You’re out of free articles.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
Sign In or Create an Account.
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Welcome to Heatmap
Thank you for registering with Heatmap. Climate change is one of the greatest challenges of our lives, a force reshaping our economy, our politics, and our culture. We hope to be your trusted, friendly, and insightful guide to that transformation. Please enjoy your free articles. You can check your profile here .
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Subscribe to get unlimited Access
Hey, you are out of free articles but you are only a few clicks away from full access. Subscribe below and take advantage of our introductory offer.
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Create Your Account
Please Enter Your Password
Forgot your password?
Please enter the email address you use for your account so we can send you a link to reset your password:
The whales will be fine.

Donald Trump loves eagles and whales and therefore he wants to protect them — from clean energy development.
Trump may, however, be relieved to hear that many of his concerns about wind and solar energy are unfounded. Here’s what he gets right and wrong.
Pointing out the window to the Atlantic Ocean at one point, one attendee said, the former president claimed that offshore wind turbines break down when they are exposed to saltwater … [April 17, 2024]
Fact check: Let’s just get this out of the way: offshore wind turbines are designed to withstand saltwater exposure. People have been building things in saltwater for a long, long time. From the oldest known ships constructed 6,000 years ago out of papyrus reeds to Norway’s Troll A platform — a reinforced concrete offshore natural gas platform and the tallest structure ever moved by humankind — we’ve learned a few things about resisting salt corrosion.
This scene occurred during a fundraising dinner with oil and gas executives at Trump’s Mar-a-Lago resort reported on by The Washington Post, which also pointed out this obvious fact. That said, to the former president’s credit, “the ocean is indeed a difficult environment” for construction and engineering, Eric Hines, a civil and environmental engineering professor and the director of the offshore wind energy graduate program at Tufts University, told me. But the lifespan of offshore structures can range from a few years to more than a century.
According to Hines, most offshore wind farms today are built to have “approximately 25-year service lives,” but the design is always evolving. His department, for example, is working on developing advanced underwater foundations that are built to last more than a century and double as artificial reefs.
“I like the concept of solar, but it’s not powerful like what we need to fire up our factories.” [Dec. 16, 2023]
Fact check: “That question is actually a little bit tricky,” Baker, the assistant professor of engineering at the University of Colorado, told me, when I asked him whether solar alone could power a factory — but it’s also not really what we should be asking. “One thing I’ve noticed people do a lot is they’ll just compare efficiency of power generation,” Baker explained. But “it’s not just about the efficiency — it’s about other things, too, like solar’s ability to be distributed. You can’t put a nuclear fission power plant in your house — you know, not yet — but you can put solar panels, so that’s a huge benefit. It offers some resiliency that other sources just can’t offer.”
It’s true that solar power is less efficient than other sources of energy, including wind, and that it requires a lot of surface area, which could be an undue burden for a manufacturer. But at the same time, “I don’t know if anybody is proposing to power an entire factory based off of solar,” Baker said.“Their windmills are causing whales to die in numbers never seen before. Nobody does anything about that. They’re washing up on shore. I saw it this weekend: Three of them came up! You wouldn’t see it once a year; now they’re coming up on a weekly basis. The windmills are driving them crazy. They’re driving the whales, I think, a little batty.” [Sept. 25, 2023]
Fact check: If you ever want to feel ridiculous, try asking a scientist at the National Oceanic and Atmospheric Administration if windmills are making whales “a little batty.”
NOAA actively studies how “sound, vessel, and other human activities” impact marine life, Lauren Gaches, the director of NOAA Fisheries Public Affairs, told me over email. “At this point, there is no scientific evidence that noise resulting from offshore wind site characterization surveys could potentially cause mortality of whales,” she said.
An ongoing “unusual mortality event” for humpback whales has resulted in 200 whale deaths between 2016 and June 2023 along the Atlantic coast from Maine to Florida — that much is true. But “there are no known links between recent large whale mortalities and ongoing offshore wind surveys,” Gaches told me. NOAA’s fact page on whales and offshore wind explains that of “roughly 90 whales examined, about 40% had evidence of human interaction, either ship strike or entanglement.”
There has been some chatter about underwater surveying work disrupting whales, which may be true in the case of oil and gas surveys, which use seismic air guns to penetrate deep into the ocean floor. The surveying equipment used for offshore wind is, by contrast, used in 15-second bursts and limited to a specific area, “so the likelihood of an animal encountering and coming right into that sound beam is quite low,” Erica Staaterman, the deputy director for the Bureau of Ocean Energy Management’s Center for Marine Acoustics, said on a NOAA-hosted call with the press early last year.
As Ben Laws, the deputy chief of NOAA’s Permits and Conservation Division in the Office of Protected Resources, said on the same call, “There is no information that would support any suggestion that any of the equipment that’s being used in support of wind development for these site characterization surveys could directly lead to the death of a whale.”
“If you go out hunting and you happen to shoot a bald eagle, they put you in jail, like, for five years, right? They kill thousands of them with these windmills; nothing happens.” [Jan. 28, 2023]
“If you want to see a bird cemetery, go under a windmill sometime. You’ll see birds like you never saw. If you love birds, you’ll start to weep.” [Dec. 16, 2023]
Fact check: Trump has had a vendetta against wind turbines since long before he ever ran for president. “Wind farms are killing many thousands of birds,” reads one illustrative tweet from 2012. “They make hunters look like nice people!”
Lewis Grove is the director of wind and energy policy at the American Bird Conservancy, and he told me that while it’s “not necessarily as simple as Mr. Trump painted it out to be, wind turbines absolutely kill birds.”
But the context here is extremely important. Jason Ryan, a spokesperson for the American Clean Power Association, a leading renewable energy trade group, pointed me to research from the U.S. Fish & Wildlife Service that shows wind farms “represent just 0.03% of all human-related bird deaths in the U.S.” Grove likewise told me that, for the most part, bird deaths due to wind turbines do “not have population-level impacts.”
There are exceptions, such as an infamous wind farm in California’s Altamont Pass built in 1981 that “just happened to be in a place that was really heavily used by golden eagles,” Grove told me. Because golden eagle populations were already very low, having 100 or so killed a year by turbines was “unsustainable.” Even in a case like this, though, it behooves one to look at the whole picture: “They found it was a few individual turbines that were causing the damage,” Grove said. These days, around 60 golden eagles a year are killed in Alameda County, the Alameda Post reports, and the operating company must pay steep penalties for eagle deaths.
What’s more, “climate change is one of the greatest threats birds face, with two-thirds of North American species at risk of extinction due to our warming planet,” Jon Belak, senior manager of science and data analysis at The National Audubon Society, told me in a statement. “We need to build more wind and solar facilities to help slow the rise in global temperatures and protect birds and their habitats from a changing climate.”
Wind farms may not have population-level impacts on birds, but fracking does — “the onset of shale oil and gas production reduces subsequent bird population counts by 15%,” even after accounting for factors like weather and other land-use changes, according to one just-published, peer-reviewed study.
“Remember the windmills? ‘Darling, darling, I want to watch the president, I love him so much. I want to watch him on television tonight.’ ‘I’m sorry, but the wind isn’t blowing, you’ll have to wait ‘til another time.’ Windmills.” [March 26, 2022]
Fact check: “I mean, it’s possible with any mix of generation that if supply and demand aren’t equal, your TV will go out. That’s just physics,” Kyri Baker, an assistant professor of engineering at the University of Colorado, told me when I asked her if Trump’s scenario had any merit. In other words, a power outage could happen whether your electricity is coming from coal or natural gas or anything else. The difference, she said, is that “wind is by nature variable, intermittent. But it’s also not reliant on fuel like natural gas or coal plants or even nuclear plants are.”
What happens on days when there is no wind? “Grids are extremely regulated,” Baker explained to me. “There’s so many layers of redundancy that aim specifically to not have [an outage] happen.” A grid is made up of diverse electricity sources (for my visual learners, Canary imagines what a net-zero grid could look like here), as well as measures like offline backup generators, which can kick in if need be, so service isn’t disrupted.
Battery storage is another huge part of this equation. While they’re still fairly cutting-edge as climate technology goes, high-capacity batteries that can manage grid-scale energy needs are getting better and more plentiful.
“Stop with all of the windmills all over the place that are ruining the atmosphere.” [Jan. 20, 2022]
Fact check: Wind turbines do not damage the literal atmosphere.
But maybe Trump meant atmosphere as in “sense of place”? Most Americans don’t seem to think windmills are “ruining” anything. In a recent Heatmap poll, nearly eight in 10 Americans said they want the government to make it easier to build new wind farms. The Washington Post similarly found last year that about 70% of Americans said they wouldn’t mind living near a wind farm.
As my colleague Robinson Meyer has written, “American laws today give even a small, well-resourced minority plenty of tools to block a project” like a wind farm, and “what’s more, once that small group starts campaigning against a project, the public’s broad but shallow support for, say, a general technology can crater. That’s what happened recently in New Jersey, where a once broadly pro-wind public has turned against four proposed offshore wind farms.”
“It’s a very expensive form — probably the most expensive form of energy.” [Jan. 20, 2022]
Fact check: Wind in general is not the most expensive form of energy, but offshore wind is very expensive — for now.
Of the energy sources we’re currently used to, nuclear is usually cited as having the highest levelized cost of electricity — that is, it has the highest average cost per unit of electricity generated after construction, maintenance, and operation have been taken into account. Peaker plants — gas-powered plants that run just during times of peak demand — usually come in second.
Offshore wind is costly, with the levelized cost of electricity from a subsidized U.S. offshore wind project increasing “to $114.20 per megawatt-hour in 2023, up almost 50% from 2021 levels in nominal terms,” BloombergNEF reports. Many of the factors making offshore wind so expensive — including permitting delays, high interest rates, and supply chain issues — will abate with time. Meanwhile, onshore wind is one of the cheapest forms of electricity available and has boasted a “lower LCOE than gas plants since 2015,” Sustainable Energy in America reports.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
The EV maker appears to be poised to start construction on its second factory.
Rivian’s stock fell 18% on Monday, but it’s hard to imagine the company’s executives are too upset. Why? Because the automaker seems to be on the verge of starting work on its long-awaited second factory, 45 miles east of downtown Atlanta.
Let’s do some reading between the lines. Rivian has had a great few weeks. The EV maker announced last week that it is on track to sell about 3,000 more cars this year than expected, and its stock has been on a tear, rising more than 37% from close on June 25 to close on Monday.
The company’s CEO, RJ Scaringe, evidently decided it was time to capitalize on the run-up. The company announced on Monday evening that it would offer another 75 million shares of its stock this week, diluting existing investors. That raise would be used to fund “general corporate purposes,” according to a federal filing, including “the funding of certain equity contributions” related to an Energy Department loan.
Back in April, the company came to new terms with the Department of Energy’s in-house bank over a nearly $6.6 billion loan to build its new Georgia factory, which is supposed to manufacture the company’s new line of cheaper R2 SUV and R3 crossovers. That federal loan — initially negotiated in the Biden administration’s final days — was downsized to $4.5 billion under the new Trump-era terms, but also rewritten to let the automaker draw more money from the deal faster. (Rivian is already making the R2 at its existing factory in Normal, Illinois, but the Georgia factory should have about 40% more capacity than that plant.)
As part of any Energy Department loan — as in any project finance transaction — borrowers have to hold a certain amount of cash in escrow and reserve accounts to secure against a deal failing. Now Rivian can fund that money without tapping its cash on hand further. The new share offering is supposed to price this evening, suggesting that despite today’s slide, the company could raise more than $1 billion from the sale. Rivian’s stock is now trading roughly where it stood a month ago.
The upshot of all of this: With the loan secured, serious building efforts could finally start soon on the automaker’s second factory. (The automaker technically broke ground in September, but has yet to begin meaningful construction.)
“We’re setting up to go vertical in the second half of this year (a.k.a. steel sticking out of the ground) but we have said previously that we expect to draw on the loan for the first time by early 2027,” Peebles Squire, a Rivian spokesman, told me in an email. “Factory timeline is production of vehicles to begin in late 2028.”
(Energy Department loans work on a reimbursement basis, so the automaker will need to begin spending on the factory before it can claim the money.)
Though Rivian is among the most successful of the U.S. electric vehicle startups, it wasn’t completely clear after President Trump took office whether the automaker would survive its trek through the valley of death. It’s still not certain, of course. But positive reviews for the R2, a $6 billion deal with Volkswagen, and its significant Sun Belt factory nearing construction all augur well for the country’s most famous EV startup not run by Elon Musk.
“It’s got nothing to do with technology. It’s nothing to do with execution capability. It’s purely due to access to capital.”
Ever since Trump reentered the White House, Europe has been a safe haven for U.S. climate tech companies fleeing an increasingly hostile policy environment. Through strong carbon pricing and stable regulations, the bloc has created demand for still-experimental technologies such as green hydrogen, thermal energy storage, low-carbon building materials, and sustainable fuels.
And yet at the same time, Europe has struggled to finance many of its own climate tech startups as they enter the capital-intensive scale-up phase. What gives?
The problem is not a lack of startups or capital. European firms raised $61 billion for climate-focused funds last year, far outpacing those in the U.S., which brought in $37 billion, according to Sightline Climate. The problem is that almost all of that European money flows to infrastructure and private equity investors backing more mature technologies. Early-stage startups also enjoy relatively strong backing, but the market starves the growth-stage middle.
The issue is both cultural and structural: Most of the bloc’s investors are unaccustomed to making the high-risk, high-reward bets required to scale climate tech. They also often can’t access tools like loan and equity guarantees, which remain limited in Europe, nor are there the institutional limited partners and growth-stage co-investors that could help de-risk those investments.
“It’s got nothing to do with technology. It’s nothing to do with execution capability. It’s purely due to access to capital,” Craig Douglas, a founding partner at the Berlin-based multi-stage venture firm World Fund, told me. That means companies that have outgrown early-stage financing but are still considered too small or too risky for larger institutional investors often either shutter or seek capital abroad. Logically, if given the chance, most startups choose the latter.
“You’re allowing U.S. investors to cherry pick European assets,” Douglas told me. The result? “European technologies and European companies that are successful end up enriching American pension funds rather than European pension funds.”
Ioannis Ioannou, an associate professor of strategy and entrepreneurship at the London Business School, told me that the consequences extend beyond the purely financial, emphasizing that Europe runs a strategic risk by relying on foreign capital for its climate tech scale-up. “It means you lose the supply chains. You lose the skills. You lose the fine manufacturing capabilities. You lose the so-called green jobs.”
Douglas and the other specialists in European climate finance I spoke with emphasized that the ever-ominous “missing middle” funding gap is particularly pronounced in Europe. A report Douglas co-authored earlier this year, aptly titled “The Series B Funding Gap In European Climate Tech,” quantifies the problem. While 25% of U.S. climate tech companies that raised a seed round from 2010 to 2020 had moved on to secure a Series B by the first half of last year — regardless of what country the capital came from — only 15% of European companies were able to do the same. That has created a growing backlog of startups stuck in a financing limbo: The lineup of European companies looking to raise a Series B grew from 220 in 2020 to 533 in the first half of last year.
While smaller climate tech funds in Europe and the U.S. have raised similar amounts of funding for early-stage startups — $18.5 billion in Europe versus $20.2 billion in the U.S. from 2020 through the first half of 2025 — the gap at the larger end of the market is stark. The U.S closed 29 funds of at least $500 million or more, compared with just 11 in Europe. These larger funds are the ones capable of writing the $25 million to $100 million checks companies desperately need to commercialize and scale. As Douglas’ report notes, fewer than 20% of European climate funds are pursuing a growth strategy, with over 70% making early-stage investments only.
“When we raised World Fund One, we were the largest [debut] climate fund in Europe, and we’re a €300 million fund. That’s nuts,” Douglas told me. World Fund aims to help companies “reach growth-investor readiness” by supporting startups from their seed through Series B, a model Douglas would like to see replicated throughout the region. “We need another 20 World Funds out there in the market to start filling this capital shortfall,” he told me. The firm announced last February that it’s raising a second, €500 million fund, but that’s yet to close.
One of the primary reasons European growth-stage investors have less capital to deploy comes down to the structure of European financial markets, which remain heavily reliant on bank lending rather than higher-risk equity investments. As a result, institutional investors like pension funds, insurers, and endowments never built the habit of investing in venture capital, which shows up when comparing the LP bases across the two regions: In the U.S., about 72% of VC funding comes from private institutional investors, compared with just 30% in Europe. Public money, much of it from the European Investment Fund, helps bridge the gap, but it simply cannot match the scale of private institutions.
Pension funds are a telling case. They’re among the largest sources of venture capital in the U.S., allocating nearly 2% of their assets to VC. But in the EU, they allot just 0.018% — roughly 100 times less. And because the U.S. also has far more money sitting in pension funds than Europe does, this makes the gap in actual dollars reaching startups wider still. Without that deep pool of institutional funding, Europe struggles to support the $500 million- to $1 billion-plus funds that would have the wherewithal to lead growth-stage rounds.
The result is a self-reinforcing cycle. Large growth funds require large institutional backers, but precisely because European pension funds and other institutional investors haven’t stepped up, the venture market remains too small to absorb the kinds of $100 million-plus commitments pension investors managing billions of dollars typically want to make. “They don’t see [venture] as an asset class that they can invest in,” Douglas told me. “But the reason that it doesn’t exist is because they’re not investing themselves in that asset class.”
If there’s one thing I learned from my reporting, it’s that white these problems run deep, Europe is hardly standing still. Policymakers and investors are well aware of the disconnect and are now experimenting with strategies to close the scale-up gap and affirm the region’s position as a leader in climate innovation.
To attract more institutional investment, for example, a growing number of initiatives aim to create “funds of funds” and other government-backed structures that pool money from pension funds, insurers, banks, foundations, and other large investors. The fund-of-funds structure lets an institution make a single, large commitment; then, intermediary asset managers break that capital into smaller chunks and invest it across multiple venture funds. This gives large-ticket investors the scale and diversification they want without requiring them to conduct due diligence on dozens of small venture funds; venture managers, in turn, gain access to much larger pools of capital.
Germany’s Wachstumsfonds Deutschland, for example, is a €1 billion fund-of-funds backed by more than 20 investors — including insurers, pension funds, and large family offices — that invests across the German and broader European VC ecosystem, with a focus on growth-stage capital. The EU’s European Tech Champions Initiative follows a similar model. The European Investment Bank and six member-states launched the initiative in 2023 with €3.9 billion to back regional growth-stage VC funds. Now it’s raising a second tranche of money — targeting €15 billion — and is bringing in private institutional capital for the first time.
Europe’s member states have also pushed institutional investors toward coordinated capital commitments in recent years, with France’s Tibi initiative serving as the model. Launched in 2019, it tasks the French government with vetting venture and growth funds, with those that qualify becoming eligible for backing from initiative’s signatories, primarily insurers and some pension funds. The program has attracted about €31 billion in commitments to date. Germany adopted a similar approach with its WIN initiative, which has now secured €12 billion in pledges from more than 30 major corporations — including Deutsche Bank, BlackRock, and Henkel — to invest in the country’s venture ecosystem by 2030.
The Irish Venture Capital Association has proposed a similar model, while Tibi’s founder — the economist Philippe Tibi himself — has been on a tour essentially pitching the idea across the bloc. But Ioannou isn’t convinced that creating country-specific Tibi-style commitments is the most efficient way for the region to scale climate tech.
“I’m not sure that fragmentation will actually solve the problem,” he told me. “Maybe it will be better if all that capital came into one larger fund, whereby the scale-ups wouldn’t have to deal with country level fragmentation, regulations, jurisdictions, legal, and all that kind of stuff.”
That’s the idea behind the new €5 billion pan-EU Scaleup Europe Fund, which is designed to invest directly in European deep-tech startups — climate tech very much included — rather than through venture funds. Announced last year, the fund has already secured roughly €2.5 billion in capital commitments from both the European Commission and private institutional investors, with a second fundraising round planned for the second half of this year. EQT, Europe’s largest private-markets investor, will manage the funds, ultimately deciding which growth-stage companies to back.
“Everything happened so quickly, from agreeing to it to executing on it to allocating it,” Douglas told me. “In effect, it happened in less than a year, which in the European context is crazy.”
The idea is to replicate what the combination of U.S. federal support and deep private capital markets has accomplished, Dimitri Colin, a policy officer at the cleantech policy and advocacy group Cleantech for Europe, told me. “The whole idea is to bring what worked in the U.S. into European public financing policies,” he said. Colin extolled the virtues of the Biden-era Loan Programs Office, as well as the efficacy of other Inflation Reduction Act-fueled efforts such as generous production tax credits when it comes to derisking investment in first-of-a-kind tech.
In our interview as well as in a recent report, Colin argued that EU funding should move from prioritizing grants to loan and equity guarantees in its forthcoming budget for the years 2028 through 2034. That’s because guarantees have proven far more effective than government grants at bringing private investors into climate tech, Colin told me. According to his report, every euro of grants or equity capital channeled through the VC arm of the European Innovation Council yields about €3 in additional investment. That’s nothing to scoff at, but it pales in comparison with InvestEU, the bloc’s €26.2 billion investment guarantee program. Every euro of guarantees from the latter attracts nearly €14.80 in private follow-on capital.
“The main idea behind the whole budget should be to focus on the leverage effect,” Colin told me, referring to how much additional private funding government backing generates. “How can the little public money that we have in Europe — because the fiscal environment is, of course, very constrained — more easily mobilize private money? That’s what the LPO did well.”
Colin also wants to change the EU’s public funding rules to make it easier to subsidize ongoing operational expenses for early-stage cleantech facilities, similar in effect to U.S. production tax credits. Currently, European policymakers often structure public support for these projects as capex grants paid out after construction is complete. This type of support is more difficult for private investors to underwrite since it doesn’t directly improve the plant’s ongoing operating economics, one of the risks investors care about most.
Getting these financing structures right is a matter of life or death for many of Europe’s most promising climate tech industries. Douglas points to batteries, critical minerals, semiconductors, and green molecules as sectors with the technological readiness to scale domestically — but not yet the capital. “One of the major risks in every sector we know is who’s going to be there, who’s going to be able to go with us on that journey to make sure the company has the capital to be successful,” he told me. Still, he sees reason for optimism. Because if there’s one thing that can be said about the E.U. at this moment, it’s that “they’re definitely taking it seriously.”
“The perfect solution doesn’t exist,” Colin told me. “We need to align the funding models, we need public de-risking tools, but we need also a true industrial strategy, China has done that, the US has done that with the IRA,” he explained. Now it’s Europe’s turn.
Not going to lie, I didn’t see this coming.
Tesla just finished its strongest showing in years. In the second quarter of 2026, the company sold about 480,000 vehicles around the world — well over stock market projections of about 400,000 EVs. Tesla’s sales mark a full 25% year-over-year increase from the second quarter of last year.
If you’re surprised by this news, you’re not alone. Sales of Elon Musk’s EVs had been trending downward over the past few years following a series of self-inflicted wounds. The Cybertruck was a bomb. Tesla appeared to be interested only in building the self-driving cars and autonomous robots of the future, not the electric vehicles of today. Musk’s associations with President Trump and off-putting online politics alienated potential customers everywhere.
Yet here we are. So what happened?
European gas prices, for one thing. Tesla sales actually continued to fall in the U.S., where the electric car market as a whole still hasn’t recovered from tariffs confusion, the loss of federal subsidies, and other chaotic conditions over the past year. Tesla’s rally came instead from China and, interestingly, Europe: Registrations rose 39% in Denmark, 56% in Sweden, and 43% in Portugal and Italy.
It wasn’t so long ago that Musk’s politics had reportedly cratered interest in his cars in those countries. But European gas prices, which are typically much higher than those in the U.S., have also soared because of oil shocks related to the Iran War. EV interest, then, is up — so high that lots of buyers are willing to look past the personality of Tesla’s chief. (It doesn’t hurt that Tesla introduced less-expensive versions of both Model 3 and Model Y, with remarkably cheap leases and loans, to Europe this year to help overcome its struggles there.)
In China, meanwhile, Tesla has had something else up its sleeve to buoy sales. We’ve repeatedly noted the contraction of the company’s EV lineup: With the failure of the Cybertruck as well as the outright cancellation of the older and slow-selling Model S and Model X — the electric cars that pushed Tesla into the mainstream in the 2010s — the brand gets nearly all of its sales (more than 97% in Q2) from just two cars, the Model 3 sedan and Model Y crossover. And there are no signs it has an all-new mass-market car coming soon.
Instead, Tesla cobbled one together by making a new version of an existing car. In China, Musk has been selling the Model Y L, a version of his crossover with its platform stretched out by 6 inches to cram in an extra row of seats. (Tesla has offered a seven-seat version of its ordinary Model Y, but the two little seats in the back had just 25 inches of legroom compared to the 31 inches in this new version.) As a three-row SUV, the longer Model Y lets Tesla compete in a space that it vacated when it killed off the giant, expensive, gullwing-doored Model X. And as of last week, Model Y L is available in the U.S. Tesla hopes the vehicle can lead to a reversal of its sinking fortunes here, where its EV sales shrank by 20% in the second quarter.
Truthfully, the car is a bit of a kluge. Rear seats often require a compromise on comfort and space. In the case of the Model Y L, Jalopnik notes that even with the 6 inches added to the wheelbase, Tesla’s signature sloping roof doesn’t leave much headroom for the occupants of the way-back. Boxier EVs that were built to be three rows to begin with, like the Hyundai Ioniq 9, Kia EV9, and Rivian R1S, are more pleasant for the fifth and sixth passengers. Nevertheless, those who wanted a bigger Tesla at a starting price of around $60,000 can now get one, and that counts.
Model Y L is also a testament to the power of the platform. Yes, building a new vehicle from the ground up would have provided Tesla with a better all-around vehicle than what it got by hacking the Model Y. But the modified Model Y was much faster and cheaper to deliver, providing an entry into a popular segment of the car market just at the moment Tesla needed to right the ship.
Doing more with less, like creating a three-row EV on the platform of your two-row car, looks primed to become a big part of the future of electric vehicles. That’s particularly true when it comes to growing adoption in America, where legacy automakers and startups alike are trying to simplify manufacturing to bring down costs. The solution to get to market for a company like Honda was simply to borrow General Motors’ EV platform and build its first EV on top of it. Rivian has said it has no plans to sell a pickup truck on its new R2 platform the way it has with its original vehicle, but it absolutely could — and arguably should — if market conditions suddenly made such an EV pickup a hot item.