Sign In or Create an Account.

By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy

Electric Vehicles

Elon Musk Is Putting the EV Transition in Peril

Inside episode 15 of Shift Key.

Elon Musk.
Heatmap Illustration/Getty Images

Tesla is now facing its worst crisis in years. Last week, CEO Elon Musk laid off the automaker’s roughly 500-person Supercharger team and what remained of its policy and new vehicle teams. Before that, it reported its first-quarter financial results — and they were even worse than the lackluster performance that investors were expecting.

Already this year, Tesla has cut around 10% of its employees. Now Musk is promising that it will shift toward becoming an “AI” company. And on Wednesday — after we recorded this episode — Reuters reported that the Justice Department is investigating Tesla for lying about its so-called Full Self Driving software to investors.

Does Tesla, long a stalwart of America’s EV transition, now pose a danger to it? On this week’s episode of Shift Key, Rob and Jesse discuss the automaker’s turn away from EVs, and why Musk’s decision to lay off the Supercharger team could throw the entire country’s EV transition off track. Shift Key is hosted by Robinson Meyer, the founding executive editor of Heatmap, and Jesse Jenkins, a professor of energy systems engineering at Princeton University.

Subscribe to “Shift Key” and find this episode on Apple Podcasts, Spotify, Amazon, or wherever you get your podcasts.

You can also add the show’s RSS feed to your podcast app to follow us directly.

Here is an excerpt from our conversation:

Jesse Jenkins: I just want to note one thing you said there, which is the role of the [National Electric Vehicle Infrastructure] funding. So the government funding here required that any recipient of the federal infrastructure funding would be open to multiple automakers’ vehicles. So you could not, Tesla could not have kept its network closed and received any of the federal money.

And so it is interesting to think like, you know: If NEVI hadn’t existed, I’m not sure if Tesla would have made that pivot. So it’s interesting, this is an example of where government funding and requirements can really open up standards and, you know, kind of force change. So maybe it was they thought they had to do it in order to stay competitive, to get a chunk of that federal infrastructure funding. And maybe they would have been better off if they just kept a closed network and ignored the shiny pot of money that the federal government was out there … it’s hard to say, at this point.

Robinson Meyer: There’s a second aspect of this, though, that I think is also confusing, which is basically that if Tesla — over the next year, every American who drives an electric vehicle is going to encounter a Tesla Supercharger for the first time, whether or not they own a Tesla, right? Because they’re, the vehicle they own is going to be integrated into the Tesla network and they’re going to be able to charge.

That is such a sales opportunity for Tesla. Tesla needed to nail that integration, first of all, and execution, because these are not hard customers to convince to buy a Tesla. These are customers who already own an electric vehicle. And so if they’re coming to your Supercharger network, and they’re like, ‘This is an amazing network. This, like, works so much better than any other network. This works better than the chargers that my automaker wants to direct me to that aren’t Tesla, whether they be Electrify America or something else,’ that would have been an incredible marketing and sales opportunity for Tesla to convert drivers who already had chosen to go electric.

There’s not a better market out there. There’s not a more accessible market out there for them than people who already drive an EV and are thinking about their next EV purchase. And so it has now, if nothing else, guaranteed that the next year will feel chaotic. Maybe, through some miracle, the Supercharger network keeps working, and it keeps working pretty well. How they’re going to manage that with no remaining team, I don’t really understand — but let’s say it keeps working pretty well. They’ve really fumbled an opportunity to make Tesla seem like the easiest and most secure and most reliable, you know, value proposition out there for drivers.

And I think that’s just … that’s happened now. That’s water under the bridge. They’ve really screwed this up, no matter what else happens over the next year.

This episode of Shift Key is sponsored by…

Watershed’s climate data engine helps companies measure and reduce their emissions, turning the data they already have into an audit-ready carbon footprint backed by the latest climate science. Get the sustainability data you need in weeks, not months. Learn more at watershed.com.

Music for Shift Key is by Adam Kromelow.

You’re out of free articles.

Subscribe today to experience Heatmap’s expert analysis 
of climate change, clean energy, and sustainability.
To continue reading
Create a free account or sign in to unlock more free articles.
or
Please enter an email address
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Energy

The Pentagon’s Rare Earths Deal Is Making Former Biden Officials Jealous

The multi-faceted investment is defense-oriented, but could also support domestic clean energy.

A rare earths mine.
Heatmap Illustration/MP Materials, Getty Images

MP Materials is the national champion of American rare earths, and now the federal government is taking a stake.

The complex deal, announced Thursday, involves the federal government acting as a guaranteed purchaser of MP Materials’ output, a lender, and also an investor in the company. In addition, the Department of Defense agreed to a price floor for neodymium-praseodymium products of $110 per kilogram, about $50 above its current spot price.

Keep reading...Show less
Blue
Economy

AM Briefing: A Second Wind for Lava Ridge?

On a new plan for an old site, tariffs on Canada, and the Grain Belt Express

Site of Idaho’s Lava Ridge Wind Project May Be Used for SMRs
Heatmap Illustration/Getty Images

Current conditions: Phoenix will “cool” to 108 degrees Fahrenheit today after hitting 118 degrees on Thursday, its hottest day of the year so farAn extreme wildfire warning is in place through the weekend in ScotlandUniversity of Colorado forecasters decreased their outlook for the 2025 hurricane season to 16 named storms, eight hurricanes, and three major hurricanes after a quiet June and July.

THE TOP FIVE

1. Trump threatens 35% tariff on Canada

President Trump threatened a 35% tariff on Canadian imports on Thursday, giving Prime Minister Mark Carney a deadline of August 1 before the levies would go into effect. The move follows months of on-again, off-again threats against Canada, with former Canadian Prime Minister Justin Trudeau having successfully staved off the tariffs during talks in February. Despite those earlier negotiations, Trump held firm on his 50% tariff on steel and aluminum, which will have significant implications for green manufacturing.

Keep reading...Show less
Yellow
Climate Tech

The Software That Could Save the Grid

Or at least the team at Emerald AI is going to try.

Technology and power.
Heatmap Illustration/Getty Images, Emerald AI

Everyone’s worried about the ravenous energy needs of AI data centers, which the International Energy Agency projects will help catalyze nearly 4% growth in global electricity demand this year and next, hitting the U.S. power sector particularly hard. On Monday, the Department of Energy released a report adding fuel to that fire, warning that blackouts in the U.S. could become 100 times more common by 2030 in large part due to data centers for AI.

The report stirred controversy among clean energy advocates, who cast doubt on that topline number and thus the paper’s justification for a significant fossil fuel buildout. But no matter how the AI revolution is powered, there’s widespread agreement that it’s going to require major infrastructure development of some form or another.

Keep reading...Show less