Power Systems Research (PSR) is an international research company based in St. Paul, Minnesota, USA. It operates a second North America office in Detroit, Mich., and has offices in five other countries. PSR analysts have been collecting and analyzing global engine and powertrain data and information since 1976, and we use this data to develop targeted forecasts by industry segment and region.
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Tesla Committing Automotive Suicide
Guy Youngs Following its Q4 2025 financial update, Tesla appears to be pivotally shifting away from its identity as a traditional automaker. By phasing out the Model S and X to focus on ‘Transportation as a Service,’ leadership is betting heavily on an autonomous-first business model.
And instead of building on that success, expanding into new segments, addressing affordability, and competing with the flood of new EVs from legacy automakers and Chinese competitors, the company that revolutionized the auto industry is walking away from it.
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Tesla Semi Lines Up for $165M in California Incentives
Chris Fisher The update was initially reported by The Los Angeles Times.
Tesla reportedly is positioned to receive roughly $165 million in California clean-truck incentives for its Semi.
As per the Times, the Tesla Semi’s funding will come from California’s Hybrid and Zero-Emission Truck and Bus Incentive Project (HVIP), which was designed to accelerate the adoption of cleaner medium- and heavy-duty vehicles. Since its launch in 2009, the HVIP has distributed more than $1.6 billion to support zero-emission trucks and buses across the state.
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Tesla’s 2025 Europe Data Shows Total Bloodbath
Guy Youngs The data is in for Tesla’s full year 2025 in Europe, and frankly, it’s a bloodbath across most major markets. Every market in Europe showed a substantial decline (ranging from -4.1% to -66.9%). There’s a single exception, Norway, and Tesla can’t even count on this market in 2026 because the growth in Norway was caused by changing regulations for 2026, that brought forward car purchases into the last two month of 2025.
According to registration data compiled from major European markets, Tesla saw its total volume drop from roughly 326,000 units in 2024 to just over 235,000 in 2025. That is a staggering 27.8% year-over-year decline
The truth is that this is an impressive demand cliff by any standard that points to significant brand problems, which are due to a mix of Elon Musk, Tesla’s CEO, becoming highly toxic, and Tesla’s EV lineup becoming stale amid tougher competition.
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2026 Growth of 4.9% Seen in Truck Production
Chris Fisher Medium and heavy truck production in North America is expected to increase by 4.9% this year compared with 2025. While class 8 truck production is expected to increase by 6.1% this year, the industry continues to be negatively impacted by the weight of the tariffs, low freight demand, excess truck capacity and relatively high finance rates which is expected to continue through at least the first half of the year.
With regard to the implementation of the phase 3 GHG emission regulations, it will be later in the spring before the EPA finalizes any revisions to the standards. Many in the industry believe the EPA will retain the 0.035 g/hp-hr standard along with the 2027 implementation date but cancel the extended warranty requirements which would have added significant up-front cost to the trucks.
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