engine’s death
When Elon Musk took the helm as CEO of Tesla, he aimed to disrupt the transportation industry to such a degree that electric mobility becomes the preferred, primary form of transportation. It was a lofty goal, near-impossible at the time. Yet, more than a decade and several all-electric vehicles later, Musk’s dream and his all-too-familiar Master Plan are actually happening.
Spurred by the success and the demand generated by vehicles like the Tesla Model S and Model 3, the auto industry is shifting towards electric transportation. Coupled with the ongoing climate emergency, several regions across the globe are also looking to drastically reduce their emissions, and one of the ways they are doing that is by phasing out the internal combustion engine. Paul Eichenberg, managing director of Paul Eichenberg Strategic Consulting and a longtime veteran in the auto industry, discussed these shifts in a recent appearance at Autoline After Hours.
During his discussions, Eichenberg noted that the auto industry, including the companies comprising its large supply chain, is already undergoing a steady departure from ICE technology. Aggressive emissions targets in regions such as Europe and China will eventually make it impossible for gas and diesel-powered vehicles to comply unless they become electric. Technological advancements such as autonomous driving solutions are also becoming a priority. This could be seen in how massive companies such as Volkswagen and Ford are currently partnering in a push towards EVs and full self-driving technology. Eichenberg noted that there would likely be more high-profile collaborations in the near future.
It is at this point that Tesla’s disruption, the “Tesla Effect,” if you may, becomes incredibly evident. Tesla might still be learning the ropes when it comes to running a car business, but it is becoming undeniable that the company has created an objectively superior product. Sandy Munro, who has torn down the Tesla Model 3 and other EVs like the Chevy Bolt and the BMW i3, remarked that Tesla’s electric sedan is at least a generation ahead of what other companies have put on the road in terms of the architecture, the electronic systems, and the software surrounding the vehicle. Tesla still needs to figure out a consistent way to make money, but in terms of the electric cars themselves, the company seems to have everything figured out.
With traditional auto catching up to upstart companies like Tesla, large carmakers are now looking to leverage the innovations from younger, smaller companies. This could be seen in how Ford willingly invested in Rivian, which has developed its own skateboard platform that features much of the same concepts as Tesla’s skateboard chassis. Eichenberg, citing an OEM he spoke with prior to the announcement of Ford’s Rivian investment, stated that building a skateboard similar to Rivian’s and Tesla’s will likely result in a seven-year lead in the marketplace.
With electric cars being far more straightforward in terms of parts and components, a significant number of companies whose businesses rely on the internal combustion engine are currently being faced with a dilemma. Eichenberg gave an example of this in a brief discussion about forgings. “If you look at the forgings, a typical vehicle like the Pacifica — you know, V6, 8-speed — that has 107 forgings in it, in just that traditional ICE engine ecosystem. When you go to an electric vehicle, whether it’s the (BMW) i3, the Teslas, the (Chevy) Bolt, whatever it is, there’s eight or nine. So you have a 90% over-capacitation of an industry. And here’s an industry that’s only 90 billion globally, and half of everything it does is in the engine-transmission ecosystem,” he said.
Elaborating further, Eichenberg mentioned that big-tier corporations such as Honeywell and Delphi, whose businesses are tied to the internal combustion engine, are now positioning themselves through spinoffs as a way to shed their ICE-centered assets. Unfortunately, smaller companies don’t have it as easy, particularly as private equities and investors do not seem interested in ICE innovations anymore. Eichenberg shared the story of Dayco, a private equity-owned business which experienced multiple failed sale processes. Eventually, the company ended up taking the deal to China, where it failed to receive a single bid. Among the key reasons behind these failures was Dayco’s line of business.
“Why is Dayco an indication of what private equities are going to do? It’s because Dayco makes pulley systems that go in front of the internal combustion engine. And of course, what’s been the first element to be electrified? All the pumps and all these systems that run off this pulley system. So, the market has already recognized, ‘Hey you know what, we’re not interested in these types of assets,’” he said.
Overall, it appears that traditional automakers’ decision to “wait and see” if Tesla survives and succeeds was a miscalculation at best. As it turned out, well-designed, long-range electric cars caught on, and with the advent of the Tesla Model 3 Standard Plus, which currently starts below $40,000 with Autopilot as standard, it is now becoming quite evident just how much catching up is needed for traditional auto to thrive (or even survive) in the age of the electric car. Yet, as more large automakers collaborate on technology that companies like Tesla have developed on their own, and as investments flow into young, innovative companies like Rivian, it is becoming a certainty that the internal combustion engine is indeed on its twilight years.
Watch Paul Eichenberg’s segment in Autoline After Hours in the video below.
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Tesla Semi pricing revealed after company uncovers trim levels
This is a step up from the prices that were revealed back in 2017, but with inflation and other factors, it is no surprise Tesla could not come through on the numbers it planned to offer nine years ago. When the Semi was unveiled in November 2017, Tesla had three pricing levels:
Tesla Semi pricing appears to have been revealed after the company started communicating with the entities interested in purchasing its all-electric truck. The pricing details come just days after Tesla revealed it planned to offer two trim levels and uncovered the specs of each.
After CEO Elon Musk said the Semi would enter volume production this year, Tesla revealed trim levels shortly thereafter. Offering a Standard Range and a Long Range trim will fit the needs of many companies that plan to use the truck for local and regional deliveries.
Tesla Semi lines up for $165M in California incentives ahead of mass production
It will also be a good competitor to the all-electric semi trucks already available from companies like Volvo.
With the release of specs, Tesla helped companies see the big picture in terms of what the Semi could do to benefit their business. However, pricing information was not available.
A new report from Electrek states that Tesla has been communicating with those interested companies and is pricing the Standard Range at $250,000 per unit, while the Long Range is priced at $290,000. These prices come before taxes and destination fees.
$TSLA – TESLA IS QUOTING $290,000 FOR ITS 500-MILES ELECTRIC SEMI TRUCK – ELECTREK
— *Walter Bloomberg (@DeItaone) February 10, 2026
This is a step up from the prices that were revealed back in 2017, but with inflation and other factors, it is no surprise Tesla could not come through on the numbers it planned to offer nine years ago. When the Semi was unveiled in November 2017, Tesla had three pricing levels:
- $150,000 for a 300-mile range version
- $180,000 for a 500-mile range version
- $200,000 for a limited “Founders Series” edition; full upfront payment required for priority production and limited to just 1,000 units
Tesla has not officially released any specific information regarding pricing on the Semi, but it is not surprising that it has not done so. The Semi is a vehicle that will be built for businesses, and pricing information is usually reserved for those who place reservations. This goes for most products of this nature.
The Semi will be built at a new, dedicated production facility in Sparks, Nevada, which Tesla broke ground on in 2024. The factory was nearly complete in late 2025, and executives confirmed that the first “online builds” were targeted for that same time.
Meaningful output is scheduled for this year, as Musk reiterated earlier this week that it would enter mass production this year. At full capacity, the factory will build 50,000 units annually.
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Tesla executive moves on after 13 years: ‘It has been a privilege to serve’
“It is challenging to encapsulate 13 years in a single post. The journey at Tesla has been one of continuous evolution. From the technical intricacies of designing, building, and operating one of the world’s largest AI clusters to impactful contributions in IT, Security, Sales, and Service, it has been a privilege to serve,” Jegannathan said in the post.
Tesla executive Raj Jegannathan is moving on from the company after 13 years, he announced on LinkedIn on Monday.
“It is challenging to encapsulate 13 years in a single post. The journey at Tesla has been one of continuous evolution. From the technical intricacies of designing, building, and operating one of the world’s largest AI clusters to impactful contributions in IT, Security, Sales, and Service, it has been a privilege to serve,” Jegannathan said in the post.
After starting as a Senior Staff Engineer in Fremont back in November 2012, Jegannathan slowly worked his way through the ranks at Tesla. His most recent role was Vice President of IT/AI Infrastructure, Business Apps, and Infosec.
However, it was reported last year that Jegannathan had taken on a new role, which was running the North American sales team following the departure of Troy Jones, who had held the position previously.
While Jegannathan’s LinkedIn does not mention this position specifically, it seemed to be accurate, considering Tesla had not explicitly promoted any other person to the role.
It is a big loss for Tesla, but not a destructive departure. Jegannathan was one of the few company executives who answered customer and fan questions on X, a unique part of the Tesla ownership experience.
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It currently remains unclear if Jegannathan was removed from the position or if he left under his own accord.
“As I move on, I do so with a full heart and excitement for what lies ahead. Thank you, Tesla, for this wonderful opportunity!” he concluded.
The departure marks a continuing trend of executives leaving the company, as the past 24 months have seen some significant turnover at the executive level.
Tesla has shown persistently elevated executive turnover over the past two years, as names like Drew Baglino, Rohan Patel, Rebecca Tinucci, Daniel Ho, Omead Afshar, Milan Kovac, and Siddhant Awasthi have all been notable names to exit the company in the past two years.
There are several things that could contribute to this. Many skeptics will point to Elon Musk’s politics, but that is not necessarily the case.
Tesla is a difficult, but rewarding place to work. It is a company that requires a lot of commitment, and those who are halfway in might not choose to stick around. Sacrificing things like time with family might not outweigh the demands of Tesla and Musk.
Additionally, many of these executives have made a considerable amount of money thanks to stock packages the company offers to employees. While many might be looking for new opportunities, some might be interested in an early retirement.
Tesla is also in the process of transitioning away from its most notable division, automotive. While it still plans to manufacture cars in the millions, it is turning more focus toward robotics and autonomy, and these plans might not align with what some executives might want for themselves. There are a wide variety of factors in the decision to leave a job, so it is important not to immediately jump to controversy.
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Lemonade launches Tesla FSD insurance program in Oregon
The program was announced by Lemonade co-founder Shai Wininger on social media platform X.
Tesla drivers in Oregon can now receive significant insurance discounts when using FSD, following the launch of Lemonade’s new Autonomous Car insurance program.
The program was announced by Lemonade co-founder Shai Wininger on social media platform X.
Lemonade launches FSD-based insurance in Oregon
In a post on X, Wininger confirmed that Lemondade’s Autonomous Car insurance product for Tesla is now live in Oregon. The program allows eligible Tesla owners to receive roughly 50% off insurance costs for every mile driven using Tesla’s FSD system.
“And… we’re ON. @Lemonade_Inc’s Autonomous Car for @Tesla FSD is now live in Oregon. Tesla drivers in Oregon can now get ~50% off their Tesla FSD-driven miles + the best car insurance experience in the US, bar none,” Wininger wrote in his post.
As per Lemonade on its official website, the program is built on Tesla’s safety data, which indicates that miles driven using FSD are approximately twice as safe as those driven manually. As a result, Lemonade prices those miles at a lower rate. The insurer noted that as FSD continues to improve, associated discounts could increase over time.
How Lemonade tracks FSD miles
Lemonade’s FSD discount works through a direct integration with Tesla vehicles, enabled only with a driver’s explicit permission. Once connected, the system distinguishes between miles driven manually and those driven using FSD, applying the discount automatically to qualifying miles.
There is no minimum FSD usage requirement. Drivers who use FSD occasionally still receive discounted rates for those miles, while non-FSD miles are billed at competitive standard rates. Lemonade also emphasized that coverage and claims handling remain unchanged regardless of whether a vehicle is operating under manual control or FSD at the time of an incident.
The program is currently available only to Teslas equipped with Hardware 4 or newer, running firmware version 2025.44.25.5 or later. Lemonade also allows policyholders to bundle Tesla insurance with renters, homeowners, pet, or life insurance policies for additional savings.
Tesla Semi pricing revealed after company uncovers trim levels
Tesla executive moves on after 13 years: ‘It has been a privilege to serve’
