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Should Tesla Take Ford and GM’s “Tesla-beater” Seriously?

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Ford and GM have claimed they could build a Tesla-beater as of late, but whether this holds any merit or something to be scoffed at remains to be seen.

Ford Tesla-beater Threat

Although we can theoretically see this happening much further down the road, as battery technology matures and EVs as a whole become the norm, the reality is still not that clear. Ford has certainly shown in the past that it can be a competitive threat when they pour enough money into an endeavor. Such is the case in the early 1960’s when Ford beat its Ferrari rivalry with the legendary GT40. However, a mass-production, consumer viable EV with long range capabilities is exponentially more difficult to execute on – something Elon Musk has long said.

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Ford Focus Electric (Photo credit: Ford Motor Company)

Ford’s ‘Power of Choice’ strategy was designed to give consumers a choice of powertrain ranging from gasoline engines, hybrids, plug-in hybrids, and full battery electric vehicles. Unfortunately, the only battery electric vehicle Ford offers is the Focus Electric. As to deciphering Ford’s Tesla-beater claim, the devil is in the details. Ford claims it is capable of making a bigger electric sedan than the Focus Electric. Ford Motor Company CEO, Mark Fields speaks about the Tesla Model S: “We drove it. We took it apart. We put it back together and we drove it again.” Ford could feasibly use the Fusion global platform and turn it into an EV. The problem lies not in the platform, but in the choice of battery and assembly.

Can GM Deliver a Tesla Model III-beater?

Chevy-Volt-FactoryGM has also come out to boldly claim that it can offer Tesla a competitor for the upcoming Model III, according to HybridCars. Reportedly, a 2016 $30,000 range-extended GM car will benefit from improved batteries through lessons learned from its Voltec platform. But bare in mind that GM just revealed its much improved next-generation Volt will sport a larger gasoline powered onboard generator. Did you catch it? GM’s Tesla-beater is an extended range electric plug-in hybrid (PHEV). GM feels Tesla’s well educated EV buyers might be swayed with a PHEV, but we feel this would be better competition for the BMW i3 Rex, extended range EV than a battery electric Tesla. C’mon guys, let’s compare apples to apples.

GM and Ford Versus the Tesla Motors Philosophy

It is this type of news that keeps us writers writing, but the real comparison is not in powertrain platforms, but in design philosophies. Tesla designed its Model S completely in-house, with very little outsourcing, including the battery pack assembly. Detroit carmakers design their platforms and outsource most parts. Carmakers still treat battery assembly and the final pack as an outsourced commodity, unlike Tesla Motors. That is the crucial difference.

At this stage, the famous Gandhi quote comes to mind: “First they ignore you, then they laugh at you, then they fight you, then you win.” Whether Ford and GM can offer a Tesla-beater besides saying they are capable remains to be seen beyond quotes.

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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.

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(Credit: Tesla)

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. 

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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.

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(Source: Tesla)

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. 

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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. 

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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.

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Credit: Tesla Raj/YouTube

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:

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.

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