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The New Emissions Rollback: The Worst Move at the Worst Time

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Welcome to a FREE preview of our weekly newsletter. Each week I go ‘Beyond the News’ and handcraft a special edition that includes my thoughts on the biggest stories, why it matters, and how it could impact the future. 

A big thanks to our long-time supporters and new subscribers! Thank you.

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While many of us are dealing with the ongoing effects of the COVID-19 pandemic that continues to sweep through countries across the world, the virus is, unfortunately, one of many things that humans are forced to deal with daily. While an invisible sickness rips through much of the world, the global climate crisis is an issue that people across the globe have been dealing with for years, even though it is a relatively “new” issue in the big picture of time.

Former U.S. President Barack Obama implemented a set of rules in 2012 that required automakers to improve fuel economy standards by at least 5% every year. This standard would have led to vehicles with the “2026” Model year averaging 54 miles per gallon.

However, this rule was recently revised and subjected to a rollback, making it 3.5% less than its intended, and environmentally-beneficial, 5% rating. This new standard brings the average rating for vehicles in 2026 to just around 40 miles per gallon, a result that will eventually burn more poisonous gas into the atmosphere. A far cry from what the previous emissions standards were, the rollback entails that a new and dangerous level of carbon emissions will be allowed to be released into the air. This amount of emissions being released into the atmosphere could set back massive amounts of environmental progress that our country has made. Meanwhile, the changes negatively affect the entire world, not just our country.

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According to an article from the Verge, the Natural Resources Defense Council (NRDC) estimates the old standard of 5% improvement over fuel efficiency year-by-year has cut CO2 emissions by half a billion metric tons and saved drivers $86 billion dollars at the pump. These numbers are according to the Environmental Protection Agency.

Meanwhile, the rollback is expected to release an additional billion metric tons of CO2 into the Earth’s atmosphere and increase oil consumption by 2 billion barrels, along with an extra 80 billion gallons of gasoline thanks to lower MPG standards.

The time to create less efficient fuel standards for our gas and petrol-powered vehicles is not now. In all honesty (and in my personal opinion), there is not a time to do it. Our Earth is at absolute an absolute crisis, or what Michael Scott would call “Threat Level Midnight.”

The arguments for the lower emissions standards: better fuel economy creates more expensive cars at purchase, which leads to many people sticking with their current vehicles or buying used cars. These older cars usually have lower safety standards, making them less safe to drive. Apparently, lowering the fuel standards will eliminate $1,000 from the cost of a new vehicle, making more cars on the road more reliable, while providing an added boost to the economy through vehicle purchases.

The problem is, a lower sticker price does not necessarily mean less money spent throughout the life of a vehicle. A Consumer Reports study showed that if gas prices were $1.50 for the next 30 years, the newly introduced rollback “would still increase new vehicle total cost of ownership for consumers.”

Here’s the thing: It is a great idea to make new cars cheaper. Sure, everyone loves the excitement (and smell) of a brand new vehicle. I think a new car is one of my favorite things, along with a high-quality sushi meal, Good Will Hunting on a low-key Friday evening, and a great workout. However, I also like living on Earth, and I appreciate the fact that my small, rural area of Southern York County, Pennsylvania does not have too many environmental issues. Of course, there is always the occasional “coal roll” I get from someone for driving an environmentally-friendly car.

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The issue is the fact that no evidence suggests this new rollback will save money in the long term, and the new standards will hurt the environment. You would think analysts, or statisticians, or number crunchers would do some sort of research regarding the long-term economic effects on this subject. Just because someone is saving $1,000 upfront on the purchase of a car, it doesn’t necessarily mean things are going to be cheaper in the long run.

The responsibility of humans to do their part to decrease environmental damage at this point is absolutely imperative. There is no reason to continue the rollback of emissions standards when climate change is a scientifically proven issue. Vehicles need to become cleaner and cleaner, and to do this, automakers need to be held responsible. They’re making enough money, and it is an absolute necessity to begin transitioning to cleaner forms of transportation.

Join me next week as I go ‘Beyond the News’ and give you my take on the current state of the industry and beyond.

While many automakers have initiated this step into their future plans, the way to put pressure on some of the larger carmakers is to make emissions standards more strict. Eventually, it would be ideal to get all cars to run off of sustainable forms of energy. It would be best for the environment, and better for our pockets. After all, the amount of clean air that has come from gas-powered cars being off the road is evident. Skies are clear in Los Angeles, and water is cleaner in Italy.

What do you think about the new emissions rollbacks? Do you agree with the new standards, or do you think they should have been left the way they were? Let me know on Twitter or through email!

I use this newsletter to share my thoughts on what is going on in the Tesla world. If you want to talk to me directly, you can email me or reach me on Twitter. Reach out!

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-Joey

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Elon Musk

Elon Musk drops a surprise update on Boring Company’s next big dig

Musk says Boring Company could shrink the Austin to San Antonio drive to just minutes.

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Elon Musk says The Boring Company is working on what he called “a simple, precursor Hyperloop” tunnel connecting Austin and San Antonio, targeting speeds above 200 mph and cutting a drive that can take up to two and a half hours down to a consistent under 30 minutes. Musk posted the idea on X Sunday, in a reply to a repost of an AI generated video imagining a science fiction future with human colonies on other worlds, which he shared with the line “This is the future we shall bring into being.”


The Boring Company’s own account picked up the idea in the same thread, adding a detail about how the trip would actually work: “Because Loop/Hyperloop is express (i.e. no intermediate stops), one could travel from an Austin parking lot to a favorite San Antonio restaurant in about 30 minutes. As long as they both have Loop stations.” That framing ties the proposed intercity link to the same station model the company already runs in Las Vegas, where riders enter the tunnel network through small, garage style stops rather than one central terminal.

This is not the company’s first run at the Austin to San Antonio corridor. Boring Company floated tunnels between the two cities as far back as 2021, and later competed for a separate San Antonio Loop project tied to the airport before that specific bid stalled. Pitches for tunnels in Chicago, Los Angeles, and a New York to Washington corridor have followed a similar pattern of big announcement without a shovel in the ground.

What is different this time is the balance sheet, especially since The Boring Company closed a 3 billion dollar funding round led by investors in the United Arab Emirates earlier this month at a valuation near 23 billion dollars, giving the tunneling company more capital to chase speculative projects than it had during its earlier Texas pitches. The company is also mid-build on two other intercity systems it has actually broken ground on, inc;luding a Nashville tunnel linking downtown to the airport, where a second boring machine finished commissioning in June, and its Las Vegas network, where the station count keeps climbing on paper faster than tunnels get dug.

That gap between announcement and execution is the reason to treat Sunday’s post as an opening bid rather than a project. A tunnel spanning roughly 80 miles between two metro areas, running at speeds Boring Company has not demonstrated over any real distance, would dwarf anything the company has built. For now, the Austin to San Antonio Hyperloop exists as a caption under an AI generated space video.

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Tesla eyes supply partners for Optimus mass production

Tesla certified three Chinese suppliers for Optimus mass production, signaling its robot timeline is accelerating.

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Concept rendering of Tesla Optimus in mass production

Tesla’s robotics team traveled to Ningbo, in China’s Zhejiang province, on September 16 and spent the following day auditing component suppliers for Optimus, according to a Bloomberg report cited by RobotAIGeek. The visit moved three manufacturers from provisional status to certified mass production partners: Tuopu Group, which handles actuators and chassis components, Ningbo Joyson Electronic, a sensor supplier, and Zhejiang Sanhua Intelligent Controls, which builds thermal management systems. All three already supply parts to Tesla’s electric vehicles, and the audit reportedly came with fresh orders that supply chain reports put at an initial batch of roughly 5,000 units.

Tuopu, Joyson, and Sanhua built their manufacturing base serving the automotive industry, where tolerances and volume requirements are already close to what a mass produced humanoid robot demands. Sanhua in particular has history here. Teslarati reported last October that the company had received a roughly $685 million order for linear actuators tied to Optimus, a volume industry watchers estimated could cover around 180,000 robots once production ramped.

Supply chain reports tied to this week’s audit put Tesla’s near term production goal at about 1,000 Optimus units a week by late September, rising to 2,000 to 2,500 units a week by the end of the year. That pace would put real weight behind the timeline Tesla has been building toward since May, when it wound down Model S and Model X production at Fremont to convert that floor space into a dedicated Optimus line targeting one million units annually. JPMorgan analysts who toured the factory in August confirmed the conversion took roughly four months, a pace Musk has called unprecedented for a facility that size.

New drone video shows Tesla’s Optimus Factory reaching a turning point

Fremont is only the first phase. A second, larger Optimus plant is rising at Gigafactory Texas, where drone footage shared by Joe Tegtmeyer last week showed the structural steel nearing completion on the north end of the building. Tesla has said that facility is meant to eventually support production of up to 10 million units a year, though volume output there is not expected before 2027.

Commercial sales of Optimus are still targeted for the second half of 2027, but production is expected to start well before then. JPMorgan analyst Rajat Gupta has said Tesla’s “Optimus Academy” program, which uses early units to collect real world training data inside Tesla’s own facilities, is expected to be running later this year. Bloomberg Intelligence analyst Ian Ma described the Ningbo audits as “a positive commercialization signal for China’s humanoid supply chain,” noting that sentiment could improve further if the visit leads to confirmed supplier nominations and larger orders. The Solactive China Humanoid Robotics Index rose about 1.4% on the news, though it remains down roughly 30% for the year.

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Elon Musk

Tesla primes Cybercabs for 4K streaming and high bandwidth gaming with Starlink integration

Tesla is now shipping Cybercabs from Giga Texas with Starlink hardware built in as standard.

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tesla cybercab with no manual controls showing a movie with two employees inside

Tesla’s Cybercabs are now leaving Gigafactory Texas with Starlink hardware on the rear hatch in significant numbers, according to drone footage captured Tuesday by longtime Austin drone observer Joe Tegtmeyer. Production at the factory ramped back up after the Labor Day weekend, and his flyover of the outbound lot showed rows of gold Cybercabs alongside Model Y Long Wheelbase units, many carrying the satellite module for the first time as standard equipment rather than a one off retrofit.

Tesla first showed Starlink built into an actual Cybercab on August 10, when the Robotaxi account posted images of a single gold unit with the antenna integrated into the roofline above the taillights and called it the first Cybercab with Starlink integration. That followed a July reveal where Tesla and Starlink jointly posted a cutaway diagram of the antenna placement without a working vehicle to back it up. Ashok Elluswamy, Tesla’s VP of AI software, said at the time that the connection isn’t required for the car to drive itself. It exists mainly for navigation, customer service and keeping tabs on the fleet.

Musk has made a different case in public. During Tesla’s Q2 earnings call, he said the company can’t afford robotaxis stranded in what he called “Bermuda Triangles of lack of cellular connectivity,” and he separately claimed on X that Starlink will eventually reach every Tesla built, calling it the only way to deliver high bandwidth to billions of vehicles. He has also pitched the antenna as an entertainment upgrade, telling riders they would be able to stream 4K video or play games during a trip.

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The rollout has moved fast since. Robotaxi service opened to the public in Austin on September 3, and Cybercabs had already been spotted with Starlink hardware in Houston and near Miami International Airport in the weeks before Tuesday’s factory footage showed the module shipping at volume rather than on scattered test units. Whether the satellite link earns its keep is still an open question. Tesla’s unsupervised service currently runs in dense metro geofences in Texas and Florida, markets where cellular coverage is already strong, which is not where the rural dead zones Musk describes tend to show up.

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