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Tesla can tap into a $360B market in Europe, but it has to address its service first

(Credit: Justin Wegner)

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SAP SE, a German software maker and one of Europe’s largest tech companies, provides cars for company and personal use as a perk for its workers. And as electric cars continue to gain ground in the region, SAP has noted that its employees are starting to show increasing interest Teslas. Despite this interest and specific requests for Teslas every month, SAP has decided not to purchase any of the American firm’s electric cars. The tech firm’s rejection of Teslas was primarily due to one key factor: the electric car maker’s small service network. 

Keeping the Status Quo

SAP’s company car fleet today remains populated by vehicles from veteran premium automakers like BMW AG and Mercedes-Benz. In a statement to Bloomberg, Steffen Krautwasser, who manages the company’s 17,000 company cars in Germany, explained SAP’s stance on Tesla’s electric vehicles. “(Servicing teams) need to be there at short notice, and Tesla still has some work to do. The interest in Teslas is extremely high, but we simply can’t offer them at this point,” Krautwasser said. 

Credit: everything_tesla_pr0/Instagram

SAP is not the only company with strong views about Tesla’s service network in Europe or its lack thereof. Ursula von Stetten, a spokesperson for chemicals giant BASF SE, also cited that Teslas couldn’t be options for its 50,000 German employees until the electric car maker establishes a robust service network. “Teslas will be available as soon as the appropriate infrastructure is in place,” the spokesperson said. 

A $360 Billion Market

Considering these sentiments, it appears that Tesla’s service network in Europe is costing Elon Musk a significant number of EV sales. About 60% of all new vehicle sales in Europe, after all, are made through corporate channels. This translates to the company car market in the region being worth about $360 billion. So notable is the size of Europe’s corporate vehicle segment that the industry is expected to play a crucial role in determining just how fast the region could retire the internal combustion engine and embrace sustainable transportation. That being said, Tesla is, for now at least, largely absent from this market. 

Apart from Tesla’s weak service network in Europe, companies have also cited the electric car maker’s refusal to offer bulk discounts and its lack of long-standing relationships with the region’s biggest companies as reasons why the American electric car maker is lagging behind its local rivals in the corporate vehicle segment. This is true to a point, especially considering that veteran automakers have decades of experience tailoring some of their vehicles to be the perfect company cars. Tesla does not do this with its vehicles, though many of its trademark features like Autopilot would likely be appreciated by corporate workers who spend long hours at the office. 

Credit: everything_tesla_pr0/Instagram

Electric Opportunities

What’s interesting is that Europe’s corporate car sales are actually rising by about a fifth over the past decade as companies take advantage of generous subsidies, including tax breaks, value-added tax rebates, and depreciation write-offs. Transport & Environment, a Brussels-based research firm, has remarked that in Europe’s eight biggest corporate vehicle markets alone, the aid is worth $38 billion per year. But inasmuch as Tesla is lagging in Europe’s company car market, the region’s aggressive sustainability goals hint that the electric car maker has the potential to close the gap between itself and legacy automakers. 

So far, only about 4% of cars bought by European companies in 2019 had a plug, and this list includes Plug-in Hybrid Vehicles. Amidst the region’s push for sustainability, battery-electric vehicles like the Tesla Model 3 and Model Y may very well become preferable alternatives to cars typically used as company vehicles. Germany, Italy, and France are among these regions, with the countries boosting subsidies for battery-powered vehicles as part of their pandemic stimulus programs last year. The trend is continuing too, with BloombergNEF estimating that Europe would likely see sales of about 1.8 million hybrid and battery electric vehicles this year alone. The following years would likely see this number rise even further. 

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To tap into Europe’s corporate vehicle segment, Tesla has to ramp its service network at a rate that’s far more aggressive than before. And while Teslas generally require a lot less maintenance due to their all-electric design, the company has to tangibly exhibit its capability to service multitudes of vehicles without breaking a sweat. A robust mobile service team would be invaluable in this light, and more dedicated service locations would be extremely beneficial. Such improvements would likely increase the confidence of companies whose employees are already requesting Teslas to be their corporate vehicles. If Tesla is able to accomplish this, then the Elon Musk-led electric car maker might be on track to take a piece out of of Europe’s $360 billion corporate car pie. 

Don’t hesitate to contact us for news tips. Just send a message to tips@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla Optimus steals the show during TRON: ARES premiere

Now that kung-fu Optimus demonstration makes sense.

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Credit: Tesla Optimus/X

Just a few days ago, Elon Musk shared a video of Tesla Optimus demonstrating some kung fu moves with a human partner. The video was impressive, though some were confused about why the Optimus team was busying itself with what appeared to be a cool but frivolous demonstration. 

With the premiere of TRON: ARES, we now know that Optimus’ kung fu demonstration was part of the robot’s preparations for the red carpet. 

Optimus “starts a fight”

As noted by X Business on its official account on the social media platform, the TRON: ARES red carpet world premiere was a showcase of today’s AI-powered technologies. With this in mind, xAI, X, Walt Disney, and Tesla collaborated to provide attendees with an immersive experience on real-world AI. This included Optimus engaging with attendees, and even distributing theater concessions. 

But one black and red painted Optimus unit definitely stole the show. The humanoid robot, in front of several attendees, attempted to “pick a fight” with Jared Leto, who starts in the movie alongside Greta Lee, Evan Peters, and Jeff Bridges. As could be seen in the video of Optimus, the robot’s moves in the red carpet were similar to the kung fu demonstration that Elon Musk showcased last week. 

TRON: ARES

Monique Pintarelli, Head of Americas at X, shared some insights about the event, which ended up being a collaboration of sorts between several Elon Musk-led companies. 

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“This partnership with Disney lets fans and stars experience the world of TRON like never before – turning the red carpet event into a collision between the real world and AI. By leveraging X’s unparalleled real-time engagement and xAI’s cutting-edge technology alongside Tesla’s Optimus robots, we’re creating shared, immersive experiences that redefine storytelling,” the X executive noted.

TRON: ARES releases on U.S. theaters on October 10, 2025. 

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Tesla FSD (Supervised) V14.1 with Robotaxi-style dropoffs is here

This represents FSD’s most significant update in nearly a year.

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Credit: Sawyer Merritt/X

Tesla has started the rollout of Full Self-Driving (Supervised) V14.1, the advanced driver-assist system’s most significant update in nearly a year. The release introduces vision-based navigation for real-time detour handling and a new “Arrival Options” feature that simulates Robotaxi-style drop-offs.

New Tesla Vision-based features

With Version 14.1, Tesla has integrated navigation and routing directly into its vision-based neural network, enabling the system to respond to scenarios such as blocked roads or closures in real time. The update also enhances emergency vehicle detection, allowing the car to pull over or yield when police, fire, or ambulances are nearby.

Other improvements include refined responses to debris, school buses, and lane cut-ins, as well as smoother handling of unprotected turns and gated entries. The update also adds a Robotaxi-style automatic camera-cleaning system. Tesla also promises improved fault recovery for greater reliability during degraded system operation.

New Speed Profiles and other features

Drivers can now personalize FSD’s behavior more precisely through new Speed Profiles. A new “Sloth” mode has joined the lineup, offering a more conservative lane and speed selection than “Chill.” Preferences for parking and arrival positions are saved per destination, while the system’s reasoning model automatically recommends several options for each route.

Users can start FSD from a single tap, adjust settings from the central visualization, and expect fewer driver “nags,” according to Elon Musk. The CEO noted that Version 14 features a 10x higher parameter count and said it “feels sentient” compared to earlier builds. While it’s still a supervised system, unlike the Austin Robotaxi pilot, FSD 14.1 seems to be a key milestone toward the refinement of Tesla’s autonomous driving efforts.

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FSD (Supervised) V14.1 release notes

Following are the release notes for FSD (Supervised) V14.1:

FSD(Supervised) v14.1 includes:

• Added Arrival Options for you to select where FSD should park: in a Parking Lot, on the Street, in a Driveway, in a Parking Garage, or at the Curbside.

• Added handling to pull over or yield for emergency vehicles (e.g. police cars, fire trucks, ambulances).

• Added navigation and routing into the vision-based neural network for real-time handling of blocked roads and detours.

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• Added additional Speed Profile to further customize driving style preference.

• Improved handling for static and dynamic gates.

• Improved offsetting for road debris (e.g. tires, tree branches, boxes).

• Improve handling of several scenarios including: unprotected turns, lane changes, vehicle cut-ins, and school buses.

Improved FSD’s ability to manage system faults and recover smoothly from degraded operation for enhanced reliability.

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• Added automatic narrow field washing to provide rapid and efficient front camera self-cleaning, and optimize aerodynamics wash at higher vehicle speed.

• Added alerting for residue build-up on interior windshield that may impact front camera visibility. If affected, visit Service for cleaning!

Upcoming Improvements:

• Overall smoothness and sentience

• Parking spot selection and parking quality

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• You can now select an arrival option such as Parking Lot, Street, Driveway, Parking Garage and Curbside for Robotaxi-style drop offs.

• Your preferences for arrival options and preferred parking positions are persisted for each destination.

• Our reasoning model will assess the suitable options for your destination and pick an intuitive default.

Speed Profiles:

FSD (Supervised) will now determine the appropriate speed based on a mix of driver profile, speed limit, and surrounding traffic:

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• Introduced new Speed Profile SLOTH, which comes with lower speeds & more conservative lane selection than CHILL.

• Driver profile now has a stronger impact on behavior. The more assertive the profile, the higher the max speed.

• Right scroll-wheel up/down now adjusts Speed Profile setting rather than your precise max speed offset selection in mph/kph.

UI Improvements:

• Start Self-Driving with a tap of the touchscreen from Park, or any time during your drive.

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• Adjust settings like the Speed Profile and Arrival Options directly from the Autopilot visualization on the center display.

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Tesla plant manager tips off affordable model production

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Credit: @Gf4Tesla/X

A plant manager at a Tesla factory just tipped off the fact that the company will begin production of an affordable model in the coming weeks, all but confirming that a new car will be unveiled tomorrow.

Tesla has been teasing some kind of product unveiling for October 7 on its social media accounts. It has now dropped two separate indications that a new product is coming on its X account.

Fans have been anticipating two things: either the company’s planned affordable model, which has been codenamed “E41,” or the Roadster, a long-awaited vehicle that Tesla has kept under wraps for much longer than it would likely care to admit.

Tesla all but confirms that affordable Model Y is coming Tuesday

André Thierig, Tesla’s plant manager at the German production plant Gigafactory Berlin, tipped off what is likely coming tomorrow at the product unveiling as he revealed during an internal event today that a light version of the Model Y will begin series production and deliveries “in a few weeks.”

Thierig’s revealing of plans was reported by Handelsblatt, a German media outlet.

The description of a “light version of the Model Y” aligns with what CEO Elon Musk said earlier this year, as well as what we have seen on public roads, both covered and uncovered.

Last week, we finally saw an uncovered version of what the affordable model likely is, as it was cruising around near Gigafactory Texas, just outside of Austin.

Tesla coding shows affordable model details, including potential price

Musk said earlier this year, candidly during an Earnings Call, that the affordable model Tesla planned to release was a Model Y.

“It’s just a Model Y. Let the cat out of the bag there,” Musk said.

The images of what we assumed to be the affordable model lined up with Musk’s candid statement:

Tesla is expected to unveil its affordable model tomorrow during the planned event, which has been teased twice. Pricing and other details are still pending, but the company is expected to reveal this information tomorrow.

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