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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.
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Lucid unveils Lunar Robotaxi in bid to challenge Tesla’s Cybercab in the autonomous ride hailing race
Lucid’s Lunar robotaxi is gunning for Tesla’s Cybercab in the autonomous ride hailing race
![Lucid Lunar robotaxi concept [Credit: Rendering by TESLARATI]](https://www.teslarati.com/wp-content/uploads/2026/03/lucid-lunar-robotaxi-concept-teslarati-rendering.jpg)
Lucid Group pulled back the curtain on its purpose-built autonomous robotaxi platform dubbed the Lunar Concept. Announced at its New York investor day event, Lunar is arguably the company’s most ambitious concept yet, and a direct line of sight toward the autonomous ride haling market that Tesla looks to control.
At Lucid Investor Day 2026, the company introduced Lunar, a purpose-built robotaxi concept based on the Midsize platform.
A comparison to Tesla’s Cybercab is unavoidable. The concept of a Tesla robotaxi was first introduced by Elon Musk back in April 2019 during an event dubbed “Autonomy Day,” where he envisioned a network of self-driving Tesla vehicles transporting passengers while not in use by their owners. That vision took another major step in October 2024 when, Musk unveiled the Cybercab at the Tesla “We, Robot” event held at Warner Bros. Studios in Burbank, California, where 20 concept Cybercabs autonomously drove around the studio lot giving rides to attendees.
Fast forward to today, and Tesla’s ambitions are finally materializing, but not without friction. As we recently reported, the Cybercab is being spotted with increasing frequency on public roads and across the grounds of Gigafactory Texas, suggesting that the company’s road testing and validation program is ramping meaningfully ahead of mass production. Tesla already operates a small scale robotaxi service in Austin using supervised Model Ys, but the Cybercab is designed from the ground up for high-volume, low-cost production, with Musk stating an eventual goal of producing one vehicle every 10 seconds.
At Lucid Investor Day 2026, the company introduced Lunar, a purpose-built robotaxi concept based on the Midsize platform.
Into this landscape steps Lucid’s Lunar. Built on the company’s all-new Midsize EV platform, which will also underpin consumer SUVs starting below $50,000. The Lunar mirrors the Cybercab’s core philosophy of having two seats, no driver controls, and a focus on fleet economics. The platform introduces Lucid’s redesigned Atlas electric drive unit, engineered to be smaller, lighter, and cheaper to manufacture at scale.
Unlike Tesla’s strategy of building its own ride hailing network from scratch, Lucid is partnering with Uber. The companies are said to be in advanced discussions to deploy Midsize platform vehicles at large scale, with Uber CEO Dara Khosrowshahi publicly backing Lucid’s engineering credentials and autonomous-ready architecture.
In the investor day event, Lucid also outlined a recurring software revenue model, with an in-vehicle AI assistant and monthly autonomous driving subscriptions priced between $69 and $199. This can be seen as a nod to the software revenue stream that Tesla has long championed with its Full Self-Driving subscription.
Tesla’s Cybercab is targeting a price point below $30k and with operating costs as low as 20 cents per mile. But with regulatory hurdles still ahead, the window for competition is open. Lucid’s Lunar may not have a launch date yet, but it arrives at a pivotal moment, and when the robotaxi race is no longer viewed as hypothetical. Rather, every serious EV player needs to come to bat on the same plate that Tesla has had countless practice swings on over the last seven years.
Elon Musk
Brazil Supreme Court orders Elon Musk and X investigation closed
The decision was issued by Supreme Court Justice Alexandre de Moraes following a recommendation from Brazil’s Prosecutor-General Paulo Gonet.
Brazil’s Supreme Federal Court has ordered the closure of an investigation involving Elon Musk and social media platform X. The inquiry had been pending for about two years and examined whether the platform was used to coordinate attacks against members of the judiciary.
The decision was issued by Supreme Court Justice Alexandre de Moraes following a recommendation from Brazil’s Prosecutor-General Paulo Gonet.
According to a report from Agencia Brasil, the investigation conducted by the Federal Police did not find evidence that X deliberately attempted to attack the judiciary or circumvent court orders.
Prosecutor-General Paulo Gonet concluded that the irregularities identified during the probe did not indicate fraudulent intent.
Justice Moraes accepted the prosecutor’s recommendation and ruled that the investigation should be closed. Under the ruling, the case will remain closed unless new evidence emerges.
The inquiry stemmed from concerns that content on X may have enabled online attacks against Supreme Court justices or violated rulings requiring the suspension of certain accounts under investigation.
Justice Moraes had previously taken several enforcement actions related to the platform during the broader dispute involving social media regulation in Brazil.
These included ordering a nationwide block of the platform, freezing Starlink accounts, and imposing fines on X totaling about $5.2 million. Authorities also froze financial assets linked to X and SpaceX through Starlink to collect unpaid penalties and seized roughly $3.3 million from the companies’ accounts.
Moraes also imposed daily fines of up to R$5 million, about $920,000, for alleged evasion of the X ban and established penalties of R$50,000 per day for VPN users who attempted to bypass the restriction.
Brazil remains an important market for X, with roughly 17 million users, making it one of the platform’s larger user bases globally.
The country is also a major market for Starlink, SpaceX’s satellite internet service, which has surpassed one million subscribers in Brazil.
Elon Musk
FCC chair criticizes Amazon over opposition to SpaceX satellite plan
Carr made the remarks in a post on social media platform X.
U.S. Federal Communications Commission (FCC) Chairman Brendan Carr criticized Amazon after the company opposed SpaceX’s proposal to launch a large satellite constellation that could function as an orbital data center network.
Carr made the remarks in a post on social media platform X.
Amazon recently urged the FCC to reject SpaceX’s application to deploy a constellation of up to 1 million low Earth orbit satellites that could serve as artificial intelligence data centers in space.
The company described the proposal as a “lofty ambition rather than a real plan,” arguing that SpaceX had not provided sufficient details about how the system would operate.
Carr responded by pointing to Amazon’s own satellite deployment progress.
“Amazon should focus on the fact that it will fall roughly 1,000 satellites short of meeting its upcoming deployment milestone, rather than spending their time and resources filing petitions against companies that are putting thousands of satellites in orbit,” Carr wrote on X.
Amazon has declined to comment on the statement.
Amazon has been working to deploy its Project Kuiper satellite network, which is intended to compete with SpaceX’s Starlink service. The company has invested more than $10 billion in the program and has launched more than 200 satellites since April of last year.
Amazon has also asked the FCC for a 24-month extension, until July 2028, to meet a requirement to deploy roughly 1,600 satellites by July 2026, as noted in a CNBC report.
SpaceX’s Starlink network currently has nearly 10,000 satellites in orbit and serves roughly 10 million customers. The FCC has also authorized SpaceX to deploy 7,500 additional satellites as the company continues expanding its global satellite internet network.
![Lucid Lunar robotaxi concept [Credit: Rendering by TESLARATI]](https://www.teslarati.com/wp-content/uploads/2026/03/lucid-lunar-robotaxi-concept-teslarati-rendering-80x80.jpg)
Lucid unveils Lunar Robotaxi in bid to challenge Tesla’s Cybercab in the autonomous ride hailing race
Brazil Supreme Court orders Elon Musk and X investigation closed
