News
Tesla ushers in the age of EVs and the demise of the gas-guzzler
This year could start the beginning of the end for the internal combustion engine. Heck, The Economist gave the internal combustion engine an obituary this year in a recent cover story. And, according to Peter Holley at the Washington Post, “when future auto historians look back, they may pinpoint 2017 as the year electric vehicles went from a promising progressive fad to an industry-wide inevitability.”
Holley points out a number of signposts surfacing this year that pose a threat to the diesel and gas-powered automobile. The internal combustion engine (ICE) may be on… ummm, thin ice. So, as we look at the events unfolding this year, what indictors are contributing to this tectonic shift in the auto sector?
1. Tesla Model 3 ushers in the age of electric vehicles
Of course at the top of our list is the “the debut of Tesla’s Model 3” this year. Holley writes, “The company’s first mass-market vehicle has ushered in an era of excitement about EVs because of the car’s slick design and starting price of around $35,000.” But don’t let that lower price point fool you, Tesla is poised to achieve healthy margins for the Model 3 too.
2. China is going electric
China has proved a massive market opportunity for Tesla. And CEO Elon Musk may soon be announcing a Tesla factory in Shanghai. China’s also the world leader in electric vehicle sales by a wide margin. It’s reported that, “in addition to setting aggressive production quotas for EVs, China plans to scrap internal combustion engines entirely as soon as 2030. By taking a lead role in the shift to plug-ins, the world’s largest auto market is forcing the rest of the international community to follow in its footsteps.” And, other countries are following China’s lead.
Above: China takes the lead in electric vehicles (Youtube: Wall Street Journal)
3. Gas stations are installing electric vehicle chargers
Gas stations have been taking some unlikely cues from Tesla. And, “some experts believe electric cars have sounded the death knell of the American gas station.” John Abbott, Shell Oil’s business director admits, “We’re looking at having battery charging facilities.” This past week Shell signed an agreement to buy the electric vehicle charging company, NewMotion, which, “operates more than 30,000 private electric charge points for homes and businesses in the Netherlands, Germany, France and the U.K.”
4. Auto mechanics have less work to do
Electric cars require far less maintenance than gas-powered cars. “One of the primary reasons that auto owners visit a mechanic is for an oil change, which raises a question: What happens when vehicles no longer rely on oil? It’s not that electric vehicles won’t require maintenance (they still have brakes, tires and windshield wipers, after all), but their engines are far simpler, experts say.” Tony Seba, a clean energy expert, notes that electric vehicles, “have 20 moving parts, as opposed to 2,000 in the internal combustion engine… [and] are far cheaper to maintain.”
5. Big Auto announces electrifying plans
Jessica Caldwell, analyst at Edmunds admits, “You really do feel like this electrification thing is suddenly very real… There’s a momentum we haven’t really seen before. It’s coming from other countries around the world and from big automakers, and that’s forcing everyone else to comply.” Although, to be fair, it’s conceivable some of Big Auto’s EV announcements could just be feel-good window dressing for their brands. After all, legacy automakers are using some crafty wordplay hyping electrified cars instead of all-electric cars.
Above: Announcements from automakers (and countries) committing themselves to an electric vehicle future (Image: Teslarati)
6. Environmental impact of fossil fuel powered cars
With tales of cartels and collusion surrounding Germany’s dirty diesel programs, public perception is starting to shift. And the research is conclusive, electric vehicles are cleaner. Gina Coplon-Newfield, Director of Sierra Club’s Electric Vehicles Initiative explains, “Depending on how electricity is produced in your region, plug-ins are from 30 percent to 80 percent lower in greenhouse gas emissions.” She notes if companies like GM step up with plans to launch EV fleets, reductions in carbon emissions and improvements in air quality could be “hugely beneficial.”
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Note: Article originally published on evannex.com, by Matt Pressman
Source: Washington Post
News
Tesla takes first step in sunsetting Model S and X with drastic move
Tesla won’t be taking custom orders of the Model S or Model X in Europe any longer.
Tesla has seemingly taken the first step in sunsetting two of its older vehicles, the Model S and Model X, by ending international orders.
The flagship sedan and SUV from Tesla are the two oldest cars in the company’s lineup. They account for a very small portion of overall sales, and several years ago, CEO Elon Musk admitted that Tesla only continues to build and sell them due to “sentimental reasons.”
Earlier this year, there were calls for Tesla to end the production of the two cars, but Lars Moravy said that the Model S and Model X were due to get some love later in 2025. That happened, but the changes were extremely minor.
Tesla launches new Model S and Model X, and the changes are slim
Some took this as an indication that Tesla has kind of moved on from the Model S and Model X. A handful of people seemed to think Tesla would overhaul the vehicles substantially, but the changes were extremely minor and included only a few real adjustments.
In Europe, customers are unable to even put a new order in on a Model S or Model X.
We noticed earlier today that Tesla pressing the ‘Order’ button on either of the flagship vehicles takes you to local inventory, and not the Design Studio where you’d configure your custom build:
🚨 Tesla has removed the Model S and Model X Design Configurators from European customers
It will now bring up available inventory for those two vehicles instead of allowing you to build your own config pic.twitter.com/sMnGAr2kuu
— TESLARATI (@Teslarati) July 30, 2025
Tesla simply does not make enough Model S or Model X units to justify the expensive logistics process of shipping custom orders overseas. It almost seems as if they’re that they will essentially build a bunch of random configurations, send them overseas every few months, and let them sell before replenishing inventory.
Inversely, it could also mean Tesla is truly gearing up to sunset the vehicle altogether. It seems unlikely that the company will fade them out altogether in the next couple of years, but it could absolutely think about ending international orders because volume is so low.
Energy
Tesla inks multi-billion-dollar deal with LG Energy Solution to avoid tariff pressure
Tesla has reportedly secured a sizable partnership with LGES for LFP cells, and there’s an extra positive out of it.
Tesla has reportedly inked a multi-billion-dollar deal with LG Energy Solution in an effort to avoid tariff pressure and domesticate more of its supply chain.
Reuters is reporting that Tesla and LGES, a South Korean battery supplier of the automaker, signed a $4.3 billion deal for energy storage system batteries. The cells are going to be manufactured by LGES at its U.S. factory located in Michigan, the report indicates. The batteries will be the lithium iron phosphate, or LFP, chemistry.
Tesla delivers 384,000 vehicles in Q2 2025, deploys 9.6 GWh in energy storage
It is a move Tesla is making to avoid buying cells and parts from overseas as the Trump White House continues to use tariffs to prioritize domestic manufacturing.
LGES announced earlier today that it had signed a $4.3 billion contract to supply LFP cells over three years to a company, but it did not identify the customer, nor did the company state whether the batteries would be used in automotive or energy storage applications.
The deal is advantageous for both companies. Tesla is going to alleviate its reliance on battery cells that are built out of the country, so it’s going to be able to take some financial pressure off itself.
For LGES, the company has reported that it has experienced slowed demand for its cells in terms of automotive applications. It planned to offset this demand lag with more projects involving the cells in energy storage projects. This has been helped by the need for these systems at data centers used for AI.
During the Q1 Earnings Call, Tesla CFO Vaibhav Taneja confirmed that the company’s energy division had been impacted by the need to source cells from China-based suppliers. He went on to say that the company would work on “securing additional supply chain from non-China-based suppliers.”
It seems as if Tesla has managed to secure some of this needed domestic supply chain.
Lifestyle
Tesla brings perhaps the coolest interior feature to cars in latest update
Tesla adds on to the “fun” aspect of its vehicles.
Tesla has brought perhaps the coolest interior feature to its cars in a new update that is rolling out to vehicles now.
The feature will require a newer vehicle that has interior ambient lighting, which is present on the new Model S, Model X, Model 3 “Highland,” and Model Y “Juniper.” The Cybertruck also has ambient lighting strips throughout.
Tesla Model Y’s ambient lighting design changes revealed in leaked video
With the Version 2025.26+ Software Update, Tesla is rolling out a new “Sync Accent Lights w/ Music” feature, which is available on the Tesla Toybox:
Turn your Tesla into a rave cave with the new Light Sync feature 🎶
Rolling out now in software update 2025.26+ pic.twitter.com/IIsQxZ9jDP
— Tesla (@Tesla) July 29, 2025
To enable the feature, you’ll access the Toybox, choose “Light Sync,” and then choose “Sync Accent Lights w/ Music.”
Although it does not improve the performance of the vehicle, it is yet another example of Tesla making one of the coolest cars out there. This is truly a cool add-on that can be used to impress your friends and family.
Tesla takes first step in sunsetting Model S and X with drastic move
Tesla inks multi-billion-dollar deal with LG Energy Solution to avoid tariff pressure
Tesla brings perhaps the coolest interior feature to cars in latest update
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