News
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.
News
Tesla begins deliveries of its affordable Model Y Standard
The ‘Standard’ Model Y is now getting ready to fall into customer hands, according to some owners, who are preparing for or have already taken delivery of the new model.
Tesla has officially started deliveries of the affordable Model Y ‘Standard’ less than three weeks after the company launched it on October 8.
Following the loss of the $7,500 electric vehicle tax credit, Tesla launched the Model 3 and Model Y ‘Standard’ trims, both coming in at sub-$40,000 starting prices, but being stripped of many of the features that come in the ‘Premium’ configuration levels.
Tesla launches two new affordable models with ‘Standard’ Model 3, Y offerings
The vehicles are Tesla’s answer to the loss of the tax credit, which was phased out by the Trump Administration. Tesla said it has been developing these models for over a year, as it revealed in early 2024 that it was working to create new vehicles that would be more affordable.
It also said it was developing vehicles to be built on a new-generation platform, which is a likely reference to the Cybercab, which has also been spotted at both Gigafactory Texas and the Fremont Factory.
The ‘Standard’ Model Y is now getting ready to fall into customer hands, according to some owners, who are preparing for or have already taken delivery of the new model:
Delivery day fr fr 🤙🏽 https://t.co/2xHAqjgL50 pic.twitter.com/OkKLZRJlJk
— TESBROS (@teslabros) October 21, 2025
Tesla slated deliveries for November when the two vehicles launched on October 8, but that seems to be an underpromise and overdeliver type of situation.
The new features for the Model Y include:
- New athletically tuned exterior and new alloy wheels to improve aerodynamics
- 15.4″ touchscreen in the front, the same as the other trims
- Available in three colors: Stealth Grey (free), White ($1,oo0 extra), Diamond Black ($1,500 extra)
- Textile and vegan leather interior
- Range sits at 321 miles
- New front fascia
- Covered glass roof (textile on inside)
- Windows are not acoustically laminated for a quieter cabin
- Manual mirrors and seats
- Smaller frunk
- No rear infotainment screen
- No basic Autopilot
- 69 kWh battery
- New 19″ Aperture wheels
- 0-60 MPH in 6.8 seconds
- 7 speaker stereo, down from 15 speakers in premium models
@teslarati 🚨 Tesla’s Affordable Models are here! Let’s talk about them! #tesla #fyp #viral #teslaev #elonmusk ♬ Natural Emotions – Muspace Lofi
Investor's Corner
Tesla analyst says this common earnings narrative is losing importance
“Numbers are going down next year, but that’s ok because it’s all about autonomy.”
A Tesla (NASDAQ: TSLA) analyst is doubling down on the idea that one common earnings narrative is losing importance as the company continues to work toward new technologies and projects.
This week, Tesla will report earnings for the third quarter, and one thing people always pay attention to is deliveries. Although Tesla reveals its deliveries for the quarter well before it reports earnings, many investors will look for commentary regarding the company’s strategy for responding to the loss of the $7,500 tax credit.
Tesla has made a few moves already, including a lease deal that takes a substantial amount of money off, launching new Standard models, and cutting up to 23 percent off of lease pricing.
Tesla makes crazy move to spur short-term demand in the U.S.
However, analysts are looking at the company in a different light.
Aligning with the narrative that Tesla is not just a car company and has many different projects, Gene Munster of Deepwater Asset Management believes many investors need to look at another part of the business.
Munster said the delivery figures for Q3, which landed at 497,099, the highest in company history, were padded by customers rushing to showrooms to take advantage of the expiring tax credit.
He believes that deliveries will be more realistic in subsequent quarters, but investors should not worry because the focus on Tesla is not going to be on how many cars it hands over to customers:
“Numbers are going down next year, but that’s ok because it’s all about autonomy.”
Here’s the $TSLA preview. Numbers are going down next year, but that’s ok because it’s all about autonomy. pic.twitter.com/mUb9scFtCA
— Gene Munster (@munster_gene) October 17, 2025
Tesla has been working nonstop to roll out a dedicated Robotaxi platform in various cities across the United States, and has already launched in two states: Texas and California.
It has also received regulatory approvals to test driverless Robotaxis in Arizona and Nevada, while seeking permissions in Florida and other states, according to the company’s online job postings.
Munster continued:
“Most people are hyper-focused on the Robotaxi opportunity and not focused as much on FSD.”
While Robotaxi is incredibly important, Tesla’s Full Self-Driving (Supervised) suite is also extremely crucial moving forward, as it sets the stage for the company to roll out a formidable self-driving service.
Tesla rolled out its newest FSD software to more owners last night, and as it expands, the company is gaining valuable data to refine its performance.
Earnings will be reported tomorrow at market close.
News
Tesla rolled out a new feature with FSD v14 to fix a major complaint
One of the most crucial cameras for FSD operation is located at the top of the windshield, and some owners have complained about condensation or other debris accumulating here, which impacts FSD’s availability during drives.
Tesla rolled out a new feature with Full Self-Driving (Supervised) v14.1.3 in an effort to fix a major complaint from owners.
Tesla’s approach to self-driving is significantly different than other companies as it only relies on cameras for operation. Tesla Vision was launched several years ago and completely axed any reliance the suite had on sensors, as CEO Elon Musk’s strategy was unorthodox and went against the grain.
However, it has proven to be effective, as Tesla still operates the most refined semi-autonomous driving suite in the United States.
There are some drawbacks, though, and one of them has to do with the obvious: cameras get dirty and need to be cleaned somewhat regularly.
One of the most crucial cameras for FSD operation is located at the top of the windshield, and some owners have complained about condensation or other debris accumulating here, which impacts FSD’s availability during drives:
Image Credit: The Kilowatts/Twitter
Tesla has been working to confront this issue, and in classic fashion, it used a software update to work on resolving it.
With the rollout of Full Self-Driving v14.1.3 and Software Version 2025.32.8.15, Tesla added a new feature that aims to clean the front camera efficiently without relying on the owner to do it manually.
Tesla Full Self-Driving’s new version officially gets a wider rollout
In its release notes for the suite, it said:
“Added automatic narrow field washing to provide rapid and efficient front camera self-cleaning, and optimize aerodynamics wash at higher vehicle speed.”
If the camera starts to have some issues with visibility, the car will automatically clean the front windshield camera to avoid any issues:
Tonight was the first time I experienced the new @Tesla FSD V14 windshield wiper front camera self-cleaning feature.
Tesla: “Added automatic narrow field washing to provide rapid and efficient front camera self-cleaning, and optimize aerodynamics wash at higher speed.” pic.twitter.com/Pu0vRa3tDx
— Sawyer Merritt (@SawyerMerritt) October 21, 2025
This new addition is a small but mighty change considering all things. It is a necessary process to keep things operational and avoid any disruptions in FSD performance. It is also a testament to how much better Tesla vehicles can get with a simple software update.
Tesla begins deliveries of its affordable Model Y Standard
Tesla analyst says this common earnings narrative is losing importance
Tesla rolled out a new feature with FSD v14 to fix a major complaint
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