Tesla’s Giga Berlin production facility will revolutionize the electric automaker’s presence in the highly-concentrated European electric vehicle market. While Tesla holds considerable advantages in EV tech, pricing, range, and performance, it holds another considerably important element that determines a company’s ability to control pricing: battery production. With Tesla planning to manufacture its newly-detailed 4680 cells at the Berlin Gigafactory within two years, according to Economy Minister Jörg Steinbach, the company is setting the stage to infiltrate the intensely-competitive European EV market with the best and most affordable electric cars on the continent in record time.
After being approved for a slice of the $3.5 billion assistance package for the development of Giga Berlin’s 4680 battery plant, Tesla is set in a prime position to dominate the European battery production market. CATL and BASF SE both have large-scale battery manufacturing projects in Germany already, but Giga Berlin’s plant could displace them as Elon Musk once said it could be the biggest in the world.
During the 2020 European Battery Conference in November 2020, Musk said:
“I think it will be the largest. It would be capable of over 100 GWh hours per year of production and then possibly going to 200 to 250. I’m pretty confident at that point it would be the largest battery-cell plant in the world.”
And Tesla will need it. After coming off of a record year in deliveries and production figures, Tesla is continuing to ramp scalability as it tackles international markets for the first time in its history. After expanding to China with its Giga Shanghai plant, which began delivering cars in January 2020, Tesla had already started developing the Giga Berlin property by excavating the grounds and clearing obstacles that were there previously. Now, the factory is well underway and is expected to begin producing cars this Summer.
There still is no exact timeline for the 4680 battery plant, as it could take several years to figure out supply chain details from suppliers to Berlin. Tesla is also still figuring out the manufacturing processes of the 4680 cell at its Kato Road facility in Northern California. Elon Musk has said in the past that 4680 cells have been in working vehicles for some time, but at what scale? Only Tesla knows.
However, Jörg Steinbach, a vocal supporter of Tesla’s Berlin facility, now says the plant could open in two years, Bloomberg reported.
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Tesla’s monster 4680 battery plant in Giga Berlin receives federal gov’t pre-approval
Despite regular hurdles to jump through, Tesla has had assistance from politicians all over Germany. With Steinbach’s support, another Economic Minister, Peter Altmaier, also extended his hand to the electric automaker, offering any help he can to expedite the factory’s construction. Environmental concerns, along with complaints from local citizens, have tied up Tesla from time to time at the factory. Still, construction has been moving along at an impressive rate since the official groundbreaking.
“You have to sometimes translate the culture of our approval procedures, which are also strongly influenced by environmental protection,” Steinbach said.
It is crucial for Tesla to open Giga Berlin so it can expand its outreach in the most EV-concentrated region on Earth. Steinbach says he is “totally relaxed” regarding the plant’s ultimate approval. He still expects EVs to roll off the line in July.
After the 4680 cell plant does open, Tesla will be able to scale-back costs of its EVs. Currently buying many cells from third-party suppliers, Tesla will still do that for the foreseeable future, according to Musk. However, creating more battery cells will decrease the shortage of batteries, making them less expensive and, at the same time, decreasing the price of Tesla’s cars. Because of this important point, the 4680 facility is of utmost importance.
“This project is given top priority,” Steinbach said.
Tesla’s new Full Self-Driving pricing strategy will eliminate one recurring complaint that many owners have had in the past: FSD transfers.
In the past, if a Tesla owner purchased the Full Self-Driving suite outright, the company did not allow them to transfer the purchase to a new vehicle, essentially requiring them to buy it all over again, which could obviously get pretty pricey.
This was until Q3 2023, when Tesla allowed a one-time amnesty to transfer Full Self-Driving to a new vehicle, and then again last year.
Tesla is now allowing it to happen again ahead of the February 14th deadline.
The program has given people the opportunity to upgrade to new vehicles with newer Hardware and AI versions, especially those with Hardware 3 who wish to transfer to AI4, without feeling the drastic cost impact of having to buy the $8,000 suite outright on several occasions.
Now, that issue will never be presented again.
Last night, Tesla CEO Elon Musk announced on X that the Full Self-Driving suite would only be available in a subscription platform, which is the other purchase option it currently offers for FSD use, priced at just $99 per month.
Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
Having it available in a subscription-only platform boasts several advantages, including the potential for a tiered system that would potentially offer less expensive options, a pay-per-mile platform, and even coupling the program with other benefits, like Supercharging and vehicle protection programs.
While none of that is confirmed and is purely speculative, the one thing that does appear to be a major advantage is that this will completely eliminate any questions about transferring the Full Self-Driving suite to a new vehicle. This has been a particular point of contention for owners, and it is now completely eliminated, as everyone, apart from those who have purchased the suite on their current vehicle.
Now, everyone will pay month-to-month, and it could make things much easier for those who want to try the suite, justifying it from a financial perspective.
The important thing to note is that Tesla would benefit from a higher take rate, as more drivers using it would result in more data, which would help the company reach its recently-revealed 10 billion-mile threshold to reach an Unsupervised level. It does not cost Tesla anything to run FSD, only to develop it. If it could slice the price significantly, more people would buy it, and more data would be made available.
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Tesla Model 3 and Model Y dominates U.S. EV market in 2025
The figures were detailed in Kelley Blue Book’s Q4 2025 U.S. Electric Vehicle Sales Report.
Tesla’s Model 3 and Model Y continued to overwhelmingly dominate the United States’ electric vehicle market in 2025. New sales data showed that Tesla’s two mass market cars maintained a commanding segment share, with the Model 3 posting year-to-date growth and the Model Y remaining resilient despite factory shutdowns tied to its refresh.
The figures were detailed in Kelley Blue Book’s Q4 2025 U.S. Electric Vehicle Sales Report.
Model 3 and Model Y are still dominant
According to the report, Tesla delivered an estimated 192,440 Model 3 sedans in the United States in 2025, representing a 1.3% year-to-date increase compared to 2024. The Model 3 alone accounted for 15.9% of all U.S. EV sales, making it one of the highest-volume electric vehicles in the country.
The Model Y was even more dominant. U.S. deliveries of the all-electric crossover reached 357,528 units in 2025, a 4.0% year-to-date decline from the prior year. It should be noted, however, that the drop came during a year that included production shutdowns at Tesla’s Fremont Factory and Gigafactory Texas as the company transitioned to the new Model Y. Even with those disruptions, the Model Y captured an overwhelming 39.5% share of the market, far surpassing any single competitor.
Combined, the Model 3 and Model Y represented more than half of all EVs sold in the United States during 2025, highlighting Tesla’s iron grip on the country’s mass-market EV segment.
Tesla’s challenges in 2025
Tesla’s sustained performance came amid a year of elevated public and political controversy surrounding Elon Musk, whose political activities in the first half of the year ended up fueling a narrative that the CEO’s actions are damaging the automaker’s consumer appeal. However, U.S. sales data suggest that demand for Tesla’s core vehicles has remained remarkably resilient.
Based on Kelley Blue Book’s Q4 2025 U.S. Electric Vehicle Sales Report, Tesla’s most expensive offerings such as the Tesla Cybertruck, Model S, and Model X, all saw steep declines in 2025. This suggests that mainstream EV buyers might have had a price issue with Tesla’s more expensive offerings, not an Elon Musk issue.
Ultimately, despite broader EV market softness, with total U.S. EV sales slipping about 2% year-to-date, Tesla still accounted for 58.9% of all EV deliveries in 2025, according to the report. This means that out of every ten EVs sold in the United States in 2025, more than half of them were Teslas.
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Tesla Model 3 and Model Y earn Euro NCAP Best in Class safety awards
“The company’s best-selling Model Y proved the gold standard for small SUVs,” Euro NCAP noted.
Tesla won dual categories in the Euro NCAP Best in Class awards, with the Model 3 being named the safest Large Family Car and the Model Y being recognized as the safest Small SUV.
The feat was highlighted by Tesla Europe & Middle East in a post on its official account on social media platform X.
Model 3 and Model Y lead their respective segments
As per a press release from the Euro NCAP, the organization’s Best in Class designation is based on a weighted assessment of four key areas: Adult Occupant, Child Occupant, Vulnerable Road User, and Safety Assist. Only vehicles that achieved a 5-star Euro NCAP rating and were evaluated with standard safety equipment are eligible for the award.
Euro NCAP noted that the updated Tesla Model 3 performed particularly well in Child Occupant protection, while its Safety Assist score reflected Tesla’s ongoing improvements to driver-assistance systems. The Model Y similarly stood out in Child Occupant protection and Safety Assist, reinforcing Tesla’s dual-category win.
“The company’s best-selling Model Y proved the gold standard for small SUVs,” Euro NCAP noted.
Euro NCAP leadership shares insights
Euro NCAP Secretary General Dr. Michiel van Ratingen said the organization’s Best in Class awards are designed to help consumers identify the safest vehicles over the past year.
Van Ratingen noted that 2025 was Euro NCAP’s busiest year to date, with more vehicles tested than ever before, amid a growing variety of electric cars and increasingly sophisticated safety systems. While the Mercedes-Benz CLA ultimately earned the title of Best Performer of 2025, he emphasized that Tesla finished only fractionally behind in the overall rankings.
“It was a close-run competition,” van Ratingen said. “Tesla was only fractionally behind, and new entrants like firefly and Leapmotor show how global competition continues to grow, which can only be a good thing for consumers who value safety as much as style, practicality, driving performance, and running costs from their next car.”
Tesla Full Self-Driving pricing strategy eliminates one recurring complaint
Tesla Model 3 and Model Y dominates U.S. EV market in 2025
