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Tesla faces biggest challenge yet as oil industry fights to maintain its hold on US auto
Tesla might have overcome several notable hurdles this year, but the electric car maker is now facing what could very well be its biggest challenge yet in the United States. As the company hits its stride with the production of the Model 3 and as it prepares to ramp its energy business next year, a rather discreet movement is underway to ensure that America remains waist-deep in oil.
A recent expose published by The New York Times outlines an active campaign to roll back the country’s existing vehicle emissions rules. Earlier this year, the US government laid out a plan that aims to ease fuel efficiency standards in the country. The movement’s central point is simple — since America is so awash in oil, the country no longer needs to worry about energy conservation.
The publication’s investigation noted that the movement, which was supported by proposals in Congress and social media campaigns, is backed by some of the United States’ largest oil interests. Marathon Petroleum, the US’ largest refiner, as well as a policy network with ties to billionaire Charles G. Koch, contributed to help push the movement’s agenda. Overall, the creation of the proposal and its support from the oil industry is understandable, considering that the advent of electric vehicles threatens the bottom line of the industry. Less gas-thirsty cars on the road mean lower sales of gasoline. More pure electric vehicles on the road, such as Tesla’s electric cars, are an even bigger threat.
The US government’s initiative takes aim at the country’s emissions standards, which practically requires automakers to double the fuel efficiency of their vehicles by 2025. Under the government’s proposal, emissions standards would be frozen at 2020 levels. The NYT estimates that if the government’s planned rollback is implemented, it would increase greenhouse gas emissions in the United States by more than the amount of gases put out by midsize countries such as Austria, Greece, or Bangladesh in one year.
Lawmakers and delegations across the United States have backed the pro-oil campaign, with several groups sending letters to the Transportation Department to express their support. The publication noted that these letters featured much of the same phrasing, particularly a line directly referencing the preferences of American car buyers. “With oil scarcity no longer a concern, historically low gas prices, increasingly ambitious CAFE requirements, it is important that NHTSA and EPA review the mandate to ensure that the US is protecting consumers from higher costs and still allowing for choice in vehicles that best fit their needs,” one of the letters stated.
The oil-backed movement, though, is currently encountering some pushback from members of the government. Among these is Senator Tom Carper of Delaware, who expressed his criticism of the administration’s campaign. In a statement to the NYT, Carper noted that “oil interests are cynically trying to gin up support in Congress for the weakest possible standards to ensure that cars and SUVs have to rely on even more oil.” The senator added that “If this attempt is successful, the outcome will be a blow to the auto industry, consumers, and our environment.”
At the forefront of the resistance against the oil-backed campaign is California, home to Tesla’s headquarters and electric car factory. California pledged to stick to stricter emissions standards while maintaining an initiative to push the adoption of zero-emissions vehicles. Thirteen states currently follow CA’s lead, representing about 35% of the United States’ nationwide car sales.
At the heart of the movement is the notion that American car buyers prefer large, gas-guzzling vehicles such as full-sized pickup trucks and SUVs over zero-emissions vehicles. This is a market barely touched by electric car makers today, with cars such as the Tesla Model X competing in the luxury SUV segment — a far smaller and notably higher-priced market than those populated by gas-powered best-sellers such as the Chevrolet Suburban. The same is true for the pickup truck market, which is home to the Ford F-150, the country’s best-selling vehicle. Serious all-electric pickup trucks such as Rivian’s R1T have been unveiled recently, but just like the Model X, the R1T is a luxury vehicle at its core.
Tesla has matured greatly this year, as the company overcame the Model 3’s production hell and as Elon Musk dealt with the repercussions of his online behavior. Considering the pro-oil movement stirring in the country, though, Tesla might need to take even greater responsibilities in the immediate future. Being a first mover in the electric car revolution, Tesla has the potential to take the lead in bringing compelling vehicles that can compete with gasoline-powered cars on both performance and price. The company is already accomplishing this with the Model 3, as proven by the electric sedan’s impressive sales figures over the past months. So far, though, Tesla is yet to release vehicles that can truly take on the country’s gas guzzlers at a similar price point.
This might change next year, as Tesla is expected to reveal the Model Y SUV. The Model Y is designed to be the SUV counterpart of the Model 3 — powerful, practical, and attainable by the everyman — and if Elon Musk’s recent statements are any indication, the vehicle’s unveiling could be just around the corner. Tesla could very well be targeting the mainstream, seven-seat SUV market with the Model Y, with Musk recently describing the vehicle as a “midsize SUV” during an appearance at the Recode Decode podcast. Musk has also indicated that Tesla might be releasing its pickup truck earlier than expected.
Tesla, though, is not capable of pushing the EV revolution alone. Thus, it is pertinent for EV startups such as Rivian and Bollinger Motors to step up to the challenge and perhaps accelerate the development and release of their electric vehicles. Legacy automakers that have committed to an electrified future, such as Porsche and Jaguar, must expedite the release of compelling zero-emissions cars as well. Porsche and Jaguar have already taken a notable step with the Taycan and the I-PACE, but far more steps need to be taken.
For its part, Tesla would best be served by a steadier hand in the coming quarters. With an aggressive campaign to keep the United States entrenched in oil ongoing, Tesla must lead in a manner that is quick, efficient, and steady. Thus, mistakes such as the over-automation of the Model 3 assembly line, as well as Elon Musk’s Twitter gaffes, should best be avoided. Tesla is already a fast-evolving company, having grown to a major automaker in all but 15 years. Considering the presence of the government’s oil-backed campaign, though, Tesla is at a point where it must evolve even faster than before.
For now, the US’ auto industry appears to be facing a crossroads. On the one hand, there are companies such as Tesla proving that electric cars such as the Model 3 are viable and competitive. On the other hand, there are groups lobbying to maintain the auto industry’s reliance on oil. If a recent public hearing in Colorado is any indication, though, it appears that support for sustainable transportation is very much present.
Last month, Americans for Prosperity representative Shari Shiffer-Krieger attended a public hearing about Colorado’s pending decision to follow California’s lead. Americans for Prosperity is among the oil industry’s supporters. In Iowa, the group joined the fight against an initiative that would make it easier for gas stations to install electric car charging stations, and in Illinois, the group discouraged state officials from considering subsidies for EVs. Speaking to Colorado’s regulators, Shiffer-Krieger argued that buyers in the rugged state preferred powerful SUVs over stricter emissions rules.
“Coloradans deserve much better,” she said.
Colorado’s regulators accommodated her, before allying themselves with California.
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Tesla loses Director who designed one of the company’s best features
Thomas Dmytryk, who has spent over 11 years with Tesla and helped to develop Over-the-Air updates and the company’s vehicles’ ability to utilize them to improve, has decided to leave.
Tesla has lost the director who designed one of the company’s best features: Over-the-Air updates.
Thomas Dmytryk, who has spent over 11 years with Tesla and helped to develop Over-the-Air updates and the company’s vehicles’ ability to utilize them to improve, has decided to leave. In a lengthy statement on LinkedIn, Dmytryk said that he’s “closing the book.” He had nothing but good things to say:
“After 11 incredible years at Tesla, I’m closing the book. It’s been the ride of a lifetime: always on the news, innovating relentlessly, constantly pushing the limits. Tesla is THE place for talented, passionate people. I feel insanely lucky to have been part in that culture for so long.”
It appears the intense lifestyle of developing and creating intensively for so long might have caught up to Dmytryk, who did not give his definitive plans for the future, and it appears he may be taking some time off before jumping into a new venture:
“The future? Extremely bright. Ambitions intact, just getting started as a transformative company that could elevate billions of lives. So why leave now?! Human life’s always been my North Star, right now I need to be with mines. I’ve always admired Tesla’s top leadership and vision. But what I’ve always found incredible is the tenacity, brilliance and devotion of people on the front line. YOU make Tesla unstoppable. I wish you all the best and of course EPIC wins.”
The move was first reported by NotaTeslaApp.
Over-the-Air updates are among Tesla’s best features. They are used to improve the Full Self-Driving suite, add features, remedy recalls, and more. Many vehicles have the ability to receive OTA updates, as I did in a Ford Bronco previous to my Model Y. However, Tesla does them better than anyone else: they’re seamless, effective, and frequent. Your car always improves.
The move is a blow to Tesla, of course, considering Dmytryk’s massive contribution to the company and extremely long tenure spent, but not something that is overwhelmingly detrimental. Tesla deals with a lot of extremely intelligent people, some of whom are the best in their field, so they are sure to find a suitable replacement.
However, it’s no secret that the company has been losing some of its top talent, some of whom were in executive roles. Some have left to take on new projects, and others have not revealed their career plans.
It seems at least some of those employees are simply deciding to walk away and try new things after working so hard for so long. According to Dmytryk’s LinkedIn, he also played a large part in Musk’s acquisition of X, as he stated he “worked at Twitter/X ~45/week while working at the same pace for Tesla.”
That averages a 13-hour day, seven days a week, or 18 hours for the normal five-day work week.
News
Tesla’s most wanted Model Y heads to new region with no sign of U.S. entry
Unlike the standard Model Y, the “L” stretches the wheelbase by roughly 150 mm and the overall length by about 177 mm to 4,976 mm. The result is a genuine 2-2-2 seating layout that gives six adults proper legroom and cargo space — a true family hauler without the cramped third-row compromises of many three-row SUVs.
Tesla’s most wanted Model Y configuration is heading to a new region, and although U.S. fans and owners have requested the vehicle since its release last year, it appears the company has no plans to bring it to the market.
According to fresh regulatory filings, the six-seat Model Y L is coming to South Korea with signs indicating an imminent launch. The extended-wheelbase configuration, already a hit in China, just cleared energy-efficiency certification from the Korea Energy Agency, paving the way for deliveries as early as the first half of 2026.
The vehicle is already built at Tesla’s Giga Shanghai facility in China, making it an ideal candidate for the Asian market, as well as the European one, as the factory has been known as a bit of an export hub in the past.
$TSLA
BREAKING: The official launch of Tesla Model Y L in S.Korea seems to be quite imminent.Additional credentials related to Model YL were released today.
✅ Battery Manufacturer: LG Energy Solutions
✅ Number of passengers: 6 people
✅ Total battery capacity: 97.25 kWh… pic.twitter.com/hmy64XYi80— Tsla Chan (@Tslachan) March 6, 2026
It seems like Tesla was prepping for this release anyway, as the timing was no accident. A camouflaged Model Y L prototype was spotted testing on Korean highways the same day the certification dropped. Tesla has already secured similar approvals for Australia and New Zealand, with both markets expecting the larger Model Y in 2026.
Unlike the standard Model Y, the “L” stretches the wheelbase by roughly 150 mm and the overall length by about 177 mm to 4,976 mm. The result is a genuine 2-2-2 seating layout that gives six adults proper legroom and cargo space — a true family hauler without the cramped third-row compromises of many three-row SUVs.
South Korean filings list it as an all-wheel-drive imported electric passenger vehicle with a 97.25 kWh total battery capacity supplied by LG Energy Solution. Local tests show an impressive 543 km (337 miles) combined range at room temperature and 454 km (282 miles) in colder conditions, easing one of the biggest concerns for Korean EV buyers.
Tesla Model Y lineup expansion signals an uncomfortable reality for consumers
But for U.S. fans, things are not looking good for a launch in the market.
CEO Elon Musk has been blunt. The six-seater “wouldn’t arrive in the U.S. until late 2026, if ever,” he said, pointing to the company’s heavy bet on unsupervised Full Self-Driving and robotaxi platforms like the Cybercab. With the Model X slated for discontinuation, many families hoped the stretched Model Y would slide into the lineup as an affordable three-row bridge. So far, that hope remains unfulfilled.
For now, South Korean drivers will be among the first buyers outside China to enjoy the spacious, efficient Model Y L. Tesla continues its global rollout strategy, tailoring vehicles to regional tastes while North American customers keep refreshing their apps and crossing their fingers.
The Model Y L proves the appetite for practical, family-sized electric SUVs is stronger than ever. Hopefully, Tesla will listen to its fans and bring the vehicle to the U.S. where it would likely sell well.
Elon Musk
Tesla is ramping up its advertising strategy on social media
Tesla has long stood out in the automotive world for its unconventional approach to advertising—or, more accurately, its near-total avoidance of it. For over a decade, the company spent virtually nothing on traditional marketing.
Tesla seems to be ramping up its advertising strategy on social media once again. Marketing and advertising have not been a major focus of Tesla’s, something that has brought some criticism to the company from its fans.
However, the company looks to be making adjustments to that narrative, as it has at times in the past, as ads were spotted on several different platforms over the past few days.
On Facebook and YouTube, ads were spotted that were evidently placed by Tesla. On Facebook, Tesla was advertising Full Self-Driving, and on YouTube, an ad for its Energy Division was spotted:
Tesla also threw up some ads on YouTube for Energy https://t.co/19DGQMjBsA pic.twitter.com/XQRfgaDKxY
— TESLARATI (@Teslarati) March 9, 2026
Tesla has long stood out in the automotive world for its unconventional approach to advertising—or, more accurately, its near-total avoidance of it. For over a decade, the company spent virtually nothing on traditional marketing.
In 2022, Tesla’s U.S. ad spend was roughly $152,000, a rounding error compared to General Motors’ $3.6 billion the following year.
Traditional automakers averaged about $495 per vehicle on ads; Tesla spent $0. CEOElon Musk’s stance was explicit: “Tesla does not advertise or pay for endorsements,” he posted on X in 2019. “Instead, we use that money to make the product great.”
The strategy relied on word-of-mouth from delighted owners, Elon’s massive X following, viral product launches, media frenzy, and customer referrals. A great product, Musk argued, sells itself. It does not need Super Bowl spots or billboards. Resources poured into R&D instead, with Tesla investing nearly $3,000 per car, far more than rivals.
Tesla counters jab at lack of advertising with perfect response
This reluctance wasn’t arrogance; it was philosophy, and Musk made it clear that the money was better spent on the product. Heavy spending on ads was seen as wasteful when innovation and authenticity drove organic demand. Shareholder calls for marketing budgets were ignored.
The current shift, paid Facebook ads promoting Full Self-Driving (Supervised) and YouTube Shorts offering up to $1,000 back on Powerwall batteries, marks a pragmatic evolution.
These targeted campaigns coincide with the end of one-time FSD purchases and a March 31 deadline for FSD transfer eligibility on new vehicles.
This move likely signals Tesla adapting to scale, as well as a more concerted effort to stop misinformation regarding its platform. As EV competition intensifies and the company bets big on robotaxis and energy storage, pure organic buzz may not suffice to hit adoption targets. Selective digital ads allow precise, cost-effective reach without abandoning core principles.
If successful, it could foreshadow measured expansion into marketing, boosting high-margin software and home energy revenue while preserving Tesla’s innovative edge. But, it’s nice to see the strategy return, especially as Tesla has been reluctant to change its mind in the past.
Tesla loses Director who designed one of the company’s best features
Tesla’s most wanted Model Y heads to new region with no sign of U.S. entry
