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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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Tesla launches amazing new feature for shared vehicles

Tesla has quietly introduced one of its most practical software features yet in update 2026.8: real-time visibility of the active driver profile directly in the Tesla mobile app. Available under the Security & Drivers section, this new tool lets owners see exactly who is behind the wheel or who last drove the vehicle.

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Credit: Tesla

Tesla is launching an amazing new feature for shared vehicles, giving owners more transparency when they choose to have a Tesla ownership experience with another driver.

This is one of the many advantages of having a Tesla. New features are constantly rolled out through software updates and Over-the-Air fixes, which download directly to the car with an internet connection.

Tesla has quietly introduced one of its most practical software features yet in update 2026.8: real-time visibility of the active driver profile directly in the Tesla mobile app. Available under the Security & Drivers section, this new tool lets owners see exactly who is behind the wheel or who last drove the vehicle.

The feature works seamlessly. While the car is driving, the app displays the name of the currently selected driver profile in real time.

When the vehicle is parked or asleep, it shows the last active profile.

Requiring both the 2026.8 vehicle software and the latest Tesla app, the update brings this capability to every model in the lineup, including legacy Model S and Model X vehicles, which are unfortunately being phased out of the company lineup later this year.

Tesla makes latest move to remove Model S and Model X from its lineup

The feature was first reported on by Not a Tesla App.

Tesla driver profiles have always excelled at personalization, automatically adjusting seat positions, mirrors, steering wheel height, climate settings, navigation recents and favorites, and media preferences.

These profiles link to specific phone keys for automatic activation and support PIN protection for privacy and security. Restricted profiles for teens can also limit speed or features.

This feature shines brightest in single-car households with multiple drivers. Families, couples, and roommates frequently share one Tesla, leading to constant adjustments and questions about settings. Now, a quick app check reveals the current profile, allowing users to anticipate seat configurations or confirm usage without entering the vehicle.

Tesla’s cloud-synced driver profiles to bring custom settings across multiple cars

Parents particularly benefit: they can verify that teens are driving under their assigned (and possibly restricted) profiles, adding a layer of safety oversight and peace of mind. Teslas are already so incredibly safe that many parents dream of putting their kids in one.

Two kids around the same age could now share a Tesla, and this feature would make that effort, which is likely to be a difficult one at times, more seamless.

Beyond convenience, it promotes accountability and reduces everyday friction. No more manual profile switching or arguments over mirror positions. Before approaching the car, anyone can check the app and know exactly what to expect, no more wasted minutes readjusting everything.

In multi-driver setups, it transforms the shared EV into a truly intelligent, user-aware machine that respects individual preferences while keeping the primary owner informed.

Tesla’s commitment to over-the-air updates continues to enhance ownership value years after purchase.

This small but significant addition highlights how software can solve real-world problems in multi-user environments, making Tesla vehicles more family-friendly and practical than ever. For the millions of owners sharing a single car, the 2026.8 update delivers transparency, time savings, enhanced safety, and effortless personalization. It is a great new feature that is rolling out to vehicles now.

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Elon Musk

Elon Musk’s TERAFAB project: Everything you need to know

The CEO has hinted heavily for several quarters that it would probably need to produce its own computing power to stay up to speed on the demand it is facing for its projects. It is now taking matters into its own hands.

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Credit: SpaceX

On Sunday, Elon Musk formally made TERAFAB official—a groundbreaking $20-25 billion joint venture uniting Tesla, SpaceX, and xAI, three of the world’s richest man’s most significant and powerful ventures.

Musk described the project as “the most epic chip building exercise in history by far.”

Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry

The initiative aims to produce over one terawatt of AI compute annually, dwarfing the global industry’s current output of roughly 20 gigawatts per year. Musk framed the effort as “the next step towards becoming a galactic civilization,” positioning it as essential for scaling humanity into a multi-planetary species.

The Need for TERAFAB

Existing chip suppliers such as TSMC, Samsung, and Micron cannot expand quickly enough to meet the explosive demand for AI hardware.

Musk explained the situation clearly:

“We’re very grateful to our existing supply chain… but there’s a maximum rate at which they’re comfortable expanding. We either build the Terafab or we don’t have the chips, and we need the chips, so we build the Terafab.”
The CEO has hinted heavily for several quarters that it would probably need to produce its own computing power to stay up to speed on the demand it is facing for its projects. It is now taking matters into its own hands.

Chip Types and Production Goals

The facility will manufacture two specialized chip families, according to the presentation:

  • Edge-inference AI5 and AI6 processors optimized for Tesla’s Optimus humanoid robots and Full Self-Driving systems in vehicles and Robotaxis
  • High-power D3 chips hardened for space environments

Musk outlined annual output targets, which are between 100 and 200 gigawatts of terrestrial compute for robotics, supporting Musk’s vision of producing 1-10 billion Optimus units per year, and the majority (80%) of chips dedicated to orbital AI data centers. Overall, TERAFAB aims to produce 100-200 billion custom AI and memory chips each year.

Scale and Strategy

The size of the TERAFAB project will be remarkable, as Musk indicated after the presentation that the entire Gigafactory Texas campus would not be large enough to fit the needs of the project. In fact, Musk said it would be around 100 million square feet in size, the equivalent of 15 Pentagons or three Central Parks.

Yes, the one in New York City.

Construction will begin with an “advanced technology fab” on the Giga Texas campus in Austin, enabling rapid iteration: design a chip, fabricate lithography masks, produce and test wafers, all within days.

However, the full-scale TERAFAB requires thousands of acres and over 10 gigawatts of power, far exceeding what Giga Texas can accommodate. Musk stated:

“We couldn’t possibly fit the Terafab on the GigaTexas campus. It will be far bigger than everything else combined there.”
Multiple large sites are currently under consideration, but this will need a sprawling land mass to get started.

Key Applications

TERAFAB will be a crucial part of the development of some of Tesla’s most valuable projects, including Optimus and data center development, especially from an orbital standpoint. For that reason, we will break this down into Terrestrial and Orbital applications:

  • Terrestrial: Powers autonomous vehicle fleets and billions of Optimus robots performing physical labor
  • Orbital: Starship will launch massive AI satellite constellations, starting with 100-kilowatt “Mini” units, and scaling to larger Megawatt models, creating the world’s largest data center in low-Earth orbit.

Space-based advantages include five times greater solar irradiance, efficient vacuum heat rejection, and freedom from terrestrial grid constraints (U.S. electricity generation totals just 0.5 terawatts). Musk emphasized the principle:

“Quantity has a quality all its own.”

We wrote about SpaceX’s recent filing with the FCC for 1 million orbital data center plans.

Strategic Vision

TERAFAB represents vertical integration at an unprecedented scale, combining AI hardware, robotics, and orbital infrastructure.

Musk described the project as “the final missing piece of the puzzle.” With production ramping toward 2027, TERAFAB is set to accelerate an era of abundance, transforming science fiction into reality and positioning Musk’s companies at the forefront of galactic-scale innovation.

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Elon Musk

Elon Musk offers to pay TSA salaries as government shutdown leaves agents without paychecks

Elon Musk offered to personally cover TSA salaries as the DHS shutdown deepens travel chaos nationwide.

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Elon Musk says that he is willing to personally cover the salaries of Transportation Security Administration (TSA) workers caught in the crossfire of a partial government shutdown that has now dragged on for over a month. “I would like to offer to pay the salaries of TSA personnel during this funding impasse that is negatively affecting the lives of so many Americans at airports throughout the country,” Musk wrote.


The offer arrives as Congress let funding expire for the Department of Homeland Security on February 14, amid a disagreement over immigration enforcement, leaving most TSA employees classified as essential and on duty but working without pay. The timing could not be more disruptive, as the shutdown is colliding directly with spring break travel season when millions of Americans are in the air.

This is not the first time TSA workers have endured this kind of hardship. TSA agents are being asked to work without pay until congressional action unblocks their paychecks, having previously held out through the longest government shutdown in U.S. history at 43 days. The pattern reveals a systemic failure in how Congress funds critical security infrastructure, and Musk’s offer shines a spotlight on that recurring failure at a moment when the public is directly feeling its effects through long lines and terminal closures.

Whether Musk can legally follow through remains unclear, as federal law generally prohibits government employees from receiving outside compensation related to their official duties.

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