Volkswagen surpassed Tesla in Q1 2025 electric vehicle (EV) sales in Europe.

The German automaker sold 65,679 battery EVs compared to Tesla’s 53,237 in the first three months of the year, per JATO Dynamics data. Volkswagen’s registrations soared 157% year-over-year (yoy), while Tesla saw a 38% decline in the same period, the steepest among the top 30 brands. The German automaker’s strong performance highlights a growing competitive landscape in the EV market.

Despite losing the overall lead, Tesla’s Model Y and Model 3 remain the top two in Europe’s battery EV registrations. Volkswagen’s ID.4 ranked third in EU registrations, trailing the Model 3 by 2,000 units.

Model Y registrations dropped 43% in March, but the Model 3 increased 1% in the first quarter. The decline in Model Y registrations could be linked to Tesla’s upgraded Model Y, which debuted at the beginning of the year. In the first quarter, Tesla retooled and upgraded its factories worldwide to produce the new Model Y.

“As the brand continues to deal with a host of PR issues in addition to the changeover of the Model Y, Tesla is now relying on the Model 3 to offset its losses. Despite the controversy surrounding the brand’s CEO and the limited availability of the new Model Y, Tesla continues to perform well,” said Felipe Munoz, a global analyst at JATO Dynamics.

Tesla addressed its Q1 challenges during its recent earnings calls, with CEO Elon Musk attributing the dip to seasonal and strategic factors.

“Now, Q1, [the] first quarters of a year, are usually pretty tricky. Because it’s usually the worst quarter of the year because people don’t want to go buy a car in the middle of winter during the blizzard. So we picked Q1 as a good quarter to do a cutover to the new version of the Model Y and we changed the production of the world’s best-selling cars with — remember, the Model Y is the best-selling car of any kind on earth with a 1.1 billion unit per year output of a single model,” Musk stated.

Volkswagen’s surge reflects its continued focus on and dedication to EVs. While Tesla’s Model Y remains the global best-seller, Volkswagen’s momentum signals intensifying competition. As both companies navigate market dynamics, Tesla’s focus on its Robotaxi network and upcoming launches will be critical to regaining its edge.

The Tesla Model 3 recently captured the title of “most economical electric vehicle to own” in a new study performed by research firm Zutobi.

Perhaps one of the biggest and most popular reasons people are switching to EVs is the cost savings. Combining home charging, lower maintenance costs, and tax credits has all enabled consumers to consider EVs as a way to save money on their daily drivers. However, there are some EVs that are more efficient and cost-effective than others.

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Zutobi‘s new study shows that EV cost-effectiveness comes at different levels. For example, some cars are simply better than others on a cost-per-mile basis. The study used a simple process to determine which EVs are more cost-effective than others by showing how much it would cost to drive 100 miles.

National averages for energy rates have been used to calculate the cost as they widely vary from state to state.

The Rear-Wheel Drive Tesla Model 3 was listed as the most economical vehicle in the study:

“The standard Tesla Model 3 is the most economical electric vehicle to drive in 2025. With a usable battery capacity of 57.5 kWh and a real-world range of 260 miles, it costs just $3.60 to drive 100 miles. That translates to an impressive 2,781 miles per $100 of electricity—making it the most efficient choice for EV owners nationwide.”

It had an estimated cost of just $3.60 to drive 100 miles.

The Tesla Model 3 Long Range All-Wheel Drive was second, the study showed:

“Next is the Long Range version of the Model 3, which offers extended range and dual-motor all-wheel drive. With a larger 75 kWh battery and 325 miles of range, the cost to drive 100 miles is slightly higher at $3.75, still equating to a strong 2,665 miles per $100.”

This version of the Model 3 had a price of just $3.75 to drive 100 miles.

In third, the BMW i4 eDrive35 surprised us with a cost of just $4.12 to drive 100 miles:

“Rounding out the top three is the BMW i4 eDrive35, with a 67.1 kWh battery and a real-world range of 265 miles. Drivers can expect to pay $4.12 per 100 miles, which still allows for 2,429 miles per $100—a solid choice for those seeking luxury and efficiency.”

Several other Teslas made the list as well. The Model 3 Performance ($4.34 per 100 miles) was sixth and tied with the Volkswagen ID.3 Pure, the Tesla Model S Long Range ($4.35 per 100 miles) was 8th, and the Tesla Model Y Long Range was ninth ($4.36 per 100 miles).

Tesla is shipping a software fix for 2023 Model 3 and Model Y vehicles that could potentially have a power steering issue.

The National Highway Traffic Safety Administration (NHTSA) uses the term “recall” for the issue because, by definition, it is an “unreasonable safety risk or fails to meet minimum safety standards.”

It is worth noting that the NHTSA does recognize that it is a software update on its official website with a new badge that it recently started placing on these types of fixes.

However, the power steering issue is being resolved through an Over-the-Air software update, which will not require physical service from Tesla, and will be fixed through an internet connection.

The issue is impacting an estimated 376,241 Tesla Model 3 and Model Y vehicles operating software prior to 2023.38.4. The NHTSA writes on its website that:

“The printed circuit board for the electronic power steering assist may experience an overstress condition, causing a loss of power steering assist when the vehicle reaches a stop and then accelerates again.”

The agencies 573 report continues:

“By design, if the overstress condition occurs while the vehicle is traveling above 0 MPH, steering efforts will not be affected, and a visual alert will illuminate. Once the vehicle speed reaches 0 MPH, a loss of EPAS may occur, and loss of EPAS will persist when the vehicle is driven above 0 MPH. Manual steering without EPAS remains available to the driver.”

As of January 10, Tesla says it has received 3,012 warranty claims and 570 field reports relating to the issue, but it is not aware of any accidents or deaths due to the problem.

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