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Tesla Calls Danish Tax Plan A Death Knell For Electric Cars
Tesla says a plan by Denmark to phase in its 180% registration tax on electric cars is unfair and may be the death knell for electric cars in the country.
Tesla Service Center Aarhus-Viborgvej, Denmark [Source: Frederik C via Tesla Lifestyle App]
Tesla owners in Denmark have been exempt from the infamous 180% new car registration tax because of the government’s incentive for electric vehicles. That will soon change as Denmark is in the process of reassessing its national policies for reducing carbon emissions.
Just last week, Climate Minister Lars Christian Lilleholt said he will not push to meet Denmark’s existing goal of reducing emissions by 40% by 2020 because doing so will be too expensive for Danish businesses.
As part of that reassessment, a new Danish tax plan will phase in the registration tax on electric cars over the next 5 years. The government says doing so will be fairer to those who buy conventional cars and add almost $100,000,000 annually to the nation’s coffers. But Tesla, which makes the top selling electric car in Denmark, has slammed the plan as anti-competitive and a death knell for the industry. Under the plan, the price of a Tesla Model S P85D will soar from $131,250 (862,000 kroner) to more than $270,000 (1,807,100 kroner).
“All things being equal, this is not a phasing-in of levies on electric cars but rather a phasing out of electric cars in Denmark,” said Tesla’s Danish spokesman, Esben Pedersen, according to Danish media outlet, The Local. He said the plan, which will see prices on Tesla’s luxury models climb much higher than the increases on smaller and cheaper models, is unfair.
The company plans to file a complaint with the European Union. Pedersen tells Denmark’s TV2,
“We will contact the EU because we believe that the electric car agreement is anti-competitive and singles out Tesla. The deal will hit the entire electric car model and will eliminate it instead of developing it”
The Danish government defended the move, which has broad support from the Social Democrats, Danish People’s Party and Social Liberals. Tax Minister Karsten Lauritzen said that the new plan “balances the needs for the continued expansion of electric cars in Denmark, the public purse and fairness within the automobile market.”
“Electric cars have for a long time been better positioned than other cars by being completely exempt from the registration tax. Many regular Danes have a hard time understanding why they should pay the full registration tax for their regular cars while those who can afford an electric car have gotten off completely free,” Lauritzen said in a press release. 1,240 electric cars were sold in Denmark during the first six months of 2015 according to the European Automobile Manufacturers Association, nearly double the number bought in 2014.
Denmark’s rethinking of its plans to reduce carbon emissions comes just a few months ahead of the next global climate change conference, which will take place in Paris this December. While the new plan only seeks to reduce emissions by 37% instead of 40%, climate activists are calling the changes short sighted and dangerous.
Until this point, Denmark has been one of Europe’s “greenest” countries. It has made a significant investment in offshore wind power and actually produced 140% of its national electricity needs one day this past July. Its decision to re-balance its economic and sustainability objectives may be a preview of the thorny issues the international delegates will confront in Paris. It may also presage the policy debate that will take place in the United States when the current federal tax credit for electric cars expires at the end of 2016.
Elon Musk
Tesla confirmed HW3 can’t do Unsupervised FSD but there’s more to the story
Tesla confirmed HW3 vehicles cannot run unsupervised FSD, replacing its free upgrade promise with a discounted trade-in.
Tesla has officially confirmed that early vehicles with its Autopilot Hardware 3 (HW3) will not be capable of unsupervised Full Self-Driving, while extending a path forward for legacy owners through a discounted trade-in program. The announcement came by way of Elon Musk in today’s Tesla Q1 2026 earnings call.
🚨 Our LIVE updates on the Tesla Earnings Call will take place here in a thread 🧵
Follow along below: pic.twitter.com/hzJeBitzJU
— TESLARATI (@Teslarati) April 22, 2026
The history here matters. HW3 launched in April 2019, and Tesla sold Full Self-Driving packages to owners on the understanding that the hardware was sufficient for full autonomy. Some owners paid between $8,000 and $15,000 for FSD during that period. For years, as FSD’s AI models grew more demanding, HW3 vehicles fell progressively further behind, eventually landing on FSD v12.6 in January 2025 while AI4 vehicles moved to v13 and then v14. When Musk acknowledged in January 2025 that HW3 simply could not reach unsupervised operation, and alluded to a difficult hardware retrofit.
The near-term offering is more concrete. Tesla’s head of Autopilot Ashok Elluswamy confirmed on today’s call that a V14-lite will be coming to HW3 vehicles in late June, bringing all the V14 features currently running on AI4 hardware. That is a meaningful software update for owners who have been frozen at v12.6 for over a year, and it represents genuine effort to keep older hardware relevant. Unsupervised FSD for vehicles is now targeted for Q4 2026 at the earliest, with Musk describing it as a gradual, geography-limited rollout.
For HW3 owners, the over-the-air V14-lite update is welcomed, and the discounted trade-in path at least acknowledges an old obligation. What happens next with the trade-in pricing will define how this chapter ultimately gets written. If Tesla prices the hardware path fairly, acknowledges what early adopters are owed, and delivers V14-lite on the June timeline it committed to today, it has a real opportunity to convert one of the longest-running sore subjects among early adopters into a loyalty story.
Elon Musk
Tesla isn’t joking about building Optimus at an industrial scale: Here we go
Tesla’s Optimus factory in Texas targets 10 million robots yearly, with 5.2 million square feet under construction.
Tesla’s Q1 2026 Update Letter, released today, confirms that first generation Optimus production lines are now well underway at its Fremont, California factory, with a pilot line targeting one million robots per year to start. Of bigger note is a shared aerial image of a large piece of land adjacent to Gigafactory Texas, that Tesla has prominently labeled “Optimus factory site preparation.”
Permit documents show Tesla is seeking to add over 5.2 million square feet of new building space to the Giga Texas North Campus by the end of 2026, at an estimated construction investment of $5 billion to $10 billion. The longer term production target for that facility is 10 million Optimus units per year. Giga Texas already sits on 2,500 acres with over 10 million square feet of existing factory floor, and the North Campus expansion is being built to support multiple projects, including the dedicated Optimus factory, the Terafab chip fabrication facility (a joint Tesla/SpaceX/xAI venture), a Cybercab test track, road infrastructure, and supporting facilities.
Credit: TESLA
Texas makes strategic sense beyond the existing infrastructure. The state’s tax structure, lower labor costs relative to California, and the proximity to Tesla’s AI training cluster Cortex 1 and 2, both located at Giga Texas and now totaling over 230,000 H100 equivalent GPUs, means the Optimus software stack and the factory producing the hardware will share the same campus. Tesla’s Q1 report also confirmed completion of the AI5 chip tape out in April, the inference processor designed specifically to power Optimus units in the field.
As Teslarati reported, the Texas facility is intended to house Optimus V4 production at full scale. Musk told the World Economic Forum in January that Tesla plans to sell Optimus to the public by end of 2027 at a price between $20,000 and $30,000, stating, “I think everyone on earth is going to have one and want one.” He has previously pegged long term demand for general purpose humanoid robots at over 20 billion units globally, citing both consumer and industrial use cases.
Tesla (NASDAQ: TSLA) reported its earnings for the first quarter of 2026 on Wednesday afternoon. Here’s what the company reported compared to what Wall Street analysts expected.
The earnings results come after Tesla reported a miss on vehicle deliveries for the first quarter, delivering 358,023 vehicles and building 408,386 cars during the three-month span.
As Tesla transitions more toward AI and sees itself as less of a car company, expectations for deliveries will begin to become less of a central point in the consensus of how the quarter is perceived.
Nevertheless, Tesla is leaning on its strong foundation as a car company to carry forward its AI ambitions. The first quarter is a good ground layer for the rest of the year.
Tesla Q1 2026 Earnings Results
Tesla’s Earnings Results are as follows:
- Non-GAAP EPS – $0.41 Reported vs. $0.36 Expected
- Revenues – $22.387 billion vs. $22.35 billion Expected
- Free Cash Flow – $1.444 billion
- Profit – $4.72 billion
Tesla beat analyst expectations, so it will be interesting to see how the stock responds. IN the past, we’ve seen Tesla beat analyst expectations considerably, followed by a sharp drop in stock price.
On the same token, we’ve seen Tesla miss and the stock price go up the following trading session.
Tesla will hold its Q1 2026 Earnings Call in about 90 minutes at 5:30 p.m. on the East Coast. Remarks will be made by CEO Elon Musk and other executives, who will shed some light on the investor questions that we covered earlier this week.
You can stream it below. Additionally, we will be doing our Live Blog on X and Facebook.
Q1 2026 Earnings Call at 4:30pm CT https://t.co/pkYIaGJ32y
— Tesla (@Tesla) April 22, 2026
Tesla confirmed HW3 can’t do Unsupervised FSD but there’s more to the story
Tesla isn’t joking about building Optimus at an industrial scale: Here we go
