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Tesla gives Fiat a wake up call: ‘fake’ electric cars can still manipulate EU emissions standards

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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.

Chart visualizing the impact of ‘fake’ electric cars (compliance plug-in hybrids) enabled by loopholes in the coming EU CO2 regulations. An estimated 2 million electric vehicles will be lost by 2030; of all low emissions vehicles sold, half (11 million) will be compliance plug-in hybrids. | Credit: Transport & Environment

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.

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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.

Chart displaying the estimated effect of allowing ‘fake’ electric cars (compliance plug-in hybrids) to receive partial (.7) emissions credits under coming EU CO2 regulations. | Credit: Transport & Environment
Chart displaying the estimated effect of allowing car makers to register low emissions vehicles in nascent markets for double credits under coming EU CO2 regulations and then quickly resell to larger markets. | Credit: Transport & Environment

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.

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Chart displaying the estimated effect of allowing low emissions vehicles sold in Norway to count towards EU emissions averages under coming EU CO2 regulations. | Credit: Transport & Environment

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.

Accidental computer geek, fascinated by most history and the multiplanetary future on its way. Quite keen on the democratization of space. | It's pronounced day-sha, but I answer to almost any variation thereof.

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Tesla Semi pricing revealed after company uncovers trim levels

This is a step up from the prices that were revealed back in 2017, but with inflation and other factors, it is no surprise Tesla could not come through on the numbers it planned to offer nine years ago. When the Semi was unveiled in November 2017, Tesla had three pricing levels:

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Credit: Tesla

Tesla Semi pricing appears to have been revealed after the company started communicating with the entities interested in purchasing its all-electric truck. The pricing details come just days after Tesla revealed it planned to offer two trim levels and uncovered the specs of each.

After CEO Elon Musk said the Semi would enter volume production this year, Tesla revealed trim levels shortly thereafter. Offering a Standard Range and a Long Range trim will fit the needs of many companies that plan to use the truck for local and regional deliveries.

Tesla Semi lines up for $165M in California incentives ahead of mass production

It will also be a good competitor to the all-electric semi trucks already available from companies like Volvo.

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With the release of specs, Tesla helped companies see the big picture in terms of what the Semi could do to benefit their business. However, pricing information was not available.

A new report from Electrek states that Tesla has been communicating with those interested companies and is pricing the Standard Range at $250,000 per unit, while the Long Range is priced at $290,000. These prices come before taxes and destination fees.

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This is a step up from the prices that were revealed back in 2017, but with inflation and other factors, it is no surprise Tesla could not come through on the numbers it planned to offer nine years ago. When the Semi was unveiled in November 2017, Tesla had three pricing levels:

  • $150,000 for a 300-mile range version
  • $180,000 for a 500-mile range version
  • $200,000 for a limited “Founders Series” edition; full upfront payment required for priority production and limited to just 1,000 units

Tesla has not officially released any specific information regarding pricing on the Semi, but it is not surprising that it has not done so. The Semi is a vehicle that will be built for businesses, and pricing information is usually reserved for those who place reservations. This goes for most products of this nature.

The Semi will be built at a new, dedicated production facility in Sparks, Nevada, which Tesla broke ground on in 2024. The factory was nearly complete in late 2025, and executives confirmed that the first “online builds” were targeted for that same time.

Meaningful output is scheduled for this year, as Musk reiterated earlier this week that it would enter mass production this year. At full capacity, the factory will build 50,000 units annually.

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Tesla executive moves on after 13 years: ‘It has been a privilege to serve’

“It is challenging to encapsulate 13 years in a single post. The journey at Tesla has been one of continuous evolution. From the technical intricacies of designing, building, and operating one of the world’s largest AI clusters to impactful contributions in IT, Security, Sales, and Service, it has been a privilege to serve,” Jegannathan said in the post.

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Credit: Tesla

Tesla executive Raj Jegannathan is moving on from the company after 13 years, he announced on LinkedIn on Monday.

“It is challenging to encapsulate 13 years in a single post. The journey at Tesla has been one of continuous evolution. From the technical intricacies of designing, building, and operating one of the world’s largest AI clusters to impactful contributions in IT, Security, Sales, and Service, it has been a privilege to serve,” Jegannathan said in the post.

After starting as a Senior Staff Engineer in Fremont back in November 2012, Jegannathan slowly worked his way through the ranks at Tesla. His most recent role was Vice President of IT/AI Infrastructure, Business Apps, and Infosec.

However, it was reported last year that Jegannathan had taken on a new role, which was running the North American sales team following the departure of Troy Jones, who had held the position previously.

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While Jegannathan’s LinkedIn does not mention this position specifically, it seemed to be accurate, considering Tesla had not explicitly promoted any other person to the role.

It is a big loss for Tesla, but not a destructive departure. Jegannathan was one of the few company executives who answered customer and fan questions on X, a unique part of the Tesla ownership experience.

Tesla to offer Full Self-Driving gifting program: here’s how it will work

It currently remains unclear if Jegannathan was removed from the position or if he left under his own accord.

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“As I move on, I do so with a full heart and excitement for what lies ahead. Thank you, Tesla, for this wonderful opportunity!” he concluded.

The departure marks a continuing trend of executives leaving the company, as the past 24 months have seen some significant turnover at the executive level.

Tesla has shown persistently elevated executive turnover over the past two years, as names like Drew Baglino, Rohan Patel, Rebecca Tinucci, Daniel Ho, Omead Afshar, Milan Kovac, and Siddhant Awasthi have all been notable names to exit the company in the past two years.

There are several things that could contribute to this. Many skeptics will point to Elon Musk’s politics, but that is not necessarily the case.

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Tesla is a difficult, but rewarding place to work. It is a company that requires a lot of commitment, and those who are halfway in might not choose to stick around. Sacrificing things like time with family might not outweigh the demands of Tesla and Musk.

Additionally, many of these executives have made a considerable amount of money thanks to stock packages the company offers to employees. While many might be looking for new opportunities, some might be interested in an early retirement.

Tesla is also in the process of transitioning away from its most notable division, automotive. While it still plans to manufacture cars in the millions, it is turning more focus toward robotics and autonomy, and these plans might not align with what some executives might want for themselves. There are a wide variety of factors in the decision to leave a job, so it is important not to immediately jump to controversy.

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Lemonade launches Tesla FSD insurance program in Oregon

The program was announced by Lemonade co-founder Shai Wininger on social media platform X.

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Credit: Grok Imagine

Tesla drivers in Oregon can now receive significant insurance discounts when using FSD, following the launch of Lemonade’s new Autonomous Car insurance program. 

The program was announced by Lemonade co-founder Shai Wininger on social media platform X.

Lemonade launches FSD-based insurance in Oregon

In a post on X, Wininger confirmed that Lemondade’s Autonomous Car insurance product for Tesla is now live in Oregon. The program allows eligible Tesla owners to receive roughly 50% off insurance costs for every mile driven using Tesla’s FSD system.

“And… we’re ON. @Lemonade_Inc’s Autonomous Car for @Tesla FSD is now live in Oregon. Tesla drivers in Oregon can now get ~50% off their Tesla FSD-driven miles + the best car insurance experience in the US, bar none,” Wininger wrote in his post. 

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As per Lemonade on its official website, the program is built on Tesla’s safety data, which indicates that miles driven using FSD are approximately twice as safe as those driven manually. As a result, Lemonade prices those miles at a lower rate. The insurer noted that as FSD continues to improve, associated discounts could increase over time.

How Lemonade tracks FSD miles

Lemonade’s FSD discount works through a direct integration with Tesla vehicles, enabled only with a driver’s explicit permission. Once connected, the system distinguishes between miles driven manually and those driven using FSD, applying the discount automatically to qualifying miles.

There is no minimum FSD usage requirement. Drivers who use FSD occasionally still receive discounted rates for those miles, while non-FSD miles are billed at competitive standard rates. Lemonade also emphasized that coverage and claims handling remain unchanged regardless of whether a vehicle is operating under manual control or FSD at the time of an incident.

The program is currently available only to Teslas equipped with Hardware 4 or newer, running firmware version 2025.44.25.5 or later. Lemonade also allows policyholders to bundle Tesla insurance with renters, homeowners, pet, or life insurance policies for additional savings.

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