News
USPS says full-EV fleet not possible by 2033, requires $2.3B in additional investments
The United States Postal Service said in its December 2021 Environmental Impact Statement report that committing to a fully-electric fleet of 75,000 mail delivery vehicles would require an additional $2.3 billion investment. Additionally, the USPS may not be willing to commit to more than ten percent of its new fleet to electric powertrains as the government agency says it “is not achievable.”
The report was published on January 7th and details potential alternatives to its plan to purchase between 50,000 and 165,000 new vehicles that will “replace existing delivery vehicles nationwide that have reached the end of their service life.” In February 2021, the USPS announced a contract award to Oshkosh Defense, LLC for the production of the “Next-Generation Delivery Vehicles,” or NGDVs. The NGDVs will consist of at least 10 of having battery-electric powertrains. The remainder would have internal combustion engines.
The USPS is considering alternatives for comparison, which include 100 percent of the new vehicles being “commercial-off-the-shelf” (COTS) ICE vehicles, or 100 percent COTS electric cars. These are referred to in the report as Alternative 1.1 and 1.2, respectfully.
The current plan is for the USPS to begin replacing between 50,000 to 165,000 new vehicles. Ten percent will be EVs, at the minimum. The plan will take ten years to complete and will begin in 2023, as the first NGDV will make deliveries sometime in 2023. “The actual timeline and quantities of NGDV purchased and delivery vehicle types replaced would be contingent upon the Postal Service’s operational needs, including individual carrier route needs, and financial position,” the report says.
Credit: USPS
However, it appears unlikely that the USPS will commit to increasing the share of EVs in its fleet due to affordability reasons. In its report, it states that, while it understands BEVs are better for the environment, funding would not allow the USPS to make any significant changes to the current plan. The USPS states that its preferred alternative is actually the Proposed Action, which is to purchase and deploy up to 90 percent ICE NGDVs with 10 percent BEV NGDVs. “This Preferred Alternative is also the most achievable given the Postal Service’s financial condition, as the ICE NGDV is significantly less expensive than the BEV NGDV and does not have the same route length and other operational constraints as the BEVs. Finally, the 90 percent ICE NGDV Preferred Alternative would result in less fuel consumption and reduced direct and indirect greenhouse gas emissions as compared to the existing delivery vehicles being replaced,” the report adds.
Realizing that a full fleet of BEVs is better for the environment, as it would reduce “about 200 percent fewer direct and indirect greenhouse gas emissions than the 90 percent ICE NGDV” plan, the financial situation does not allow for it. The USPS says that “committing to purchase more than 10 percent BEV NGDV as part of the Preferred Alternative is not achievable, absent additional funding, as the 100 percent BEV NGDV Preferred Alternative is $2.3 billion more expensive than the 90 percent ICE NGDV Preferred Alternative for an order of 75,000 vehicles.” If the USPS wanted to transition all 165,000 vehicles to BEV powertrains, it would cost an additional $1 billion.
The USPS does have a third alternative: No action. The Postal Service will likely not commit to this option, but it does state that, “Utility service and infrastructure in place at Postal Service facilities currently are meeting service demands.”
The full report is available below.
Usps+Ngdv+Feis Dec+2021 by Joey Klender on Scribd
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News
Tesla Model Y L is gaining momentum in China’s premium segment
This suggests that the addition of the Model Y L to Tesla China’s lineup will not result in a case of cannibalization, but a possible case of “premiumization” instead.
Tesla’s domestic sales in China held steady in November with around 73,000 units delivered, but a closer look at the Model Y L’s numbers hints at an emerging shift towards pricier variants that could very well be boosting average selling prices and margins.
This suggests that the addition of the Model Y L to Tesla China’s lineup will not result in a case of cannibalization, but a possible case of “premiumization” instead.
Tesla China’s November domestic numbers
Data from the a Passenger Car Association (CPCA) indicated that Tesla China saw domestic deliveries of about 73,000 vehicles in November 2025. This number included 34,000 standard Model Y units, 26,000 Model 3 units, and 13,000 Model Y L units, as per industry watchers.
This means that the Model Y L accounted for roughly 27% of Tesla China’s total Model Y sales, despite the variant carrying a ~28% premium over the base RWD Model Y that is estimated to have dominated last year’s mix.
As per industry watcher @TSLAFanMtl, this suggests that Tesla China’s sales have moved towards more premium variants this year. Thus, direct year-over-year sales comparisons might miss the bigger picture. This is true even for the regular Model Y, as another premium trim, the Long Range RWD variant, was also added to the lineup this 2025.
November 2025 momentum
While Tesla China’s overall sales this year have seen challenges, the Model Y and Model 3 have remained strong sellers in the country. This is especially impressive as the Model Y and Model 3 are premium-priced vehicles, and they compete in the world’s most competitive electric vehicle market. Tesla China is also yet to roll out the latest capabilities of FSD in China, which means that its vehicles in the country could not tap into their latest capabilities yet.
Aggregated results from November suggest that the Tesla Model Y took the crown as China’s #1 best-selling SUV during the month, with roughly 34,000 deliveries. With the Model Y L, this number is even higher. The Tesla Model 3 also had a stellar month, seeing 25,700 deliveries during November 2025.
Cybertruck
Tesla Cybertruck earns IIHS Top Safety Pick+ award
To commemorate the accolade, the official Cybertruck account celebrated the milestone on X.
The Tesla Cybertruck has achieved the Insurance Institute for Highway Safety’s (IIHS) highest honor, earning a Top Safety Pick+ rating for 2025 models built after April 2025.
The full-size electric pickup truck’s safety rating is partly due to the vehicle’s strong performance in updated crash tests, superior front crash prevention, and effective headlights, among other factors. To commemorate the accolade, the official Cybertruck account celebrated the milestone on X.
Cybertruck’s IIHS rating
As per the IIHS, beginning with 2025 Cybertruck models built after April 2025, changes were made to the front underbody structure and footwell to improve occupant safety in driver-side and passenger-side small overlap front crashes. The moderate overlap front test earned a good rating, and the updated side impact test also received stellar marks.
The Cybertruck’s front crash prevention earned a good rating in pedestrian scenarios, with the standard Collision Avoidance Assist avoiding collisions in day and night tests across child, adult crossing, and parallel paths. Headlights with high-beam assist compensated for limitations, contributing to the top award.
Safest and most autonomous pickup
The Cybertruck is one of only two full-size pickups to receive the IIHS’ Top Safety Pick + rating. It is also the only one equipped with advanced self-driving features via Tesla’s Full Self-Driving (Supervised) system. Thanks to FSD, the Cybertruck can navigate inner city streets and highways on its own with minimal supervision, adding a layer of safety beyond passive crash protection.
Community reactions poured in, with users praising the vehicle’s safety rating amidst skepticism from critics. Tesla itself highlighted this by starting its X post with a short clip of a Cybertruck critic who predicted that the vehicle will likely not pass safety tests. The only question now is, of course, if the vehicle’s Top Safety Pick+ rating from the IIHS will help the Cybertruck improve its sales.
News
Tesla stands to gain from Ford’s decision to ditch large EVs
Tesla is perhaps the biggest beneficiary of Ford’s decision, especially as it will no longer have to deal with the sole pure EV pickup that outsold it from time to time: the F-150 Lightning.
Ford’s recent decision to abandon production of the all-electric Ford F-150 Lightning after the 2025 model year should yield some advantages for Tesla.
The Detroit-based automaker’s pivot away from large EVs and toward hybrids and extended-range EVs that come with a gas generator is proof that sustainable powertrains are easy on paper, but hard in reality.
Tesla is perhaps the biggest beneficiary of Ford’s decision, especially as it will no longer have to deal with the sole pure EV pickup that outsold it from time to time: the F-150 Lightning.
Here’s why:
Reduced Competition in the Electric Pickup Segment
The F-150 Lightning was the Tesla Cybertruck’s primary and direct rival in the full-size electric pickup market in the United States. With Ford’s decision to end pure EV production of its best-selling truck’s electric version and shifting to hybrids/EREVs, the Cybertruck faces significantly less competition.
Credit: Tesla
This could drive more fleet and retail buyers toward the Cybertruck, especially those committed to fully electric vehicles without a gas generator backup.
Strengthened Market Leadership and Brand Perception in Pure EVs
Ford’s pullback from large EVs–citing unprofitability and lack of demand for EVs of that size–highlights the challenges legacy automakers face in scaling profitable battery-electric vehicles.
Tesla, as the established leader with efficient production and vertical integration, benefits from reinforced perception as the most viable and committed pure EV manufacturer.
Credit: Tesla
This can boost consumer confidence in Tesla’s long-term ecosystem over competitors retreating to hybrids. With Ford making this move, it is totally reasonable that some car buyers could be reluctant to buy from other legacy automakers.
Profitability is a key reason companies build cars; they’re businesses, and they’re there to make money.
However, Ford’s new strategy could plant a seed in the head of some who plan to buy from companies like General Motors, Stellantis, or others, who could have second thoughts. With this backtrack in EVs, other things, like less education on these specific vehicles to technicians, could make repairs more costly and tougher to schedule.
Potential Increases in Market Share for Large EVs
Interestingly, this could play right into the hands of Tesla fans who have been asking for the company to make a larger EV, specifically a full-size SUV.
Customers seeking large, high-capability electric trucks or SUVs could now look to Tesla for its Cybertruck or potentially a future vehicle release, which the company has hinted at on several occasions this year.
With Ford reallocating resources away from large pure EVs and taking a $19.5 billion charge, Tesla stands to capture a larger slice of the remaining demand in this segment without a major U.S. competitor aggressively pursuing it.
Tesla Model Y L is gaining momentum in China’s premium segment
Tesla Cybertruck earns IIHS Top Safety Pick+ award
