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There is no malicious compliance, just compliance. Who would they be malicious to? There is enough competition, it would only hurt their bottom line

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To the consumers who hate big bloated cars? It's not like people can or would say they want less safety in exchange for something smaller. There are arbitrary metrics to hit and that's all people look at. The more people say "this car looks absurd" the more it hurts their bottom line.

Also the business model will definitely shift more to services. A car will be not just the matter of buying it, but renting services on it like FSD, paying by data collection (which pays for 30%+ of the actual cost of current gen TVs etc).

And in cars they make it much harder to disable data collection. For safety of course.

Agreed on this point, everyone wants a subscription

The thing is bigger car are proportionally safer. And the market likes bigger cars, so the consumers are voting for bigger cars.

In the markets where consumers prefer or need smaller cars, they are offered. E.g. Japan

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