

News
Tesla skeptics are hung up about its $465M paid loan, but the fossil fuel industry gets $11M of subsidies every minute
With Elon Musk speaking out about the Biden administration’s recent intentions to tax unrealized gains, it has become a frequent sight on social media for Tesla skeptics and bears to bring up the fact that the EV maker would not exist if the Obama administration did not loan $465 million to Tesla to keep it afloat. This “bailout,” which is how Tesla critics typically dub the $465 million loan, had been paid by the company a full nine years early — and with interest.
What is interesting is that in the grand scheme of things, Tesla’s $465 million loan from the Obama administration is but a drop in the bucket, at least compared to the subsidies that are currently enjoyed by the fossil fuel industry. As per a comprehensive report from the International Monetary Fund (IMF), the fossil fuel industry currently benefits from subsidies of $11 million per minute. That’s a whopping $5.9 trillion worth of subsidies granted for the production and burning of coal, oil, and gas in 2020.
As per the IMF report, setting fossil fuel prices that actually reflect their true cost could cut worldwide CO2 emissions by over 30%, and thus, it would be a substantial step towards meeting the internationally agreed 1.5C target. Ensuring that such a target is still within reach is a goal of the UN’s Cop26 climate summit this coming November. Interestingly enough, among the Cop26’s goal is to agree on rules for carbon markets, which would enable the appropriate pricing for pollution, as per a report from The Guardian.
Ian Parry, the lead author of the IMF report, noted that a reform on how the fossil fuel industry is currently subsidized could result in massive benefits. “There would be enormous benefits from reform, so there’s an enormous amount at stake. Some countries are reluctant to raise energy prices because they think it will harm the poor. But holding down fossil fuel prices is a highly inefficient way to help the poor because most of the benefits accrue to wealthier households. It would be better to target resources towards helping poor and vulnerable people directly,” Parry noted.
Mike Coffin, a senior analyst at Carbon Tracker, a think tank, agreed with this sentiment, noting that it’s crucial for governments to stop supporting an industry that’s already in decline anyway. “To stabilize global temperatures, we must urgently move away from fossil fuels instead of adding fuel to the fire. It’s critical that governments stop propping up an industry that is in decline and look to accelerate the low-carbon energy transition and our future, instead,” Coffin stated.
Tesla CEO Elon Musk has noted in the past that he actually feels bad about people who have made their career in the oil and gas industry. Musk has also made it clear that he is a proponent of a carbon tax, which his companies such as SpaceX would gladly pay. According to the Tesla CEO, however, the Biden administration was hesitant about his proposal.
“I talked to the Biden administration, and they were like ‘Well, this seems too politically difficult.’ And I was like, ‘Well, this is obviously a thing that should happen.’ And by the way, SpaceX would be paying a carbon tax too. So I’m like, you know, I’m like, I think we should pay it too. It’s not like we shouldn’t have carbon generating things. It’s just that there’s got to be a price on this stuff,” Musk said.
Read the IMF’s comprehensive report below.
IMF – Still Not Getting Energy Prices Right: A Global and Country Update of Fossil Fuel Subsidies by Simon Alvarez on Scribd
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Tesla rolling out Robotaxi pilot in SF Bay Area this weekend: report
Similar to the Austin pilot, the Robotaxi rides will reportedly be a paid service.

Tesla is reportedly preparing to launch a Robotaxi pilot program in the Bay Area this weekend, with invites to a select number of customers reportedly being sent out as early as this Friday.
The update was shared in a report from Insider, which cited an internal memo from the electric vehicle maker.
New Robotaxi service launch
According to Insider, the Robotaxi service in the Bay Area is set to launch as soon as Friday. Thus, some Tesla owners in the area should receive invites to use the driverless ride-hailing service. Similar to the Austin pilot, the Robotaxi rides will reportedly be a paid service.
The publication noted that the Robotaxi service’s geofence in its Bay Area launch will be quite large, as it will include Marin, much of the East Bay, San Francisco, and San Jose. This is not surprising as California has long been saturated with Teslas, and it is home to several of the electric vehicle maker’s key facilities.
Unlike the Austin pilot, the Tesla Robotaxi service’s pilot in the Bay Area will use safety drivers seated in the driver’s seat. These drivers will be able to manually take over using the steering wheel and brakes as needed. As per a spokesperson from the California DMV, the agency recently met with Tesla but the company is yet to submit a formal application to operate fully driverless cars.
Tesla Robotaxi expansion
Interestingly enough, Tesla did tease the release of its Robotaxi service to the Bay Area in its second quarter earnings call. While discussing the service, Tesla VP of Autopilot/AI Software Ashok Elluswamy mentioned that the company will initially be rolling out Robotaxis with safety drivers in the San Francisco Bay Area. He did, however, also highlight that the electric vehicle maker is working hard to get government permission to release the service for consumers.
“The next thing to expand would be in the San Francisco Bay Area. We are working with the government to get approval here and, in the meanwhile, launch the service without the person in the driver seat just to expedite and while we wait for regulatory approval,” he stated.
News
Tesla is ready with a perfect counter to the end of US EV tax credits
Tesla executives have mentioned that these more affordable models would resemble the company’s current lineup.

The United States’ electric vehicle tax credit is coming to an end at the end of the third quarter. Tesla, the country’s leading electric vehicle maker, is ready to meet this challenge with a rather simple but clever counter.
Tesla executives outlined this strategy in the recently held Q2 2025 earnings call.
End of the US EV tax credit
While Elon Musk has always maintained that he prefers a market with no EV tax credit, he also emphasized that he supports the rollback of any incentives given to the oil and gas industry. The Trump administration has not done this so far, instead focusing on the expiration of the $7,500 EV tax credit at the end of the third quarter.
Tesla has been going all-in on encouraging customers to purchase their vehicles in Q3 to take advantage of lower prices. The company has also implemented a series of incentives across all its offerings, from the Cybertruck to the Model 3. This, however, is not all, as the company seems to be preparing a longer-term solution to the expiration of the EV tax credit.
Affordable variants
During the Q2 2025 earnings call, Vice President of Vehicle Engineering Lars Moray stated that Tesla really did start the production of more affordable models in June. Quality builds of these vehicles are being ramped this quarter, with the goal of optimizing production over the remaining months of the year. If Tesla is successful, these models will be available for everyone in Q4.
“We started production in June, and we’re ramping quality builds and things around the quarter. And given that we started in North America and our goal is to maximize production with a higher rate. So starting Q3, we’re going to keep pushing hard on our current models to avoid complexity… We’ll be ready with new, more affordable models available for everyone in Q4.,” Moravy stated.
These comments suggest that Tesla should be able to offer vehicles that are competitively priced even after the EV tax credit has been phased out. Interestingly enough, previous comments from Tesla executives have mentioned that these more affordable models would resemble the company’s current lineup. This suggests that the more affordable models may indeed be variations of the Model Y and Model 3, but offered at a lower price.
Elon Musk
Elon Musk reveals Tesla’s next Robotaxi expansion in more ways than one
Tesla Robotaxi is growing in more ways than one. Tesla wants to expand and hopes to reach half the U.S. population by the end of the year.

Tesla CEO Elon Musk revealed the company’s plans for its next expansion of the Robotaxi in terms of both the geofence in Austin and the platform overall, as it looks to move to new areas outside of Texas.
Tesla launched the Robotaxi platform last month on June 22, and has since expanded both the pool of users and the area that the driverless Model Y vehicles can travel within.
The first expansion of the geofence caught the attention of nearly everyone and became a huge headline as Tesla picked a very interesting shape for the new geofence, resembling male reproductive parts.
🚨 Elon Musk says Tesla’s Robotaxi geofence in Austin will get “even bigger and longer” in “a couple weeks or so” pic.twitter.com/0gLeKfURMi
— TESLARATI (@Teslarati) July 23, 2025
The next expansion will likely absolve this shape. Musk revealed last night that the new geofence will be “well in excess of what competitors are doing,” and it could happen “hopefully in a week or two.”
Musk’s full quote regarding the expansion of the geofence and the timing was:
“As some may have noted, we have already expanded our service area in Austin. It’s bigger and longer, and it’s going to get even bigger and longer. We are expecting to greatly increase the service area to well in excess of what competitors are doing, hopefully in a week or two.”
The expansion will not stop there, either. As Tesla has operated the Robotaxi platform in Austin for the past month, it has been working with regulators in other areas, like California, Arizona, Nevada, and Florida, to get the driverless ride-hailing system activated in more U.S. states.
Tesla confirmed that they are in talks with each of these states regarding the potential expansion of Robotaxi.
Musk added:
“As we get the approvals and prove out safety, we will be launching the autonomous ride-hailing across most of the country. I think we will probably have autonomous ride-hailing in probably half the population of the US by the end of the year.”
We know that Tesla and Musk have been prone to aggressive and sometimes outlandish timelines regarding self-driving technology specifically. Regulatory approvals could happen by the end of the year in several areas, and working on these large metros is the best way to reach half of the U.S. population.
Tesla said its expansion of the geofence in Austin is conservative and controlled due to its obsession with safety, even admitting at one point during the Earnings Call that they are being “paranoid.” Expanding the geofence is necessary, but Tesla realizes any significant mistake by Robotaxi could take it back to square one.
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