Considering Tesla’s history and Elon Musk’s celebrity status, it is no surprise that every update from the electric car maker results in some degree of scrutiny. And as the number of Tesla owners continues to grow, the amount of scrutiny towards the company has also increased. This became quite notable as Tesla rolled out this year’s Holiday Update.
This year’s Holiday Update featured changes to the vehicles’ driving visualizations, new games like Polytopia, and fun features like Boombox. Needless to say, these updates attracted some degree of criticism. This was quite evident especially among a number of longtime owners, some of whom rejected Elon Musk’s efforts to promote Tesla’s new entertainment features.
While criticisms about this year’s Holiday Update are legitimate to a point, it should be noted that a lot of Tesla’s updates usually end up being extremely useful down the road. This was something that was mentioned by Elon Musk on Twitter when he stated that ultimately, entertainment features will be critical in a market where self-driving vehicles are the norm.
Such statements may sound like typical Musk future-speak, but the CEO has a point. Regardless of one’s stance on Tesla’s full self-driving strategy, the fact remains that the company’s driver-assist features are rapidly advancing. This was exhibited recently when the FSD beta was able to complete a zero-intervention trip down Lombard Street just over a month after it was humbled sorely by the extremely crooked road. Recent updates from members of the limited FSD beta also show that the advanced driver-assist system is behaving more and more humanlike.
It should be noted that Tesla’s FSD beta has only been deployed on public roads for a couple of months. And while its release is very limited for now, the system itself has been improving rapidly. There’s a fair chance that FSD will achieve true hands-free driving at a time later than Elon Musk’s optimistic estimates, but there is hardly any doubt that autonomous driving will happen.
Assuming that Tesla’s FSD software does reach its potential, then the company would offer a vehicle ownership experience that is unlike anything on the market. In such a scenario, entertainment features as predicted by Elon Musk would definitely be critical. Once cars drive themselves, after all, passengers would require something to ease their boredom. Games, video streaming, and other entertainment features would definitely be a good way to achieve such a goal.
This is something that very few carmakers today seem to be exploring. Even companies like Lucid Motors, which is also working on an advanced driver-assist system for the Air, has its displays set up quite similarly to a conventional car. The same is true for the Ford Mustang Mach-E, whose vertical display will likely be just as optimized for media consumption as the infotainment system of the Model S and Model X today.
There is no doubt that the infotainment systems in the Air and the Mach-E will be amazing for the near term. But for a time when autonomous cars are the norm and people are used to being driven around by full self-driving vehicles, a passenger riding in a humble Model 3 would likely be more engaged than one riding in Ford’s crossover.
This is understandable. Predicting what will be valuable to a market that is yet to exist is very tricky. Fortunately for Tesla, Elon Musk appears to have a knack for predicting just what the market will need a decade or so down the road. With this in mind, Tesla’s apparent entertainment-laden 2020 Holiday Update may end up being part of the groundwork for something valuable after all.
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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.”
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Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
Tesla CEO Elon Musk confirmed the upcoming update in a post on social media platform X.
Tesla will be ending one-time purchases of its Full Self-Driving (FSD) system after Valentine’s Day, transitioning the feature to a monthly subscription-only model.
Tesla CEO Elon Musk confirmed the upcoming update in a post on social media platform X.
No more FSD one-time purchases
As per Elon Musk in his post on X, “Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter.” This marks a shift in how Tesla monetizes its FSD system, which can now be purchased for a one-time fee or accessed through a monthly subscription.
FSD’s subscription model has been $99 per month in the United States, while its one-time purchase option is currently priced at $8,000. FSD’s one-time purchase price has swung wildly in recent years, reaching $15,000 in September 2022. At the time, FSD was proficient, but its performance was not on par with v14. This made its $15,000 upfront price a hard sell for consumers.
Tesla’s move to a subscription-only model could then streamline how the company sells FSD. It also lowers the entry price for the system, as even price-conscious drivers would likely be able to justify FSD’s $99 monthly subscription cost during periods when long-distance travel is prevalent, like the holidays.
Musk’s compensation plan and FSD subscription targets
Tesla’s shift to a subscription-only FSD model comes amidst Musk’s 2025 CEO Performance Award, which was approved by Tesla shareholders at the 2025 Annual Shareholders Meeting with roughly 75% support. Under the long-term compensation plan, Musk must achieve a series of ambitious operational milestones, including 10 million active FSD subscriptions, over the next decade for his stock awards to vest.
The 2025 CEO Performance Award’s structure ties Musk’s potential compensation to Tesla’s aggressive targets that span market capitalization, vehicle deliveries, robotics, and software adoption. Apart from his 10-million active FSD subscription target, Musk’s compensation is also tied to Tesla producing 20 million vehicles cumulatively, delivering 1 million Tesla bots, and having 1 million Robotaxis in operation. He must also lead Tesla to a market cap of $8.5 trillion.
If successful, Elon Musk’s 2025 CEO Performance Award could make him the world’s first trillionaire. It could also help Tesla become the world’s most valuable company by market cap by a notable margin.
Tesla Model 3 and Model Y dominates U.S. EV market in 2025
Tesla Model 3 and Model Y earn Euro NCAP Best in Class safety awards
