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Tesla and EVs didn’t brake for the pandemic, and now the age of oil is ending
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.
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.
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.
Tesla just raised Model Y prices for the first time in two years, with the largest increase being $1,000.
The move signals shifting dynamics in the competitive electric vehicle market as the company continues to work on balancing demand, profitability, and accessibility.
The new pricing affects premium trims while leaving entry-level options unchanged. The Model Y Premium Rear-Wheel Drive (RWD) now starts at $45,990, a $1,000 increase.
The Model Y Premium All-Wheel Drive (AWD)—previously referred to in the post as simply “Model Y AWD”—rises to $49,990, also up $1,000. The top-tier Model Y Performance sees a more modest $500 bump, bringing its starting price to $57,990.
Tesla Model Y prices just went up:
New prices:
🚗 Model Y Premium RWD: $45,990 – up $1,000
🚗 Model Y AWD: $49,990 – up $1,000
🚗 Model Y Performance: $57,990 – up $500 https://t.co/e4GhQ0tj4H pic.twitter.com/TCWqr3oqiV— TESLARATI (@Teslarati) May 16, 2026
Base models remain untouched to preserve affordability. The entry-level Model Y RWD holds steady at $39,990, and the base Model Y AWD stays at $41,990. This selective approach keeps the crossover accessible for budget-conscious buyers while extracting more revenue from higher-margin configurations.
After years of aggressive price cuts to stimulate volume amid slowing EV adoption and rising competition from rivals like BYD, Ford, and GM, Tesla appears confident in underlying demand. Recent lineup refreshes for the 2026 Model Y, including refreshed styling and efficiency gains, have helped maintain its status as America’s best-selling EV.
By protecting base prices, Tesla avoids alienating price-sensitive customers while improving margins on the more popular variants.
Tesla Model Y ownership review after six months: What I love and what I don’t
For consumers, the changes are relatively modest—under 3% on affected trims—and still position the Model Y competitively against gas-powered SUVs in the same class. Federal tax credits and potential state incentives may further offset costs for eligible buyers.
This marks a subtle but notable shift from the deep discounting era that defined much of 2024 and 2025. As the EV market matures into 2026, Tesla’s pricing strategy will be closely watched for clues about production ramps, new variants like the rumored longer-wheelbase Model Y, and broader profitability goals.
In short, today’s adjustment reflects a company that remains dominant yet pragmatic—willing to test higher pricing where demand supports it. It is unlikely to deter consumers from choosing other options.
Elon Musk cannot be fired from SpaceX, and there’s a reason for that.
In a blunt post on X on Friday, Elon Musk confirmed plans to structurally shield his leadership at SpaceX, ensuring he cannot be fired while tying a potential trillion-dollar compensation package to the company’s long-term goal of establishing a self-sustaining colony on Mars.
Yes, I need to make sure SpaceX stays focused on making life multiplanetary and extending consciousness to the stars, not pandering to someone’s bullshit quarterly earnings bonus!
Obviously, IF SpaceX succeeds in this absurdly difficult goal, it will be worth many orders of…
— Elon Musk (@elonmusk) May 15, 2026
The revelation stems from a Financial Times report detailing SpaceX’s intention to restructure its governance and compensation framework. The moves are designed to protect Musk’s control and align his incentives with the company’s founding mission rather than short-term financial pressures. Musk’s reply left no ambiguity:
“Yes, I need to make sure SpaceX stays focused on making life multiplanetary and extending consciousness to the stars, not pandering to someone’s bullshit quarterly earnings bonus!”
He added that success in this “absurdly difficult goal” would generate value “many orders of magnitude more than the economy of Earth,” though he cautioned that the journey will not be smooth. “Don’t expect entirely smooth sailing along the way,” Musk wrote.
The strategy reflects Musk’s deep concerns about how public-market expectations could derail SpaceX’s core objective. Founded in 2002, SpaceX has repeatedly stated its purpose is to reduce the cost of space travel and ultimately make humanity a multiplanetary species.
Unlike Tesla, which went public in 2010 and has faced repeated battles over Musk’s compensation and board influence, SpaceX remains privately held. Musk has long resisted taking the rocket company public precisely to avoid the quarterly earnings treadmill that forces most CEOs to prioritize short-term stock performance over ambitious, high-risk projects.
By embedding protections against his removal and linking any outsized pay package to verifiable milestones—such as a functioning Mars colony—SpaceX aims to insulate its leadership from activist investors or board members who might demand faster profits or safer bets.
Musk has referenced past experiences, including his ouster from OpenAI and shareholder lawsuits at Tesla, as cautionary tales. In those cases, he argued, external pressures risked diluting the original vision.
Critics may view the arrangement as excessive, especially given Musk’s already substantial voting power and wealth. Supporters, however, argue it is a necessary safeguard for a company pursuing goals measured in decades rather than quarters. Achieving a Mars colony would require sustained investment in Starship development, orbital refueling, life-support systems, and in-situ resource utilization—technologies that may deliver no immediate financial return.
Musk’s post underscores a broader philosophical point: true breakthrough innovation often demands tolerance for volatility and a willingness to ignore conventional business wisdom. As SpaceX prepares for increasingly ambitious Starship test flights and eventual crewed missions, the new governance structure signals that the company’s North Star remains unchanged—humanity’s expansion beyond Earth.
Whether the trillion-dollar package materializes depends on execution, but Musk’s message is clear: SpaceX exists to reach the stars, not to chase the next earnings beat. For investors or employees who share that vision, the protections are not a perk—they are a prerequisite for success.
News
Tesla discloses two Robotaxi crashes to NHTSA
Newly unredacted data filed with the National Highway Traffic Safety Administration (NHTSA) reveals the two incidents.
Tesla has disclosed information on two low-speed crashes that occurred in Austin with its Robotaxi platform. These incidents occurred with teleoperators steering the vehicle, and there were no passengers in the car at the time they happened.
Newly unredacted data filed with the National Highway Traffic Safety Administration (NHTSA) reveals the two incidents.
The first crash took place in July 2025, shortly after Tesla launched its nascent Robotaxi network in Austin. The ADS reportedly struggled to move forward while stopped on a street. A teleoperator assumed control, gradually accelerating and turning left toward the roadside. The vehicle then mounted the curb and struck a metal fence.
In the second incident, in January 2026, the ADS was traveling straight when the safety monitor requested navigation support. The teleoperator took over from a stop, continued forward, and collided with a temporary construction barricade at approximately 9 mph, scraping the front-left fender and tire.
Tesla Robotaxi service in Austin achieves monumental new accomplishment
Tesla has previously told lawmakers that teleoperators are authorized to pilot vehicles remotely—but only at speeds below 10 mph, as the only maneuvers they were approved to perform were repositioning in awkward areas.
“This capability enables Tesla to promptly move a vehicle that may be in a compromising position, thereby mitigating the need to wait for a first responder or Tesla field representative to manually recover the vehicle,” the company stated in filings earlier this year.
Before this week, Tesla redacted the NHTSA reports, but they decided to reveal all 17 Robotaxi incidents recorded since the launch in Austin last Summer. Most of the other crashes involved the Tesla being struck by other road users and were not caused by the self-driving suite itself.
There were other incidents, including two additional self-caused accidents involving the ADS clipping side mirrors on parked cars. In September 2025, one Robotaxi struck a dog that darted into the roadway (the dog escaped unharmed), while another made an unprotected left turn into a parking lot and hit a metal chain.
Although Waymo and Zoox have reported more total crashes, Tesla operates at a far smaller scale. The cautious pace reflects the company’s broader safety concerns; it has been very slow with the Robotaxi rollout to ensure the suite is ready for operation.
Last month, CEO Elon Musk acknowledged that “making sure things are completely safe” remains the primary bottleneck to expanding the network, describing the company’s approach as “very cautious.”
The unredacted filings arrive amid heightened regulatory scrutiny of autonomous vehicles. NHTSA recently closed a separate probe into Tesla’s Full Self-Driving software repeatedly striking parking-lot obstacles such as bollards and chains—a problem that also prompted a recall at Waymo last year.
Tesla Robotaxi has been a widely successful program in its early days of operation, and the transparency Tesla brings here is greatly appreciated. Incidents will happen, of course, but the honesty gives customers and regulators a sense of where Tesla is in terms of developing its self-driving and fully autonomous ride-hailing suite.
Tesla Model Y prices just went up for the first time in two years
Elon Musk explains why he cannot be fired from SpaceX
