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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 Full Self-Driving shows confident navigation in heavy snow
So far, from what we’ve seen, snow has not been a huge issue for the most recent Full Self-Driving release. It seems to be acting confidently and handling even snow-covered roads with relative ease.
Tesla Full Self-Driving is getting its first taste of Winter weather for late 2025, as snow is starting to fall all across the United States.
The suite has been vastly improved after Tesla released v14 to many owners with capable hardware, and driving performance, along with overall behavior, has really been something to admire. This is by far the best version of FSD Tesla has ever released, and although there are a handful of regressions with each subsequent release, they are usually cleared up within a week or two.
Tesla is releasing a modified version of FSD v14 for Hardware 3 owners: here’s when
However, adverse weather conditions are something that Tesla will have to confront, as heavy rain, snow, and other interesting situations are bound to occur. In order for the vehicles to be fully autonomous, they will have to go through these scenarios safely and accurately.
One big issue I’ve had, especially in heavy rain, is that the camera vision might be obstructed, which will display messages that certain features’ performance might be degraded.
So far, from what we’ve seen, snow has not been a huge issue for the most recent Full Self-Driving release. It seems to be acting confidently and handling even snow-covered roads with relative ease:
FSD 14.1.4 snow storm Ontario Canada pic.twitter.com/jwK1dLYT0w
— Everything AI (@mrteslaspace) November 17, 2025
I found the steepest, unplowed hill in my area and tested the following:
• FSD 14.2.1 on summer tires
• FSD 14.2.1 on winter tires
• Manual drivingBut I think the most impressive part was how FSD went DOWN the hill. FSD in the snow is sublime $TSLA pic.twitter.com/YMcN7Br3PU
— Dillon Loomis (@DillonLoomis) December 2, 2025
Well.. I couldn’t let the boys have all the fun!
Threw the GoPro up and decided to FSD v14.2.1 in the snow. Roads were not compacted like the other day, a little slippery, but overall doable at lower speeds. Enjoy the video and holiday music 🎶
Liked:
Took turns super slow… pic.twitter.com/rIAIeh3Zu3— 🦋Diana🦋 (@99_Colorado) December 3, 2025
Moving into the winter months, it will be very interesting to see how FSD handles even more concerning conditions, especially with black ice, freezing rain and snow mix, and other things that happen during colder conditions.
We are excited to test it ourselves, but I am waiting for heavy snowfall to make it to Pennsylvania so I can truly push it to the limit.
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Tesla hosts Rome Mayor for first Italian FSD Supervised road demo
The event marked the first time an Italian mayor tested the advanced driver-assistance system in person in Rome’s urban streets.
Tesla definitely seems to be actively engaging European officials on FSD’s capabilities, with the company hosting Rome Mayor Roberto Gualtieri and Mobility Assessor Eugenio Patanè for a hands-on road demonstration.
The event marked the first time an Italian mayor tested the advanced driver-assistance system in person in Rome’s urban streets. This comes amid Tesla’s push for FSD’s EU regulatory approvals in the coming year.
Rome officials experience FSD Supervised
Tesla conducted the demo using a Model 3 equipped with Full Self-Driving (Supervised), tackling typical Roman traffic including complex intersections, roundabouts, pedestrian crossings and mixed users like cars, bikes and scooters.
The system showcased AI-based assisted driving, prioritizing safety while maintaining flow. FSD also handled overtakes and lane decisions, though with constant driver supervision.
Investor Andrea Stroppa detailed the event on X, noting the system’s potential to reduce severe collision risks by up to seven times compared to traditional driving, based on Tesla’s data from billions of global fleet miles. The session highlighted FSD’s role as an assistance tool in its Supervised form, not a replacement, with the driver fully responsible at all times.
Path to European rollout
Tesla has logged over 1 million kilometers of testing across 17 European countries, including Italy, to refine FSD for local conditions. The fact that Rome officials personally tested FSD Supervised bodes well for the program’s approval, as it suggests that key individuals are closely watching Tesla’s efforts and innovations.
Assessor Patanè also highlighted the administration’s interest in technologies that boost road safety and urban travel quality, viewing them as aids for both private and public transport while respecting rules.
Replies on X urged involving Italy’s Transport Ministry to speed approvals, with one user noting, “Great idea to involve the mayor! It would be necessary to involve components of the Ministry of Transport and the government as soon as possible: it’s they who can accelerate the approval of FSD in Italy.”
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Tesla FSD (Supervised) blows away French journalist after test ride
Cadot described FSD as “mind-blowing,” both for the safety of the vehicle’s driving and the “humanity” of its driving behaviors.
Tesla’s Full Self-Driving (Supervised) seems to be making waves in Europe, with French tech journalist Julien Cadot recently sharing a positive first-hand experience from a supervised test drive in France.
Cadot, who tested the system for Numerama after eight years of anticipation since early Autopilot trials, described FSD as “mind-blowing,” both for the safety of the vehicle’s driving and the “humanity” of its driving behaviors.
Julien Cadot’s FSD test in France
Cadot announced his upcoming test on X, writing in French: “I’m going to test Tesla’s FSD for Numerama in France. 8 years I’ve been waiting to relive the sensations of our very first contact with the unbridled Autopilot of the 2016s.” He followed up shortly after with an initial reaction, writing: “I don’t want to spoil too much because as media we were allowed to film everything and I have a huge video coming… But: it’s mind-blowing! Both for safety and for the ‘humanity’ of the choices.”
His later posts detailed FSD’s specific maneuvers that he found particularly compelling. These include the vehicle safely overtaking a delivery truck by inches, something Cadot said he personally would avoid to protect his rims, but FSD handled flawlessly. He also praised FSD’s cyclist overtakes, as the system always maintained the required 1.5-meter distance by encroaching on the opposite lane when clear. Ultimately, Cadot noted FSD’s decision-making prioritized safety and advancement, which is pretty remarkable.
FSD’s ‘human’ edge over Autopilot
When asked if FSD felt light-years ahead of standard Autopilot, Cadot replied: “It’s incomparable, it’s not the same language.” He elaborated on scenarios like bypassing a parked delivery truck across a solid white line, where FSD assessed safety and proceeded just as a human driver might, rather than halting indefinitely. This “humanity” impressed Cadot the most, as it allowed FSD to fluidly navigate real-world chaos like urban Paris traffic.
Tesla is currently hard at work pushing for the rollout of FSD to several European countries. Recent reports have revealed that Tesla has received approval to operate 19 FSD test vehicles on Spain’s roads, though this number could increase as the program develops. As per the Dirección General de Tráfico (DGT), Tesla would be able to operate its FSD fleet on any national route across Spain. Recent job openings also hint at Tesla starting FSD tests in Austria. Apart from this, the company is also holding FSD demonstrations in Germany, France, and Italy.
Tesla Full Self-Driving shows confident navigation in heavy snow
Tesla hosts Rome Mayor for first Italian FSD Supervised road demo
