Regulatory Changes & Market Impact - The EU has relaxed its zero-emission target from 100% to 90%, allowing internal combustion engine (ICE) hybrid vehicles to continue sales [1] - This policy shift, influenced by lobbying from German and Italian manufacturers like VW, BMW, and Mercedes, provides them with more time to adapt [1] - The industry views this compromise as potentially beneficial for Tesla, as it extends the lifespan of competitors' ICE vehicles while Tesla maintains its lead in battery technology and Full Self-Driving (FSD) capabilities [1] Competitive Advantage & Market Share - Tesla's established scale advantages in battery technology and FSD are expected to widen as traditional car manufacturers struggle to compete [1] - The industry anticipates that Tesla's market share will continue to increase as competitors face prolonged challenges [1] - The report suggests that the longer traditional car companies take to transition, the more advantageous it becomes for Tesla [1]

For years budget wonks have warned that the rise of electric cars and the death of the internal combustion engine would gouge a hole in the public finances. This goes some way to addressing that https://t.co/BWWINIp3ul ...