Hybrid v Electric: what you need to know in 2025
With the electric vehicle revolution upon us, here’s everything you need to know about owning a battery-electric or hybrid vehicle.
4 min
You don’t have to be an automotive expert to know that the future of the automotive industry at large is going to be heavily reliant on battery-electric power – “electrification” is the new buzz word in town. But while car manufactures look to transition to this exciting new electric future, there are still a few key factors to consider when entertaining the EV conversation.
The biggest debate in the car industry right now is the hybrid v electric discussion: which to consider in 2024? Is one option better than the other? For the uninitiated, sales of hybrid cars, including hybrid and plug-in hybrid (PHEV) vehicles, remain the obvious choice for consumers in Australia, with new sale records reached in 2023. Data published by the Federal Chamber of Automotive Industries (FCAI) reported that 98,439 hybrid and 11,212 plug-in hybrid were sold in Australia in 2023, up 88.8 per cent from the previous year. Sales of fully-electric vehicles, on the other hand, also saw massive growth, with a total of 87,217 vehicles sold in 2023. Out of the three main types of ‘electrified’ vehicles in Australia—hybrid, plug-in hybrid and electric—plug-in hybrid (PHEV) vehicles were the least popular.
According to Jeff Mannering, Audi Australia CEO, it’s one of the most exciting times to be a part of the automotive industry.
“Australia is undoubtedly in the midst of a significant transition towards electric mobility. Whilst the journey to a fully electric industry is ongoing and advancing at a rapid rate, we’re lucky to be in a unique situation whereby we are seeing technological advancements in both hybrid and fully electric platforms,” explains Mannering.
“At Audi, we see this transition as a multifaceted evolution, with both hybrid and electric vehicles playing pivotal roles in shaping the future of sustainable transportation.”
In the luxury sector, Audi is making waves with its offerings, seeing the demand for its electric models hit an all-time high in 2023, delivering more than 178,000 fully electric vehicles to customers globally, with particularly strong demand for the Q4 e-tron, Audi’s compact electric SUV offering.
So, with all the buzz around electric vehicles, are consumer’s ready to take the plunge into the world of electrification? Mannering seems to think so, but a number of considerations still need to be factored in.
“Consumer readiness varies based on numerous factors, just a few of those being accessibility, infrastructure, and individual preferences. However, if sales figures and sentiment are anything to go off, we’ve seen a growing interest in, and uptake of, both hybrid and electric vehicles,” says Mannering.
“This increased demand results in the introduction of a number of new models and choice for Australian consumers, with more and more electric vehicles arriving on each incoming ship. It’s crucial to acknowledge that consumers are increasingly considering these options as viable alternatives, especially with the expanding availability of charging infrastructure and the advancement of battery technology.”
If you’re entertaining a new vehicle and want to make it electric, here’s some things you might want to know beforehand…
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What is an electric vehicle?
An electric vehicle—or ‘EV’— is powered by electricity and uses one (or more) electric motors powered by a battery pack to accelerate and drive, as opposed to traditional fossil fuels like petrol or diesel. Depending on the type of EV, the electric motor(s) either assist a conventional internal combustion engine (ICE) or power the car completely.
What are the different types of electric vehicles?
In the grand conversation of electrified vehicles, there’s three main types to consider: battery electric vehicles (BEV), hybrid electric vehicles (HEV), and plug-in hybrid vehicles (PHEV).
Are hybrids better than electric?
It depends on your individual needs, and as Mannering mentioned, on various factors such as accessibility, infrastructure, and individual preferences. While both hybrid and electric vehicles respectively present as great alternatives to your traditional combustion engine, factors need to be assessed, including driving habits, distance and range, access to charging infrastructure, and budget constraints. However, considering that 110,000 new car sales in Australia in 2023 were hybrid or plug-in hybrid—compared to 87,000 electric vehicles—it’s obvious hybrid vehicles present as a viable solution for those seeking to steer away from traditional cars, but might not be ready to plunge fully into the electric world.
“Hybrids offer a transitional solution for those who may not yet have access to extensive charging infrastructure or require longer driving ranges,” adds Mannering.
What is the downside of a hybrid car?
As we’ve made clear by now, hybrid cars offer several advantages, such as improved fuel efficiency and reduced emissions compared to traditional petrol-powered vehicles. However, there are some trade offs, like:
- Cost: currently, hybrid models are associated with more complex systems across controls and batteries. While they incorporate both an internal combustion engine and electric motor, such complexity can often result in higher manufacturing costs (and potentially maintenance costs, too).
- Not fully electric: As most hybrid vehicles typically have a limited range of electric-only propulsion before the combustion engine kicks in, the environmental benefits of using electric power and somewhat limited, both short-term and long-term.
- Charging Infrastructure: As hybrid cars do not require charging from an external power source—unlike plug-in hybrid vehicles or fully electric vehicles—owners won’t be able to take advantage of the growing infrastructure of charging stations around the country.
Should I choose electric or hybrid car?
Again, it depends on your particular needs and circumstances. Currently, hybrid vehicles offer improved fuel efficiency without the range limitations of electric vehicles—you won’t need to rely on finding or planning for a recharge station on your next trip—but electric vehicles will, sooner or later, be the most prominent form of automotive transportation.
“On the other hand, electric vehicles represent the pinnacle of sustainable mobility and a high level of uncompromised performance, offering zero-emission driving with advanced battery technology and an ever-expanding charging network,” concludes Mannering.
Is charging an electric vehicle easy?
Easy enough! In fact, EV charging can be as easy as plugging in your phone to charge. However, you need to ensure there is a suitable charging station available. While a lot of car manufactures will offer you a charging station to install at home with your purchase, such as Tesla and Polestar, in recent years, there has been wide concern over the scarcity of electric charging infrastructure in Australia.
Typically, you will find electric charging stations at different public locations, like supermarkets, public carparks, highway service centres, and some accommodation venues. However, with the growing number of EV sales in Australia alone, the system needs stronger charging infrastructure that is robust and reliable—and readily available— and this will come down to a number of industry stakeholders and government bodies coming together to supply the demand.
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Elon Musk is exploring a potential merger between Tesla and SpaceX, a deal that could reshape the future of AI, robotics, autonomous vehicles and space technology. With a combined valuation potentially reaching $3.5 trillion, the move could bring Musk’s vision of an interconnected technology ecosystem closer to reality, although a deal remains uncertain.
5 min
Elon Musk has engineered ties between Tesla TSLA 3.41%increase; up pointing triangle and SpaceX SPCX 7.79%increase; up pointing triangle that are hard to break, and now he wants to fuse them together permanently.
Musk has run both Tesla and SpaceX concurrently over the past two decades, using a schedule that dictated which days he spent focused on each business.
The companies have often shared resources and personnel, signaling their close ties. Last year, SpaceX looked into creating a spacesuit for Tesla’s humanoid robot Optimus, a person familiar with the matter said. Tesla last week showed off its new Roadster, a vehicle featuring SpaceX rocket thrusters that it hopes to soon bring to market.
And in recent months, Musk has repositioned both companies by expanding beyond their core operations toward a shared mission centered on artificial intelligence.
The world’s richest man on Tuesday signaled his interest in tying up SpaceX and Tesla, marking what would be the biggest corporate merger of all time. Because he serves as chief executive of SpaceX and Tesla, Musk said committees of independent directors at both companies are evaluating a possible deal, adding that a transaction might not come to fruition.
The committees will likely evaluate, with lawyers and bankers, how each company would fare in a potential deal and how a deal might best be structured. They then present their conclusions to their respective boards, who typically vote on whether to proceed.
“It’s an odd Kabuki dance where two groups of people are talking and I can’t be in the conversation,” Musk told SpaceX investors on Tuesday in response to an analyst’s question about a potential deal.
For Musk, the merger supports his vision of a world full of autonomous cars, humanoid robots and weekly rocket launches, as well as the data centers and satellites required to keep the whole thing running.
Some investors and analysts said they expect a transaction would be structured as an all-stock deal, with SpaceX potentially paying a modest premium for Tesla shares.
SpaceX, which has a market value of about $2 trillion, said it is seeing sharp growth in revenue across its businesses, which include operating data centers, launching rockets and operating satellite networks such as the internet service Starlink. Tesla is valued at about $1.5 trillion and is expanding its operations beyond its automotive and energy business. Shares in both companies traded higher following the news Tuesday.
Musk’s substantial ownership stakes in both companies, along with voting control at SpaceX, has enabled him to set the deal in motion. Analysts and investors said the deal will probably face regulatory scrutiny internationally, though some see Musk’s close relationship with the Trump administration as an asset to getting approval.
Blurred lines
The companies haven’t said which directors are on the special committees evaluating a potential deal. Several SpaceX and Tesla board members have either personal or business ties to Musk. And like Musk, venture capitalist Ira Ehrenpreis sits on both boards.
In a filing this week, Tesla outlined millions of dollars in business agreements with SpaceX and its subsidiaries last year, including $143 million in car sales to SpaceX, $3.3 million in advertising that it bought on the social-media platform X and $430 million in revenue from the sale of Megapack batteries for SpaceX’s data centers.
The companies also split the cost of resources including the use of Musk’s SpaceX jet and the bill for his personal security, which he runs through a private company.
Employees at both companies routinely move between companies to work on special projects, and some executives have dual roles, including Charles Kuehmann, vice president of materials engineering at both SpaceX and Tesla, and Ashok Elluswamy, the vice president of AI software at Tesla who runs a joint venture with SpaceX called Digital Optimus.
Over the years, Musk has launched new startups within his empire, including brain-implant company Neuralink, underground-tunnel developer the Boring Company and xAI, the AI startup that merged with SpaceX in February.
It is that AI business that Musk thinks can serve a market worth tens of trillions of dollars, justifying the need for a merger.
The business case goes like this: Tesla is developing robotaxis and robots, which it calls “physical AI.” SpaceX is working on the back end of physical AI: the data-center capacity and internet connection required for those robotaxis and robots to operate continuously.
“I don’t see what the value of Tesla is if it’s not merged with SpaceX,” said investment adviser Ross Gerber, a former Tesla bull turned critic invested in both companies. “If they don’t merge, the brains of everything that runs Tesla is owned by another company.”
On top of it all, both companies face constraints on the supply chains they need to make this world a reality, particularly when it comes to chips. To address this, Musk earlier this year announced a joint venture between Tesla, SpaceX and Intel to design and manufacture chips in Texas. “The most epic chip-building exercise by far,” he has said.
Musk at the wheel
For Musk, a merger would also solve two problems: demands on his attention and his lack of control at Tesla.
Tesla for years was Musk’s only public company, a status that came with greater scrutiny. There, Musk reports to a public board, as well as individual investors who make up around 30% of Tesla’s voting power, according to FactSet.
The question of Musk’s attention became a particular focus for investors and the board in recent years after he acquired Twitter in 2022 and launched xAI in 2023, and again in 2025 as he spent time in Washington, D.C., running the Department of Government Efficiency in the early months of President Trump’s second term.
As Tesla’s car business suffered in 2025, Musk threatened to take his AI ambitions outside the company if he wasn’t granted 25% voting control. Last November, Tesla shareholders approved a new pay package for Musk, which created a path for him to vastly expand his stake.
As of Sept. 30, Musk owned a roughly 20% stake in Tesla, according to the company’s proxy filing.
The SpaceX IPO gave Musk a different path. When SpaceX went public in June, the deal’s structure enabled him to have more than 80% voting power at the company—so much that he can’t be fired and decisions can’t be made without his support.
If SpaceX acquires Tesla, he will likely stay in control.
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