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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
Tesla just gave what is perhaps its biggest signal yet that the launch of the Cybercab, its autonomous ride-hailing-geared car, is imminent.
The Cybercab has been spotted outside of Gigafactory Texas in massive numbers over the past few days, with hundreds of units being stored on property just days after the vehicle received a Certificate of Conformity from the EPA.
Today, things were a bit different.
Cybercabs spotted on Giga Texas property today had an addition: a Cybercab decal on the side, reminiscent of the “Robotaxi” ones that were placed on Model Ys just as the company launched its ride-sharing platform about a year ago.
Giga Texas drone operator Joe Tegtmeyer noticed the change today:
Tesla Cybercabs are now getting “Cybercab” logos on the side of them!
Tesla did the same with Model Ys that were given “Robotaxi” logos: https://t.co/DanANtw1m7 pic.twitter.com/FqOhH0S9Ks
— TESLARATI (@Teslarati) June 19, 2026
Tesla could be signaling that the Cybercab is preparing to enter the Robotaxi fleet in the coming weeks or months with this move. It seems more symbolic than anything; Tesla is ready to throw Cybercabs in the ride-hailing platform just as it did with Model Ys last year.
The addition of the Certificate of Conformity awarded to the Cybercab is another major factor working to Tesla’s advantage. The company now has permission from the EPA to allow the vehicle to operate on public roads and enter the chain of commerce. It’s officially street legal.
Tesla Cybercab specs revealed: range, curb weight, range ratings, and more
The big question that remains is whether Tesla will be able to operate the car without a safety monitor, especially considering it plans to put the car out there without a steering wheel or pedals. With the Cybercab only having a seating capacity of two, it is hard to believe Tesla will even consider putting a Safety Monitor in the car.
It did recently self-certify as Level 4 and has the ability to operate driverless vehicles in the State of Texas under a law that took effect on May 28. You can read more about that here:
Tesla’s Robotaxi dreams just took a massive step toward reality
We’d imagine Cybercabs will be on the roads as soon as July, but August will likely be a better estimate of when the car will be entered into the Cybercab fleet. It all depends at where Tesla is, as they’ve truly prioritized safety with the rollout of the Robotaxi platform.
Elon Musk has publicly questioned Moody’s credit assessments following the rating agency’s decision to assign SpaceX a Baa1 investment-grade rating, two notches above Tesla’s Baa3. The comments came amid discussions comparing the two companies’ financial profiles.
SpaceX earned its first-time Baa1 rating with a stable outlook from Moody’s. The agency highlighted the company’s leadership in orbital launches, the growing recurring revenue from its Starlink satellite network, strong vertical integration, U.S. government contracts, and emerging opportunities in AI infrastructure.
These factors were cited as supporting robust cash flows, margin expansion, and financial flexibility.
Musk responded directly: “Tesla’s credit rating is ridiculously low tbh,” and added, “Yeah, makes no sense. Tesla has over $40B in cash, no debt, and is consistently profitable!” His remarks underscored Tesla’s balance sheet strength and profitability at a time when many traditional automakers continue to report losses in the shift to electric vehicles.
Yeah, makes no sense.
Tesla has over $40B in cash, no debt and is consistently profitable!
— Elon Musk (@elonmusk) June 19, 2026
Tesla maintains a leading position in the global EV market, with diversification into energy and storage, battery technology, and robotics through projects like Optimus. Recent financial updates show the company generated positive free cash flow of $1.4 billion in Q1 2026, supported by operating cash flow of $3.9 billion. Cash and short-term investments stood at approximately $44.7 billion.
Moody’s has affirmed Tesla’s Baa3 issuer rating with a stable outlook in periodic reviews, acknowledging the company’s EV leadership, technology strengths, including AI for autonomous vehicles, solid profitability, and strong liquidity.
Tesla (TSLA) scores Baa3 Moody’s rating for ‘stable’ outlook
However, the agency has also noted challenges in the automotive segment and expectations for margin pressures.
Musk’s critique highlights a common debate about how traditional rating methodologies apply to high-growth, capital-intensive technology companies. SpaceX benefits from long-term government-backed contracts and diversified, recurring revenue streams, while Tesla’s valuation reflects heavy investment in future technologies such as autonomy and robotics.
Both ratings remain investment-grade, yet the one-notch difference has fueled online discussion about potential inconsistencies in evaluating innovative firms.
The exchange comes as SpaceX explores financing options following its recent valuation milestones, while Tesla continues executing on its multi-year roadmap. Musk’s pointed response serves as a reminder that credit ratings, though influential for borrowing costs, represent one lens through which markets assess corporate strength—and that company leaders often view their financial positions through the lens of long-term innovation and cash generation rather than short-term risk metrics alone.
A new report from Reuters claims that a transport authority in Sweden is pushing back against the approval of Tesla’s Full Self-Driving suite because it will travel over speed limits.
The report says the Swedish Transport Administration (TRV) recommends the European Union votes against FSD’s approval. TRV believes it should not be approved until Tesla disables FSD’s ability to speed.
TRV sent a letter to the European Union’s Technical Committee on Motor Vehicles (TCMV), which is set to meet on June 30 to discuss the potential approval of the Tesla FSD suite in the country. Tesla, which has received various approvals in Europe over the past two months, has not provided a comment.
Teslas operating on FSD do travel over the speed limit, depending on the Speed Profile that is chosen. Drivers have the ability to disengage FSD at any point; Tesla specifically states that those supervising the suite are responsible for its actions.
Let’s cut to the chase: humans operating any vehicle speed almost daily in the United States. Realistically, speed limits in the U.S. are more frequently treated as speed minimums. However, other countries are different, and driving behaviors are less aggressive.
TRV believes that “allowing automated systems to systematically exceed legal speed limits…risks undermining both the legal framework and the expected safety benefits of vehicle automation,” the report stated. It’s surprising that Tesla has not received this claim from other countries previously.
This could be a good argument to bring Max Speed back, the setting that previously allowed the driver to choose the absolute fastest the car would travel.
This would still put the responsibility of supervision in the hands of the driver. It would allow the driver to choose whether the car would travel over the speed limit or not, acknowledging that they set the speed, and if they get pulled over, there would be no ability to argue it.
However, it does not seem as if this is something Tesla will do, especially considering many U.S. drivers have requested the feature in an effort to eliminate speeding or at least tone it down. The company has not shown any interest in bringing it back.
Tesla has approvals for FSD in Europe in Estonia, Lithuania, Denmark, the Netherlands, and Belgium.
Tesla Cybercab launch is imminent after latest sighting at Giga Texas
Elon Musk says this part of Tesla ‘makes no sense’
