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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 has apparently revised the policy it previously had listed for Full Self-Driving transfers on the newest All-Wheel-Drive Cybertruck that the company had sold for a steal price of just $59,000 earlier this year.
After initially stating that customers who bought the pickup would be able to transfer FSD purchases, Tesla recently changed the language in those terms and conditions to reflect that this would no longer be the case.
Tesla launches new Cybertruck trim with more features than ever for a low price
The adjustment in terminology has caused a handful of orderers to cancel their reservations due to the loss of FSD transfer:
Just cancelled my 59k CT order today. My screenshot from that day of order (feb 20th) clearly shows that it would be eligible.
Terms were retroactively modified. Our 2020 Y and 2023 S are just fine for now. pic.twitter.com/D9PFnId1B4
— Ryan Scanlan 👥 (@Xenius) June 8, 2026
Tesla said orders for the new Cybertruck AWD must be placed by March 31, 2026, to qualify for the FSD transfer. The language in the document from earlier this year explicitly states that they “may qualify” for the transfer program, but the date of March 31 is explicitly mentioned.
Additionally, Tesla Delivery Advisors reached out to some orderers of the AWD Cybertruck, who were told there was “an update to the eligibility of the Full Self-Driving (Supervised) transfer.” Tesla stated they could:
- proceed without the transfer,
- upgrade to a Premium or Cyberbeast trim and request an FSD Transfer
- cancel the order and be refunded the $250 order fee.
Tesla turning around and changing these terms will undoubtedly result in a handful of cancellations on the part of those who have placed an order for this truck. They could pay $99 per month for an FSD subscription, which is now the only option available, but having purchased the suite outright on another vehicle and being told the transfer policy would be upheld, only to have it cancelled, is a tough pill to swallow.
These moves were also made by Tesla just before deliveries were set to begin on the Cybertruck AWD configuration. Reservation holders have started receiving VINs for their trucks, and Tesla is preparing to hand over the first units.
It’s a disappointing move from Tesla that will undoubtedly make some of its fans who have bought the truck frustrated.
In the world of autonomous ride-hailing, there are only a handful of names. Among those few companies lies a strategy play by each to keep the opposition on their toes. Tesla, on the other hand, already tipped its hand at where it is headed next.
Tesla has signaled its next major push in the autonomous ride-hailing market by filing for an Autonomous Vehicle Network Company permit in Nevada (Docket 26-05015). Through Tesla Robotaxi, LLC, the company seeks approval to operate up to 5,000 robotaxis in Clark County, including high-traffic areas like Las Vegas and Henderson airports, within the first 12 months of launch.
This filing builds on Tesla’s earlier testing approvals from the Nevada DMV in September 2025 and preparations such as maintenance hubs in the Las Vegas area. Nevada represents a strategic expansion into a major tourist destination, where high visitor volumes could drive strong utilization and showcase the reliability of unsupervised autonomy to a broad audience.
We’d have to assume this means Tesla is targeting Las Vegas, and it’s a great move from a business perspective.
Vegas is such a melting pot of people from all around the country and the world. It will expose people from all corners of the globe to Tesla’s autonomy capabilities https://t.co/Qz3fQmhULF pic.twitter.com/Du5pj2RyWC
— TESLARATI (@Teslarati) June 6, 2026
Approval would mark a significant step toward commercial operations in a new state, following progress in Texas.
Tesla’s shareholder decks and earnings calls have clearly outlined these ambitions. In the Q4 2025 shareholder deck, the company listed planned Robotaxi coverage for the first half of 2026, explicitly naming Las Vegas alongside Phoenix, Miami, Orlando, and Tampa, with Dallas and Houston already advancing. Austin was noted as “ramping unsupervised,” while the Bay Area remained in safety-driver mode.
By Q1 2026, the deck updated statuses to reflect launches in Dallas and Houston, with “preparations underway” for the remaining cities, including Las Vegas. Paid Robotaxi miles nearly doubled sequentially in Q1, underscoring momentum even as broader timelines adjusted slightly for regulatory and operational readiness.
On earnings calls, CEO Elon Musk and executives have emphasized a phased rollout prioritizing safety. Unsupervised operations in Texas have shown strong results with no reported accidents or injuries in the program. Tesla continues groundwork in additional major U.S. metros through testing and permitting, positioning it to scale quickly once approvals clear.
This Nevada move aligns with Tesla’s vision of transforming from an EV maker into an AI and robotics leader. The forthcoming Cybercab, which started production at Giga Texas in April, is expected to eventually dominate the fleet, replacing many Model Y vehicles and driving down costs to enable affordable rides.
For investors and the industry, this signals Tesla’s intent to dominate key Sun Belt and tourist markets where weather, regulations, and demand favor rapid scaling. Success in Las Vegas could validate the model for denser urban and high-tourism environments, accelerating the shift toward a future where robotaxis generate meaningful revenue.
Las Vegas will also expand knowledge among the general public at Tesla’s capabilities, helping people experience driverless ride-hailing from several companies during their time on The Strip.
Investor's Corner
Tesla just did something in South Korea that no foreign carmaker has ever done
Tesla’s Model Y just became South Korea’s best-selling car, beating every domestic model in May.
Tesla did something last month that no foreign car has ever done in South Korea by outselling every vehicle in the country, domestic or imported, finishing the month with Model Y as the single best-selling car across the entire Korean market. According to data from the Korea Automobile Importers and Distributors Association released on June 4, the Model Y recorded 8,762 units sold in May, pushing the Kia Sorento into second place at 7,836 units and the Hyundai Grandeur into third at 5,183 units. It is the first time an imported vehicle has outsold every domestic model on a single-month basis.
Tesla imported 10,866 cars into South Korea in May, making it the top import brand for the fourth consecutive month. BMW followed at 6,555 units, less than two-thirds of Tesla’s total, while BYD registered just 1,032 units. The combined domestic sales of GM Korea, Renault Korea, and KG Mobility last month totaled just 7,019 units, meaning a single Tesla model outsold three Korean automakers combined.
Tesla FSD earns high praise in South Korea’s real-world autonomous driving test
South Korea has historically been one of the hardest markets for foreign automakers to crack. Hyundai and Kia together control close to 70% of the overall market and carry deep consumer loyalty built over decades. Tesla’s path into this market was an uphill battle due to high import duties, limited service infrastructure, and early skepticism about charging networks. In 2024, the Model Y was the best-selling imported car in South Korea with 18,717 units for the full year. By 2025, after the Juniper refresh, it cleared 50,000 units and took the top spot among all EVs.
Year to date, Tesla has a 250.8% increase in the country over the same period last year, and now holds a 30.8% share of the entire imported car segment for 2026. EVs as a category represented 48.6% of all imported passenger car registrations in May. As Teslarati has reported, the Juniper refresh brought meaningful improvements to range, interior quality, and ride refinement that addressed the most common criticisms of earlier Model Y versions. Those upgrades appear to be resonating in markets like South Korea where buyers compare Tesla directly against high end domestic competitors.
Tesla revises FSD transfer policy on new Cybertruck trim, causing cancellations
Tesla tipped its hand at where Robotaxi is heading next
