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USPS Inspector General asked to investigate agency’s decision favoring gas delivery vans over EVs
A group of U.S. lawmakers in the House Oversight Committee sent a letter to the U.S. Postal Service (USPS) Inspector General (IG), requesting an investigation into the agency’s order for Next Generation Delivery Vehicles (NGDV).
In a letter dated Monday, March 14, Democrats in the House Oversight Committee asked IG Tammy L. Whitcomb to investigate the Postal Service’s compliance with the National Environmental Policy Act (NEPA). They questioned if the USPS complied with NEPA’s requirements for environmental reviews before finalizing its NGDV contract.
“We write to request that the Postal Service Office of Inspector General (OIG) initiate an investigation into the Postal Service’s compliance with the National Environmental Policy Act, particularly the filing of the Environmental Impact Statement (EIS) for the Next Generation Delivery Vehicle,” wrote the Members.
“The Environmental Protection Agency, the White House Council for Environmental Quality and numerous environmental stakeholders have raised concerns that the Postal Service did not meet its NEPA obligations during its contracting process for the NGDV. These significant concerns warrant an investigation by the OIG.”
Background
The USPS received some criticism from the Biden Administration after it announced plans to spend up to $11.3 billion on as many as 165,000 gas-powered NGDVs. The Biden Administration urged the Postal Service to reconsider its plans to buy mostly internal combustion engine (ICE) delivery vehicles to upgrade its fleet.
The USPS fleet makes up a third of the U.S. government fleet. President Biden ordered all federal agencies to phase out the purchase of gasoline-powered vehicles. Even though the Postal Service is an independent agency, its fleet’s transition to electric vehicles would symbolize the current administration’s determination to move away from fossil fuels.
After receiving some pushback from the Biden Administration about its NGDV plans, the Postal Service issued a statement on February 6, announcing its plans to submit an initial order for 5,000 electric delivery vans. The agency also shared its goals to achieve 70% fleet electrification within the decade.
The Issue
The Environmental Protection Agency (EPA), the White House Council for Environmental Quality (CEQ), and other environmental stakeholders are concerned that the Postal Service did not meet NEPA obligations when it announced a 10-year contract with Oshkosh to manufacture fossil fuel-powered NGDVs.
The EPA pointed out that critical features in the contract were not disclosed in the Postal Service’s final review or Environmental Impact Statement (EIS) for the NGDV program. The CEQ observed that the agency’s final review was “flawed in some ways that cannot be so easily remedied.”
The New York Times discovered some evidence that supported the CEQ’s claims. The Postal Service estimated that the NGDVs would get 29.9 miles per gallon in its review. However, the EPA found that the vehicles would only get 14.7 miles per gallon or even less if air conditioning was factored into the equation.
The Postal Service’s (Current) Stance
USPS published a 340-page Final Environmental Impact Statement (FEIS) under the NEPA process on January 7, 2022. The Postal Service later completed a record of decision (ROD), which featured the agency’s response to feedback from the EPA on the potential environmental impact of the NGDV program.
In its ROD, the Postal Service outlines its decision to purchase and deploy 50,000 to 165,000 NGDVs over the next ten years. It details that the NGDV fleet will be a mix of ICE and battery electric vehicle (BEV) delivery vans. All-electric NGDVs will make up at least 10% of the fleet. The Postal Service determined that ICE NGDVs were the “most achievable” alternative to replacing its existing fleet rather than BEV NGDV, given its financial condition.
“…BEV NGDV(s) ha(ve) a significantly higher total cost of ownership than the ICE NGDV, which is why the Preferred Alternative being implemented does not commit to more than 10 percent BEV NGDV. Finally, the Postal Service notes that the Preferred Alternative as implemented contains the flexibility to significantly increase the percentage of BEV NGDV should additional funding become available from any source,” stated the USPS in its latest ROD.
USPS Inspector General asked to investigate agency’s decision favoring gas delivery vans over EVs by Maria Merano on Scribd
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Tesla Full Self-Driving (Supervised) showed a record attach rate at delivery for new vehicles in the third quarter of 2026.
75 percent of new vehicle deliveries in North America included a subscription to FSD software, up from 55 percent in the prior quarter, a 20-percentage-point sequential gain in the company’s most mature market.
Tesla Q3 2026 Earnings results: in-line revenues, slight beat on EPS
Tesla shed light on the Q3 Shareholder Deck that 75 percent of new deliveries came with an FSD subscription:
“FSD (Supervised)⁴ attach rate continued to grow, reaching over 75% of new vehicle deliveries in North America – our most mature market – a nearly twenty percentage point sequential increase. We believe that FSD is driving demand in markets where it is available, and we continue to work with regulators to get it approved in other markets. “
The higher attach rate accompanied strong growth in the overall FSD consumer base, as active subscriptions rose to 1.75 million, a 67 percent year-over-year increase. For the first time, more than half of paid customers are on the monthly subscription, which is priced at $99 per month in the U.S.
People are buying FSD with a car attached, not the other way around
— Elon Musk (@elonmusk) October 21, 2026
The transition to subscriptions has accelerated since Tesla discontinued the one-time purchase option in most markets earlier this year. The recurring model improves revenue visibility and margins compared with large upfront payments. With three-quarters of North American deliveries now including FSD, the software is now an evidently large contributor to Tesla’s economics and ancillary revenue.
Geographic expansion remains important for further gains. FSD is now available in nine countries in the EU, and more than 100,000 customers have driven over 160 million kilometers. Tesla is pursuing broader EU-wide approval, with a related vote expected in December. Similar progress in additional markets could support higher attach rates beyond North America.
These results came as Tesla had a strong quarterly delivery performance of 486,532 vehicles in the quarter, which came with its largest passenger-vehicle backlog in four years. Battery supply continued to limit volume, but the company has pointed to FSD as a clear difference-maker that is helping sustain demand. As supervised capabilities improve, the attach rate will likely continue to improve.
At face value, it is a key measure of how Tesla is converting sales into autonomy progress.
Update: 10/22 10:51a – Para 1 consumers changed to “customers” for accuracy.
Tesla Cybercab units finally got a definitive date for when they will be able to be purchased by customers, ending speculation regarding whether the fully autonomous vehicle would be available in the near term.
During Tesla’s third-quarter 2026 earnings call on October 21, Vice President of Engineering Lars Moravy said the company is aiming to begin delivering its purpose-built Cybercab robotaxi to customers before year-end.
🚨 In short, Cybercabs are slated to go to customers by end of the year. All units are going into Robotaxi fleet currently, per @larsmoravy
Cybercab will be “transport-as-a-service,” but vast majority of Cybercab will be “Tesla-owned,” @elonmusk says https://t.co/R8Qu8QWdmp
— TESLARATI (@Teslarati) October 21, 2026
“We’re trying to get Cybercabs to customers by the end of this year, 2026,” Moravy said. He added that production is underway on the line at Gigafactory Texas, but “all of those are currently going to our own internal Robotaxi fleet.”
Moravy explained that as operations scale, Tesla will “mainly deliver fully designed autonomous vehicles to our customers,” with the Cybercab as the first such vehicle. Initial customer deliveries will start small while the company gains experience with delivery logistics, ownership models, fleet management, and operating autonomous vehicles outside its direct control.
CEO Elon Musk reinforced the limited nature of private sales, describing the Cybercab primarily as a “transport-as-a-service” offering rather than a personal ownership vehicle like the Model 3, Model Y, or upcoming Roadster. “The vast majority of the Cybercab stuff will be Tesla-owned and transport-as-a-service,” Musk said.
The Cybercab is a two-seater vehicle developed by Tesla without a steering wheel or pedals. It relies completely on Tesla’s Full Self-Driving suite and has been in production since February. Early units have been put in Tesla’s Robotaxi service as of early September, when the company launched rides to the public. Tesla previously indicated it would aim to sell Cybercabs for about $30,000.
Unsupervised Full Self-Driving is expected to ship to consumer cars during Q2 2027, Ashok Elluswamy, Tesla’s Head of AI, indicated during the call. Early buyers or fleet operators may receive vehicles whose autonomous operation remains geographically restricted due to lagging regulatory agencies. There are some hurdles that remain ahead of Cybercab deliveries.
Tesla (NASDAQ: TSLA) reported its earnings for the third quarter of 2026, marking a reasonable performance on the various financial metrics. Tesla still plans to hold a call that will field investor questions at 5:30 p.m. ET, 4:30 p.m. CT.
Here’s where Earnings came in:
- Total Revenues: $28.046 reported vs. $28.34B expected
- Non-GAAP EPS: $0.48 reported vs. $0.45 expected
- Operating Margin: 2.6 % reported vs. 2.5% expected
- Operating Income: $718M reported vs. $721M expected
- Free Cash Flow: $1.531B reported vs. ~-$4.51B expected
Tesla $TSLA Earnings Results:
Revenues: $28.046B
Non-GAAP EPS: $0.48
Operating Margin: 2.6%
Operating Income: $718M
FCF: $1.531B— TESLARATI (@Teslarati) October 21, 2026
Major Takeaways
Full Self-Driving (Supervised)
“FSD (Supervised)⁴ attach rate continued to grow, reaching over 75% of new vehicle deliveries in North America – our most mature market – a nearly twenty percentage point sequential increase. We believe that FSD is driving demand in markets where it is available, and we continue to work with regulators to get it approved in other markets.”
Tesla Semi
“We began volume production of Tesla Semi, our Class 8 heavy-duty truck. The top variant can go 500 miles at full 82,000 lbs gross combination weight while achieving an efficiency of 1.7 kWh/mile. That efficiency allows the Tesla Semi to use a third of the energy used by a comparable diesel truck to haul the same payload. In a transportation market where energy is one of the largest components of total cost per mile, this will provide a meaningful advantage to Tesla Semi operators.”
SI Compute
“We plan to reach 400 MW of SI training compute by the end of the year, supporting the development of both vehicle and humanoid robot autonomy software. Additionally, we continued construction for the Austin Fab, where we plan to start commissioning equipment in 2027.”
Robotaxi
“We began deployment of Cybercab into our Robotaxi fleet in Austin. We reached nearly two million cumulative unsupervised miles for our Robotaxi service as of the end of the quarter. Operating hours in Austin are now 6am to midnight, and we expect to reduce wait times via increased fleet supply and improvement of Robotaxi orchestration algorithms. Grok is available in Cybercab with access to Grok Bot and Connectors, which allows users to manage their inbox, calendars, files, chats and tasks – all hands free via voice command – making Cybercab a mode of transport, a productivity space and, with our entertainment options, a second living room.”
Interested in ordering a Tesla? Use my referral code for three free months of Full Self-Driving (Supervised) here.
Tesla buyers are buying for Full Self-Driving and not for the car, data shows
Tesla Cybercab gets a for sale date at last
