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Toyota hints at its latest plans for upcoming ICE vehicles

Credit: Toyota

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Toyota has made its latest statements doubling down on plans to develop new vehicles with internal combustion engines (ICE), along with continued focus on part-hydrogen-powered options.

In a joint appearance with Mazda, Subaru, and Toyota, a part-owner of the former automakers, one executive recently highlighted and doubled down on the company’s future plans for varying ICE engines, as reported by the Financial Times on Tuesday. The company alluded to plans for battery-assisted engine variants fueled by diesel and petrol, and hydrogen, or e-fuel, as Toyota has referred to it, as part of a larger effort to offer a wide range of vehicle powertrain options.

“In an era when the development of battery electric vehicle technology is accelerating, there is a new role we can pursue for the internal combustion engine as well,” said Koji Sato, Toyota CEO, adding that these ICE engines will use electric vehicle (EV) batteries.

Toyota exec believes full-fledged EV push could be ‘wasted investment’

The company says that its upcoming ICE engines will be between 10 and 20 percent smaller, and will utilize EV batteries to offer greater output. One person familiar with the matter told the Financial Times that they’ll first be used in hybrid vehicles, before later being put in plugin hybrids.

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The company also expects for the new ICE vehicles to enter production near when the European Union (EU) will begin phasing in new emissions regulations, around the end of 2026.

Toyota did not comment in the report as to how much it planned to invest in the engine line. CTO Hiroki Nakajima has said that it will be a “magnitude smaller” than what the automaker is currently investing into EV development.

“Both the batteries for electric vehicles and international combustion engines are important,” Nakajima said.

In January, Toyota chairman Akio Toyoda said he believes EVs will only ever reach a 30 percent share of the global auto market, and the automaker has been quick to dismiss the emerging technology for the past few years. The automaker has called gas, hybrid, and hydrogen investments a more “practical” path to reaching carbon neutrality than the one that only includes battery-electric options.

What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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EV fans urge Tesla to acquire Unplugged Performance for edge in fleet and security industry

Unplugged Performance has built a name for itself by producing performance upgrades for Tesla vehicles.

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Credit: Unplugged Performance

A growing number of Tesla enthusiasts and longtime community voices are calling on the electric vehicle maker to acquire Unplugged Performance, a California-based aftermarket company best known for tuning Tesla vehicles and developing specialized government fleet solutions under its UP.FIT division.

The idea was once considered a niche proposal among EV fans, but it is now gaining serious attention not just as a performance play but as a strategic move to deepen Tesla’s roots in the fleet and security industry. 

A strategic fit

Unplugged Performance has built a name for itself by producing performance upgrades for Tesla vehicles, from track-optimized components to visual and aerodynamic upgrades. But in recent years, its UP.FIT division has pivoted toward a more functional future by outfitting Tesla vehicles like Model Ys for police, military, and government use.

That work has sparked growing calls for closer collaboration with Tesla, especially as the EV maker increasingly leans into autonomy, AI, and fleet services as core components of its next chapter.

“I posted this four years ago, but I think it’s more true now than ever,” wrote Whole Mars Catalog, a well-known Tesla investor and FSD Beta tester, on X. “Tesla should buy Unplugged. But not just as a Performance division. What they are doing with UP.FIT unlocks large government and commercial fleet purchases that can improve utilization.”

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Tesla fans such as shareholder Sawyer Merritt echoed the sentiment, calling Unplugged a “great fit within Tesla.” adding, “They are literally located directly next to Tesla’s design studio in Hawthorne.”

Enabling the next wave

Supporters of the idea noted that integrating Unplugged into Tesla’s corporate structure could help accelerate adoption of autonomous technologies, particularly in government sectors. With UP.FIT patrol cars already in use across some U.S. police departments, Tesla fans envisioned a future where self-driving Teslas could potentially revolutionize law enforcement, search-and-rescue, and public service logistics.

“Just imagine how autonomous patrol cars could transform policing and bring us into a safer future,” the veteran FSD tester wrote.

The benefits could also extend to Tesla’s existing consumer base. “They also have some incredible products in the works that I think will appeal to many ordinary Tesla drivers — not just those looking for performance or mods. Stuff that’s so good it should have come straight from the design studio next door,” Whole Mars Catalog noted.

Unplugged Performance, founded in 2013, shares not just a product vision with Tesla, but also geography. Its Hawthorne headquarters sits directly adjacent to Tesla’s design studio, and the two companies have maintained a close working relationship over the years. The aftermarket firm has long positioned itself as a “mission-aligned” partner to Tesla.

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In response to the recent calls for acquisition, Unplugged Performance acknowledged the groundswell of support from the community. “Our very existence is to support the Tesla mission with @UpfitTesla and @UnpluggedTesla,” Unplugged CEO Ben Schaffer posted on X. “We love working with Tesla and are grateful for the community’s support since 2013!”

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Tesla debuts hands-free Grok AI with update 2025.26: What you need to know

All new Tesla vehicles delivered on or after July 12, 2025, will include Grok AI out of the box

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Credit: Tesla China

Tesla has begun rolling out Grok, an in-car conversational AI assistant developed by xAI, to eligible vehicles starting July 12. The feature marks the most direct integration yet between Elon Musk’s artificial intelligence startup and Tesla’s consumer product lineup, offering drivers hands-free access to a chat-style companion while on the road.

Grok comes pre-installed on new vehicles

According to Tesla’s FAQ page for the feature, all new vehicles delivered on or after July 12, 2025, will include Grok AI out of the box. Owners of older vehicles may gain access through an over-the-air update, provided their vehicle meets a few hardware and software requirements.

Specifically, Grok is currently only supported on Tesla models equipped with an AMD infotainment processor and running vehicle software version 2025.26 and higher. Compatible models include the Model S, Model 3, Model X, Model Y, and Cybertruck. A Premium Connectivity subscription or active Wi-Fi connection is also required.

Tesla notes that additional vehicle compatibility may arrive in future software updates.

Grok’s features and limitations for now

Drivers can engage with Grok using the App Launcher or by pressing and holding the voice command button on the steering wheel. Grok is designed to answer questions and hold conversations using natural language, offering responses tailored to its chosen personality—ranging from “Storyteller” to the more eccentric “Unhinged.”

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For fun, Tesla posted a demonstration of Grok likely running on “Unhinged” talking about what it would do to Optimus when they are on a date, much to the shock of the humanoid robot’s official social media account.

It should be noted, however, that Grok cannot currently issue commands to the vehicle itself, at least for now. Traditional voice commands for tasks like climate control, navigation, or media remain separate from Grok as of writing.

The feature is being released in Beta and does not require a Grok account or xAI subscription to activate, although that policy may change over time.

Grok privacy and in-car experience

Tesla emphasizes that interactions with Grok are securely processed by xAI and not linked to a user’s Tesla account or vehicle. Conversations remain anonymous unless a user signs into Grok separately to sync their history across devices.

Tesla has also begun promoting Grok directly on its official vehicle webpages, showcasing the feature as part of its in-car experience, further highlighting the company’s increasing focus on AI and infotainment features on its all-electric vehicles.

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Tesla cleared in Canada EV rebate investigation

Tesla has been cleared in an investigation into the company’s staggering number of EV rebate claims in Canada in January.

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Credit: Tesla

Canadian officials have cleared Tesla following an investigation into a large number of claims submitted to the country’s electric vehicle (EV) rebates earlier this year.

Transport Canada has ruled that there was no evidence of fraud after Tesla submitted 8,653 EV rebate claims for the country’s Incentives for Zero-Emission Vehicles (iZEV) program, as detailed in a report on Friday from The Globe and Mail. Despite the huge number of claims, Canadian authorities have found that the figure represented vehicles that had been delivered prior to the submission deadline for the program.

According to Transport Minister Chrystia Freeland, the claims “were determined to legitimately represent cars sold before January 12,” which was the final day for OEMs to submit these claims before the government suspended the program.

Upon initial reporting of the Tesla claims submitted in January, it was estimated that they were valued at around $43 million. In March, Freeland and Transport Canada opened the investigation into Tesla, noting that they would be freezing the rebate payments until the claims were found to be valid.

READ MORE ON ELECTRIC VEHICLES: EVs getting cleaner more quickly than expected in Europe: study

Huw Williams, Canadian Automobile Dealers Association Public Affairs Director, accepted the results of the investigation, while also questioning how Tesla knew to submit the claims that weekend, just before the program ran out.

“I think there’s a larger question as to how Tesla knew to run those through on that weekend,” Williams said. “It doesn’t appear to me that we have an investigation into any communication between Transport Canada and Tesla, between officials who may have shared information inappropriately.”

Tesla sales have been down in Canada for the first half of this year, amidst turmoil between the country and the Trump administration’s tariffs. Although Elon Musk has since stepped back from his role with the administration, a number of companies and officials in Canada were calling for a boycott of Tesla’s vehicles earlier this year, due in part to his association with Trump.

Tesla excluded from incentives in Canada over Trump tariffs

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