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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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Elon Musk
Tesla Giga Berlin growth could stall if not “free from external influences”: Elon Musk
The comments were delivered in a pre-recorded video discussion.
Tesla CEO Elon Musk has reportedly warned that future expansion of Gigafactory Berlin could be jeopardized if the site does not remain “free from external influences.”
Musk’s comments were delivered in a pre-recorded video discussion with employees and came at a sensitive moment for the facility, where union representation has been a recurring issue.
According to reports from Handelsblatt and Der Spiegel, citing participants at the event, Musk suggested that if Giga Berlin is no longer “free from external influences,” further expansion would become unlikely. He did not, however, hint that the plant would shut down.
While Musk did not name IG Metall directly, his remarks were widely interpreted as referencing the union, which is currently the largest faction on the works council but does not hold a majority, as noted in an electrive report.
The video conversation was conducted between Musk in Austin and Grünheide plant manager André Thierig, then played back to the workforce in Germany. Works council elections are scheduled for early March, heightening the tension between management and organized labor.
The CEO has previously voiced concerns that stronger union influence could limit Tesla’s operational flexibility and long-term strategy in Germany.
Despite the warning on expansion, Musk praised the Giga Berlin site during the same address, describing it as one of the most advanced factories worldwide and highlighting its cleanliness and team culture.
The discussion also reportedly touched on battery cell production. According to attendees cited in German media, Musk indicated that Tesla has begun ramping cell production at the site. That would mark a notable shift from earlier expectations that large-scale cell manufacturing in Brandenburg would not begin until 2027.
Elon Musk
Tesla Full Self-Driving’s newest behavior is the perfect answer to aggressive cars
According to a recent video, it now appears the suite will automatically pull over if there is a tailgater on your bumper, the most ideal solution for when a driver is riding your bumper.
Tesla Full Self-Driving appears to have a new behavior that is the perfect answer to aggressive drivers.
According to a recent video, it now appears the suite will automatically pull over if there is a tailgater on your bumper, the most ideal solution for when a driver is riding your bumper.
With FSD’s constantly-changing Speed Profiles, it seems as if this solution could help eliminate the need to tinker with driving modes from the person in the driver’s seat. This tends to be one of my biggest complaints from FSD at times.
A video posted on X shows a Tesla on Full Self-Driving pulling over to the shoulder on windy, wet roads after another car seemed to be following it quite aggressively. The car looks to have automatically sensed that the vehicle behind it was in a bit of a hurry, so FSD determined that pulling over and letting it by was the best idea:
Tesla appears to be implementing some sort of feature that will now pull over if someone is tailgating you to let the car by
Really cool feature, definitely get a lot of this from those who think they drive race cars
— TESLARATI (@Teslarati) February 26, 2026
We can see from the clip that there was no human intervention to pull over to the side, as the driver’s hands are stationary and never interfere with the turn signal stalk.
This can be used to override some of the decisions FSD makes, and is a great way to get things back on track if the semi-autonomous functionality tries to do something that is either unneeded or not included in the routing on the in-car Nav.
FSD tends to move over for faster traffic on the interstate when there are multiple lanes. On two-lane highways, it will pass slower cars using the left lane. When faster traffic is behind a Tesla on FSD, the vehicle will move back over to the right lane, the correct behavior in a scenario like this.
Perhaps one of my biggest complaints at times with Full Self-Driving, especially from version to version, is how much tinkering Tesla does with Speed Profiles. One minute, they’re suitable for driving on local roads, the next, they’re either too fast or too slow.
When they are too slow, most of us just shift up into a faster setting, but at times, even that’s not enough, see below:
What has happened to Mad Max?
At one point it was going 32 in a 35. Traffic ahead had pulled away considerably https://t.co/bjKvaMVTNX pic.twitter.com/aaZSWmLu5v
— TESLARATI (@Teslarati) January 24, 2026
There are times when it feels like it would be suitable for the car to just pull over and let the vehicle that is traveling behind pass. This, at least up until this point, it appears, was something that required human intervention.
Now, it looks like Tesla is trying to get FSD to a point where it just knows that it should probably get out of the way.
Elon Musk
Tesla Megapack powers $1.1B AI data center project in Brazil
By integrating Tesla’s Megapack systems, the facility will function not only as a major power consumer but also as a grid-supporting asset.
Tesla’s Megapack battery systems will be deployed as part of a 400MW AI data center campus in Uberlândia, Brazil. The initiative is described as one of Latin America’s largest AI infrastructure projects.
The project is being led by RT-One, which confirmed that the facility will integrate Tesla Megapack battery energy storage systems (BESS) as part of a broader industrial alliance that includes Hitachi Energy, Siemens, ABB, HIMOINSA, and Schneider Electric. The project is backed by more than R$6 billion (approximately $1.1 billion) in private capital.
According to RT-One, the data center is designed to operate on 100% renewable energy while also reinforcing regional grid stability.
“Brazil generates abundant energy, particularly from renewable sources such as solar and wind. However, high renewable penetration can create grid stability challenges,” RT-One President Fernando Palamone noted in a post on LinkedIn. “Managing this imbalance is one of the country’s growing infrastructure priorities.”
By integrating Tesla’s Megapack systems, the facility will function not only as a major power consumer but also as a grid-supporting asset.
“The facility will be capable of absorbing excess electricity when supply is high and providing stabilization services when the grid requires additional support. This approach enhances resilience, improves reliability, and contributes to a more efficient use of renewable generation,” Palamone added.
The model mirrors approaches used in energy-intensive regions such as California and Texas, where large battery systems help manage fluctuations tied to renewable energy generation.
The RT-One President recently visited Tesla’s Megafactory in Lathrop, California, where Megapacks are produced, as part of establishing the partnership. He thanked the Tesla team, including Marcel Dall Pai, Nicholas Reale, and Sean Jones, for supporting the collaboration in his LinkedIn post.
Tesla Giga Berlin growth could stall if not “free from external influences”: Elon Musk
Tesla Full Self-Driving’s newest behavior is the perfect answer to aggressive cars
