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The Tesla Effect: Why EVs will take a big bite out of oil demand
The newly defined “Tesla Effect” is producing remarkable consequences. Tesla electric vehicles (EVs) have changed the way that people all over the globe now think about transportation, the place of zero tailpipe emissions, and an accelerated agenda for sustainable energy. One “Tesla Effect” is that the International Energy Agency last month forecast that global gasoline demand has all but peaked because of more efficient cars and the spread of EVs.
Thank you, Tesla.
As a small Silicon Valley startup, Tesla Motors began with a line of luxury electric sports cars that could reliably produce more than 200 miles on a single charge. Due to the wide acclaim and demand it received for its cars, Tesla was able to repay a 2010 loan from the U.S. Department of Energy a full nine years early. Their manufacturing facility in California became the largest auto industry employer in California, and Tesla was soon spreading its mission around the globe. It has achieved success beyond any expectations — except that, perhaps, of CEO Elon Musk — and has prompted other major automakers to accelerate work on their own electric vehicles in order to maintain currency in the market.
And now, while EVs represent less than 1 percent of total vehicle sales, they are predicted to soar in popularity around 2025. That’s when many governments around the globe, including Athens, Madrid, Mexico City, and Paris, have pledged to phase out diesel vehicles in a battle against pollution. These promises, known as “intended nationally determined contributions,” will have significant consequences of their own over the decade that will follow. By 2035, EVs may remove 1 million to 2 million barrels a day of oil demand from the market.
“Anything that reduces the demand for transportation has an impact on the oil market,” Alan Gelder, vice president of refining, chemicals, and oils markets at Wood Mackenzie, said in an interview in London. “The question is how big is it going to be and what’s the time frame.”

Model S and Model X vehicles off the production line seen via aerial drone shot of Tesla factory
Electric cars are displacing about 50,000 barrels a day of demand now, according to the oil industry consultant, Wood Mackenzie, which promotes itself to potential customers as “embedded in the industry, with more than four decades building relationships, improving performance and keeping you ahead of the competition.” To placate nervous clients, Wood Mackenzie says that it does expect total oil demand to keep growing for decades, driven by shipping, trucking, aviation, and petrochemical industries. That’s more conservative than Bloomberg New Energy Finance’s forecast for EVs to displace about 8 million barrels a day of demand by 2035.
Tesla alone won’t be able to supply enough EVs if demand really takes off, Gelder said. Major automakers including Volkswagen AG and Ford Motor Co. will need to produce them on a larger scale. “At the moment they can’t, and changing manufacturing lines takes time.”
Gelder continued his argument by stating that regulation and government subsidies alone won’t be enough to spark a boom in EVs. Consumers, he insisted, will need to believe that EVs are preferred for a variety of reasons. “If there’s a technology revolution, so battery technology gets cheaper and EVs don’t need a subsidy, then it comes down to consumer preference. If the consumers like something, it’ll switch far faster.”
If the global response to Tesla is any indication, EVs are not only here to stay: they’ll be the preferred individual mode of transportation of the future.
News
Tesla reportedly testing Apple CarPlay integration: report
Citing insiders reportedly familiar with the matter, Bloomberg News claimed that CarPlay is being trialed by the EV maker internally.
Tesla is reportedly testing Apple’s CarPlay software for its vehicles, marking a major shift after years of resisting the tech giant’s ecosystem.
Citing insiders reportedly familiar with the matter, Bloomberg News claimed that CarPlay is being trialed by the EV maker internally. The move could help Tesla gain more market share, as surveys have shown many buyers consider CarPlay as an essential feature when choosing a car.
Not the usual CarPlay experience
Bloomberg claimed that Tesla’s tests involve a rather unique way to integrate CarPlay. Instead of replacing the vehicle’s entire infotainment display, Tesla’s integration will reportedly feature a CarPlay window on the infotainment system. This limited approach will ensure that Tesla’s own software, such as Full Self-Driving’s visuals, remains dominant.
The feature is expected to support wireless connectivity as well, bringing Tesla in line with other luxury automakers that already offer CarPlay. While plans remain fluid and may change before public release, the publication’s sources claimed that the rollout could happen within months.
A change of heart
Tesla has been reluctant to grant Apple access to its in-car systems, partly due to Elon Musk’s past criticism of the tech giant’s App Store policies and its poaching of Tesla engineers during the failed Apple Car project. Tesla’s in-house software is also deemed by numerous owners as a superior option to CarPlay, thanks to its sleek design and rich feature set.
With Apple’s retreat from building cars and Elon Musk’s relationship with Apple for X and Grok, however, the CEO’s stance on the tech giant seems to be improving. Overall, Tesla’s potential CarPlay integration would likely be appreciated by owners, as a McKinsey & Co. survey last year found that roughly one-third of buyers considered the lack of such systems a deal-breaker.
News
China considering EV acceleration limits to curb high-speed accidents
If approved, the regulation would be a national standard.
Recent reports have emerged stating that China is considering new national standards that would restrict how fast electric vehicles can accelerate upon each startup. The potential regulation is reportedly being considered amidst a rise in EV-related crashes.
The draft for the proposed regulation was released by the Ministry of Public Security on November 10. If approved, the regulation would be a national standard.
New regulation targets default performance limits
Under the proposal, all passenger vehicles would start in a state where acceleration from 0–100 km/h (0-60 mph) would take no less than five seconds. This rule would apply to both pure EVs and plug-in hybrids, and it is aimed at preventing unintended acceleration caused by driver inexperience or surprise torque delivery.
The public has until January 10, 2026, to submit feedback before the rule is finalized, as noted in a CNEV Post report.
Authorities have stated that the change reflects growing safety concerns amidst the arrival of more powerful electric cars. The new regulation would make it mandatory for drivers to deliberately engage performance modes, ensuring they are aware and ready for their vehicles’ increased power output before accelerating.
A rise in accidents
China’s EV sector has seen an explosion of high-powered models, some capable of 0–100 km/h acceleration in under two seconds. These speeds were once reserved for supercars, but some electric cars such as the Xiaomi SU7 Ultra offer such performance at an affordable cost.
However, authorities have observed that this performance has led to an uptick in accidents. I recent years, incidents of crashes involving lack of control in vehicles with rapid acceleration have risen, as per an explanatory note accompanying the draft.
Part of this is due to drivers seemingly being unprepared for the power of their own vehicles. For context, driving schools in China typically use cars that accelerate to 100 km/h in more than 5 seconds. This level of acceleration is also typical in combustion-powered cars.
@teslarati 🚨🚨 Tesla Full Self-Driving and Yap is the best driving experience #tesla #fsd #yapping ♬ I Run – HAVEN.
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Tesla Superchargers crowned best EV charging network in the UK for 2025
The Tesla Supercharger network was voted Best Large EV Charging Network for the second consecutive year.
Tesla has once again claimed the top spot in the UK’s most anticipated EV charging satisfaction survey. As per Zapmap’s 2025 driver satisfaction rankings, the Tesla Supercharger network was voted Best Large EV Charging Network for the second consecutive year.
The annual survey, based on thousands of EV driver responses, measures reliability, ease of use, and payment experience across the UK’s public charging landscape.
Tesla tops the survey’s “Large” category
Zapmap’s 2025 rankings, which were drawn from nearly 4,000 battery electric vehicle (BEV) drivers, reflect how quickly public charging is evolving across the UK. For the survey’s “Large” network class, which includes systems with over 500 devices, Tesla once again stood out for reliability and cost efficiency.
The automaker now offers 1,115 open Supercharger devices at 97 public sites, roughly 54% of its total UK network. That’s a 40% increase in public availability compared to September 2024. A particularly appreciated aspect of the Supercharger network is its cost, which continues to be “significantly lower prices than most rapid/ultra-rapid networks, with drivers also appreciating its reliability,” Zapmap noted.
Tesla Regional Manager’s comments
Ollie Dodd, Senior Regional Manager for Northern Europe Charging at Tesla, shared his appreciation for the Supercharger network’s award.
“We’re thrilled to win Zapmap’s Best EV Charging Network for the second year in a row. Being recognized by the drivers themselves shows that our customer-centric and data-driven approach to building sites is well-received. We look forward to showcasing more customer-centric features in 2026 as we expand the network further and look towards new initiatives in roaming and payment methods,” he said.
Conducted during September and October 2025, Zapmap’s eighth annual survey found that reliability and payment flexibility remain top priorities among EV drivers, two things that the Supercharger network particularly excels in. Fortunately for UK EV owners, the Supercharger network is also aggressively growing.
@teslarati 🚨🚨 Tesla Full Self-Driving and Yap is the best driving experience #tesla #fsd #yapping ♬ I Run – HAVEN.
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