277: The Sacrificial Lamb
About this episode
Hosts Phil Royal and Ed Sanchez dive into the shocking news that Polestar will exit the US market in 2027, while its sister brand Volvo remains. They debate whether Polestar is a sacrificial lamb for parent company Geely amidst tightening US security regulations on Chinese software. Later, the duo tackles Tesla's latest Full Self-Driving pivot. With Hardware 3 proving insufficient for true autonomy, Tesla is releasing a "distilled" version of FSD version 14. Ed shares his personal experience upgrading his Model 3 and questions the real-world value of the technology.
Turns out, a vehicle needn’t be made in China for the U.S. to chuck it from these shores for being a Chinese car, but was Polestar simply a sacrificial lamb for Geely, since Volvo’s presence has been spared? That’s just the first topic on this week’s podcast. The conversation then wanders somewhat autonomously to Tesla, VW, and Bosch and the future of self-driving cars, plus dielectric battery EVs, and more.
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SHOW NOTES
Polestar exits US market: https://www.thedrive.com/news/polestar-is-done-selling-new-cars-in-the-us
Tesla rolls out FSD v14 “lite” to HW3: https://electrek.co/2026/06/29/tesla-fsd-v14-lite-hw3-rollout/
VW reportedly cutting losses with Bosch over autonomous driving software not achieving goals: https://www.reuters.com/business/autos-transportation/volkswagen-plans-end-automated-driving-tie-up-with-bosch-bild-reports-2026-06-28/
DOT proposes elimination of the brake pedal for fully autonomous vehicles: https://techcrunch.com/2026/06/25/trump-admin-proposes-axing-brake-pedal-requirement-for-avs-in-a-boost-for-tesla/
Shell shows prototype with dielectric fluid battery: https://www.autoblog.com/news/shell-built-an-ev-that-uses-half-the-carbon-of-todays-electric-cars
Ferrari marketing chief “leaves” company following Luce launch: https://electrek.co/2026/06/23/ferrari-replaces-marketing-chief-luce-ev-backlash/
Ferrari Luce sells out in China: https://www.autoblog.com/news/ferraris-first-ev-got-roasted-online-then-sold-out-in-china
This week’s hosts: Phil Royle and Edward A. Sanchez
Episode art courtesy Polestar
Music courtesy Twisterium at Pixabay
Website: https://www.thewattcar.com
YouTube: https://www.youtube.com/@thewattcar
Polestar
"But yeah, Polestar, not coming back in 2027 to the US market. Okay, so what's really surprising is Polestar is a division of Volvo. I think it was a separate company originally, and they did like souped up."
Polestar is a car brand that makes stylish, high-tech electric cars. It started as a special performance division of Volvo but became its own electric-only brand, though it is now leaving the US market.
Polestar is a premium electric vehicle brand spun out of Volvo and owned by China's Geely. Originally Volvo's performance tuning division (similar to Mercedes-AMG), it was established as an independent EV brand in 2017. In this 2026 episode, the hosts discuss Polestar's withdrawal from the US market due to regulatory and national security concerns over Chinese-connected vehicle technology.
Geely
"But Polestar and Volvo are one and the same, essentially now. And they are owned by, is it Geely? Yeah, Geely's the parent company."
Geely is a giant Chinese car company that owns well-known European brands like Volvo and Lotus, helping them transition into making modern electric vehicles.
Zhejiang Geely Holding Group is a major Chinese multinational automotive company. It acquired Volvo Cars from Ford in 2010 and has since expanded its portfolio to include Polestar, Lotus, Zeekr, and a joint venture with Mercedes-Benz for the Smart brand, making it a massive player in the global EV transition.
Lotus Eletre
"I mean, Lotus is in America. And the Electra is made in China. Yeah, I've seen at least a couple of them here."
A high-tech, all-electric SUV made by Lotus, a brand famous for making tiny, lightweight sports cars. It is built in China and packed with modern technology.
The Lotus Eletre is an all-electric mid-size luxury crossover SUV produced by British sports car manufacturer Lotus (owned by Geely) and built in Wuhan, China. It represents a radical departure for the brand, which historically focused on ultra-lightweight, analog sports cars like the Elise and Exige.
Lincoln Nautilus
"And there are other Chinese, I mean, Buick and Vision, Lincoln Nautilus. There are Chinese built cars sold in America."
A luxury SUV from Lincoln that, starting in 2024, is manufactured in China and imported to North America.
The Lincoln Nautilus is a mid-size luxury crossover SUV. Starting with the 2024 model year, production for the North American market shifted to Hangzhou, China, as part of a joint venture between Ford and Changan, featuring a massive pillar-to-pillar display screen inside.
Buick Envision
"And there are other Chinese, I mean, Buick and Vision, Lincoln Nautilus. There are Chinese built cars sold in America."
A comfortable, family-sized SUV sold by Buick that is actually built in China and shipped to the US.
The Buick Envision is a compact luxury crossover SUV manufactured by General Motors. Notably, it is assembled in China by the SAIC-GM joint venture and imported to the United States, making it one of the first Chinese-built vehicles sold in the US market.
Tesla Model 3
"So you have a model three that came with hardware 2.5. 2.5. Yeah. And then you paid a million dollars to have that upgraded to hardware three."
A very popular electric sedan made by Tesla. It is known for its long driving range, fast acceleration, and high-tech features.
The Tesla Model 3 is an all-electric four-door compact sedan that popularized mass-market EVs. It features a minimalist interior dominated by a central touchscreen and is powered by rear- or dual-motor electric powertrains, serving as the benchmark for modern entry-level luxury EVs.
FSD
"And then you got you test drove quote unquote test drove FSD and was like that's fine. Like it was it was a kind of parlor trick. And but I just I don't know it wasn't."
A software feature you can buy for Tesla cars that helps the car steer, accelerate, brake, and change lanes on its own, though the driver must still pay attention and be ready to take over at any second.
Full Self-Driving (FSD) is Tesla's brand name for its advanced driver-assist system (ADAS). Despite the name, it is classified as a Level 2 automated system under SAE standards, meaning it requires active driver supervision and does not make the vehicle fully autonomous.
BlueCruise
"And I've got a friend that has a Maki with it's with the Ford's blue cruise. And when he he now works from home but when he was commuting in doing like a 40 mile each way"
Ford's driving assistant that lets you take your hands off the steering wheel on certain highways, as long as you keep your eyes on the road.
BlueCruise is Ford's hands-free highway driving assistive technology. It uses a driver-facing camera to monitor eye gaze and head position, allowing hands-free driving on pre-mapped sections of divided highways called 'Hands-Free Blue Zones.'
Ford Mustang Mach-E
"And I've got a friend that has a Maki with it's with the Ford's blue cruise. And when he he now works from home but when he was commuting in doing like a 40 mile each way commute he loved it."
An electric SUV made by Ford that uses the famous 'Mustang' name. It is designed to compete directly with Tesla's SUVs.
The Ford Mustang Mach-E is an all-electric compact crossover SUV that leverages the iconic Mustang nameplate. It offers sporty driving dynamics, a modern tech-focused cabin, and is available in rear-wheel or all-wheel drive configurations to compete directly with the Tesla Model Y.
Toyota A90
"is good enough if we take this distilled version of that that is frozen in time and we go here you go and that'll get you a 90% of the way maybe. Supposedly the the other thing this is also also leaves unanswered is I know at some point Maastricht Tesla brought up the"
The Toyota Supra is a two-door sports car made by the Japanese company Toyota. It is designed to go fast, look sporty, and be fun to drive.
The Toyota Supra is a legendary sports car, with its fifth generation (GR Supra) developed in partnership with BMW. It features a turbocharged engine, rear-wheel drive, and sharp handling, making it a favorite among driving enthusiasts.
Dodge Ram
"...er stuff and it would add to the resources to the RAM it would use it as RAM or whatever it was doing t..."
The Dodge Ram is a large pickup truck made in America. It is designed for carrying heavy loads, towing trailers, and driving on rough terrain.
The Dodge Ram is a popular line of full-size pickup trucks known for their powerful engine options, including the Cummins turbodiesel and Hemi V8. While 'Ram' was spun off into its own brand in 2010, older models still carry the Dodge name.
Tesla Model S
"...nd you'd be able to upgrade a maybe not a gen one Model S but certainly all Model 3s by the time you got to..."
The Tesla Model S is a large, luxury four-door car that runs entirely on electricity. It is made by the American company Tesla and is known for its high-tech features.
The Tesla Model S is an all-electric luxury sedan that helped popularize electric vehicles with its long range, high performance, and over-the-air software updates. As of 2026, it remains Tesla's flagship sedan, offering extreme acceleration in its Plaid trim.
CARIAD
"So Volkswagen as apparently their uh cariad is that how it said their car their their division their software division that I believe was the downfall of oh what was his name the CEO of Volkswagen"
A special software company owned by Volkswagen. They were created to build the computer brains for all of VW's future cars, but they have struggled with delays and technical issues.
CARIAD is the automotive software subsidiary of the Volkswagen Group. Established to consolidate VW's software development, it has faced significant delays and budget overruns, leading to delayed vehicle launches (such as the Porsche Macan EV and Audi Q6 e-tron) and executive shakeups.
Herbert Diess
"exactly I can see his face but I can't do we we had a podcast episode where I photoshopped his face on a skydiver herbert herbert dease dease yes there you go okay so uh that was kind of caria cariad cariad was his downfall"
The former boss of Volkswagen who pushed the company to go all-in on electric cars, but was eventually fired after software problems delayed several new models.
Herbert Diess served as the Chairman of the Board of Management (CEO) of Volkswagen Group from 2018 to 2022. He was a strong proponent of rapid electrification but was ousted largely due to clashes with labor unions and software development struggles at CARIAD.
ADAS
"yeah so I mean I think development of like autonomous and what they call 8S you know advanced driver systems I mean that's still going to continue"
A general term for safety features in modern cars that help you drive, like warning you when you drift out of your lane or automatically braking to avoid a crash.
Advanced Driver Assistance Systems (ADAS) encompass electronic technologies that assist drivers in driving and parking functions. Examples include lane-keep assist, adaptive cruise control, and automatic emergency braking, designed to increase safety and comfort.
Ford Model T
"...on vehicle technology since the innovation of the Model T I remember why I put this in here if we want Amer..."
The Ford Model T is an antique car made by Ford starting in 1908. It is famous because it was the first car made on an assembly line, making it cheap enough for regular people to buy.
The Ford Model T is one of the most important vehicles in automotive history, credited with making car ownership affordable for the average person. Introduced in 1908, its mass production on a moving assembly line revolutionized global manufacturing.
dielectric thermal fluid
"that the what's the term that they used um dielectric thermal fluid yeah dielectric battery uh fluid is dielectric fluid batteries completely different from the water in a in a"
A special liquid that doesn't conduct electricity, used to cool electric car batteries by letting the battery parts sit directly in the liquid without short-circuiting.
Dielectric thermal fluid is a non-conductive liquid used in direct-contact (immersion) cooling of EV battery cells. Because it does not conduct electricity, battery components can be submerged directly in the fluid to manage temperatures more efficiently than traditional cooling jackets.
Lucid Air
"but it hit like the 5 mile per kilowatt hour mark and that was like mind blowing there was the Ioniq the hunday Ioniq the original one"
A high-end, luxury electric sedan designed to compete with Tesla and Mercedes. It is famous for having some of the longest driving ranges of any electric car on the market.
The Lucid Air is an all-electric luxury sedan produced by Lucid Motors, known for its industry-leading efficiency, ultra-high-voltage architecture, and aerodynamic design. It features a proprietary compact electric motor setup that delivers exceptional range and performance.
Hyundai Ioniq
"there was the Ioniq the hunday Ioniq the original one the front wheel drive thing that one was around i want to say 55 point 15 point two it was like the most efficient electric vehicle"
A highly efficient hatchback made by Hyundai that came in hybrid and electric versions. It was designed to get as much distance as possible out of every bit of energy.
The original Hyundai Ioniq (produced from 2016 to 2022) was a compact hatchback offered in hybrid, plug-in hybrid, and fully electric variants. The Ioniq Electric was highly praised for its extreme efficiency, squeezing high mileage out of a relatively small battery pack.
Mercedes-Benz Cclass
"because he had a a double a battery as it's as it's uh yeah as its power supply but 6.2 is pretty good i i can't remember what mercedes was getting remember there are concepts like c-class long tail that they had oh yeah i don't remember what they were getting but i i bet this is in that range"
The Mercedes-Benz C-Class is a luxury four-door sedan made by the German company Mercedes-Benz. It is designed to be comfortable, high-tech, and stylish.
The Mercedes-Benz C-Class is a compact luxury car that serves as a core model in the brand's lineup. The current generation features advanced hybrid powertrains and a high-tech cabin heavily inspired by the flagship S-Class.
BMW i3
"and this thing's just like a little pod this looks kind of like a it reminds me of the i3 the original i3 yeah it's kind of either an i3 or a bolt"
A small, futuristic-looking electric hatchback made by BMW. It was unique because its body was made of lightweight carbon fiber and it had rear doors that opened backward.
The BMW i3 is a B-segment high-roof hatchback designed and manufactured by BMW with a carbon-fiber-reinforced plastic passenger cell to offset battery weight. It featured a futuristic, quirky design and was available as a pure EV or with an optional gasoline range extender.
Chevrolet Bolt EV
"yeah it's kind of either an i3 or a bolt or kind of bolt this you know it's it's just semi-futuristic but a car"
An affordable, compact electric hatchback made by Chevrolet that helped make long-range electric driving accessible to everyday buyers.
The Chevrolet Bolt EV is an all-electric subcompact hatchback developed and manufactured by General Motors. It was one of the first affordable, long-range electric vehicles on the US market, offering over 200 miles of range at an accessible price point.
Ferrari Luce
"...n this oh ferrari claiming a great victory of the luce in china selling out yeah all 88 yeah 88 allocati..."
The Ferrari Luce is likely a misheard name for a high-end sports car made by the Italian company Ferrari. The podcast discusses a limited number of these expensive cars being sold in China.
The 'Ferrari Luce' appears to be a transcription error for a specific Ferrari model (likely the Roma or Purosangue) discussed in the context of exclusive allocations in China. Ferrari frequently releases highly limited editions or specific allocations for the Chinese market, where the number 88 holds significant cultural value.
dealer markup
"how the dealer markup the dealer the way dealer networks are is that they're structured around service and so like in regular vehicles you purchase an electric vehicle"
An extra fee that car dealerships tack onto the price of a highly desirable car just because they know people are willing to pay more to get it.
A dealer markup (or market adjustment) is an additional fee added to a vehicle's manufacturer suggested retail price (MSRP) by a dealership, typically driven by high demand or limited vehicle supply.
Ferrari 308 GTS
"whatever I had a friend that bought a 308 308 gts and it was something he he bought it for a song because its service it's like 50 000 mile service whatever it was it was like 40 grand"
A classic, wedge-shaped Ferrari sports car from the late 1970s and 1980s with a removable roof panel. It is famous for being driven by Tom Selleck in the TV show Magnum, P.I.
The Ferrari 308 GTS is a mid-engined, V8-powered sports car produced from 1977 to 1985, famous for its targa top and its starring role in the TV show Magnum, P.I. It features a classic Pininfarina design and a gated manual shifter.
R&R
"the super cars though are if you want to change the oil or the spark plugs you drop the engine and that's where the price starts getting really high it's a full removal it's an r and r and you just don't have this"
A mechanic's term that means taking a part out of the car and putting a new one in (or putting the old one back after fixing it). For exotic cars, even simple fixes can require taking out the entire engine, making labor costs skyrocket.
In automotive service, 'R&R' stands for 'Remove and Replace' (or 'Remove and Reinstall'). It refers to the labor process of taking a component completely out of the vehicle to service or swap it, which can be highly labor-intensive for mid- or rear-engined supercars.
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