Connect with us

News

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

(Photo: Andres GE)

Published

on

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. 

Advertisement

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. 

Advertisement

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.

Advertisement
Comments

Investor's Corner

NASA taps SpaceX to launch the telescope that could unlock new worlds

NASA’s Roman Space Telescope heads to orbit this August aboard SpaceX’s Falcon Heavy with massive scientific ambitions.

Published

on

By

SpaceX is set to play a central role in one of NASA’s most anticipated science missions in years. The company’s Falcon Heavy rocket, currently the most powerful operational launch vehicle in the world, will carry the Nancy Grace Roman Space Telescope into orbit on August 30 from Kennedy Space Center in Florida. Roman is now in final preparations inside the Payload Hazardous Servicing Facility, where on June 26 technicians used a crane to lift the observatory into a specialized stand for fueling and pre-launch testing.

Roman is named after Nancy Grace Roman, NASA’s first chief of astronomy, whose career helped shape how the agency approaches space science.

NASA chose SpaceX Falcon Heavy because of Roman’s needs to reach a specific orbit far from Earth, well beyond where a standard Falcon 9 can deliver it. The Falcon Heavy, which first flew in 2018, has since become NASA’s go-to option for missions that need serious muscle without the cost and complexity of older launch systems.

Celebrating SpaceX’s Falcon Heavy Tesla Roadster launch, seven years later (Op-Ed)

Roman will carry a field of view at least 100 times wider than the Hubble Space Telescope, meaning it can photograph enormous swaths of the universe in a single shot rather than the narrow slices Hubble captures. That difference in scale is significant. While Hubble reshaped our understanding of the cosmos over 30 years, Roman is built to work faster and wider, surveying hundreds of millions of galaxies at once.

One of Roman’s most compelling capabilities is its potential to discover and photograph planets orbiting stars outside our solar system, and with enough precision to directly image planets that would otherwise be lost. That means scientists could study the atmosphere and surface characteristics of distant worlds rather than simply confirming they exist. Combined with Roman’s sweeping field of view, the telescope could detect thousands of exoplanets, and some of those planets may be in habitable zones where liquid water could exist. No telescope currently in operation has this level of power and capability. That capability alone could change what we know about other worlds, and perhaps finally answer the question: are we the only intelligent lifeforms in existence? 

What Roman actually finds once it reaches orbit is an open question, and that is exactly what makes this launch worth watching.

Continue Reading

News

Tesla confirms crucial detail of Miami Robotaxi launch

Published

on

Credit: Tesla

Tesla has confirmed a crucial detail of its Miami Robotaxi launch, stating that the fleet is operating on an Unsupervised basis, joining a few other cities where company employees do not watch over the vehicles from inside.

Tesla’s Head of AI, Ashok Elluswamy, confirmed the detail on X, answering a highly speculated question about the Robotaxi Service in Miami, which was launched on June 3:

The first launch of Robotaxi in Florida, Miami presents a unique opportunity for Tesla as it is operating the Unsupervised Robotaxi ride-hailing service in a major tourist hotspot in the Sunshine State. It also signals the suite will expand to other cities soon; many have requested Orlando, a heavy tourist spot with Disney and other resorts nearby, get access to the program soon as well.

Miami is getting a conservative rollout as well, just as Tesla has done with other cities. The initial geofence covers a compact 10–14 square mile zone in western Miami-Dade County, primarily West Miami extending toward Doral and Sweetwater. It is bounded roughly by SR-826 (Palmetto Expressway) to the north and US-41 (Tamiami Trail) to the south, excluding downtown Miami, Miami Beach, the airport, and most of Coral Gables.

Tesla has also been pretty slim on other details. For example, Tesla has not disclosed the exact fleet size, but field reports and license plate tracking indicate just two unsupervised Model Y vehicles were active on launch day, increasing to three within 48 hours.

According to The Road to Autonomy, a nearby staging lot near Miami International Airport holds dozens of Cybercabs alongside additional Model Y units, suggesting capacity for rapid scaling as demand and data collection grow.

The confirmation of Robotaxi being Unsupervised carries immense weight. It establishes that Tesla’s Miami Robotaxi operations run without human safety drivers or remote supervision, relying entirely on the company’s Full Self-Driving technology. Miami becomes the second major U.S. city after Austin to offer unsupervised Robotaxi rides from day one.

The move reflects rapid progress in Tesla’s AI efforts. Neural networks trained on vast real-world data now handle complex urban environments, including South Florida’s heavy traffic, pedestrians, and rainy conditions. Industry observers see it as validation of Tesla’s vision-centric, data-driven approach versus traditional rule-based systems; a truly unorthodox approach in this day and age.

Challenges remain, including regulatory oversight, public trust, and scaling the fleet to match geofence ambitions. Miami’s small initial footprint and limited vehicles highlight a deliberate, measured expansion strategy focused on safety and data gathering.

Nevertheless, the unsupervised confirmation marks a pivotal milestone. It showcases technical readiness and advances Tesla’s vision of transforming vehicles into autonomous revenue generators while reshaping urban mobility. For Miami users, driverless transportation has moved from concept to reality.

Continue Reading

News

Radiologist who drove Tesla off cliff has attempted murder charges dismissed

Published

on

model-y-devil-devils-slide
Credit: ABC7 News Bay Area/YouTube

A California radiologist who drove his Tesla Model Y off a 250-foot cliff in an attempt to kill his family has had his charges dismissed after doctors say he is “doing well” in a mental health program.

Dharmesh Patel was charged with three counts of attempted murder in connection with a January 2023 crash where he drove his Tesla off a cliff, injuring his wife and two children, aged 7 and 4 at the time.

Patel drove the Tesla off Devil’s Slide in California, an area that is extremely rough to the point that investigators and rescuers expected the worst when arriving at the scene for the first time. Patel supposedly had schizoaffective disorder, according to Deputy District Attorney Dominique Davis.

Shockingly, Patel’s wife, who was in the vehicle, testified that she did not want her husband to be prosecuted, noting that their children missed their father and they wanted him to come back home. Patel’s attorney argued, “not everyone who commits a crime is a criminal.”

Doctor who took Tesla off cliff gets support from unlikely person

A three-day trial in Mental Health Diversion Court ruled in Patel’s favor, which kept him out of jail and instead on house arrest. He was admitted to a Mental Health Diversion Program, which he successfully completed, the Associated Press reported. San Mateo County District Attorney Steve Wagstaffe said the judge was “required by law” to dismiss the charges:

“If the person who’s given mental health diversion follows the treatment plan, there’s nothing that can be done, and at the end of the two years he gets it wiped out of his record.”

Wagstaffe said he has argued, along with other DAs in California, to have attempted murder removed from the list of charges eligible to be dismissed due to mental health diversion programs.

Patel had the charges officially dismissed on Monday; his wife waited for him as he left court and they departed the building together, according to Mercury News. Patel surrendered his California medical license in December.

The crash has been one of the best examples of Tesla’s incredible engineering, which has saved four lives in this particular instance. The car was totalled but kept the four human beings alive and safe, which is something that many referred to as “an absolute miracle.”

Continue Reading