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Tesla and EV-only carmakers are legacy auto’s karma for killing the electric car
Karma could be a cruel mistress. It has a tendency to sneak up from behind before delivering a cruel haymaker to the jaw. Karma takes a while to rev up sometimes, but when it comes, things change, and sometimes these changes can be painful. Considering the state of the auto market, as well as the momentum carried by companies like Tesla, Lucid Motors, and Rivian, it appears that legacy carmakers are finally dealing with some well-deserved karma — for killing the electric car.
The general death of EVs amidst the emergence of the internal combustion engine during the early days of automobiles is understandable. Back then, fossil fuels presented a cheap, efficient way to travel, with vehicles like the Baker Electric and the Porsche P1 taking a very long time to charge. However, the death of the electric car that happened in the late 90s was something that is far more difficult to justify.
During the mid-90s, a modern electric vehicle was created by General Motors, and it could have been the driving force of a change in the motoring world. The vehicle, dubbed the EV1, was on the bleeding edge of tech at the time, with its three-phase alternating current induction motor and lead-acid (later changed to NiMH) battery. It had enough range for inner-city travel, it was fast, and it was sleek. But inasmuch as it was beloved by those who leased it, the EV1 was fated to meet an unfortunate demise.
In a series of events that inspired the creation of the documentary “Who Killed the Electric Car,” General Motors decided to discontinue the EV1, reclaiming the car from the leasees and destroying the vehicles. Segments of the acclaimed documentary depicted customers asking GM if they could just purchase the all-electric car, with some even holding demonstrations for the EV. But despite all these efforts, GM let the EV1 die, and most, save for a few, were unceremoniously crushed.
There were many speculations surrounding the EV1’s demise. General Motors insisted that the vehicle was not commercially viable. But the trend of large, gas-guzzling SUVs that followed the EV1 in GM’s lineup contributed to rumors that the electric car was killed because it represented a potential threat to the fossil fuel industry. In a sense, the electric car did die a painful, crushing death in the 90s, and it was not until Tesla came to the picture that EVs emerged as viable alternatives to gas-powered cars once more.
And it’s not like there was no resistance to the emergence of electric cars like Tesla, either. Tesla faced and continues to face strong opposition, and if it weren’t for its dedicated team and Elon Musk’s own stubbornness and resilience, the company could have followed the same fate as the EV1. But with vehicles like the Model S changing the game and cars like the Model 3 disrupting vehicle classes that used to be dominated by the internal combustion engine, it eventually became evident that this time around, it will be far more difficult to kill the electric car.
Amidst the success of companies like Tesla, even legacy automakers are playing catch up. Vehicles like the Jaguar I-PACE and the Chevy Bolt EV are representations of this. But even with these efforts, the pace of innovation in the electric vehicle segment is fast. Companies like Tesla work like tech companies, failing fast and failing forward. And now, legacy auto does not only have Tesla to contend with. Other premier electric cars from companies that are EV-only are coming. Tesla may have put EVs back on the map, but now, more companies are joining the fray.
There’s Lucid Motors with the Air, a hyper-luxury sedan that would likely put the Mercedes S-Class in its place. There’s the Rivian R1T and R1S, which bring luxury and comfort even in places off the beaten path. Even Bollinger Motors is attacking a small niche of rock-crawling vehicles with its no-nonsense, rough-and-tough B1 and B2. These are only the tip of the iceberg as well. Veteran auto is even getting increasingly dedicated to EVs, as evidenced by Porsche’s decision to revamp its entire factory in Zuffenhausen just to get the company ready for more electric vehicles like the Taycan.
It appears that this time around, killing the electric car will not be as simple or easy as before. Unlike the early 1900s, EVs now charge fast and they go the distance, and unlike the 90s, electric cars are now being embraced by mainstream consumers. There’s a demand for them, and EVs are now being noted for their performance. Electric cars are here to stay, and every single one that gets released is additional karma to an auto industry that appears to have dug itself far too deep into fossil fuels.
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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