As the automotive industry grapples with a pivotal transition, legacy carmakers are increasingly retreating from ambitious electric vehicle (EV) plans, a move that underscores deep-seated challenges in adapting to a battery-powered future. Recent announcements from companies like Porsche and Bentley, part of the Volkswagen Group, highlight this pullback, with reports indicating a shift toward maintaining internal combustion engine (ICE) lineups amid softening EV demand. According to a post on X by Tesla enthusiast Farzad Mesbahi, known as @farzyness, this retreat is not a sign of EVs’ failure but rather legacy auto’s inability to profitably compete in the space.

This narrative shift comes as no surprise to industry observers. For years, the promise of fierce competition against Tesla Inc. dominated headlines, yet many traditional manufacturers have struggled with high production costs, supply chain disruptions, and consumer hesitancy. A 2023 article in CleanTechnica detailed how legacy automakers face “angst over EVs” due to factors like outdated manufacturing processes and reluctance to fully commit to electrification, leading to delays in model launches and scaled-back investments.

The Mirage of Competition and Its Unraveling

Far from validating skeptics who claim EVs are a bust, this withdrawal hands Tesla a significant edge, particularly in autonomy and operational efficiency. Mesbahi’s analysis points out that by clinging to ICE vehicles, legacy players are effectively forfeiting the race in self-driving technology. Electric drivetrains offer inherent advantages for autonomous systems, such as instant torque for precise maneuvers, lower idling costs, and reduced maintenance—qualities that ICE engines simply can’t match without complex adaptations.

Supporting this view, a Reuters report from June 2025 warns that Chinese EV giants like BYD are surging ahead in self-driving capabilities, threatening Tesla’s lead globally, but in the U.S., Tesla’s focus on software like Full Self-Driving (FSD) remains unmatched. Business Insider echoed this in a 2020 piece, noting Tesla’s software prowess gives it “years ahead” of competitors, a gap that widens as others deprioritize EVs.

Tesla’s Cost-Per-Mile Dominance Emerges

The impending removal of U.S. EV tax credits, anticipated under shifting policy priorities, could exacerbate this divide. Without subsidies, legacy automakers’ EVs become even less competitive on price, while Tesla’s vertically integrated model allows profitability at lower margins. Mesbahi argues that Tesla now boasts the “lowest cost per mile of operation” with superior safety and autonomy, even post-credit era—a claim bolstered by Tesla’s own manufacturing innovations outlined in a 2023 The Driven article, which described plans to halve EV production costs through paradigm-shifting techniques.

Industry data from MDPI’s 2025 study on Tesla’s U.S. market share decline—ironically due to rising competition—still affirms Tesla’s first-mover advantages in battery tech and autonomy. As legacy firms like General Motors pivot to higher-end EVs or delay mass-market models, as noted in a 2024 Autoevolution piece, they leave a vacuum that Tesla and nimble players like Rivian or Hyundai are poised to fill.

Autonomy as the Ultimate Differentiator

At the heart of this dynamic is autonomy’s role in reshaping mobility economics. ICE vehicles, with their mechanical complexities, are ill-suited for the always-on demands of robotaxis or fleet operations. Tesla’s Optimus and Cybercab initiatives, teased in recent earnings calls, leverage EV efficiencies for what could be transformative cost savings. A Teslarati article from 2020 highlighted how Tesla’s battery lead embarrasses legacy auto, a disparity that’s only grown.

Critics may spin this as EVs’ downfall, but insiders see it as legacy auto’s capitulation. Posts on X from users like Mesbahi, including one from July 2024 lamenting legacy’s unwillingness to invest in affordable EVs, reflect a sentiment that Tesla’s path to dominance is clearing. As a 2021 GLG Insights piece pondered whether legacy companies could catch Tesla, the answer increasingly seems no—especially with autonomy tilting the scales.

Implications for the Broader Industry Shift

This retreat risks stranding billions in ICE-related assets, as warned in a 2021 Teslarati analysis of Tesla’s manufacturing edge over “stranded assets” in legacy production. Meanwhile, Tesla’s software updates and data collection from millions of miles driven provide an unassailable moat. A 2025 article in The Autopian even dubbed Tesla the new “legacy” automaker for its established EV dominance, inverting the traditional narrative.

Ultimately, while media may decry EVs’ viability, the reality is a strategic surrender by incumbents unable to innovate profitably. Tesla, unburdened by ICE legacies, stands to capitalize on autonomy’s promise, potentially revolutionizing transportation with unbeatable efficiency and safety. As Mesbahi puts it, “the train is off the tracks”—but for legacy auto, not the EV revolution.