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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.
Elon Musk
Tesla Model Y outsells all EV rivals in Europe in 2025 despite headwinds
The result highlights the Model Y’s continued strength in the region.
The Tesla Model Y was Europe’s most popular electric car in 2025, leading all EV models by a wide margin despite a year marked by production transition, intensifying competition, and anti-Elon Musk sentiments.
The result highlights the Model Y’s continued strength in the region even as Volkswagen overtook Tesla as the top-selling EV brand overall.
As per data compiled by JATO Dynamics and reported by Swedish outlet Allt om Elbil, the Tesla Model Y recorded 149,805 registrations across Europe in 2025. That figure placed it comfortably at No. 1 among all electric car models in the region.
The Model Y’s performance in Europe is particularly notable given that registrations declined 28% year-over-year. The dip coincided with Tesla’s Q1 2025 transition to the updated Model Y, a changeover that temporarily affected output and deliveries in several markets. Anti-Elon Musk sentiments also spread across several European countries amidst the CEO’s work with U.S. President Donald Trump.
Even with these disruptions, the Model Y outsold its nearest rival by more than 50,000 units. Second place went to the newly launched Skoda Elroq with 93,870 registrations, followed by the Tesla Model 3 at 85,393 units. The Model 3 also recorded a 24% year-over-year decline. Renault’s new electric Renault 5 placed fourth with 85,101 registrations.
Other top performers included the Volkswagen ID.4, ID.3, and ID.7, along with the BMW iX1 and Kia EV3, many of which posted triple-digit growth from partial-year launches in 2024.
While the Model Y dominated individual model rankings, Volkswagen overtook Tesla as Europe’s top EV brand in 2025. Volkswagen delivered 274,278 electric cars in the region, a 56% increase compared to 2024. Much of that growth was driven by the Volkswagen ID.7. Tesla, by contrast, sold 236,357 electric vehicles in Europe, representing a 27% year-over-year decline.
JATO Dynamics noted that “Tesla’s small and aging model range faces fierce competition in Europe, both from traditional European automakers and a growing number of Chinese competitors.”
Despite intensifying competition and brand-level shifts, however. the Model Y’s commanding lead demonstrates that Tesla’s bestselling crossover remains a dominant force in Europe’s fast-evolving EV landscape.
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Starlink gets its latest airline adoptee for stable and reliable internet access
The company said it plans to “rapidly integrate Starlink into its fleet,” and that the first Starlink-equipped aircraft will enter service this Summer.
SpaceX’s Starlink, the satellite internet program launched by Elon Musk’s company, has gotten its latest airline adoptee, offering stable and reliable internet to passengers.
Southwest Airlines announced on Wednesday that it would enable Starlink on its aircraft, a new strategy that will expand to more than 300 planes by the end of the year.
The company said it plans to “rapidly integrate Starlink into its fleet,” and that the first Starlink-equipped aircraft will enter service this Summer.
Tony Roach, Executive Vice President, Chief Customer and Brand Officer for the airline, said:
“Free WiFi has been a huge hit with our Rapid Rewards Members, and we know our Customers expect seamless connectivity across all their devices when they travel. Starlink delivers that at-home experience in the air, giving Customers the ability to stream their favorite shows from any platform, watch live sports, download music, play games, work, and connect with loved ones from takeoff to landing.”
Southwest also said that this is just one of the latest upgrades it is making to provide a more well-rounded experience to its aircraft. In addition to Starlink, it is updating cabin designs, offering more legroom, and installing in-seat power to all passengers.
Southwest became one of several airlines to cross over to Starlink, as reviews for the internet provider have raved about reliability and speed. Over the past year, Hawaiian Airlines, United Airlines, Alaska Airlines, airBaltic, Air France, JSX, Emirates, British Airways, and others have all decided to install Starlink on their planes.
This has been a major move away from unpredictable and commonly unreliable WiFi offerings on planes. Starlink has been more reliable and has provided more stable connections for those using their travel time for leisure or business.
Jason Fritch, VP of Starlink Enterprise Sales at SpaceX, said:
“We’re thrilled to deliver a connectivity experience to Southwest Airlines and its Customers that really is similar, if not better, than what you can experience in your own home. Starlink is the future of connected travel, making every journey faster, smoother, and infinitely more enjoyable.”
Starlink recently crossed a massive milestone of over 10 million subscribers.
Elon Musk
Tesla nears closure of Full Self-Driving purchasing option
The move to bring FSD to this type of purchasing program comes after CEO Elon Musk noted in January that Tesla would move away from the outright purchase option.
Tesla is nearing the closure of its Full Self-Driving outright purchasing option, which will be removed on February 14, meaning Saturday will be the last time it can be bought as a non-subscription.
Tesla is aiming to move its Full Self-Driving suite to a subscription-only platform, a move that will enable people to only pay monthly for the semi-autonomous driving functionality.
The move to bring FSD to this type of purchasing program comes after CEO Elon Musk noted in January that Tesla would move away from the outright purchase option.
It is currently priced at $8,000 for the outright option to use Full Self-Driving, a substantial decrease compared to the $15,000 it was priced at one time. For the monthly subscription, it is just $99 per month, but that price will change, likely increasing as things get more advanced.
Tesla is overhauling its Full Self-Driving subscription for easier access
We say it will likely increase because there is no indication of how Tesla will price FSD. There has been some speculation that Tesla could utilize a tiered system to price FSD, which would potentially allow owners to pick and choose a set of features that would be most ideal for them.
This would potentially introduce an even more affordable option for FSD use, but this is unconfirmed. The reason many say this could be an option for Tesla is the fact that if the price goes up further, the take rate, which is currently around 12 percent at its most recent estimate, could be lower.
Musk needs 10 million active Full Self-Driving subscriptions to unlock one of the tranches of his newest compensation package.
The move to a subscription-only platform has its positives and negatives, and owners have been more than vocal about these since Musk confirmed the move.
Positives
- Lower barrier to entry and higher potential adoption
- Financially better for many users
- Easier transfers and brand loyalty
- Predictable recurring revenue for Tesla
- Access to the latest features
Negatives
- Higher long-term cost for loyal/long-term owners
- No true “ownership” or permanence
- Risk of future price hikes or even deactivation
- Perceived as of less value
- Impact on resale and used market
Overall, there is a split among the Tesla community in terms of what they see as the “right” way to handle this. Tesla is likely to shed more details on what its plans for the subscription-only platform will be, including pricing, in the coming weeks.
Tesla Model Y outsells all EV rivals in Europe in 2025 despite headwinds
Starlink gets its latest airline adoptee for stable and reliable internet access
