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Tesla ushers in the age of EVs and the demise of the gas-guzzler

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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.

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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)

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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

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Elon Musk

Elon Musk is now a remote DOGE worker: White House Chief of Staff

The Tesla and SpaceX CEO Elon Musk is no longer working from the West Wing.

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Credit: Elon Musk/X

In a conversation with the New York Post, White House Chief of Staff Susie Wiles stated that Tesla and SpaceX CEO Elon Musk is no longer working from the West Wing.

As per the Chief of Staff, Musk is still working for DOGE—as a remote worker, at least.

Remote Musk

In her conversation with the publication, Wiles stated that she still talks with Musk. And while the CEO is now working remotely, his contributions still have the same net effect. 

“Instead of meeting with him in person, I’m talking to him on the phone, but it’s the same net effect,” Wiles stated, adding that “it really doesn’t matter much” that the CEO “hasn’t been here physically.” She also noted that Musk’s team will not be leaving.

“He’s not out of it altogether. He’s just not physically present as much as he was. The people that are doing this work are here doing good things and paying attention to the details. He’ll be stepping back a little, but he’s certainly not abandoning it. And his people are definitely not,” Wiles stated.

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Back to Tesla

Musk has been a frequent presence in the White House during the Trump administration’s first 100 days in office. But during the Q1 2025 Tesla earnings call, Musk stated that he would be spending substantially less time with DOGE and substantially more time with Tesla. Musk did emphasize, however, that DOGE’s work is extremely valuable and critical.

“I think I’ll continue to spend a day or two per week on government matters for as long as the President would like me to do so and as long as it is useful. But starting next month, I’ll be allocating probably more of my time to Tesla and now that the major work of establishing the Department of Government Efficiency is done,” Musk stated.

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Elon Musk

Tariff reprieve might be ‘Tesla-friendly,’ but it’s also an encouragement to others

Tesla stands to benefit from the tariff reprieve, but it has some work cut out for it as well.

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tesla employee
(Photo: Tesla)

After Secretary of Commerce Howard Lutnick made adjustments to the automotive tariff program that was initially announced, many quickly pointed to the reprieve as “Tesla-friendly.”

While that may be the case right now, it was also a nudge of encouragement to other companies, Tesla included, to source parts from the U.S. in an effort to strengthen domestic manufacturing. Many companies are close, and it will only take a handful of improvements to save themselves from tariffs on their cars as well.

Yesterday, Sec. Lutnick confirmed that cars manufactured with at least 85 percent of domestic content will face zero tariffs. Additionally, U.S. automakers would receive credit up to 15 percent of the value of vehicles to offset the cost of imported parts.

Big Tesla win? Sec Lutnick says cars with 85% domestic content will face zero tariffs

“This is ‘finish your cars in America and you win’,” Lutnick said.

Many were quick to point out that only three vehicles currently qualify for this zero-tariff threshold: all three are Teslas.

However, according to Kelley Blue Book’s most recent study that revealed who makes the most American cars, there are a lot of vehicles that are extremely close to also qualifying for these tariff reductions.

Tesla has three vehicles that are within five percent, while Ford, Honda, Jeep, Chevrolet, GMC, and Volkswagen have many within just ten percent of the threshold.

Tesla completely dominates Kogod School’s 2024 Made in America Auto Index

It is within reach for many.

Right now, it is easy to see why some people might think this is a benefit for Tesla and Tesla only.

But it’s not, because Tesla has its Cybertruck, Model S, and Model X just a few percentage points outside of that 85 percent cutoff. They, too, will feel the effects of the broader strategy that the Trump administration is using to prioritize domestic manufacturing and employment. More building in America means more jobs for Americans.

Credit: Tesla

However, other companies that are very close to the 85 percent cutoff are only a few components away from also saving themselves the hassle of the tariffs.

Ford has the following vehicles within just five percent of the 85 percent threshold:

  • Ford Mustang GT automatic (80%)
  • Ford Mustang GT 5.0 (80%)
  • Ford Mustang GT Coupe Premium (80%)

Honda has several within ten percent:

  • Honda Passport All-Wheel-Drive (76.5%)
  • Honda Passport Trailsport (76.5)

Jeep has two cars:

  • Jeep Wrangler Rubicon (76%)
  • Jeep Wrangler Sahara (76%)

Volkswagen has one with the ID.4 AWD 82-kWh (75.5%). GMC has two at 75.5% with the Canyon AT4 Crew Cab 4WD and the Canyon Denali Crew Cab 4WD.

Chevrolet has several:

  • Chevrolet Colorado 2.7-liter (75.5%)
  • Chevrolet Colorado LT Crew Cab 2WD 2.7-liter (75.5%)
  • Chevrolet Colorado Z71 Crew Cab 4WD 2.7-liter (75.5%)

These companies are close to reaching the 85% threshold, but adjustments need to be made to work toward that number.

Anything from seats to fabric to glass can be swapped out for American-made products, making these cars more domestically sourced and thus qualifying them for the zero-tariff boundary.

Frank DuBois of American University said that manufacturers like to see stability in their relationships with suppliers and major trade partners. He said that Trump’s tariff plan could cause “a period of real instability,” but it will only be temporary.

Now is the time to push American manufacturing forward, solidifying a future with more U.S.-made vehicles and creating more domestic jobs. Tesla will also need to scramble to make adjustments to its vehicles that are below 85%.

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Tesla Cybertruck RWD production in full swing at Giga Texas

Videos of several freshly produced Cybertruck LR RWD units were shared on social media platform X.

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Credit: Joe Tegtmeyer/X

It appears that Tesla is indeed ramping the production of the Cybertruck Long Range Rear Wheel Drive (LR RWD), the most affordable variant of the brutalist all-electric pickup truck.

Videos of several freshly produced Cybertruck LR RWD units were shared on social media platform X.

Giga Texas Footage

As per longtime Tesla watcher Joe Tegtmeyer, Giga, Texas, was a hotbed of activity when he conducted his recent drone flyover. Apart from what seemed to be Cybercab castings being gathered in the complex, a good number of Cybertruck LR RWD units could also be seen in the facility’s staging area. The Cybertruck LR RWD units are quite easy to spot since they are not equipped with the motorized tonneau cover that is standard on the Cybertruck AWD and Cyberbeast.

The presence of the Cybertruck LR RWD units in Giga Texas’ staging area suggests that Tesla is ramping the production of the base all-electric pickup truck. This bodes well for the vehicle, which is still premium priced despite missing a good number of features that are standard in the Cybertruck AWD and Cyberbeast.

Cybertruck Long Range RWD Specs

The Cybertruck LR RWD is priced at $69,990 before incentives, making it $10,000 more affordable than the Cybertruck AWD. For its price, the Cybertruck Long Range RWD offers a range of 350 miles per charge if equipped with its 18” standard Wheels. It can also add up to 147 miles of range in 15 minutes using a Tesla Supercharger.

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Much of the cost-cutting measures taken by Tesla are evident in the cabin of the Cybertruck LR RWD. This could be seen in its textile seats, standard console, seven-speaker audio system with no active noise cancellation, and lack of a 9.4” second-row display. It is also missing the motorized tonneau cover, the 2x 120V and 1x 240V power outlets on the bed, and the 2x 120V power outlets in the cabin. It is also equipped with an adaptive coil spring suspension instead of the adaptive air suspension in the Cybertruck AWD and Cyberbeast.

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