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Dyson scrapped their electric vehicle plans: Here’s why

A render of Dyson's supposed all-electric car. (Credit: Carwow)

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In 2017, Sir James Dyson of the well-known Dyson Vacuum Company launched a project to produce an electric car. But recently, the company has unfortunately decided to scrap the project after determining that it was “not commercially viable.”

Dyson and its engineers had developed a “fantastic electric car” according to the company’s founder, but the £2.5 billion project that employs 523 people has failed to attract a buyer that would help develop the future vehicles.

Dyson was evidently committed to the project, seeing that they poured an extraordinary amount of money into in order to produce a sustainable vehicle. They also planned to open a plant in Singapore that would be finished in 2020 and would produce the first vehicles available for purchase in 2021.

£200 million of the £2.5 billion was set aside for research and development purposes. The company had already built a test track for its vehicles in the U.K., where a few of the early production models were already being tested. The company will utilize the money set aside for the EV project to research new technologies and grow its new University in the U.K. that will offer Bachelor of Engineering programs.

“We will also concentrate on the formidable task of manufacturing solid-state batteries and other fundamental technologies which we have identified: sensing technologies, vision systems, robotics, machine learning, and AI offer us significant opportunities which we must grab with both hands,” Dyson wrote.

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Dyson announced that it would be closing both the Singapore and U.K. vehicle plants, but will still continue to “deepen their roots” in both countries.

Although the company has eliminated any chance of producing an electric car in the future, Sir James Dyson says that the project was not a failure in any sense. “This is not a product failure, or a failure of the team, for whom this news will be hard to hear and digest,” the CEO said in a press release on the company’s website.

While unfortunate that the company has abandoned the project, Dyson’s attempt will benefit its products in the long run. They expect to utilize the knowledge that they have gained with batteries to extend to other projects, including its vacuums. “Our battery will benefit Dyson in a profound way and take us in exciting new directions.”

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 expands Model 3 lineup in Europe with most affordable variant yet

The Model 3 Standard still delivers more than 300 miles of range, potentially making it an attractive option for budget-conscious buyers.

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Credit: Tesla

Tesla has introduced a lower-priced Model 3 variant in Europe, expanding the lineup just two months after the vehicle’s U.S. debut. The Model 3 Standard still delivers more than 300 miles (480 km) of range, potentially making it an attractive option for budget-conscious buyers.

Tesla’s pricing strategy

The Model 3 Standard arrives as Tesla contends with declining registrations in several countries across Europe, where sales have not fully offset shifting consumer preferences. Many buyers have turned to options such as Volkswagen’s ID.3 and BYD’s Atto 3, both of which have benefited from aggressive pricing.

By removing select premium finishes and features, Tesla positioned the new Model 3 Standard as an “ultra-low cost of ownership” option of its all-electric sedan. Pricing comes in at €37,970 in Germany, NOK 330,056 in Norway, and SEK 449,990 in Sweden, depending on market. This places the Model 3 Standard well below the “premium” Model 3 trim, which starts at €45,970 in Germany. 

Deliveries for the Standard model are expected to begin in the first quarter of 2026, giving Tesla an entry-level foothold in a segment that’s increasingly defined by sub-€40,000 offerings.

Tesla’s affordable vehicle push

The low-cost Model 3 follows October’s launch of a similarly positioned Model Y variant, signaling a broader shift in Tesla’s product strategy. While CEO Elon Musk has moved the company toward AI-driven initiatives such as robotaxis and humanoid robots, lower-priced vehicles remain necessary to support the company’s revenue in the near term.

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Reports have indicated that Tesla previously abandoned plans for an all-new $25,000 EV, with the company opting to create cheaper versions of existing platforms instead. Analysts have flagged possible cannibalization of higher-margin models, but the move aims to counter an influx of aggressively priced entrants from China and Europe, many of which sell below $30,000. With the new Model 3 Standard, Tesla is reinforcing its volume strategy in Europe’s increasingly competitive EV landscape.

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Tesla FSD (Supervised) stuns Germany’s biggest car magazine

FSD Supervised recognized construction zones, braked early for pedestrians, and yielded politely on narrow streets.

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Credit: Grok Imagine

Tesla’s upcoming FSD Supervised system, set for a European debut pending regulatory approval, is showing notably refined behavior in real-world testing, including construction zones, pedestrian detection, and lane changes, as per a recent demonstration ride in Berlin. 

While the system still required driver oversight, its smooth braking, steering, and decision-making illustrated how far Tesla’s driver-assistance technology has advanced ahead of a potential 2026 rollout.

FSD’s maturity in dense city driving

During the Berlin test ride with Auto Bild, Germany’s largest automotive publication, a Tesla Model 3 running FSD handled complex traffic with minimal intervention, autonomously managing braking, acceleration, steering, and overtaking up to 140 km/h. It recognized construction zones, braked early for pedestrians, and yielded politely on narrow streets. 

Only one manual override was required when the system misread a converted one-way route, an example, Tesla stated, of the continuous learning baked into its vision-based architecture.

Robin Hornig of Auto Bild summed up his experience with FSD Supervised with a glowing review of the system. As per the reporter, FSD Supervised already exceeds humans with its all-around vision. “Tesla FSD Supervised sees more than I do. It doesn’t get distracted and never gets tired. I like to think I’m a good driver, but I can’t match this system’s all-around vision. It’s at its best when both work together: my experience and the Tesla’s constant attention,” the journalist wrote. 

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Tesla FSD in Europe

FSD Supervised is still a driver-assistance system rather than autonomous driving. Still, Auto Bild noted that Tesla’s 360-degree camera suite, constant monitoring, and high computing power mark a sizable leap from earlier iterations. Already active in the U.S., China, and several other regions, the system is currently navigating Europe’s approval pipeline. Tesla has applied for an exemption in the Netherlands, aiming to launch the feature through a free software update as early as February 2026.

What Tesla demonstrated in Berlin mirrors capabilities already common in China and the U.S., where rival automakers have rolled out hands-free or city-navigation systems. Europe, however, remains behind due to a stricter certification environment, though Tesla is currently hard at work pushing for FSD Supervised’s approval in several countries in the region.

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Tesla reliability rankings skyrocket significantly in latest assessment

“They definitely have their struggles, but by continuing to refine and not make huge changes in their models, they’re able to make more reliable vehicles, and they’ve moved up our rankings.”

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Credit: Tesla

Tesla ranked in the Top 10 of the most reliable car companies for 2026, as Consumer Reports’ latest index showed significant jumps from the past two years.

In 2022, Tesla ranked 27th out of 28 brands. Last year, it came in 17th.

However, 2026’s rankings were differentCR‘s rankings officially included Tesla in the Top 10, its best performance to date.

Finishing tenth, the full Top 10 is:

  1. Subaru
  2. BMW
  3. Porsche
  4. Honda
  5. Toyota
  6. Lexus
  7. Lincoln
  8. Hyundai
  9. Acura
  10. Tesla

Tesla has had steady improvements in its build quality, and its recent refinements of the Model 3 and Model Y have not gone unnoticed.

The publication’s Senior Director of Auto Testing, Jake Fisher, said about Tesla that the company’s ability to work through the rough patches has resulted in better performance (via CNBC):

“They definitely have their struggles, but by continuing to refine and not make huge changes in their models, they’re able to make more reliable vehicles, and they’ve moved up our rankings.”

He continued to say that Tesla’s vehicles have become more reliable over time, and its decision to avoid making any significant changes to its bread-and-butter vehicles has benefited its performance in these rankings.

Legacy automakers tend to go overboard with changes, sometimes keeping a model name but recognizing a change in its “generation.” This leads to constant growing pains, as the changes in design require intense adjustments on the production side of things.

Instead, Tesla’s changes mostly come from a software standpoint, which are delivered through Over-the-Air updates, which improve the vehicle’s functionality or add new features.

Only one Tesla vehicle scored below average in Consumer Reports’ rankings for 2026 was the Cybertruck. Fisher’s belief that Tesla improves its other models over time might prove to be true with Cybertruck in a few years.

Tesla Cybertruck gets reviewed by Consumer Reports

He continued:

“They’re definitely improving by keeping with things and refining, but if you look at their 5- to 10-year-old models that are out there, when it comes to reliability, they’re dead last of all the brands. They’re able to improve the reliability if they don’t make major changes.”

Regarding Subaru’s gold medal placing on the podium, Fisher said:

“While Subaru models provide good performance and comfort, they also excel in areas that may not be immediately apparent during a test drive.”

Other notable brands to improve are Rivian, which bumped itself slightly from 31 to 26. Chevrolet finished 24th, GMC ended up 29th, and Ford saw itself in 18th.

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