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BMW sales growth mostly electric as it passes combustion ‘tipping point’

Credit: BMW

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As BMW joins several other automakers in following Tesla into electric vehicles (EVs), one executive from the luxury automobile manufacturer has said he expects sales growth to come primarily from electrified models at this point—noting that combustion engines have largely plateaued.

In a recent statement during a media roundtable, BMW Chief Financial Officer Walter Mertl said he thinks the company reached a critical “tipping point” for combustion engines last year, as reported by Automotive News Europe. Pointing to upcoming gas vehicle bans, such as the 2035 ban agreed upon in European Union nations, Mertl says the majority of BMW’s sales growth is now coming from EVs, and the company has major plans in the emerging sector over the next few years.

“The tipping point for the combustion engine is already there,” Mertl said, noting that he thinks it was surpassed in 2023. “The current sales plateau for combustion cars will continue and then fall slightly.”

Like many automakers, BMW saw record EV sales last year, as battery-electric deliveries across all of the company’s brands reached a 15 percent sales share in 2023. By 2026, according to Mertl, BMW is looking to boost that figure to 33 percent as it debuts six EV models within its “Neue Klasse” battery-electric lineup.

BMW has also reiterated its goal of selling 3 million vehicles by 2030 within the 8 to 10 percent margin range, and CEO Oliver Zipse said in September that it will remain “at least as profitable” as a company upon selling its Neue Klasse EVs at volume.

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As a brand, BMW alone nearly tripled its EV sales in the U.S. in 2023 over the prior year, according to the automaker’s full-year financial results for last year. The automaker also owns Rolls-Royce and MINI, the latter of which reported a similar increase in EV sales.

Earlier this month, BMW announced plans to end production of combustion engine vehicles at its plant in Münich, Germany, set to update the factory to begin producing the Neue Klasse EVs in 2026. The automaker has also touted its new cylindrical battery cells, set to debut in its EVs starting in 2025.

BMW, Mini, Rolls-Royce adopt Tesla’s NACS charging port

What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.

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Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Tesla Giga Berlin draws “red line” over IG Metall union’s 35-hour week demands

Factory manager André Thierig has drawn a “red line” against reducing Giga Berlin’s workweek to 35 hours, while highlighting that Tesla has actually increased its workers’ salaries more substantially than other carmakers in the country.

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(Credit: Tesla)

Tesla Giga Berlin has found itself in a new labor dispute in Germany, where union IG Metall is pushing for adoption of a collective agreement to boost wages and implement changes, such as a 35-hour workweek. 

In a comment, Giga Berlin manager André Thierig drew a “red line” against reducing Giga Berlin’s workweek to 35 hours, while highlighting that Tesla has actually increased its workers’ salaries more substantially than other carmakers in the country.

Tesla factory manager’s “red line”

Tesla Germany is expected to hold a works council election in 2026, which André Thierig considers very important. As per the Giga Berlin plant manager, Giga Berlin’s plant expansion plans might be put on hold if the election favors the union. He also spoke against some of the changes that IG Metall is seeking to implement in the factory, like a 35-hour week, as noted in an rbb24 report. 

“The discussion about a 35-hour week is a red line for me. We will not cross it,” Theirig said.  

“(The election) will determine whether we can continue our successful path in the future in an independent, flexible, and unbureaucratic manner. Personally, I cannot imagine that the decision-makers in the USA will continue to push ahead with the factory expansion if the election results favor IG Metall.”

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Giga Berlin’s wage increase

IG Metall district manager Jan Otto told the German news agency DPA that without a collective agreement, Tesla’s wages remain significantly below levels at other German car factories. He noted the company excuses this by referencing its lowest pay grade, but added: “The two lowest pay grades are not even used in car factories.”

In response, Tesla noted that it has raised the wages of Gigafactory Berlin’s workers more than their German competitors. Thierig noted that with a collective agreement, Giga Berlin’s workers would have seen a 2% wage increase this year. But thanks to Tesla not being unionized, Gigafactory Berlin workers were able to receive a 4% increase, as noted in a CarUp report. 

“There was a wage increase of 2% this year in the current collective agreement. Because we are in a different economic situation than the industry as a whole, we were able to double the wages – by 4%. Since production started, this corresponds to a wage increase of more than 25% in less than four years,” Thierig stated. 

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Tesla is seeing a lot of momentum from young Koreans in their 20s-30s: report

From January to November, young buyers purchased over 21,000 Teslas, putting it far ahead of fellow imported rivals like BMW and Mercedes-Benz.

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Tesla has captured the hearts of South Korea’s 20s-30s demographic, emerging as the group’s top-selling imported car brand in 2025. From January to November, young buyers purchased over 21,000 Teslas, putting it far ahead of fellow imported rivals like BMW and Mercedes-Benz. 

Industry experts cited by The Economist attributed this “Tesla frenzy” to fandom culture, where buyers prioritize the brand over traditional car attributes, similar to snapping up the latest iPhone.

Model Y dominates among young buyers

Data from the Korea Imported Automobile Association showed that Tesla sold 21,757 vehicles to the 20s-30s demographic through November, compared to BMW’s 13,666 and Mercedes-Benz’s 6,983. The Model Y led the list overwhelmingly, with variants like the standard and Long Range models topping purchases for both young men and women.

Young men bought around 16,000 Teslas, mostly Model Y (over 15,000 units), followed by Model 3. Young women followed a similar pattern, favoring Model Y (3,888 units) and Model 3 (1,083 units). The Cybertruck saw minimal sales in this group.

The Model Y’s appeal lies in its family-friendly SUV design, 400-500 km range, quick acceleration, and spacious cargo, which is ideal for commuting and leisure. The Model 3, on the other hand, serves as an accessible entry point with lower pricing, which is valuable considering the country’s EV subsidies.

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The Tesla boom

Experts described Tesla’s popularity as “fandom culture,” where young buyers embrace the brand despite criticisms from skeptics. Professor Lee Ho-geun called Tesla a “typical early adopter brand,” comparing purchases to iPhones.

Professor Kim Pil-soo noted that young people view Tesla more as a gadget than a car, and they are likely drawn by marketing, subsidies, and perceived value. They also tend to overlook news of numerous recalls, which are mostly over-the-air software updates, and controversies tied to the company.

Tesla’s position as Korea’s top import for 2025 seems secured. As noted by the publication, Tesla’s December sales figures have not been reported yet, but market analysts have suggested that Tesla has all but secured the top spot among the country’s imported cars this year. 

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Tesla FSD fleet is nearing 7 billion total miles, including 2.5 billion city miles

As can be seen on Tesla’s official FSD webpage, vehicles equipped with the system have now navigated over 6.99 billion miles.

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Tesla’s Full Self-Driving (Supervised) fleet is closing in on almost 7 billion total miles driven, as per data posted by the company on its official FSD webpage. 

These figures hint at the massive scale of data fueling Tesla’s rapid FSD improvements, which have been quite notable as of late.

FSD mileage milestones

As can be seen on Tesla’s official FSD webpage, vehicles equipped with the system have now navigated over 6.99 billion miles. Tesla owner and avid FSD tester Whole Mars Catalog also shared a screenshot indicating that from the nearly 7 billion miles traveled by the FSD fleet, more than 2.5 billion miles were driven inside cities. 

City miles are particularly valuable for complex urban scenarios like unprotected turns, pedestrian interactions, and traffic lights. This is also the difference-maker for FSD, as only complex solutions, such as Waymo’s self-driving taxis, operate similarly on inner-city streets. And even then, incidents such as the San Francisco blackouts have proven challenging for sensor-rich vehicles like Waymos. 

Tesla’s data edge

Tesla has a number of advantages in the autonomous vehicle sector, one of which is the size of its fleet and the number of vehicles training FSD on real-world roads. Tesla’s nearly 7 billion FSD miles then allow the company to roll out updates that make its vehicles behave like they are being driven by experienced drivers, even if they are operating on their own. 

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So notable are Tesla’s improvements to FSD that NVIDIA Director of Robotics Jim Fan, after experiencing FSD v14, noted that the system is the first AI that passes what he described as a “Physical Turing Test.” 

“Despite knowing exactly how robot learning works, I still find it magical watching the steering wheel turn by itself. First it feels surreal, next it becomes routine. Then, like the smartphone, taking it away actively hurts. This is how humanity gets rewired and glued to god-like technologies,” Fan wrote in a post on X. 

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