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Elon Musk finally names Tesla’s main rival—and it’s way bigger than the auto industry

Credit: Tesla Energy Australia

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It’s easy to fall into the Tesla vs. legacy auto narrative. Since the days of the original Roadster, it appeared that Tesla was this company that was determined to make a change by forcing the automotive industry to go electric. But while this was true to a point, Tesla’s battle is much bigger than that. Elon Musk confirmed as much on Twitter recently.

Tesla did force the automotive industry to go electric. Its Model S did prove that EVs can be just as good or even better than combustion-powered cars. Its Model 3 did show that good EVs have a legitimate market among mainstream car buyers. However, Tesla has always maintained that its EVs — while they are the company’s most popular products — are only part of its ecosystem.

In a recent tweet, Musk noted that when Tesla’s market cap exceeds that of Saudi Aramco, then that is the time when people can see that the future would be good for the planet. “When Tesla’s market cap, making sustainable energy products, exceeds that of Aramco, producing fossil fuels, you know the future will be good for Earth,” Musk wrote on Twitter.

So that’s Tesla’s rival. It’s not Volkswagen, the legacy automaker that Elon Musk states is the most serious one in the EV transition, nor is it GM and Ford, both of which are looking to release numerous EVs over the coming years. It’s not even Rivian or Lucid, two upstart EV makers whose stellar first vehicles are standing on the shoulders of giants like the Model S.

No, Tesla’s main rival is one of the world’s largest gas companies by market cap. Saudi Aramco has a market cap of $2.431 trillion as of May 2022. Tesla, despite being far larger than any automaker on Earth by market cap, was at $786.98 billion. Tesla had reached a market cap of over $1 trillion before, but in the grand scheme of things, the gap between Saudi Aramco and Tesla is still extremely vast.

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Fortunately, Tesla has plans to significantly increase its reach in the coming years, not only in the automotive sector but in areas like artificial intelligence as well. Products like the Tesla Bot, as well as an ecosystem of home products like a smart HVAC system, have the potential to make Tesla into a household name like Apple. If Tesla can foster an ecosystem of renewable solutions, then it would truly become the antithesis of companies like Aramco — and it could be the perfect company to beat them too.

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla benefits from new incentive program that’s active after tax credit loss

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(Credit: Tesla)

Tesla benefits from an incentive program in Texas that has become active following the loss of the $7,500 EV tax credit, which was a significant advantage for EV drivers.

In Texas, the State Commission on Environmental Quality has a grant program for light-duty motor vehicles that are either purchased or leased by consumers.

Referred to as the Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP), the program opened on October 13 and provides grants for consumers who want to buy new energy vehicles.

Will Tesla thrive without the EV tax credit? Five reasons why they might

The program allows for grants of up to $2,500 for electric or hydrogen fuel cell vehicles.

These are the eligibility criteria:

  • Individuals or entities who purchase or lease an eligible vehicle on or after September 1, 2025, and who apply for or acquire title and registration of the vehicle in Texas
  • Applicants must have taken possession of the vehicle before applying
  • Applicants must commit to operating and registering the vehicle in Texas for at least one year

Additionally, the car must:

  • Be included on the TCEQ Eligible Vehicle List
  • Be new and must not have been the subject of any prior retail sale or lease
  • Have a gross vehicle weight rating of 10,000 pounds or less

They are awarded on a first-come, first-served basis.

The good news is that Tesla’s entire vehicle lineup, as of October 7, qualifies. Here is what the LDPLIP’s list of qualifying vehicles shows for Tesla:

  • Tesla Cybertruck AWD
  • Tesla Cybertruck Beast
  • Tesla Model S AWD
  • Tesla Model S Plaid
  • Tesla Model X AWD
  • Tesla Model X Plaid
  • Tesla Model Y Long Range RWD
  • Tesla Model Y Long Range AWD
  • Tesla Model Y Performance
  • Tesla Model 3 Long Range RWD
  • Tesla Model 3 Long Range AWD
  • Tesla Model 3 Performance

This list was published during the day of October 7, which is coincidentally the same day Tesla launched its Tesla Model 3 ‘Standard’ and Tesla Model Y ‘Standard.’

We reached out to the program to confirm that these vehicles qualify for that grant, and we will update when we hear back.

With the loss of the Federal EV Tax Credit, local programs are still available to help with the cost of an EV. Although electric cars are affordable, there are benefits to choosing one, especially as these grant programs continue to become available.

The full list of vehicles that qualify for the grant is available here.

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Tesla’s pay package saga with Elon Musk enters its final chapter

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Tesla has made a last-ditch effort to secure the $56 billion pay package for CEO Elon Musk, which was approved twice by company shareholders, after a Delaware Chancery Court denied the frontman the payday.

Perhaps one of the biggest issues from a standpoint of being fluent in Tesla-related events has been Musk’s pay package.

It was approved by shareholders once in 2018, and required Musk to oversee various growth tranches that would bring investors value. He completed each of the tranches and was entitled to the pay package.

However, the Delaware Chancery Court decided in January 2024 to rescind the pay package, which Musk had earned, based on a suit filed by a shareholder.

Chancellor Kathaleen McCormick ruled that Tesla’s board lacked independence from Musk when the pay package was approved in 2018, and that it should not be granted.

She called it “an unfathomable sum.”

In response to the pay package’s rejection by Chancellor McCormick, Tesla held a second shareholder vote last year, which once again showed investors were willing to support Musk’s payday. It was approved by shareholders, but it was once again denied by the court.

Today, Tesla attorneys argued to the Delaware Supreme Court that the pay package should be restored because of last year’s vote by shareholders.

Jeffrey Wall, an attorney for Tesla, said (via Reuters):

“This was the most informed stockholder vote in Delaware history. Reaffirming that would resolve this case. Shareholders in 2024 knew exactly what they were voting.”

In a response to the decision by the Delaware courts last year, Tesla proposed a new pay package for Musk in September, which would give him a potentially $1 trillion compensation plan. It would require Musk to help Tesla reach several performance-based growth milestones, including achieving an $8.5 trillion market cap.

Elon Musk’s new pay plan ties trillionaire status to Tesla’s $8.5 trillion valuation

Musk is currently worth $483 billion, making him the richest person in the world. If he were to achieve his pay package tranches, granted the new pay package is passed at the Shareholder Meeting in November, he would easily be the first trillionaire.

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Tesla makes big move with its Insurance program

Tesla Insurance launched back in late 2019, and it was massive because it was the first time a company aimed to cover its vehicle owners in-house without the need for third-party companies.

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Credit: Tesla

Tesla Insurance is heading to a new state for the first time in years, as the company is aiming to launch its in-house coverage platform in Florida.

Tesla Insurance launched back in late 2019, and it was massive because it was the first time a company aimed to cover its vehicle owners in-house without the need for third-party companies.

Tesla Insurance goes live with claims of lower rates by 20-30%

However, it has struggled to expand and only offers insurance in twelve states currently.

Tesla Insurance is available in:

  • Arizona
  • California
  • Colorado
  • Illinois
  • Maryland
  • Minnesota
  • Nevada
  • Ohio
  • Oregon
  • Texas
  • Utah
  • Virginia

In California, Tesla cannot offer real-time insurance or telematics due to regulatory rules.

The company uses a Safety Score to adjust rates based on driving behaviors. The current version, which is called Safety Score Beta v2.2, tracks Hard Braking, Aggressive Turning, Unsafe Following, Excessive Speeding, Late-Night Driving, Forced Autopilot Engagement, and Unbuckled Driving to determine the rate it should charge.

Tesla is working to expand into new markets and has filed applications to launch the program into new U.S. states. Back in 2022, it filed to offer insurance to Florida drivers, but it did not launch.

However, the company just filed to update its Private Passenger Auto program in Florida, according to the insurance site CoverageR.

It would be the first new state to obtain Tesla Insurance since Utah and Maryland launched over three years ago.

Tesla Insurance is now in Utah and Maryland

Tesla has its eyes on other states, including Georgia, New Jersey, Oregon, and Virginia.

It has also tried to expand to Europe, as it opened an office specifically for Insurance. It was also hiring for Legal Counsel specializing in Insurance on the continent, but nothing ever expanded to an actual offering of vehicle coverage.

Tesla Insurance is an advantage for owners specifically because the company is familiar with its vehicles, the parts, and the repair processes that are required to get a car back on the road.

This was a big reason some drivers switched from the previous providers to the in-house Insurance Tesla was able to offer.

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