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Tesla’s Model 3 and the death of plug-in hybrids: ‘Full electric is a much more elegant solution’
Tesla took a big bet when it decided to launch the Model 3. Being a vehicle designed for the mass market, the sheer scale of the sedan’s production was something that Tesla has not dealt with before. It took more time than expected and a trip through “production hell,” but the Model 3 has now been ramped, with Elon Musk noting that producing 5,000 of the vehicles per week is currently no big deal for Tesla.
The market’s reception to the Model 3 has been encouraging. The vehicle has been performing well in the United States, ranking among America’s best-selling passenger cars. In September alone, the Model 3 became the 4th best-selling car in the US based on sales volume. Based on revenue, the Model 3 was even more impressive, ranking first among passenger cars sold in the country. Tesla does not seem to be planning on pulling back from its Model 3 push either, as the electric carmaker has started rolling out exhibits of the vehicle to Europe and Asia this month.
Amidst the evident success of the Model 3 and Elon Musk’s high-stakes bet on the electric sedan, another class of vehicles has begun to show notable signs of a decline — the plug-in hybrids. Plug-in hybrid electric vehicles (PHEV) are equipped with both an electric motor and an internal combustion engine. Popular cars in this class include the Chevy Volt, with its all-electric range of up to 53 miles, and a total range of 420 miles with a full battery and a full tank of gas.
PHEVs have mostly served as the “gateway” vehicles for customers looking to make the jump to electric transportation. Being equipped with a gasoline engine, owners need not worry about any of the initial drawbacks of pure EVs, such as limited range. Plug-in Hybrid and Electric Vehicle Research Center director Gil Tal noted to Bloomberg that in a way, PHEVs are like the “training wheels” of the electric car movement. That said, Tal noted that as practical, capable EVs like the Model 3 emerge, consumers might simply skip PHEVs and adopt all-electric cars instead.
“A full electric (car) is a much more elegant solution. It’s very simple to build and very low maintenance. It’s just a much more simple story. Plug-in hybrids are just the training wheels in the industry’s preparation for electric cars,” Tal said.
The death of plug-in hybrid electric vehicles became more real recently, with GM announcing that it was closing several of its plants across the United States and Canada. Among these plants was GM’s oldest factory at Detroit-Hamtramck, which produces the Volt. In a later statement, GM confirmed that it would be discontinuing the production of the Volt, with the company focusing on developing all-electric cars like the Bolt EV instead.
GM has announced that it is discontinuing the production of the Chevy Volt. [Credit: Chevrolet]
In a way, the apparent death of the PHEV seemed to have been predicted by Elon Musk eight years ago. In a statement to the media during the opening ceremony of the Fremont factory, Musk likened PHEVs to amphibians during the process of evolution. And just like amphibians, Musk noted that the number of PHEVs would likely decrease as the market moves into the full-electric era.
“(PHEVs are) similar to an amphibian. In the transition from the oceans to land, initially, there were a lot of amphibians. Now there’s not that many amphibians. So the only reason you’d ever need that gasoline engine is if the battery pack does not have enough range, if the recharge times are really slow, and all those things will get solved. So there’s a medium-term role for a plug-in hybrid, but in our view, not a long-term role. I think there’s a role for plug-in hybrids today and there’s a role for electrics, but I think long-term, it all goes electric.”
The seemingly impending death of the plug-in hybrid is not just the result of electric cars like Tesla’s Model S, 3, and X. Earlier this year, a Forbes report earlier this year noted that the efforts (or lack thereof) of manufacturers such as GM are partly to blame for the decline of PHEVs. Inasmuch as the Volt was warmly received by owners and well-reviewed by critics, for example, the vehicle remained a rare sight among GM’s dealerships across the United States. GM’s TV advertising campaigns have not featured the Volt, or its all-electric sibling, the Bolt EV, either.
That said, GM appears to be taking its EV initiative seriously this time around. Earlier this month, for one, VP of global strategy Mike Ableson boldly declared during a press conference that GM is looking to “lead the industry in EVs sometime in the next decade or so.” The next years will determine if these words will be true.
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Tesla rolls out most aggressive Model Y lease deal in the US yet
With the promotion in place, customers would be able to take home a Model Y at a very low cost.
Tesla has rolled out what could very well be its most aggressive promotion for Model Y leases in the United States yet. With the promotion in place, customers would be able to take home a Model Y at a very low cost.
Zero downpayment leases
The new Model Y lease promotion was initially reported on X, with industry watcher Sawyer Merritt stating that while the vehicles’ monthly payments are still similar to before, the cars can now be ordered with a $0 downpayment.
Tesla community members noted that this promotion would cut the full payment cost of Model Y leases by several thousand dollars, though prices were still a bit better when the $7,500 federal tax credit was still in effect. Despite this, a $0 downpayment would likely be appreciated by customers, as it lowers the entry point to the Tesla ecosystem by a notable margin.
Premium freebies included
Apart from a $0 downpayment, customers of Model Y leases are also provided one free upgrade for their vehicles. These upgrades could be premium paint, such as Pearl White Multi-Coat, Deep Blue Metallic, Diamond Black, Quicksilver or Ultra Red, or 20″ Helix 2.0 Wheels. Customers could also opt for a White Interior or a Tow Hitch free of charge.
A look at Tesla’s Model Y order page shows that the promotion is available for all the Model Y Premium Rear-Wheel Drive and the Model Y Premium All-Wheel Drive. The Model Y Standard and the Model Y Performance are not eligible for the $0 downpayment or free premium upgrade promotion as of writing.
@teslarati 🚨 Tesla Full Self-Driving v14.1.7 is here and here’s some things it did extremely well! #tesla #teslafsd #fullselfdriving ♬ You Have It – Marscott
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Tesla is looking to phase out China-made parts at US factories: report
Tesla has reportedly swapped out several China-made components already, aiming to complete the transition within the next two years.
Tesla has reportedly started directing its suppliers to eliminate China-made components from vehicles built in the United States. This would make Tesla’s US-produced vehicles even more American-made.
The update was initially reported by The Wall Street Journal.
Accelerating North American sourcing
As per the WSJ report, the shift reportedly came amidst escalating tariff uncertainties between Washington and Beijing. Citing people reportedly familiar with the matter, the publication claimed that Tesla has already swapped out several China-made components, aiming to complete the transition within the next two years. The publication also claimed that Tesla has been reducing its reliance on China-based suppliers since the pandemic disrupted supply chains.
The company has quietly increased North American sourcing over the past two years as tariff concerns have intensified. If accurate, Tesla would likely end up with vehicles that are even more locally sourced than they are today. It would remain to be seen, however, if a change in suppliers for its US-made vehicles would result in price adjustments for cars like the Model 3 and Model Y.
Industry-wide reassessments
Tesla is not alone in reevaluating its dependence on China. Auto executives across the automotive industry have been in rapid-response mode amid shifting trade policies, chip supply anxiety, and concerns over rare-earth materials. Fluctuating tariffs between the United States and China during President Donald Trump’s current term have made pricing strategies quite unpredictable as well, as noted in a Reuters report.
General Motors this week issued a similar directive to thousands of suppliers, instructing them to remove China-origin components from their supply chains. The same is true for Stellantis, which also announced earlier this year that it was implementing several strategies to avoid tariffs that were placed by the Trump administration.
@teslarati 🚨 Tesla Full Self-Driving v14.1.7 is here and here’s some things it did extremely well! #tesla #teslafsd #fullselfdriving ♬ You Have It – Marscott
News
Tesla owners propose interesting theory about Apple CarPlay and EV tax credit
“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.
Tesla is reportedly bracing for the integration of Apple’s well-known iOS automotive platform, CarPlay, into its vehicles after the company had avoided it for years.
However, now that it’s here, owners are more than clear that they do not want it, and they have their theories about why it’s on its way. Some believe it might have to do with the EV tax credit, or rather, the loss of it.
Owners are more interested in why Tesla is doing this now, especially considering that so many have been outspoken about the fact that they would not use it in favor of the company’s user interface (UI), which is extremely well done.
After Bloomberg reported that Tesla was working on Apple CarPlay integration, the reactions immediately started pouring in. From my perspective, having used both Apple CarPlay in two previous vehicles and going to Tesla’s in-house UI in my Model Y, both platforms definitely have their advantages.
However, Tesla’s UI just works with its vehicles, as it is intuitive and well-engineered for its cars specifically. Apple CarPlay was always good, but it was buggy at times, which could be attributed to the vehicle and not the software, and not as user-friendly, but that is subjective.
Nevertheless, upon the release of Bloomberg’s report, people immediately challenged the need for it:
Everyone thinks they need it. I would think that too if I didn’t know how good Tesla’s interface was. CarPlay is a crappy layer on top of crappy info-navs, and people think it’s an imperative because it provides a level of consistency from car to car. They have no clue how much…
— Rich Stafford (@r26174_rich) November 14, 2025
How can it not be when the best engineers choose Tesla over Apple and Tesla’s core focus is auto vs Apple being mobile. It’s what Tesla does every day. It’s a side project for Apple. Still Apple is much better than any other auto OEM who attract lesser talent and make digital…
— Emu (@confessedemu) November 14, 2025
Some fans proposed an interesting point: What if Tesla is using CarPlay as a counter to losing the $7,500 EV tax credit? Perhaps it is an interesting way to attract customers who have not owned a Tesla before but are more interested in having a vehicle equipped with CarPlay?
“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.
Tesla has made a handful of moves to attract people to its cars after losing the tax credit. This could be a small but potentially mighty strategy that will pull some carbuyers to Tesla, especially now that the Apple CarPlay box is checked.
@teslarati :rotating_light: This is why you need to use off-peak rates at Tesla Superchargers! #tesla #evcharging #fyp ♬ Blue Moon – Muspace Lofi
Tesla rolls out most aggressive Model Y lease deal in the US yet
Tesla is looking to phase out China-made parts at US factories: report
Tesla owners propose interesting theory about Apple CarPlay and EV tax credit
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