News
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.
Elon Musk
Elon Musk is now a remote DOGE worker: White House Chief of Staff
The Tesla and SpaceX CEO Elon Musk is no longer working from the West Wing.
In a conversation with the New York Post, White House Chief of Staff Susie Wiles stated that Tesla and SpaceX CEO Elon Musk is no longer working from the West Wing.
As per the Chief of Staff, Musk is still working for DOGE—as a remote worker, at least.
Remote Musk
In her conversation with the publication, Wiles stated that she still talks with Musk. And while the CEO is now working remotely, his contributions still have the same net effect.
“Instead of meeting with him in person, I’m talking to him on the phone, but it’s the same net effect,” Wiles stated, adding that “it really doesn’t matter much” that the CEO “hasn’t been here physically.” She also noted that Musk’s team will not be leaving.
“He’s not out of it altogether. He’s just not physically present as much as he was. The people that are doing this work are here doing good things and paying attention to the details. He’ll be stepping back a little, but he’s certainly not abandoning it. And his people are definitely not,” Wiles stated.
Back to Tesla
Musk has been a frequent presence in the White House during the Trump administration’s first 100 days in office. But during the Q1 2025 Tesla earnings call, Musk stated that he would be spending substantially less time with DOGE and substantially more time with Tesla. Musk did emphasize, however, that DOGE’s work is extremely valuable and critical.
“I think I’ll continue to spend a day or two per week on government matters for as long as the President would like me to do so and as long as it is useful. But starting next month, I’ll be allocating probably more of my time to Tesla and now that the major work of establishing the Department of Government Efficiency is done,” Musk stated.
Elon Musk
Tariff reprieve might be ‘Tesla-friendly,’ but it’s also an encouragement to others
Tesla stands to benefit from the tariff reprieve, but it has some work cut out for it as well.
After Secretary of Commerce Howard Lutnick made adjustments to the automotive tariff program that was initially announced, many quickly pointed to the reprieve as “Tesla-friendly.”
While that may be the case right now, it was also a nudge of encouragement to other companies, Tesla included, to source parts from the U.S. in an effort to strengthen domestic manufacturing. Many companies are close, and it will only take a handful of improvements to save themselves from tariffs on their cars as well.
Yesterday, Sec. Lutnick confirmed that cars manufactured with at least 85 percent of domestic content will face zero tariffs. Additionally, U.S. automakers would receive credit up to 15 percent of the value of vehicles to offset the cost of imported parts.
Big Tesla win? Sec Lutnick says cars with 85% domestic content will face zero tariffs
“This is ‘finish your cars in America and you win’,” Lutnick said.
Many were quick to point out that only three vehicles currently qualify for this zero-tariff threshold: all three are Teslas.
However, according to Kelley Blue Book’s most recent study that revealed who makes the most American cars, there are a lot of vehicles that are extremely close to also qualifying for these tariff reductions.
Tesla has three vehicles that are within five percent, while Ford, Honda, Jeep, Chevrolet, GMC, and Volkswagen have many within just ten percent of the threshold.
Tesla completely dominates Kogod School’s 2024 Made in America Auto Index
It is within reach for many.
Right now, it is easy to see why some people might think this is a benefit for Tesla and Tesla only.
But it’s not, because Tesla has its Cybertruck, Model S, and Model X just a few percentage points outside of that 85 percent cutoff. They, too, will feel the effects of the broader strategy that the Trump administration is using to prioritize domestic manufacturing and employment. More building in America means more jobs for Americans.
Credit: Tesla
However, other companies that are very close to the 85 percent cutoff are only a few components away from also saving themselves the hassle of the tariffs.
Ford has the following vehicles within just five percent of the 85 percent threshold:
- Ford Mustang GT automatic (80%)
- Ford Mustang GT 5.0 (80%)
- Ford Mustang GT Coupe Premium (80%)
Honda has several within ten percent:
- Honda Passport All-Wheel-Drive (76.5%)
- Honda Passport Trailsport (76.5)
Jeep has two cars:
- Jeep Wrangler Rubicon (76%)
- Jeep Wrangler Sahara (76%)
Volkswagen has one with the ID.4 AWD 82-kWh (75.5%). GMC has two at 75.5% with the Canyon AT4 Crew Cab 4WD and the Canyon Denali Crew Cab 4WD.
Chevrolet has several:
- Chevrolet Colorado 2.7-liter (75.5%)
- Chevrolet Colorado LT Crew Cab 2WD 2.7-liter (75.5%)
- Chevrolet Colorado Z71 Crew Cab 4WD 2.7-liter (75.5%)
These companies are close to reaching the 85% threshold, but adjustments need to be made to work toward that number.
Anything from seats to fabric to glass can be swapped out for American-made products, making these cars more domestically sourced and thus qualifying them for the zero-tariff boundary.
Frank DuBois of American University said that manufacturers like to see stability in their relationships with suppliers and major trade partners. He said that Trump’s tariff plan could cause “a period of real instability,” but it will only be temporary.
Now is the time to push American manufacturing forward, solidifying a future with more U.S.-made vehicles and creating more domestic jobs. Tesla will also need to scramble to make adjustments to its vehicles that are below 85%.
News
Tesla Cybertruck RWD production in full swing at Giga Texas
Videos of several freshly produced Cybertruck LR RWD units were shared on social media platform X.
It appears that Tesla is indeed ramping the production of the Cybertruck Long Range Rear Wheel Drive (LR RWD), the most affordable variant of the brutalist all-electric pickup truck.
Videos of several freshly produced Cybertruck LR RWD units were shared on social media platform X.
Giga Texas Footage
As per longtime Tesla watcher Joe Tegtmeyer, Giga, Texas, was a hotbed of activity when he conducted his recent drone flyover. Apart from what seemed to be Cybercab castings being gathered in the complex, a good number of Cybertruck LR RWD units could also be seen in the facility’s staging area. The Cybertruck LR RWD units are quite easy to spot since they are not equipped with the motorized tonneau cover that is standard on the Cybertruck AWD and Cyberbeast.
The presence of the Cybertruck LR RWD units in Giga Texas’ staging area suggests that Tesla is ramping the production of the base all-electric pickup truck. This bodes well for the vehicle, which is still premium priced despite missing a good number of features that are standard in the Cybertruck AWD and Cyberbeast.
Cybertruck Long Range RWD Specs
The Cybertruck LR RWD is priced at $69,990 before incentives, making it $10,000 more affordable than the Cybertruck AWD. For its price, the Cybertruck Long Range RWD offers a range of 350 miles per charge if equipped with its 18” standard Wheels. It can also add up to 147 miles of range in 15 minutes using a Tesla Supercharger.
Much of the cost-cutting measures taken by Tesla are evident in the cabin of the Cybertruck LR RWD. This could be seen in its textile seats, standard console, seven-speaker audio system with no active noise cancellation, and lack of a 9.4” second-row display. It is also missing the motorized tonneau cover, the 2x 120V and 1x 240V power outlets on the bed, and the 2x 120V power outlets in the cabin. It is also equipped with an adaptive coil spring suspension instead of the adaptive air suspension in the Cybertruck AWD and Cyberbeast.
Elon Musk is now a remote DOGE worker: White House Chief of Staff
Tariff reprieve might be ‘Tesla-friendly,’ but it’s also an encouragement to others
Tesla Cybertruck RWD production in full swing at Giga Texas
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