Man widely known as the ‘godfather of EVs’ makes stark prediction about Tesla

The man often called the Godfather of EVs, Andy Palmer, has issued a blunt warning about the latest models from Tesla.

Unfortunately, this might not be what fans of the brand want to hear.

Palmer is the former Nissan COO who led the launch of the world’s first mass-market electric vehicle, the Nissan Leaf.

According to him, Tesla’s new ‘affordable’ EVs won’t be enough to fend off a growing wave of competition from China.

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Tesla shouldn’t be competing based on price

In an interview with Business Insider, the ‘godfather of EVs’ said that Tesla’s latest strategy of stripping back features to cut prices misses the mark.

The company recently launched the Model 3 and Model Y Standard variants, priced at $37,000 and $40,000, respectively.

These models come without popular features like Autosteer, rear infotainment screens, and even radios.

Despite the lower price tags, the stripped-down EVs haven’t impressed investors or the market, with Tesla’s share price dipping after the reveal.

Palmer says that while lowering costs is important, the American carmaker’s attempt feels like a half-step in the wrong direction.

“If you take out the features – and Tesla has taken out an awful lot of features – then that creates a new price point,” he explained.

“But that new price point doesn’t make it competitive with the Chinese competition, which are stacked with features.”

Chinese EVs offer a lot of features for the price

Indeed, Chinese EV makers like BYD, Geely, and Xiaomi are setting new standards for what budget-friendly electric cars can offer.

BYD’s compact Seagull starts at just $8,000, and includes advanced driver-assistance tech.

While Xiaomi’s $30,000 SU7 can park itself.

These automakers are aggressively expanding into Europe, Latin America, and other regions, which are all markets where Tesla’s dominance is starting to waver.

Andy Palmer, speaking from China, warned that Western automakers risk falling behind if they rely on tariffs to keep Chinese EVs out rather than innovating to compete.

“You have to address the issue rather than standing behind regulatory or tariff rules,” he said.

“They’ll insulate you for a while, but they don’t make the problem go away.”

For Tesla, that warning hits close to home.

The EV pioneer that once disrupted the industry now faces a new generation of disruptors: one that’s coming from the East.

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