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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 has landed a massive deal to expand its charging infrastructure for heavy-duty electric trucks — and not just theirs, but all manufacturers.
Tesla entered an agreement with Pilot Travel Centers, the largest operator of travel centers in the United States. Tesla’s Semi Chargers, which are used to charge Class 8 electric trucks, will be responsible for providing energy to various vehicles from a variety of manufacturers.
The first sites are expected to open later this Summer, and will be built at select locations along I-5 and I-10, major routes for commercial vehicles and significant logistics companies. The chargers will be available in California, Georgia, Nevada, New Mexico, and Texas.
Each station will have between four and eight chargers, delivering up to 1.2 megawatts of power at each stall.
The project is the latest in Tesla’s plans to expand Semi Charging availability. The effort is being put forth to create more opportunities for the development of sustainable logistics.
Senior Vice President of Alternative Fuels at Pilot, Shannon Sturgil, said:
“Helping to shape the future of energy is a strategic pillar in meeting the needs of our guests and the North American transportation industry. Heavy-duty charging is yet another extension of our exploration into alternative fuel offerings, and we’re happy to partner with a leader in the space that provides turnkey solutions and deploys them quickly.”
Tesla currently has 46 public Semi Charger sites in progress or planned across the United States, mostly positioned along major trucking routes and industrial areas. Perhaps the biggest bottleneck with owning an EV early on was charging availability, and that is no different with electric Class 8 trucks. They simply need an area to charge.
Tesla is spearheading the effort to expand Semicharging availability, and the latest partnership with Pilot shows the company has allies in the program.
The company plans to build 50,000 units of the Tesla Semi in the coming years, and with early adopters like PepsiCo, DHL, and others already contributing millions of miles of data, fleets are going to need reliable public charging.
🚨 Pilot working with Tesla to install and expand Semi Chargers is a perfect example of two industry leaders working together for the greater good.
As more commerce companies expand into EVs, Semi Charger will be more commonly available for electrified fleets, making efforts… pic.twitter.com/VPLIYyq15b
— TESLARATI (@Teslarati) January 27, 2026
Tesla is partnering with other companies for the development of the Semi program, most notably, a conglomeration with Uber was announced last year.
Tesla lands new partnership with Uber as Semi takes center stage
The ride-sharing platform plans to launch the Dedicated EV Fleet Accelerator Program, which it calls a “first-of-its-kind buyer’s program designed to make electric freight more affordable and accessible by addressing key adoption barriers.”
The Semi is one of several projects that will take Tesla into a completely different realm. Along with Optimus and its growing Energy division, the Semi will expand Tesla to new heights, and its prioritization of charging infrastructure.
Elon Musk
Elon Musk’s Boring Company opens Vegas Loop’s newest station
The Fontainebleau is the latest resort on the Las Vegas Strip to embrace the tunneling startup’s underground transportation system.
Elon Musk’s tunneling startup, The Boring Company, has welcomed its newest Vegas Loop station at the Fontainebleau Las Vegas.
The Fontainebleau is the latest resort on the Las Vegas Strip to embrace the tunneling startup’s underground transportation system.
Fontainebleau Loop station
The new Vegas Loop station is located on level V-1 of the Fontainebleau’s south valet area, as noted in a report from the Las Vegas Review-Journal. According to the resort, guests will be able to travel free of charge to the stations serving the Las Vegas Convention Center, as well as to Loop stations in Encore and Westgate.
The Fontainebleau station connects to the Riviera Station, which is located in the northwest parking lot of the convention center’s West Hall. From there, passengers will be able to access the greater Vegas Loop.
Vegas Loop expansion
In December, The Boring Company began offering Vegas Loop rides to and from Harry Reid International Airport. Those trips include a limited above-ground segment, following approval from the Nevada Transportation Authority to allow surface street travel tied to Loop operations.
Under the approval, airport rides are limited to no more than four miles of surface street travel, and each trip must include a tunnel segment. The Vegas Loop currently includes more than 10 miles of tunnels. From this number, about four miles of tunnels are operational.
The Boring Company President Steve Davis previously told the Review-Journal that the University Center Loop segment, which is currently under construction, is expected to open in the first quarter of 2026. That extension would allow Loop vehicles to travel beneath Paradise Road between the convention center and the airport, with a planned station located just north of Tropicana Avenue.
News
Tesla leases new 108k-sq ft R&D facility near Fremont Factory
The lease adds to Tesla’s presence near its primary California manufacturing hub as the company continues investing in autonomy and artificial intelligence.
Tesla has expanded its footprint near its Fremont Factory by leasing a 108,000-square-foot R&D facility in the East Bay.
The lease adds to Tesla’s presence near its primary California manufacturing hub as the company continues investing in autonomy and artificial intelligence.
A new Fremont lease
Tesla will occupy the entire building at 45401 Research Ave. in Fremont, as per real estate services firm Colliers. The transaction stands as the second-largest R&D lease of the fourth quarter, trailing only a roughly 115,000-square-foot transaction by Figure AI in San Jose.
As noted in a Silicon Valley Business Journal report, Tesla’s new Fremont lease was completed with landlord Lincoln Property Co., which owns the facility. Colliers stated that Tesla’s Fremont expansion reflects continued demand from established technology companies that are seeking space for engineering, testing, and specialized manufacturing.
Tesla has not disclosed which of its business units will be occupying the building, though Colliers has described the property as suitable for office and R&D functions. Tesla has not issued a comment about its new Fremont lease as of writing.
AI investments
Silicon Valley remains a key region for automakers as vehicles increasingly rely on software, artificial intelligence, and advanced electronics. Erin Keating, senior director of economics and industry insights at Cox Automotive, has stated that Tesla is among the most aggressive auto companies when it comes to software-driven vehicle development.
Other automakers have also expanded their presence in the area. Rivian operates an autonomy and core technology hub in Palo Alto, while GM maintains an AI center of excellence in Mountain View. Toyota is also relocating its software and autonomy unit to a newly upgraded property in Santa Clara.
Despite these expansions, Colliers has noted that Silicon Valley posted nearly 444,000 square feet of net occupancy losses in Q4 2025, pushing overall vacancy to 11.2%.
Tesla lands massive deal to expand charging for heavy-duty electric trucks
Elon Musk’s Boring Company opens Vegas Loop’s newest station
