Tesla's Profit Model Is Ending, Main Profit Source Expected to Fall: TDS
Chris Jung/NurPhoto, The Drive
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Good morning and welcome to The Downshift, or TDS for short.
The Downshift is The Drive’s weekday morning news summary, providing a quick overview of automotive updates from around the world, all in one place. Grab a Pop-Tart and coffee.
TDS is not a comprehensive article or detailed report. It’s concise and to the point. Each item is summarized in a single sentence with a link for those who want to explore the topic further.
I’m already halfway through my second cup of coffee, so let’s dive in.
🚘 What I’m driving: I’m still with the 2025 Chevrolet Blazer EV SS and used Super Cruise for a hands-free drive up north to the lake last night.
🔋 Tesla’s lucrative period is ending after earning $11 billion from selling regulatory credits, which are expected to diminish in the coming years because of Trump’s Big Beautiful Bill allowing automakers to sell as many Hellcats and Hemis as they wish without penalties.
🌲 The Lucid Gravity X concept was unveiled in Monterey ahead of Pebble Beach, showcasing a potential off-road variant of their electric three-row SUV.
🚙 Some details about the forthcoming 2026 Jeep Cherokee were leaked by the company, revealing it will feature a 1.6-liter turbo-four hybrid engine that can achieve up to 38 mpg combined and has a towing capacity of 3,500 pounds.
🛻 The Ram Dakota has made a return, although it debuted in South America and is not intended for the U.S. market in its current form, as it’s a front-wheel-drive unibody pickup.
🇯🇵 Nissan announced that the 2026 Armada Nismo will have a price tag of $81,720, which includes a $2,190 destination fee.
✨ Rivian’s first one-off model, the R1S Quad Pebble Beach Edition, was auctioned off for $175,000, with proceeds going to WaterAid and #TeamWater charities.
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Tesla's Profit Model Is Ending, Main Profit Source Expected to Fall: TDS
As regulatory credits diminish due to Trump's actions, Tesla's main profit source will disappear.