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Tesla Model Y: Why it will dominate the crossover EV segment

(Credit: Brian Armer/Twitter)

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Tesla’s Model Y will be the company’s first crack at the all-too popular crossover segment. With its first expected deliveries to take place in 2020, one thing is for sure: The most popular electric vehicle brand in the U.S. will hit another home run with the Model Y, and the fact that it is not the first crossover EV on the market will benefit Tesla in the long run.

There is an old saying that states, “The early bird gets the worm, but the second mouse gets the cheese.” In the case of a fully electric crossover vehicle, Tesla is the mouse here, and the fact they are releasing their introductory crossover long after other manufacturers have already released theirs is an advantage for the Silicon Valley-based automaker.

The Jaguar I-Pace, Kia Niro EV, Audi e-Tron, and the Hyundai Kona Electric have all made their way into the American market, giving consumers who want an electric car with the versatility of a crossover the opportunity to own one. But one issue with being the first to release a vehicle with that body style is this: other manufacturers will take the mistakes you made, and improve upon them in their own vehicles. Crossover EVs will continue to evolve into more complex and effective machines, meaning first is not necessarily the best in this case.

But why has Tesla been so successful? There are a few reasons as to how they’ve become the industry standard for electric cars. The first being that they exclusively make vehicles not powered by fossil fuels, an important concept to the prospective buyer who is interested in the sustainability aspect of the industry.

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Manufacturers like Audi and Jaguar who are releasing their first cracks at an electric vehicle are making strides, but they’re still primarily focused on creating cars powered by gas. It is hard for someone, especially those who believe wholeheartedly that the future of transportation must be electric, to support a manufacturer whose main focus is on gas-powered machines, even if they are transitioning to producing electric cars. The sales figures of all-electric crossovers like the Audi e-Tron, the Hyundai Kona EV, The Jaguar I-PACE, and the Kia Niro EV, all of whom reportedly did not even breach a thousand units in sales for September, further emphasizes this point.

The Model 3 has become the most popular electric vehicle on the market, selling over 19,000 units in the month of September alone. This figure is around eight times as many as the next closest competitor, according to Forbes. The future of Tesla is slowly navigating away from the Model S and Model X, and the Model 3 and Model Y are where the company will shape its focus.

“To be totally frank, we’re continuing to make [the Model S and Model X) more for sentimental reasons than anything else. They’re really of minor importance to the future,” he said, noting the cost-effectiveness of the 3 and the Y are important, as they are cheaper to produce and more affordable for consumers.

Tesla’s decision to release the Model Y after the Model 3 is all for a good reason. It is obvious the company is already focused on creating a perfect vehicle, and we know Mr. Elon Musk won’t give the loyal Tesla consumer anything short of perfect. With continually improving vehicles due to the company’s ability to utilize Over-the-Air software updates, any issues that may come up will likely be addressed by the automaker and improved upon over time. Among carmakers vying for the lucrative crossover EV segment, after all, few can match Tesla’s drive and dedication to develop the right EV for the right buyers.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla has to fix a big problem with its old headlights, NHTSA says

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tesla model 3 first generation headlight
Credit: Tesla Asia/Twitter

Tesla had a petition protesting a recall to fix a potential issue with 2017-2023 Model Y and Model 3 vehicles’ headlights was denied, as the National Highway Traffic Safety Administration (NHTSA) disagreed with the company’s opinion of things.

The recall covers approximately 19,917 Model Y and Model 3 vehicles built from 2017 to 2023. Tesla initially submitted a noncompliance report for the headlights on these vehicles on March 15, 2024. Tesla then petitioned for an exemption from the fix, which violated FMVSS No. 108 (40 CFR 571.108), arguing that the “noncompliance is inconsequential as it relates to motor vehicle safety.

The NHTSA disagreed, stating that Tesla’s conclusion that the headlights do not increase any risk was not an opinion it shared. The agency said it disagreed with Tesla’s assumption that glare is not increased to surrounding traffic. This issue could be highlighted even more in certain weather conditions.

Tesla will be required to remedy the issue, the NHTSA ruled:

“In consideration of the foregoing, NHTSA has decided that Tesla has not met its burden of persuasion that the subject FMVSS No. 108 noncompliance is inconsequential to motor vehicle safety. Accordingly, Tesla’s petition is hereby denied, and Tesla is consequently obligated to provide notification of and free remedy for that noncompliance under 49 U.S.C. 30118 and 30120.”

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The issue here appears to be the angle of the headlights and the brightness they emit during operation. The NHTSA report states that:

“Tesla’s headlamp supplier, Marelli Automotive Lighting, tested 25 right-hand and 25 left-hand lamps, and for this sample, found the maximum photometric intensity measured in the 10°U to 90°U and 90°L to 90°R zone was between 136.2 cd and 230.1 cd for the right-hand lamps and between 117.5 cd and 160.3 cd for the left-hand lamps. According to Tesla, these tests revealed that the photometric intensity of the right-hand and left-hand headlamp lower beam on the subject vehicles may measure as much as 230.1 cd in the 10°U to 90°U and 90°L to 90°R zone, exceeding the maximum photometric intensity by 105.1 cd. Additionally, Tesla states that a left-hand lamp tested by a Transport Canada recognized laboratory measured a maximum of 171.27 cd in the 10°U to 90°U and 90°L to 90°R zone. Despite these measurements exceeding the allowed photometric maximum of 125 cd, Tesla believes that the subject noncompliance is inconsequential to motor vehicle safety.”

Tesla also argued at some points that the headlights had not been deemed responsible for any complaints, accidents, or injuries related to the noncompliance.

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NTSB findings on fatal Tesla crash tell a very different story

The NTSB confirmed the driver, not Tesla’s FSD, caused the fatal Texas house crash.

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The National Transportation Safety Board released preliminary findings Wednesday confirming that a Tesla driver, not the vehicle’s software, caused a fatal crash in Katy, Texas in June. The driver, 44-year-old Michael Butler, had engaged Full Self-Driving Supervised mode on Rose Hollow Lane, a residential street with a 30 mph speed limit, before manually overriding the system by pressing the accelerator pedal all the way to 100%. Data recovered from the 2025 Tesla Model 3 showed the vehicle was traveling over 70 miles per hour when it struck a home and killed 76-year-old Martha Avila, who was inside. Weather was clear, the road was dry, and it was daylight.

Texas man charged in fatal Tesla crash where he blamed Autopilot

Butler told authorities he had passed out at the wheel. But security camera footage obtained by the NTSB told a different story, and showed the car accelerating through an intersection before leaving the road entirely. Police also found that Butler’s phone had Google searches including the terms “Tesla FSD not aggressive enough 2026” and “Tesla FSD too timid,” raising serious questions about how he was using the system before the crash. Butler has since been charged with manslaughter. The victim’s family has filed a lawsuit against both Butler and Tesla, alleging negligence.

The NTSB findings aligned directly with what Tesla VP of AI Software Ashok Elluswamy had already stated publicly on X in the weeks after the crash, writing that “the driver manually overrode self-driving by pressing the accelerator all the way to 100%.” The data confirmed his account.

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Tesla makes the cut on California’s newest EV Rebate program

California just signed a $270 million EV rebate into law and it starts this summer.

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California Governor Gavin Newsom signed SB 168 into law on Monday, July 13, 2026, creating a $270 million EV rebate program that delivers money directly at the dealership rather than as a tax credit applied months later. The program, called MyFirstEV, is funded equally by California’s state budget and participating automakers, with each contributing $135.5 million to make the math work.

The timing is directly tied to the loss of federal support when the $7,500 federal EV tax credit ended, removing the most significant consumer incentive that had driven EV adoption in the U.S. California, which accounts for roughly one-third of all EVs sold nationally, moved to fill that gap with a state-level replacement.

The rebate structure is straightforward. First-time EV buyers can receive $3,500 off any new battery-electric vehicle with an MSRP up to $50,000. Used EVs priced at $25,000 or below qualify for a $1,750 rebate. The credit is applied at the point of sale, which removes the friction of the old federal system where buyers had to wait for tax season to see the benefit. The program goes live later this summer, with the California Air Resources Board expected to release full participation details next month.

California hits Tesla Cybercab and Robotaxi driverless cars with new law

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For Tesla buyers, the implications are mixed. The Tesla Model 3 RWD at $42,490 and the Model 3 Long Range at $47,490 both fall under the $50,000 cap and would qualify for the full $3,500 rebate for first-time buyers. The Model Y, which starts at $44,990 after Tesla’s recent price adjustment, also qualifies. The Model X, Model S, and Cybertruck all exceed the cap and receive no benefit. As Teslarati has reported, the program also includes a carve-out exempting California-based automakers like Rivian and Lucid from the price cap entirely, a provision that puts Tesla at a disadvantage since it relocated its headquarters to Texas in 2021.

Other qualifying vehicles include the Chevrolet Equinox EV, Ford Mustang Mach-E, Hyundai Ioniq 5, Kia EV6, and Volkswagen ID.4.

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