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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. 

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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. 

(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. 

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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 Full Self-Driving shows stunning maneuver in Europe to silence skeptics

In a striking demonstration of autonomous driving prowess, Tesla’s Full Self-Driving (FSD) system recently showcased its capabilities on the narrow rural roads of the Netherlands. Captured in two in-car videos, the system encountered scenarios that would challenge even the most experienced human drivers.

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Credit: Tesla

Tesla Full Self-Driving, fresh on the heels of its approval for operation on European roads for the first time, showed off a stunning maneuver that will certainly silence any skeptics on the continent.

Fresh off its approval in the Netherlands, Full Self-Driving is working toward a significant expansion into more parts of Europe.

In a striking demonstration of autonomous driving prowess, Tesla’s Full Self-Driving (FSD) system recently showcased its capabilities on the narrow rural roads of the Netherlands. Captured in two in-car videos, the system encountered scenarios that would challenge even the most experienced human drivers.

In the first clip, a wide tractor occupied more than half the lane on a tight two-way road. Rather than braking abruptly or forcing a collision risk, FSD smoothly edged the vehicle onto the adjacent bike path—using the extra space with precision—before seamlessly returning to the lane once clear.

The second clip was equally demanding: while overtaking a group of cyclists, an oncoming car approached at speed.

FSD maintained a safe, minimal buffer to the cyclists while timing the pass perfectly, avoiding any swerve or hesitation that could unsettle passengers or other road users.

This maneuver highlights FSD’s advanced spatial reasoning and predictive planning. On roads often under three meters wide, with no room for error, the system calculated available clearance in real time, incorporated shoulder and path geometry, and executed a controlled deviation without compromising safety.

It treated the bike path as a legitimate extension of navigable space, something many drivers might hesitate to do, while respecting Dutch road norms and cyclist priority.

Such feats align closely with a growing library of impressive FSD maneuvers documented on camera worldwide.

In urban Amsterdam, for instance, FSD has navigated the world’s densest cyclist environments, weaving through hundreds of unpredictable bike movements on canal-side streets with tram tracks and pedestrians.

One uncut drive showed it yielding smoothly at crossings, overtaking where needed, and even handling a near-perfect auto-park in a tight residential spot, demonstrating the same low-speed precision seen in the rural clips.

Teslas using FSD have tackled turbo roundabouts in the Netherlands, complex multi-lane circles notorious for geometry challenges, merging confidently while yielding to traffic. Similar clips depict smooth handling of construction zones, emergency vehicle pull-overs, and gated parking barriers, where the car stops precisely, waits for clearance, and proceeds without driver input.

Collectively, these examples illustrate FSD’s evolution toward handling the unpredictable.

The rural Netherlands maneuvers aren’t isolated. Instead, they reflect a pattern of spatial awareness, cyclist deference, and traffic anticipation seen from city streets to highways.

As FSD continues refining through real-world data, videos like this one are certainly building a compelling case for its readiness on Europe’s varied roads.

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Tesla utilizes its ‘Rave Cave’ for new awesome safety feature

Part of the massive interior overhaul of both the Model 3 “Highland” and Model Y “Juniper” was the addition of interior accent lighting to help bring out the mood of the vehicle, increase the customization of the interior, and to create a unique listening experience.

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Credit: Tesla | X

Tesla is utilizing its ‘Rave Cave’ for an awesome new safety feature that will arrive with the upcoming Spring Update for 2026.

Part of the massive interior overhaul of both the Model 3 “Highland” and Model Y “Juniper” was the addition of interior accent lighting to help bring out the mood of the vehicle, increase the customization of the interior, and to create a unique listening experience.

Tesla added a Sync Lights feature that will strobe the accent strips with the beat of the music.

It is one of the most unique and one of the coolest non-functional features of a Tesla, as it does not improve the driving of the vehicle, but makes it a cool and personal addition to the interior.

However, Tesla is going to take it one step further, as the Rave Cave lights will now be used for blind spot recognition. This feature will be added as the Spring 2026 Update starts to roll out.

Tesla writes:

“Accent lights now turn red when an object is in your blind spot and your turn signal is engaged, or when an approaching object is detected while parked.”

This neat new safety feature will now increase the likelihood of a driver, who is operating their Tesla manually, of seeing the blind spot warnings that are currently available on the A pillar and on the center touchscreen.

These new alerts will now warn drivers of cross traffic as they back out of a parking space with little to no visibility of what is coming. It is a great new addition that will only increase the safety of the vehicles, while also utilizing something that is already installed in these specific Model 3 and Model Y units.

The Model 3 and Model Y were the central focus of the Spring 2026 Update, especially considering the fact that the Model S and Model X are basically gone, with only a few hundred units left. Additionally, Tesla included new Immersive Sound and Car Visualization for the Model 3 and Model Y specifically in this new update.

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Tesla parked 50+ Cybercabs outside its Texas Factory with some crash tested

Dozens of Tesla Cybercabs have been spotted at Giga Texas crash testing facility ahead of launch.

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Tesla Cybercab fleet spotted at Gigafactory Texas [Credit: Joe Tegtmeyer)
Tesla Cybercab fleet spotted at Gigafactory Texas on April 13, 2026 [Credit: Joe Tegtmeyer)

Drone footage captured by longtime Giga Texas observer Joe Tegtmeyer shows over 50 units of Tesla Cybercab at the Austin factory campus, including several units clustered by Tesla’s on-site crash testing facility.

The outbound lot at Gigafactory Texas sits just outside the factory exit and serves as the primary staging area where finished vehicles are held before being loaded onto transport carriers or dispatched for validation testing. On any given day, the lot holds a mix of Model Y and Cybertruck units alongside the growing Tesla Cybercab fleet, as can be seen in the drone footage captured by Joe Tegtmeyer.

Tesla Cybercab fleet spotted at Gigafactory Texas [Credit: Joe Tegtmeyer)

Tesla Cybercab fleet spotted at Gigafactory Texas on April 13, 2026 [Credit: Joe Tegtmeyer)

Roughly 50 Cybercab units are visible across the campus, parked in tight organized rows. Most of the units visible still carry steering wheels and pedals, temporary additions Tesla included to satisfy current safety regulations while the vehicles accumulate real-world data ahead of full regulatory approval for a steering wheel-free design.

Tesla Cybercab fleet spotted at Gigafactory Texas [Credit: Joe Tegtmeyer)

Tesla Cybercab fleet spotted at Gigafactory Texas [Credit: Joe Tegtmeyer)

Tesla operates dedicated Crash Labs at both its Giga Texas and Fremont facilities that are purpose-built for controlled structural crash tests. Historically, automakers begin intensive crash testing roughly one to two months before volume production kicks off. The Cybertruck followed almost exactly that pattern. The Cybercab appears to be on the same track facility that we first saw back in October 2025.

Tesla Cybercab crash test units spotted at Gigafactory Texas [Credit: Joe Tegtmeyer)

Tesla Cybercab crash test units spotted at Gigafactory Texas [Credit: Joe Tegtmeyer)

The first production Cybercab rolled off the Giga Texas line on February 17, 2026. Volume production is now targeted for April. Musk previously wrote on X that “the early production rate will be agonizingly slow, but eventually end up being insanely fast,” and separately stated Tesla is targeting at least 2 million Cybercab units per year. Commercial robotaxi service in Austin is targeted for late 2026.

 

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