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The 'Tesla Effect' isn't inspiring legacy carmakers in the US, and dealers are to blame

(Photo: Andres GE)

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A look at recent announcements from legacy automakers would give the idea that the electric car revolution is at hand. GM recently announced a massive $20 billion push for electrification. Volkswagen’s CEO is quite literally putting his career on the line to make a mass-market electric car, and Porsche has given one of its most historic sites an “open-heart surgery” just to make an all-electric sports car. Across the board, the “Tesla Effect” seems alive and well, with automaker after automaker announcing their support for electric vehicles. 

Yet for all these statements and promises, the EV revolution, at least in the US, does not seem to be going as fast as it could be. In fact, it appears that for many US auto dealerships, it would be better if the transition to electric vehicles happens far into the future, or better yet, never. This was according to a brief trip by Chevy Bolt owner and CNET founding member Brooke Crothers, who recently got a sobering look at the sheer apathy among US auto dealerships when it comes to EVs. 

Amidst legacy auto’s accelerating electric car programs, Crothers opted to visit one of the largest auto malls in the United States, located at Cerritos, CA. The Golden State is considered the center of America’s electric car movement, being the home of Tesla and one of the country’s strictest emissions programs. Thus, it would only make sense if the electric car revolution is evident in the state’s car dealers. Unfortunately for the tech veteran, he soon learned that this was not the case. 

GM CEO Mary Barra speaking at the company’s EV Day on March 4, 2020. Credit: Tesla Daily Podcast

Crothers visited numerous automakers, starting with GM, which currently sells the Bolt EV, an electric car that is pretty comparable to the Model 3 Standard Range Plus in terms of range. The GM dealership did not have a single Bolt available on the lot. Instead, the only thing that potential car buyers could find are gas guzzlers like Silverado trucks, cars like the Corvette and Camaro, and large SUVs like the Suburban. This is quite disappointing considering that GM actually has a history of being a first mover in sustainable transport, with cars like the EV1 and the Volt under its belt. 

Volkswagen’s dealer was no better. The German automaker is in the middle of a massive electric car program, one that CEO Herbert Diess considers as his personal project. Crothers stated that the VW dealer he visited only had the e-Golf available, which is an electric car from the bygone era of compliance vehicles. It remains to be seen if the company’s EV initiative in Germany will spill over to the US, but for now, Volkswagen’s electric car program in the United States seems substandard at best. 

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Acura seems to be among the worst, with a salesperson telling Crothers that there is no future in electric vehicles. Gas will rule, the automaker’s representative said, and the only viable way for sustainable transport are fuel cell hybrids. The dealership also stated that they only sold “a couple” of hybrid MDX vehicles in the past 12 months. “There’s no demand,” an Acura salesperson said. 

Tesla CEO Elon Musk and Volkswagen CEO Herbert Diess exchange compliments at an award ceremony. (Credit: YouTube/AUTO BILD)

Some legacy automakers did show some degree of the “Tesla Effect,” with Nissan, Honda, Hyundai, and Audi having some electric vehicles in their lot. Nissan actually had a Leaf available, and Honda had several Clarity models in its showroom window. Hyundai was even better with staff being ready to answer questions about the Kona EV and the Ioniq (though both vehicles were in the dealer’s back lot). The same was true for Audi, whose staff seemed knowledgable and enthusiastic about the e-tron. 

The “Tesla Effect” is a series of initiatives from numerous industries that follow one theme: The end of the oil age and the beginning of the electric era. This effect has taken hold in the auto sector, as young carmaker Tesla ended up disrupting several industries with vehicles like the Model 3. The “Tesla Effect” is only bound to get more prominent too, amidst the company’s focus on residential solar and battery storage, as well as the release of potentially high-margin vehicles like the Model Y and the Cybertruck. 

Across the auto industry, the “Tesla Effect” could be seen, with practically every automaker in the industry seemingly going all-in on their respective electric car programs. All-electric newcomers with a lot of potential are poised to enter the market as well, led by independent companies like Rivian and Bollinger, and sub-brands such as Polestar. Overall, legacy automakers seem ready to embrace electrification. They just need to persuade their dealers to put effort into selling their EVs. 

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Elon Musk

Tesla Phone? Not quite, but close: analyst

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elon musk phone
Photo: Boss Hunting.com.au

For years, there have been images and videos across social media platforms that have reminded me of when I was a 15-year-old kid teased by “Xbox 720” videos on YouTube. These videos are of the supposed “Tesla Phone” that Elon Musk was secretly developing in between leading Tesla with its electric cars and SpaceX with its reusable rockets.

Although Musk has put those rumors to bed several times, it was never completely out of the realm that he could get involved in cell phones in some capacity. Think outside the box and more macro-level, though. Instead of reinventing the computer, Musk reinvented connectivity by developing Starlink with SpaceX.

It could be something similar, TD Cowen analyst Gregory Williams said in a note last week, where he hinted SpaceX could be gathering some steam to acquire T-Mobile.

Williams said it would be the “clear choice” for SpaceX if it decided to go through with a network acquisition. He also suggested AT&T.

The move would be possible through selling more of its own stock, which would help SpaceX raise the money to purchase T-Mobile, which would cost roughly $300 billion. It could be one of the moves SpaceX makes post-IPO in terms of an acquisition: it already acquired Cursor AI for $60 billion.

Other analysts, like Dan Ives of Wedbush, believe SpaceX and Tesla will eventually merge into one anyway, and that conglomeration could come as soon as this year, some have said.

The implications of SpaceX purchasing T-Mobile are massive. A combined entity would create a truly ubiquitous network: T-Mobile’s terrestrial 5G towers and Starlink’s growing constellation of Direct-to-Cell satellites. This would essentially eliminate dead zones across the U.S. and potentially globally.

SpaceX would instantly become a full-scale facilities-based carrier with satellite differentiation; a huge advantage. This would pressure AT&T and Verizon heavily.

There are also concerns like a potential reduction in long-term competition, and of course, a deal of that size would face intense scrutiny from government agencies.

The strategic fit is compelling due to the existing Starlink–T-Mobile partnership and complementary technologies (space + terrestrial). It could create a dominant integrated communications player. However, the regulatory, financial, and execution hurdles are enormous — this remains highly speculative with no indication SpaceX is actively pursuing it right now.

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Tesla reveals huge Cybercab detail in new guide for First Responders

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Credit: Tesla

Tesla revealed a major new Cybercab detail in a guide it released for First Responders, showing new territory in its beliefs and intentions for the ride-hailing-focused vehicle that entered production in April.

The First Responders Guide is released to give fire departments, paramedics, and other emergency personnel the proper guidance on what to do in the event of an accident, entrapment, or other situation that would require immediate attention.

On one of the pages of the First Responders Guide, Tesla revealed a stark detail about the Cybercab, which could help personnel enter the vehicle more easily in case of an emergency.

Tesla Cybercab has one important piece that AI4 cars might need for FSD

It shows Tesla has no intention of releasing any Cybercab units that were initially proposed for ride-hailing services for the general public with any manual controls, meaning a steering wheel or pedals:

“A Cybercab equipped with steering wheel, brake pedal, and an acceleration pedal is typically an engineering or test vehicle, and operates at SAE Level 2 autonomy. Cybercab is not typically equipped with a steering wheel or acceleration and brake pedals.”

This is a major development for those who continue to believe Tesla planned to release the Cybercab with any sort of manual controls so that passengers could take over if needed. However, when Tesla started manufacturing production versions of the Cybercab in Giga Texas earlier this year, they were spotted without a steering wheel or pedals.

It essentially confirms the company has no intentions of bringing manual controls to the car’s production versions. Some have argued that the likelihood of Tesla having something

There still are some Cybercab units out there with a steering wheel and pedals, and as Tesla said, these cars are engineering or test vehicles, which have Safety Monitors on board to help the car out of a precarious situation or emergency.

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Tesla Full Self-Driving v14 ‘Lite’ Release Notes: new capabilities and features

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(Credit: Megan Gale/Twitter)

Tesla released the Full Self-Driving v14 ‘Lite’ suite to owners of Hardware 3 or AI3 vehicles today, adding several new features to the vehicles that were once believed to be capable of unsupervised self-driving.

Now, Tesla has released this modified suite to older Tesla vehicles, adding plenty of new features and capabilities.

Here are the full release notes for the suite:

  • Distilled the intelligence from HW4 V14 into HW3. This allows HW3 to directly learn how to handle scenarios using HW4 V14 as a guide. This process unlocks the improvements that have been made to HW4 including Reinforcement Learning (RL) and offline models for HW3.
  • Improved both proactive and reactive responsiveness across a wide variety of categories including navigation handling, merges and forks, pedestrian interactions, traffic lights, and vehicle cut-in scenarios.
  • Improved general comfort in nominal scenarios through fewer false slowdowns, smoother steering and more consistent lane centering.
  • Introduced parking, unparking, and reversing capabilities.
  • Added Arrival Options for you to select where FSD should park: in a Parking Lot, on the Street, in a Driveway, or at the Curbside.
  • Speed Profiles are now available at all times, to further customize driving style preference.

These improvements, according to Tesla’s Head of AI, Ashok Elluswamy, help distill the driving behavior from AI4’s v14 series into both the camera and compute configurations of AI3.

Tesla Full Self-Driving v14 ‘Lite’ for older cars finally gets released

He added:

“It includes destination options and speed profiles on city roads, but more importantly significantly improved safety. We hope you’ll enjoy it, once the build ships wide.”

Tesla will continue to roll out the v14 Lite suite more widely in the coming weeks, the company said.

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