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Tesla is ending the era of half-hearted, compliance electric cars
Carried forward by the momentum of electric vehicles like the Tesla Model 3, upcoming EVs from experienced carmakers such as Porsche and Volvo are showing a trend in the auto industry — from this point on, the automotive market will be fought with electric cars, and there will be no turning back.
It might be difficult to imagine today considering the success of the Model 3 and the influx of electric vehicles from veteran carmakers, but there was once a time when EVs were mostly half-hearted attempts whose primary purpose was to meet the mandates set by the California Air Resource Board (CARB). The EVs produced during this period even earned a very appropriate moniker — compliance cars. Among these were the Ford Focus EV, GM’s Spark EV, the Fiat 500e, the RAV4 EV, and the Honda Fit EV, all of which were adequate vehicles, but are costly and compromised in range and cargo compared to their gas-powered counterparts.
During the height of the compliance car era, some companies opted to pursue a different path. Among these is Nissan, whose all-electric vehicle, the Leaf, was sold across the United States. The Leaf would go on to be one of the best-selling EVs in the market. Tesla also saw a lot of growth in but a few years, bringing to market the Model X SUV and the Model 3 midsize sedan. Just like the Leaf, Tesla’s electric cars sold well, finding a strong following among consumers for who prefer the company’s no-compromises approach when it comes to the safety, performance, tech, and features of its vehicles. Tesla’s momentum never really stopped, as seen in the earlier-than-expected launch of the $35,000 Standard Model 3 recently.
It could be said that Elon Musk’s tenacity and his stubborn refusal to give up when faced with large challenges is a reason behind Tesla’s success. With Tesla all but proving that there is a demand for well-designed electric vehicles, other carmakers followed suit. In 2018 alone, several electric cars from established manufacturers were released, headlined by the Jaguar I-PACE, the Audi e-tron SUV, and the Mercedes-Benz EQC. Unlike compliance cars of years past, these vehicles were hyped as essential entries into their respective companies’ shift towards electric mobility. Nevertheless, some of these vehicles, such as the EQC, still carried over much of its gas-powered siblings’ characteristics, such as a front trunk full of components.
More recent electric vehicles from experienced carmakers seem to be better-designed. The Polestar 2 from Volvo, for one, proved impressive during its launch. With its dual motors that produce 408 hp, its deep integration of Google’s Android software, and a starting price of $45,000, the Polestar 2 can serve as an alternative for buyers who do not wish to purchase a Model 3. The Porsche Taycan, which is expected to be unveiled later this year, was also carefully designed from the ground-up as a high-performance electric car. Porsche has fully committed to electrification, with the company retiring its diesel lineup in favor of greener options. In the same way that the Polestar 2 can be an alternative to the Model 3, the Taycan can also be the perfect vehicle for buyers who wish to purchase a large sedan that is not a Tesla Model S.
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- Porsche Taycan rendering via TaycanForum.com
The Polestar 2 and the Porsche Taycan. (Photo: Polestar, TaycanForum.com)
If there is anything more that experienced automakers can do, it is to produce their premium electric vehicles in large quantities. Porsche, despite being a low-volume carmaker, is adopting this strategy, with the Taycan’s initial 20,000 a year output being changed to 40,000 per year. Volvo is planning to produce a decent number of Polestar 2 every year as well, with the company planning on an output “north of” 50,000 units per year. This is something highlighted by Elon Musk in a tweet earlier this year, when he noted that Tesla’s competition is “not the small trickle of non-Tesla electric cars being produced, but rather the enormous flood of gasoline cars pouring out of the world’s factories every day.”
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Elon Musk will be the first person to remind anyone that Tesla’s primary goal has always been to accelerate the advent of sustainable transport. Considering the influx of electric vehicles from veteran carmakers, as well as seemingly solid entries from younger companies like Rivian, it appears that finally, after years of swimming against the current, the auto industry is finally getting on board with Tesla’s mission. For Elon Musk, at least, it appears that his Master Plan, which outlines his vision for sustainable transportation, is coming together.
Elon Musk told The Economist that artificial intelligence will likely surpass the combined intelligence of every human on Earth within about five years, and that humans may not remain in charge once that happens. In a wide-ranging interview with editor-in-chief Zanny Minton Beddoes, recorded at Giga Texas for the outlet’s Insider series, Musk compared the widening gap between AI and human intelligence to the gap between humans and chimpanzees.
“It’s hard to imagine that the chimpanzee would be in charge,” he said, addressing what happens to human authority once AI moves far beyond us.
Elon Musk reiterates his most optimistic prediction yet with “UHI” forecast
Musk’s timeline stretches out from there. Five years for AI to out-think humanity combined, ten years before humans lose meaningful control, and by 2036, he says, money itself may stop mattering.
Musk notes that if robots and AI produce more goods and services than people could ever consume, currency loses its purpose. He told Beddoes that governments could respond with direct payments, what he called “universal high income,” a term he first used in an X post last August describing a future where “everyone will have the best medical care, food, home, transport and everything else.”
There will be universal high income (not merely basic income).
Everyone will have the best medical care, food, home, transport and everything else.
Sustainable abundance.
-— Elon Musk (@elonmusk) August 24, 2025
He also floated a more surprising prediction that deflation, and not inflation, would become the bigger economic problem, since expanding the supply of goods and services faster than the money supply grows would push prices down rather than up.
None of this is new territory for Musk, who has spent years describing an “age of abundance” built on Optimus and autonomous vehicles. What’s notable is the timing. The interview landed the same week Tesla shares dropped roughly 19 percent following a second quarter earnings report that beat on revenue but missed badly on profit, and as SpaceX stock continues to slide from its post-IPO peak.
Musk’s own net worth has fallen close to $700 billion since mid-June, according to the Bloomberg Billionaires Index, even as he describes a future where personal wealth stops being the point.
Musk did not dodge the risk side of the equation either. He put the odds of AI contributing to human extinction somewhere in the 10 to 20 percent range, then arrived at what he called his “philosophical conclusion” since the technology cannot realistically be stopped and the arguably better response is to keep building it and hope the outcome leans toward abundance rather than catastrophe. “I’ve gone from exhilaration to terror regarding AI,” he told Beddoes, “even intraday.”
Tesla is adding a new “Traction Control Modes” feature to its cars for better handling in any conditions. These features will roll out to the Model 3 and Model Y, the two vehicles in Tesla’s lineup that typically do not have drive modes for various conditions.
Tesla did include this in the Model S and Model X, as well as the Cybertruck.
The new feature will roll out with the 2026 Summer Update, which Tesla announced last week and subsequently started rolling out to some owners today. The Summer Update is the latest iteration of the usual four seasonal releases the company rolls out throughout the year. These releases typically feature some owner-requested features, as well as improvements to things like the Full Self-Driving suite.
Tesla reveals 2026 Summer Update with crazy fixes to Nav and more
This release is no different. Among the changes are improvements to Navigation, new customization options with wraps and how they can be shared and stored, more functionality with the Tesla smartphone app, and new gamification with self-driving.
However, Tesla announced today that it was adding another feature to the Summer Update. Traction Control Modes will now be available with the release
Tesla describes them:
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“Choose from three updated Traction Control Modes: Auto for normal driving conditions, Slippery Surface for icy or wet roads, Stuck Assist when stuck in snow, mud, or sand. The mode resets to Auto at the start of each drive. To select, go to Controls > Dynamics > Traction Control Mode.”
Tesla’s 2026 Summer Update also includes new Traction Control Modes
📸: @PatchesHQ https://t.co/N9cD2lGP14 pic.twitter.com/ogLC5ROIgc
— TESLARATI (@Teslarati) July 26, 2026
The use of these modes will help improve a Tesla’s overall performance in less-than-ideal conditions. Typically, these traction control modes monitor wheel speed through sensors and track engine power to adjust responsiveness in various conditions.
These drive modes are not an ultimate solution to all driving conditions; just because there is a “Stuck Assist,” doesn’t mean your Tesla will dig itself out of a foot-and-a-half trench during a blizzard. It is important to remember that some of these scenarios also require some assistance from the driver. For example, driving in sand requires tires to be aired down significantly to increase traction and control.
However, this will be a welcome addition for those who use the Full Self-Driving suite and might not be convinced of its performance in adverse conditions. Some of us prefer to be in control in rain, snow, or ice, which is totally understandable. However, adjusting the Traction Control Mode while utilizing FSD in snow, rain, or ice could increase confidence and overall experience.
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Tesla’s Summer Update is already rolling out to some owners, so it should be making its way to most of the fleet over the next several weeks. The Spring Update rolled out at a very conservative pace, so if you don’t have it by the end of August, don’t be too upset. It might just be Tesla’s method.
Just hours after Starship Flight 13 achieved a successful soft splashdown of its upper stage in the Indian Ocean on July 24, Elon Musk announced an ambitious next step for the company’s next launch of the rocket.
“Unless we discover problems after mission data review, SpaceX will attempt to catch the ship with the tower on [the] next flight,” the SpaceX CEO posted on X on Friday.
That “next flight” is expected to be Flight 14. The plan involves returning the Starship upper stage, commonly called the “ship,” to the Starbase launch tower in Texas and catching it mid-air using the same mechanical “chopsticks” arms that have already proven themselves with the Super Heavy booster.
Unless we discover problems after mission data review, SpaceX will attempt to catch the ship with the tower on next flight
— Elon Musk (@elonmusk) July 25, 2026
A successful catch would mark the first time an orbital-class upper stage has been recovered this way, advancing SpaceX’s goal of full and rapid reusability for the entire vehicle.
SpaceX has already demonstrated the tower-catch technique multiple times with Super Heavy. The first successful catch came on Flight 5 in October 2024, when Booster 12 was plucked from the sky by the Mechazilla arms. Subsequent flights, including those involving Boosters 14 and 15, repeated the feat. Several of those recovered boosters were later inspected, refurbished, and flown again, proving the system’s viability for quick turnaround.
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Traditional reusable rockets, such as SpaceX’s own Falcon 9 or Blue Origin’s New Shepard, land on legs either on land or droneships. Rocket Lab has recovered its small Electron first stages by helicopter, but those are far lighter vehicles.
SpaceX Starship just nailed something it’s never done before
The China Academy of Launch Vehicle Technology (CALT), a subsidiary of the China Aerospace Science and Technology Corp. (CASC), completed a catch of its booster on July 10. They are the only entity besides SpaceX to attempt and complete the feat.
Flight 13 provided encouraging data. The ship executed a controlled reentry, flipped, and soft-landed intact in the ocean after deploying Starlink satellites, offering the first clear post-splashdown views of an undamaged heat shield. The Super Heavy booster, meanwhile, experienced a harder splashdown in the Gulf of Mexico.
Musk has previously stressed that ship catches would only follow multiple successful soft ocean landings to minimize risk of debris over land.
If Flight 14 succeeds, SpaceX would take a major stride toward routine, rapid reuse of both stages—critical for lowering launch costs and supporting ambitious plans for lunar and Mars missions. For now, teams are reviewing the Flight 13 data. Should everything check out, the next Starship flight could deliver one of the most spectacular recoveries in aerospace history.
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Elon Musk explains what happens when AI outsmarts all of us
Tesla adds new ‘Traction Control Modes’ for better handling in any conditions
