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Despite Tesla’s growth, the EV revolution still caught the auto industry off guard
The signs of an EV revolution were all there, but it seems like consumer demand for all-electric vehicles was still able to catch veteran automakers off guard. With Tesla currently commanding about 70% of the United States’ electric vehicle sales in the first half of the year, the race to catch up to the trailblazer is on — but it’s a lot easier said than done.
It’s a pretty insane thought today, but when Tesla announced its plans to build a dedicated battery factory to support the Model 3’s ramp, many were skeptical. Back then, many still questioned if there really was a demand for electric cars. This is not the case anymore today. If auto executives were not sure if there would be buyers for EVs before, now they’re worrying if they can build them fast enough.
Electric cars only account for about 6% of the United States’ overall vehicle sales, but this percentage has tripled in the past two years. Meanwhile, sales of other types of cars have declined, as per insights from research firm Motor Intelligence. This was represented by the fact that five of the six fastest-selling cars in the US were electric or plug-in hybrids. Tesla’s Model Y, a crossover, is on track to become one of the world’s best-selling cars.
All-In on EVs
Veteran automakers have expressed their intention to go all-in on EVs, and some, such as GM CEO Mary Barra, have even stated in the past that she believes General Motors can pass Tesla in the future. The same is true for executives from Ford and Volkswagen. But inasmuch as it’s easy to announce such an ambitious target, accomplishing it is a completely different matter.
GM, for example, started its recent EV push with the GMC Hummer EV and the Cadillac Lyric. GM received a lot of support from the Biden administration for its electric vehicle efforts, so much so that Biden dubbed Barra as a leader who electrified the auto industry. Yet, according to The Wall Street Journal, people familiar with the matter have noted that the production of the Hummer EV and Lyriq is still at rates of less than a dozen a day. This was despite the waiting lists of both vehicles stretching into the tens of thousands.
-->And it’s not just GM. Ford is somewhat in the same boat. The Ford F-150 Lightning is an acclaimed vehicle, and its order books are extremely long. The demand for the vehicle was so notable that Ford had to double its production target twice. In 2020, the company expected its lightning factory to produce 40,000 of the pickups per year, a target that was doubled last year. This past January, as the order books for the Lightning continued to grow, Ford doubled its target again to 150,000 trucks by summer 2023.
Ford’s head of EV programs Darren Palmer provided an idea of the speed at which Ford had to adjust its Lightning targets. “The cement had barely joined to some of the walls, and we were already expanding,” he said.
A Rush for Supplies
A lot of the challenges faced by veteran automakers were due to a lack of parts from the supply chain, as well as a struggle to secure as many batteries as possible. EVs use more computer chips than combustion-powered cars, which made things very challenging during the chip crisis faced by the entire industry. Electric cars also rely on batteries, so carmakers are now in a battery arms race of sorts in an effort to ensure that their EVs can be ramped.
Ultimately, the Journal noted that automakers are in their current situation because many have lowballed their early EV production estimates. Thus, when electric vehicles took off during the pandemic, many executives in the auto industry were caught off guard. Couple this with the fact that newcomers like Rivian and Lucid are also entering the fray, and the auto industry is looking more and more like it’s in the cusp of some real changes.
In a way, it’s simple. If veteran automakers would like to catch up to Tesla, they have to make electric cars that people want to buy. The success of non-Tesla EVs such as the F-150 Lightning, Mustang Mach-E, and the Hyundai Ioniq 5 show that the EV market has enough space for multiple carmakers. But with demand for EVs increasing now, some automakers may end up watching EV only competitors like Tesla increase their lead in the coming years.
-->The question of whether there is demand for EVs has long been settled. In a statement to the WSJ, Earl Stewart, a Florida-based Toyota dealer, noted that there’s actually a lot of interest in the bZ4X. However, the vehicle’s availability is just not there. Stewart noted that mass adoption of electric vehicles would need affordable electric cars. That being said, he has already taken the leap to EVs — he currently drives a Tesla Model S Plaid.
“Until they bring the prices down, it will just be people like me who can afford to buy EVs and who want to be the first on the block to drive one,” Stewart said.
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Tesla’s new Holiday perk is timed perfectly to make FSD a household name
Tesla AI4 owners get FSD (Supervised) through Christmas, New Year’s Eve and well into the post-holiday travel season.
Tesla quietly rolled out a free Full Self-Driving (Supervised) trial for roughly 1.5 million HW4 owners in North America who never bought the package, and the timing could very well be genius.
As it turns out, the trial doesn’t end after 30 days. Instead, it expires January 8, 2026, meaning owners get FSD (Supervised) through Christmas, New Year’s Eve and well into the post-holiday travel season. This extended window positions the feature for maximum word-of-mouth exposure.
A clever holiday gift
Tesla watcher Sawyer Merritt first spotted the detail after multiple owners shared screenshots showing the trial expiring on January 8. He confirmed with affected users that none had active FSD subscriptions before the rollout. He also observed that Tesla never called the promotion a “30-day trial,” as the in-car message simply reads “You’re Getting FSD (Supervised) For the Holidays,” which technically runs until after the new year.
The roughly 40-day period covers peak family travel and gatherings, giving owners ample opportunity to showcase the latest FSD V14’s capabilities on highway trips, crowded parking lots and neighborhood drives. With relatives riding along, hands-off highway driving and automatic lane changes could become instant conversation starters.
Rave reviews for FSD V14 highlight demo potential
FSD has been receiving positive reviews from users as of late. Following the release of FSD v14.2.1, numerous owners praised the update for its smoothness and reliability. Tesla owner @LactoseLunatic called it a “huge leap forward from version 14.1.4,” praising extreme smoothness, snappy lane changes and assertive yet safe behavior that allows relaxed monitoring.
-->Another Tesla owner, @DevinOlsenn, drove 600 km without disengagements, noting his wife now defaults to FSD for daily use due to its refined feel. Sawyer Merritt also tested FSD V14.2.1 in snow on unplowed New Hampshire roads, and the system stayed extra cautious without hesitation. Longtime FSD tester Chuck Cook highlighted improved sign recognition in school zones, showing better dynamic awareness. These reports of fewer interventions and a more “sentient” drive could turn family passengers into advocates, fueling subscriptions come January.
Elon Musk
Elon Musk predicts AI and robotics could make work “optional” within 20 years
Speaking on entrepreneur Nikhil Kamath’s podcast, Musk predicted that machines will soon handle most forms of labor, leaving humans to work only if they choose to.
Elon Musk stated that rapid advances in artificial intelligence and robotics could make traditional work unnecessary within two decades.
Speaking on entrepreneur Nikhil Kamath’s podcast, Musk predicted that machines will soon handle most forms of labor, leaving humans to work only if they choose to.
Work as a “hobby”
During the discussion, Musk said the accelerating capability of AI systems and general-purpose robots will eventually cover all essential tasks, making human labor a choice rather than an economic requirement. “In less than 20 years, working will be optional. Working at all will be optional. Like a hobby,” Musk said.
When Kamath asked whether this future is driven by massive productivity growth, Musk agreed, noting that people will still be free to work if they enjoy the routine or the challenge. He compared future employment to home gardening, as it is something people can still do for personal satisfaction even if buying food from a store is far easier.
“Optional” work in the future
Elon Musk acknowledged the boldness of his claim and joked that people might look back in 20 years and say he was wrong. That being said, the CEO noted that such a scenario could even happen sooner than his prediction, at least if one were to consider the pace of the advancements in AI and robotics.
-->“Obviously people can play this back in 20 years and say, ‘Look, Elon made this ridiculous prediction and it’s not true,’ but I think it will turn out to be true, that in less than 20 years, maybe even as little as ten or 15 years, the advancements in AI and robotics will bring us to the point where working is optional,” Musk said.
Elon Musk’s comments echo his previous sentiments at Tesla’s 2025 Annual Shareholder Meeting, where he noted that Optimus could ultimately eliminate poverty. He also noted that robots like Optimus could eventually provide people worldwide with the best medical care.
Elon Musk
Elon Musk reiterates why Tesla will never make an electric motorcycle
Tesla CEO Elon Musk preemptively shut down speculations about a Tesla road bike once more.
Tesla CEO Elon Musk preemptively shut down speculations about a Tesla road bike once more, highlighting that the electric vehicle maker has no plans to enter the electric motorcycle market.
Musk posted his clarification in a post on X.
Musk’s reply to a fun AI video
X user @Moandbhr posted an AI video featuring the Tesla CEO on the social media platform, captioning it with “Mr. Elon Musk Just Revealed the Game-Changing Tesla Motorcycle.” The short clip depicted Musk approaching a sleek, single-wheeled vehicle, stepping onto it, and gliding off into the distance amid cheers. The fun video received a lot of traction on X, gaining 3.1 million views as of writing.
Musk replied to the post, stating that a Tesla motorcycle is not going to happen. “Never happening, as we can’t make motorcycles safe. For Community Notes, my near death experience was on a road bike. Dirt bikes are safe if you ride carefully, as you can’t be smashed by a truck,” Musk wrote in his reply.
Musk’s Past Comments on Two-Wheelers
Musk also detailed his reservations about motorcycles in a December 2019 X post while responding to questions about Tesla’s potential ATV. At the time, he responded positively to an electric ATV, though he also opposed the idea of a Tesla road-going motorcycle. Musk did state that electric dirt bikes might be cool, since they do not operate in areas where large vehicles like Class 8 trucks are present.
-->“Electric dirt bikes would be cool too. We won’t do road bikes, as too dangerous. I was hit by a truck & almost died on one when I was 17,” Musk wrote in his post.
Considering Musk’s comments about dirt bikes, however, perhaps Tesla would eventually offer a road bike as a recreational vehicle. Such a two-wheeler would be a good fit for the Cybertruck, as well as future products like the Robovan, which could be converted into an RV.
Tesla’s new Holiday perk is timed perfectly to make FSD a household name
Elon Musk predicts AI and robotics could make work “optional” within 20 years
