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How Tesla’s ridesharing network could disrupt the airline industry
The auto industry is changing. Autonomous and electric cars are becoming more available sooner than many people think. This will become even more prevalent once Tesla delivers upwards of 500k to 1 million self-driving vehicles per year by the end of the decade. But this change from gas-powered cars to a world powered by battery electric vehicles won’t be isolated to the auto industry. It will likely affect other sectors, including the airline industry.
Disrupting the Airline Industry
As advances in the auto industry make traveling by car more attractive, airlines will have to adjust to the steeper competition. Short haul flights, flights less than 300 miles, will be most significantly affected. Short haul flights cost an average of $120 above the cost of driving, and reduces door-to-door travel time by roughly an hour. These types of city to nearby city flights make up 25% of all US domestic departures.
According to a new Morgan Stanley study, if demand for short haul flights completely disappeared, it would lead to about a 15% loss in earnings. The study also acknowledged that such a change would take at least five to ten years, giving the airline industry time to adjust.
Modern Car Travel
Even without Tesla’s ridesharing network, widespread adoption of electric cars and existing ridesharing services are making people reconsider their reasons for traveling by plane. Services such as Uber and Lyft are more cost effective than flying, and oftentimes more convenient due to the ease of scheduling a ride and with more range of options available. Travelers sacrifice the shorter travel time of a flight, but the difference is oftentimes not too significant.
Southern California-based Tesla-only intercity shuttle service, Tesloop, currently provides transportation service between Los Angeles, Las Vegas and Palm Springs, and will be looking to expand its operations into new markets. The drivers, which the company refers to as “pilots”, transport passengers using Tesla Autopilot. And like the experience in an airplane, Tesloop provides snacks, water and Wi-Fi to its passengers. Why is this important? By replicating the experience of airline travel, while doing so at lesser cost than a traditional short haul flight, Tesloop presents a compelling reason to use ground transportation and forego vehicle ownership.
-->The Future of Car Travel
Ridesharing, autonomous cars and electric cars are three trends that are not going away any time soon. In fact, they will likely continue to become more commonplace and alter the way we live in meaningful ways.
As technology continues to advance, the comfort, flexibility and reliability of ridesharing, electric cars and autonomous cars will increase as the cost decreases. This will make them more attractive to travelers and further threaten airlines.
In the future, new forms of automobile travel will begin to improve in the areas where flying currently has an advantage. Autonomous cars will make traveling on the roads safer for everyone. Once human error is taken out of the equation, speed limits will likely be increased, lessening the time advantage flying currently has over driving.
Tesla’s free long distance travel for life Supercharging model combined with advances in Autopilot and self-driving technology, plus ridesharing, are already altering the way we think about travel, and their impact on other industries will only increase with time. New technologies bring about change. New ideas create new opportunities in economies and in our way of life.
The advancements will likely disrupt many industries that exist today, including the airline industry. Airlines will have to adjust to the changes — but who knows? Maybe one day autonomous and electric planes (or flying cars) will disrupt the autonomous electric car ridesharing economy.
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News
Tesla Full Self-Driving (FSD) testing gains major ground in Spain
Based on information posted by the Dirección General de Tráfico (DGT), it appears that Tesla is already busy testing FSD in the country.
Tesla’s Full Self-Driving (Supervised) program is accelerating across Europe, with Spain emerging as a key testing hub under the country’s new ES-AV framework program.
Based on information posted by the Dirección General de Tráfico (DGT), it appears that Tesla is already busy testing FSD in the country.
Spain’s ES-AV framework
Spain’s DGT launched the ES-AV Program in July 2025 to standardize testing for automated vehicles from prototypes to pre-homologation stages. The DGT described the purpose of the program on its official website.
“The program is designed to complement and enhance oversight, regulation, research, and transparency efforts, as well as to support innovation and advancements in automotive technology and industry. This framework also aims to capitalize on the opportunity to position Spain as a pioneer and leader in automated vehicle technology, seeking to provide solutions that help overcome or alleviate certain shortcomings or negative externalities of the current transportation system,” the DGT wrote.
The program identifies three testing phases based on technological maturity and the scope of a company’s operations. Each phase has a set of minimum eligibility requirements, and applicants must indicate which phase they wish to participate in, at least based on their specific technological development.
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Tesla FSD tests
As noted by Tesla watcher Kees Roelandschap on X, the DGT’s new framework effectively gives the green flight for nationwide FSD testing. So far, Tesla Spain has a total of 19 vehicles authorized to test FSD on the country’s roads, though it would not be surprising if this fleet grows in the coming months.
The start date for the program is listed at November 27, 2025 to November 26, 2027. The DGT also noted that unlimited FSD tests could be done across Spain on any national route. And since Tesla is already in Phase 3 of the ES-AV Program, onboard safety operators are optional. Remote monitoring would also be allowed.
Tesla’s FSD tests in Spain could help the company gain a lot of real-world data on the country’s roads. Considering the scope of tests that are allowed for the electric vehicle maker, it seems like Spain would be one of the European countries that would be friendly to FSD’s operations. So far, Tesla’s FSD push in Europe is notable, with the company holding FSD demonstrations in Germany, France, and Italy. Tesla is also pushing for national approval in the Netherlands in early 2026.
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Tesla FSD V14.2.1 is earning rave reviews from users in diverse conditions
Tesla’s Full Self-Driving (Supervised) software continues its rapid evolution, with the latest V14.2.1 update drawing widespread praise.
Tesla’s Full Self-Driving (Supervised) software continues its rapid evolution, with the latest V14.2.1 update drawing widespread praise for its smoother performance and smarter decision-making.
Videos and firsthand accounts from Tesla owners highlight V14.2.1 as an update that improves navigation responsiveness, sign recognition, and overall fluidity, among other things. Some drivers have even described it as “more alive than ever,” hinting at the system eventually feeling “sentient,” as Elon Musk has predicted.
FSD V14.2.1 first impressions
Early adopters are buzzing about how V14.2.1 feels less intrusive while staying vigilant. In a post shared on X, Tesla owner @LactoseLunatic described the update as a “huge leap forward,” adding that the system remains “incredibly assertive but still safe.”
Another Tesla driver, Devin Olsenn, who logged ~600 km on V14.2.1, reported no safety disengagements, with the car feeling “more alive than ever.” The Tesla owner noted that his wife now defaults to using FSD V14, as the system is already very smooth and refined.
Adverse weather and regulatory zones are testing grounds where V14.2.1 shines, at least according to testers in snow areas. Tesla watcher Sawyer Merritt shared a video of his first snowy drive on unplowed rural roads in New Hampshire, where FSD did great and erred on the side of caution. As per Merritt, FSD V14.2.1 was “extra cautious” but it performed well overall.
-->Sign recognition and freeway prowess
Sign recognition also seemed to show improvements with FSD V14.2.1. Longtime FSD tester Chuck Cook highlighted a clip from his upcoming first-impressions video, showcasing improved school zone behavior. “I think it read the signs better,” he observed, though in standard mode, it didn’t fully drop to 15 mph within the short timeframe. This nuance points to V14.2.1’s growing awareness of temporal rules, a step toward fewer false positives in dynamic environments.
FSD V14.2.1 also seems to excel in high-stress highway scenarios. Fellow FSD tester @BLKMDL3 posted a video of FSD V14.2.1 managing a multi-lane freeway closure due to a police chase-related accident. “Perfectly handles all lanes of the freeway merging into one,” the Tesla owner noted in his post on X.
FSD V14.2.1 was released on Thanksgiving, much to the pleasant surprise of Tesla owners. The update’s release notes are almost identical to the system’s previous iteration, save for one line item read, “Camera visibility can lead to increased attention monitoring sensitivity.”
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Tesla FSD Supervised ride-alongs in Europe begin in Italy, France, and Germany
The program allows the public to hop in as a non-driving observer to witness FSD navigate urban streets firsthand.
Tesla has kicked off passenger ride-alongs for Full Self-Driving (Supervised) in Italy, France and Germany. The program allows the public to hop in as a non-driving observer to witness FSD navigate urban streets firsthand.
The program, detailed on Tesla’s event pages, arrives ahead of a potential early 2026 Dutch regulatory approval that could unlock a potential EU-wide rollout for FSD.
Hands-Off Demos
Tesla’s ride-along invites participants to “ride along in the passenger seat to experience how it handles real-world traffic & the most stressful parts of daily driving, making the roads safer for all,” as per the company’s announcement on X through its official Tesla Europe & Middle East account.
Sign-ups via localized pages offer free slots through December, with Tesla teams piloting vehicles through city streets, roundabouts and highways.
“Be one of the first to experience Full Self-Driving (Supervised) from the passenger seat. Our team will take you along as a passenger and show you how Full Self-Driving (Supervised) works under real-world road conditions,” Tesla wrote. “Discover how it reacts to live traffic and masters the most stressful parts of driving to make the roads safer for you and others. Come join us to learn how we are moving closer to a fully autonomous future.”
-->Building trust towards an FSD Unsupervised rollout
Tesla’s FSD (Supervised) ride-alongs could be an effective tool to build trust and get regular car buyers and commuters used to the idea of vehicles driving themselves. By seating riders shotgun, Tesla could provide participants with a front row seat to the bleeding edge of consumer-grade driverless systems.
FSD (Supervised) has already been rolled out to several countries, such as the United States, Canada, Australia, New Zealand, and partially in China. So far, FSD (Supervised) has been received positively by drivers, as it really makes driving tasks and long trips significantly easier and more pleasant.
FSD is a key safety feature as well, which became all too evident when a Tesla driving on FSD was hit by what seemed to be a meteorite in Australia. The vehicle moved safely despite the impact, though the same would likely not be true had the car been driven manually.
Tesla Full Self-Driving (FSD) testing gains major ground in Spain
Tesla FSD V14.2.1 is earning rave reviews from users in diverse conditions
