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Tesla gives Fiat a wake up call: ‘fake’ electric cars can still manipulate EU emissions standards
New CO2 regulations set to take effect in Europe have several loopholes in place that could derail the goal of reducing new car emissions by 37.5% in the region by 2030, according to a study published by advocacy group Transport & Environment. In a worst-case modeling scenario, gaming of the rules could also result in almost two million fewer zero or low emissions vehicles coming to market between 2025 and 2030, and of those in the market, half might be plug-in hybrids built for compliance, not innovation.
In order to propel the creation of a battery electric auto industry in the region, European Union members and parties participating in the discussions over the new CO2 regulations included incentives in the agreement that were tied to specific vehicle sales. Auto manufacturers with 15% of their sales coming from zero and low emission vehicles by 2025 and 35% from 2030 onwards will have their CO2 targets reduced by a maximum of 5%. This effectively means a company’s new fleet-wide CO2 output would only need to be reduced to 34.4% by 2030 instead of 37.5%, as calculated in the study.
Companies have further been allowed to pool their fleets together to help reach these goals, something which Tesla has recently taken advantage of by partnering with Fiat Chrysler. As a manufacturer of zero-emission vehicles, counting Tesla’s fleet with Fiat’s lowers the average per-vehicle CO2 output, thus lessening the burden for Fiat to meet the emissions standards while Tesla profits from the deal.
On its face, the 5% trade-off for lower emissions standards would be the entry of new, more innovative clean energy vehicles on the market; however, the inclusion of plug-in hybrids in that calculation could be problematic and used to game the system. In order to qualify as a low emissions vehicle, a hybrid car only needs to be under a threshold of 50 g/km CO2 output during testing which assumes full use of the vehicle’s battery. Because most of these plug-in hybrids have very low battery ranges, they’re often not used in practice in favor of the internal combustion engine, thus increasing their real-world CO2 output to around 120 g/km.
The technology behind plug-in hybrids is less innovative and therefore cheaper to produce, so the financial appeal of producing more of these types of vehicles over battery-only electric vehicles is high. The Transport & Environment study estimates that this effect will lead to about 2 million fewer all-electric cars being produced in favor of the cheaper, ‘fake’ electric compliance hybrids.
Other loopholes in the EU regulations also contribute to a reduction in CO2 outcomes. Fourteen countries where non-existent or nascent low emissions vehicle markets were identified will receive nearly double the emissions credit for eco-friendly cars sold to encourage development in the regions.
Simply, a large manufacturer could register thousands of vehicles in one of these markets, acquire double credit for each vehicle, and then quickly sell the vehicles in an established market where demand is higher. When sold, the cars would technically be “used” for record keeping purposes, but new to consumers and presented that way. This would circumvent the point of developing a low emissions market in those countries, further limiting the expansion of low emissions car availability.
The EU member states where double credits apply are Ireland, Greece, Poland, Slovenia, Croatia, the Czech Republic, Slovakia, Bulgaria, Romania, Estonia, Latvia, Lithuania, Cyprus, and Malta.
The final (possible) loophole identified in the Transport & Environment study lies with the inclusion of Norway in the EU regional calculations. The country has not yet formally been included in the 2025/30 standards but is part of the 2020/1 standards currently in effect and will likely be included in the upcoming rules.
Norway is requiring 100% of its vehicles to have zero emissions by 2025, thus guaranteeing sales of those types of cars in a market where ICE vehicles are not competitive. Automakers could concentrate their sales in that region and make less effort to sell in the rest of Europe, all while still remaining compliant with the regulations. Reaching compliance in this manner is another way the intent of the coming CO2 reduction requirements can be manipulated.
The authors of the Transport & Environment study have laid out their proposals to overcome these loopholes, but considering that they were included to win the support of the auto industry in the region, further changes to the regulations seem unlikely. Also, the study could be taking an overly pessimistic view of the possible outcomes the loopholes could lead to.
Consumer markets, even without significant CO2-related regulation, are already showing trends towards increasing low emission vehicle demands, especially for battery electric vehicles like those sold by Tesla. This “Tesla Effect” has been noted by the upper echelons of legacy auto and several have committed to billions in electric fleet investments. Porsche is unveiling its first production electric vehicle, the Taycan, this September and has plans to retire its diesel-powered lineup and embrace electrification. Ford has also recently committed to electrifying its F-series, most notably the classic F-150, as well as invest $11 billion dollars to produce 40 electrified vehicles by 2022.
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
