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Tesla and EVs didn’t brake for the pandemic, and now the age of oil is ending

Credit: lourencovc/Instagram

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During the first nine months of 2020, car sales cratered, with every major automaker seeing a steep drop in sales as the pandemic raged across the globe. That is, of course, every major automaker except Tesla. Despite the world practically stopping due to the pandemic, the Silicon Valley-based electric car maker sold more cars than ever before. Tesla even maintained its momentum from the previous year by posting five profitable quarters in a row, and it’s poised to end 2020 with an inclusion into the S&P 500 index.  

A Make or Break Year, and EVs Made It

What’s quite interesting is that it was not only Tesla that saw some serious momentum this year. Even as sales of internal combustion vehicles collapsed, EVs in general managed to thrive. A good example of this could be seen in Daimler and Volkswagen’s electric car sales in 2020. Both companies saw record-setting declines in their ICE divisions, but both companies also saw their EV sales this year doubling. This, if any, further highlighted that there is a growing demand for electric cars.

Even more impressive was the fact that 2020 was a year when the electric vehicle movement could have been crushed once more. The year saw the launch of some of the most important EVs for their respective companies. In Tesla’s case, this was the Model Y, a vehicle that Elon Musk expects would outsell the Model S, Model 3, and Model X combined. Volkswagen also launched the ID.3, a car that, if successful, could very well be the second coming of the ubiquitous Beetle. Failure on the Model Y and the ID.3’s part could have resulted in the EV movement getting set back again. That did not happen. 

The Volkswagen ID.3. (Credit: John Foulkes/Twitter)

Peak Oil

To state that 2020 was challenging would be a gross understatement. Amidst lockdowns in several countries, the world changed. Air travel all but stopped and working from home became the norm. Then in September, British oil firm BP Plc announced something remarkable: peak oil may have very well happened, and the demand for oil may never return to its prior levels. Granted, oil prices rose in November as vaccine trials continued and demand recovered somewhat in Asia. But even as the world approached a return to some form normalcy, it was evident that things would no longer be the same. 

US Federal Reserve Chairman Jerome Powell echoed this sentiment last month. “We’re not going back to the same economy. We’re recovering, but to a different economy,” he said. Powell has a valid point. In the post-pandemic world, more people will likely continue to work from home. A good number of people will likely travel less as well. BP’s estimates noted that about 2/3 of the pandemic’s impact on oil demand will be from adverse effects on the global economy, and 1/3 will be due to permanent changes in human behavior. This behavior, it seems, includes a shift to electric cars. 

A Point of No Return for the Internal Combustion Engine

The transportation sector accounts for a large part of the world’s oil consumption. Bloomberg notes that over half of the world’s crude is used by the transportation sector, and 3/4 of that amount is taken up by wheels on the road. With car buyers going for sustainable vehicles during a pandemic, and with sales of ICE cars dropping steeply, it is starting to seem like the transportation sector’s demand for oil is only bound to get less in the coming years. With this drop in demand comes the end of the internal combustion engine. 

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(Credit: Tesla)

Signs of the ICE extinction actually started becoming notable before the pandemic hit. As early as 2018, EVs started bucking the trend in auto sales, resulting in some analysts speculating if sales of gas and diesel-powered vehicles will no longer return to levels seen in years prior. The idea of “peak oil” happening seemed farfetched then, but amidst the pandemic and the collapse of ICE sales, the end of the oil age is looking very plausible. 

Batteries and a Path to ICE Extinction

The electric car age will be powered by batteries. It is then fortunate that batteries are a technology, not a consumable fuel. This means that as battery production reaches higher levels, battery prices are bound to get lower. Data tracked by BloombergNEF revealed that every time battery supplies doubled worldwide, the cost of batteries declined by about 18%. And considering that companies like Tesla are actively pursuing plans to produce batteries at unprecedented volumes, there is a good chance that battery prices will decline to such a degree that electric cars may reach price parity with gas and diesel-powered cars sooner than expected. 

Price parity will likely be the final nail in the ICE coffin. Cost, after all, is the one area where the internal combustion engine still has an edge against EVs. Once this edge is taken away, and once rapid chargers become as ubiquitous as gas stations, there will quite literally be no more reason left to own a vehicle equipped with an internal combustion engine. 

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 makes big change to encourage Full Self-Driving purchases

Tesla Full Self-Driving was recently proven to be about ten times safer than a human driver in terms of accident frequency.

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Credit: Whole Mars Blog | X

Tesla has made a big change to its Online Design Studio, hoping to encourage car buyers to purchase Full Self-Driving with their vehicles.

Now, when you look at ordering a car on Tesla’s website, the portion of the page that formerly showed a render of Full Self-Driving capabilities has been replaced by a compilation of the suite’s performance in a variety of challenging scenarios.

It’s a great way to show off FSD’s impressive ability to work through road conditions that can even stump human drivers.

The move is much better than what the page previously illustrated. Now, people can see the true capabilities of the FSD suite and what it could do to change their perspective on how vehicles can be. Instead of a vessel of transportation, FSD turns cars into a semi-autonomous mode of travel.

Tesla Full Self-Driving is statistically very safe, logging about ten times the number of miles between accidents as human drivers, based on recent data the company released.

Tesla Q2 2025 vehicle safety report proves FSD makes driving almost 10X safer

It is available for purchase in two different ways: an outright purchase for $8,000 or in a monthly subscription for $99. This enables the software to essentially do a vast majority of the legwork of driving. Drivers must keep their eyes on the road and be prepared to take over if an intervention is needed.

However, FSD has been proven to be a very accurate and safe way to travel. Tesla recently released a video of a drive from the Bay Area to Los Angeles, a nearly seven-hour trip, under FSD without a single intervention ever needed:

Tesla flexes its most impressive and longest Full Self-Driving demo yet

From a personal perspective, Tesla Full Self-Driving is a great way to travel because it truly takes a lot of the stress out of driving. In the past, I’ve used it during weekend Demo Drives to navigate around my town to see if it could handle some of the tougher traffic in my area. It became such an amazing and convenient alternative that when I went back to my car, I truly missed the advantage of having it.

I took a Tesla Model Y weekend-long Demo Drive – Here’s what I learned

However, I am picking up my Tesla Model Y this coming weekend and will enjoy it for the free three months before subscribing to the monthly program.

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Tesla offers new feature to save battery and reduce phantom drain

While in Low Power Mode, your vehicle continues to use energy for standby functions, screen activity, and Tesla app interactions. In cold weather, available energy may drop more quickly.”

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Credit: Tesla

Tesla is offering a new feature to help owners save battery and reduce phantom drain, an issue that some have complained of with their cars.

While Teslas are some of the most efficient EVs on the market, they utilize energy and battery life when they’re parked to keep certain features, like Sentry Mode, Summon Standby, and others, active in preparation for potential events that occur.

Keeping these features ready to perform utilizes energy, and if your car is parked at an airport where it could be sitting stagnant for a few days, the battery percentage could start to dwindle pretty significantly.

Because of this, Tesla is rolling out a new feature called “Low Power Mode,” which will automatically disable a handful of settings to combat battery dwindling and phantom battery drain.

Tesla writes in the release notes for the feature:

“When Low Power Mode is enabled, your vehicle will conserve energy by automatically disabling the following features:

    • Sentry Mode
    • Summon Standby
    • Outlets
    • Keep Accessory Power On
    • Keep Climate On and Camp Mode
    • Scheduled Preconditioning
    • Cabin Overheat Protection

While charging with Low Power Mode enabled:

    • Sentry Mode and accessory power will remain available
    • Keep Climate On and Camp Mode are only available when Supercharging

While in Low Power Mode, your vehicle continues to use energy for standby functions, screen activity, and Tesla app interactions. In cold weather, available energy may drop more quickly.”

This feature seemed to be a reaction to a past issue that an owner had as their Cybertruck continued to utilize energy even though the pickup was parked at an airport and the owner was in Japan. The Cybertruck had utilized a lot of energy to keep standby functions active, which left the owner in an interesting spot when they returned.

CEO Elon Musk stepped in, and it seems this feature might have been a reaction to that situation. This is an ideal thing to use if you’re looking to conserve your battery’s state of charge.

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Tesla is bringing back something it took from the Model 3…for a price

“Modify your Model 3 by replacing the turn signal buttons on your steering wheel with turn signal stalks. This modification is included in the purchase price and is installed by a Tesla Service Center.”

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Credit: Tesla

Tesla is bringing back the Model 3’s turn signal stalk in China after removing the part with the refresh of the all-electric sedan early last year.

However, it is going to cost you.

In 2024, Tesla launched the Model 3 “Highland,” a refreshed version of the vehicle that included several large-scale changes. One of the most noticeable was the lack of a turn signal stalk, something the company chose to remove and instead implement turn signal buttons on the steering wheel.

The buttons were met with mixed reviews, as some drivers complained that it was too difficult to get used to them. Others had no problem with the change, noting that it was slightly more convenient for them or that they enjoyed the minimalistic look.

Now, Tesla is offering Model 3 owners in China the opportunity to replace the stalk for a price of ¥ 2,499, or about $350:

“Modify your Model 3 by replacing the turn signal buttons on your steering wheel with turn signal stalks. This modification is included in the purchase price and is installed by a Tesla Service Center.”

Tesla notes on its website that the service is available for Model 3 vehicles without stalks manufactured after February 7, 2025. Any car without a stalk that was manufactured before that date will have the service available to them in the future.

Installation can be performed at a Service Center or by the owner. However, Tesla notes that it is not responsible for any damages resulting from self-installation and recommends that the part be put in by an employee.

The cockpit of the Tesla lineup has been under intense scrutiny by the company in recent years. After a few changes to things like the stalk, steering wheel shape, and others, Tesla has usually given drivers the chance to have things reverted back to their preferences if they want.

They did this for the Model S and Model X a few years ago after implementing the yoke steering wheel.

Tesla Steering Wheel Retrofits have started, and it’s easy to get rid of your yoke

The stalk was not supposed to be removed from the Model 3 and Model Y, but Tesla chose to do so with the refresh last year.

It seems the minimalization of the cockpit, overall, is a move that prepares drivers for autonomy, as eventually, Teslas will be void of pedals, steering wheels, and any other apparatus that are used to control the car.

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