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Tesla’s resilience is forcing veteran automakers to draw the battle lines on diesel
There are probably very few companies in the market that have attracted the same amount of skepticism as Tesla. Since it started producing its first vehicle, the original Tesla Roadster, more than a decade ago, the “impending” death of the company has been foretold. Despite this, the small, disruptive electric car maker has stubbornly refused to die, and it continues to grow despite the noise. Today, Tesla is bigger than ever before, and the impending completion of a third Gigafactory 3 in China could signal yet another period of incredible growth for the company.
The inevitable electric age
The rise of Tesla did not only prove that electric cars need not be boring, glorified golf carts. The rise of Tesla also showed that consumers from various walks of life are willing to pay top dollar for well-designed electric vehicles, simply because they are superior to internal combustion cars. By proving these points, Tesla was able to force the hand of veteran automakers, pushing them to come up with their own battery-powered vehicles. Today, most of the world’s most notable carmakers are looking into electrification. Some brands such as Porsche have even decided to abandon diesel altogether, aiming instead to push the development of both all-electric and hybrid cars.
It’s not just Porsche either. Other automakers such as Jaguar even beat the German automaker’s Taycan to market with its I-PACE, which it started delivering last year. Daimler rushed to join the fray with the EQC, and Audi, not to be left behind in the emerging EV race, brought out the rather unfortunately-named e-tron, which was received warmly nonetheless. Even mass-market automakers such as Kia and Hyundai have come up with their own bang-for-your-buck electric cars in the form of the Niro EV and Kona Electric. Volkswagen recently made a splash with the debut of the ID.3 as well. Even British-bred MG, which has been reborn as a Chinese-owned hyper-budget brand, is preparing to attack the lower end of the market with the MG ZS EV.
Learning from Tesla
Amidst this transition, it is starting to become evident which carmakers are dead serious about their transition to the electric age. This became notable in Germany, when Volkswagen, Daimler, and BMW came together last March to call for the widespread adoption of EVs. Volkswagen CEO Herbert Diess was at the helm of the radical stance, at one point practically butting heads with BMW CEO Harald Krüger and the industry lobby group Association of the Automotive Industry (VDA) due to his push for widespread electric car adoption. Audi boss Bran Schot, in a recent interview with Manager Magazin, reiterated this point, noting that “electric is the core” of the automaker’s “new strategy.”
Audi is currently attempting to ramp the production of the e-tron SUV, its first all-electric vehicle, but things have not exactly been easy. Due to factors such as reported battery constraints from supplier LG Chem, as well as other incidents such as a workers’ strike in one of its plants earlier this year, the e-tron has been delayed. Yet, Schot noted that the company remains focused on pushing more electric cars. During the interview, Schot candidly admitted that Audi is behind other automakers such as Tesla, not only “in the electric cars” themselves, “but also at the pace with which they solve some software issues.”
Schot noted that he was recently “driven once again a Tesla,” and he came away impressed by the experience. “That was fun,” he said, later admitting that “No question, we are learning from Tesla.” Learning from the leader in electric mobility is an excellent strategy for Audi, as it would allow the company to develop vehicles that mix the best of veteran auto’s experience and Tesla’s tech mastery. In a way, Audi has already taken steps towards this goal with its e-tron GT sedan, a vehicle built on the same platform as the Porsche Taycan. The Taycan stands apart from other EVs from veteran auto in the way that it’s built from the ground up to be an electric car, making it the last thing from a compliance vehicle.
Commitments to diesel and a denial of EVs
While companies like Porsche have found it easy to commit to electrification and abandon things like diesel, other carmakers are not having such an easy time relinquishing their ties with oil. The most recent source of this shock was Jaguar Land Rover CEO Ralf Speth, who recently spoke with Automotive News Europe sister publication Automobilwoche’s publisher in an interview. When asked about the company’s powertrain strategy amid a decline in demand for diesels and V8 gasoline engines, the CEO was candid.
“According to industry forecasters, a global share of 20 percent to 30 percent for electrified vehicles is expected by 2025. When you turn this around, it means that 70 percent to 80 percent of all vehicles around the world will have conventional engines. Let me add that today’s diesels, (which) are absolutely CO2-efficient and clean,” he said.
When asked by the publication why electric mobility is still not important to consumers, the CEO noted that “On one hand, the products are still too expensive. On the other hand, the infrastructure is still too inconvenient and unreliable, so electric cars tend to be for people with deep pockets.” These are rather surprising to hear from the Speth, whose company produced the I-PACE, which has pretty much swept awards left and right since its debut last year.
Explaining his conservative stance on electric vehicles further, the Jaguar CEO argued that “When it comes to electric vehicles, the question isn’t how many cars I can build but rather how many batteries I can buy. The demand for batteries is so great that there will be a limited ability to deliver them over the next few years. And, unlike some others, I expect continually rising battery prices – at least for the next two to three years.”
Quite interestingly, the Jaguar Land Rover CEO’s concerns about electric cars have long been addressed by Tesla. When it came to charging infrastructure, the California-based carmaker developed and aggressively rolled out its Supercharger Network, which currently have over 12,000 stations across the globe. The company has also ironed out the supply of its vehicles’ batteries, thanks to a massive investment in facilities such as Gigafactory 1 in Nevada.
The transition to the electric age will be difficult for carmakers, and it would require massive investments just to get well-designed all-electric cars ready for the market. If these developments are any indication, it appears that in the next few years, the battle lines will be drawn between veteran automakers that are willing to go all-in on electric mobility, and veteran carmakers who will steadfastly hold on to oil and the internal combustion engine.
Tesla just gave what is perhaps its biggest signal yet that the launch of the Cybercab, its autonomous ride-hailing-geared car, is imminent.
The Cybercab has been spotted outside of Gigafactory Texas in massive numbers over the past few days, with hundreds of units being stored on property just days after the vehicle received a Certificate of Conformity from the EPA.
Today, things were a bit different.
Cybercabs spotted on Giga Texas property today had an addition: a Cybercab decal on the side, reminiscent of the “Robotaxi” ones that were placed on Model Ys just as the company launched its ride-sharing platform about a year ago.
Giga Texas drone operator Joe Tegtmeyer noticed the change today:
Tesla Cybercabs are now getting “Cybercab” logos on the side of them!
Tesla did the same with Model Ys that were given “Robotaxi” logos: https://t.co/DanANtw1m7 pic.twitter.com/FqOhH0S9Ks
— TESLARATI (@Teslarati) June 19, 2026
Tesla could be signaling that the Cybercab is preparing to enter the Robotaxi fleet in the coming weeks or months with this move. It seems more symbolic than anything; Tesla is ready to throw Cybercabs in the ride-hailing platform just as it did with Model Ys last year.
The addition of the Certificate of Conformity awarded to the Cybercab is another major factor working to Tesla’s advantage. The company now has permission from the EPA to allow the vehicle to operate on public roads and enter the chain of commerce. It’s officially street legal.
Tesla Cybercab specs revealed: range, curb weight, range ratings, and more
The big question that remains is whether Tesla will be able to operate the car without a safety monitor, especially considering it plans to put the car out there without a steering wheel or pedals. With the Cybercab only having a seating capacity of two, it is hard to believe Tesla will even consider putting a Safety Monitor in the car.
It did recently self-certify as Level 4 and has the ability to operate driverless vehicles in the State of Texas under a law that took effect on May 28. You can read more about that here:
Tesla’s Robotaxi dreams just took a massive step toward reality
We’d imagine Cybercabs will be on the roads as soon as July, but August will likely be a better estimate of when the car will be entered into the Cybercab fleet. It all depends at where Tesla is, as they’ve truly prioritized safety with the rollout of the Robotaxi platform.
Elon Musk has publicly questioned Moody’s credit assessments following the rating agency’s decision to assign SpaceX a Baa1 investment-grade rating, two notches above Tesla’s Baa3. The comments came amid discussions comparing the two companies’ financial profiles.
SpaceX earned its first-time Baa1 rating with a stable outlook from Moody’s. The agency highlighted the company’s leadership in orbital launches, the growing recurring revenue from its Starlink satellite network, strong vertical integration, U.S. government contracts, and emerging opportunities in AI infrastructure.
These factors were cited as supporting robust cash flows, margin expansion, and financial flexibility.
Musk responded directly: “Tesla’s credit rating is ridiculously low tbh,” and added, “Yeah, makes no sense. Tesla has over $40B in cash, no debt, and is consistently profitable!” His remarks underscored Tesla’s balance sheet strength and profitability at a time when many traditional automakers continue to report losses in the shift to electric vehicles.
Yeah, makes no sense.
Tesla has over $40B in cash, no debt and is consistently profitable!
— Elon Musk (@elonmusk) June 19, 2026
Tesla maintains a leading position in the global EV market, with diversification into energy and storage, battery technology, and robotics through projects like Optimus. Recent financial updates show the company generated positive free cash flow of $1.4 billion in Q1 2026, supported by operating cash flow of $3.9 billion. Cash and short-term investments stood at approximately $44.7 billion.
Moody’s has affirmed Tesla’s Baa3 issuer rating with a stable outlook in periodic reviews, acknowledging the company’s EV leadership, technology strengths, including AI for autonomous vehicles, solid profitability, and strong liquidity.
Tesla (TSLA) scores Baa3 Moody’s rating for ‘stable’ outlook
However, the agency has also noted challenges in the automotive segment and expectations for margin pressures.
Musk’s critique highlights a common debate about how traditional rating methodologies apply to high-growth, capital-intensive technology companies. SpaceX benefits from long-term government-backed contracts and diversified, recurring revenue streams, while Tesla’s valuation reflects heavy investment in future technologies such as autonomy and robotics.
Both ratings remain investment-grade, yet the one-notch difference has fueled online discussion about potential inconsistencies in evaluating innovative firms.
The exchange comes as SpaceX explores financing options following its recent valuation milestones, while Tesla continues executing on its multi-year roadmap. Musk’s pointed response serves as a reminder that credit ratings, though influential for borrowing costs, represent one lens through which markets assess corporate strength—and that company leaders often view their financial positions through the lens of long-term innovation and cash generation rather than short-term risk metrics alone.
A new report from Reuters claims that a transport authority in Sweden is pushing back against the approval of Tesla’s Full Self-Driving suite because it will travel over speed limits.
The report says the Swedish Transport Administration (TRV) recommends the European Union votes against FSD’s approval. TRV believes it should not be approved until Tesla disables FSD’s ability to speed.
TRV sent a letter to the European Union’s Technical Committee on Motor Vehicles (TCMV), which is set to meet on June 30 to discuss the potential approval of the Tesla FSD suite in the country. Tesla, which has received various approvals in Europe over the past two months, has not provided a comment.
Teslas operating on FSD do travel over the speed limit, depending on the Speed Profile that is chosen. Drivers have the ability to disengage FSD at any point; Tesla specifically states that those supervising the suite are responsible for its actions.
Let’s cut to the chase: humans operating any vehicle speed almost daily in the United States. Realistically, speed limits in the U.S. are more frequently treated as speed minimums. However, other countries are different, and driving behaviors are less aggressive.
TRV believes that “allowing automated systems to systematically exceed legal speed limits…risks undermining both the legal framework and the expected safety benefits of vehicle automation,” the report stated. It’s surprising that Tesla has not received this claim from other countries previously.
This could be a good argument to bring Max Speed back, the setting that previously allowed the driver to choose the absolute fastest the car would travel.
This would still put the responsibility of supervision in the hands of the driver. It would allow the driver to choose whether the car would travel over the speed limit or not, acknowledging that they set the speed, and if they get pulled over, there would be no ability to argue it.
However, it does not seem as if this is something Tesla will do, especially considering many U.S. drivers have requested the feature in an effort to eliminate speeding or at least tone it down. The company has not shown any interest in bringing it back.
Tesla has approvals for FSD in Europe in Estonia, Lithuania, Denmark, the Netherlands, and Belgium.
Tesla Cybercab launch is imminent after latest sighting at Giga Texas
Elon Musk says this part of Tesla ‘makes no sense’
