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Tesla and other EVs’ strong sales helped drop Europe’s CO2 emissions in 2021
A recent report from market trend analysis firm JATO Dynamics has revealed that Tesla’s strong sales in Europe, coupled with the introduction of more environmentally-friendly SUVs, have helped drive a 16% reduction in CO2 emissions among new vehicles sold across the region in 2021.
JATO Dynamics’ findings were related in a report titled Driving the Change for Good: The EV Boom. According to the report, the volume-weighted average emissions of new vehicles across 17 markets in Europe dropped from 117.7g/km to 99g/km year-over-year. This drop happened to coincide with Tesla’s massive push into the electric market in Europe last year, which was made possible by exporting the Model 3 and Model Y from Gigafactory Shanghai in China.
It’s not just Tesla either, according to JATO’s report, as OEMs also showed a willingness to adopt more environmentally-friendly options in popular segments such as the SUV market. The analytics firm noted that prior to 2021, the lack of electric and even electrified SUVs in Europe was a limiting factor in the region. But in 2021, carmakers showed their willingness to meet consumer demand for green SUVs.
“The enhanced offering of new and improved electrified SUV models has further fuelled demand while also having a positive impact in reducing average CO2 emissions with midsize SUVs emerging as some of greenest vehicles in Europe,” the report read.
But while SUVs remained popular in Europe in 2021, other segments such as midsized cars also saw a reduction in CO2 emissions. This is where things get particularly interesting, as JATO noted that the drop in CO2 emissions among midsize cars was partly due to the strength of the Tesla Model 3, which became Europe’s most-registered midsize car in 2021. The Model 3 became very prolific in Europe last year, and the results were notable.
“There have also been interesting results across the traditional segments. For example, midsized cars (D-Segment) posted almost the same average as city cars, with 75.9 g/km compared to 76.9 g/km. This success is due to the Tesla Model 3 – the most registered midsize car in Europe in 2021 – with a volume increase of 64% compared with 2020. Last year, almost one in five D-segment cars registered in Europe was a Model 3, and this has started to have a real impact on the average emissions of the segment. In 2017, before the Model 3 arrived in Europe, the segment’s average was 120.1 g/km under NEDC,” JATO’s report read.
Amidst Europe’s focus on clean transportation, there appears to be a power shift among automakers that are operating in the region. With Tesla now being a very active player in the field, all-electric cars are positioned better than ever to expand their reach. The landscape would likely get even better for Tesla and electric vehicles in the near future as well, as Gigafactory Berlin has now started Model Y production.
“However, as a result of Tesla’s huge success since its arrival in Europe, we have seen a rebalancing of power. The popularity of the Tesla Model 3 and, more recently, the Model Y, pushed Tesla into the top 25 for the first time. With a record 165,700 units in Europe-17 and 169,200 across the whole region last year, Tesla became Europe’s preferred brand for electric vehicles. Overall, it was the 20th most registered make in 2021 and unsurprisingly, led the ranking of emissions by brand with 0.0 g/km.1,” the report read.
JATO Dynamics’ Driving the Change for Good: The EV Boom report can be accessed below.
JATO Consulting CO2 Report Full Year 2021 by Simon Alvarez on Scribd
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Tesla earns top honors at MotorTrend’s SDV Innovator Awards
MotorTrend’s SDV Awards were presented during CES 2026 in Las Vegas.
Tesla emerged as one of the most recognized automakers at MotorTrend’s 2026 Software-Defined Vehicle (SDV) Innovator Awards.
As could be seen in a press release from the publication, two key Tesla employees were honored for their work on AI, autonomy, and vehicle software. MotorTrend’s SDV Awards were presented during CES 2026 in Las Vegas.
Tesla leaders and engineers recognized
The fourth annual SDV Innovator Awards celebrate pioneers and experts who are pushing the automotive industry deeper into software-driven development. Among the most notable honorees for this year was Ashok Elluswamy, Tesla’s Vice President of AI Software, who received a Pioneer Award for his role in advancing artificial intelligence and autonomy across the company’s vehicle lineup.
Tesla also secured recognition in the Expert category, with Lawson Fulton, a staff Autopilot machine learning engineer, honored for his contributions to Tesla’s driver-assistance and autonomous systems.
Tesla’s software-first strategy
While automakers like General Motors, Ford, and Rivian also received recognition, Tesla’s multiple awards stood out given the company’s outsized role in popularizing software-defined vehicles over the past decade. From frequent OTA updates to its data-driven approach to autonomy, Tesla has consistently treated vehicles as evolving software platforms rather than static products.
This has made Tesla’s vehicles very unique in their respective sectors, as they are arguably the only cars that objectively get better over time. This is especially true for vehicles that are loaded with the company’s Full Self-Driving system, which are getting progressively more intelligent and autonomous over time. The majority of Tesla’s updates to its vehicles are free as well, which is very much appreciated by customers worldwide.
Elon Musk
Judge clears path for Elon Musk’s OpenAI lawsuit to go before a jury
The decision maintains Musk’s claims that OpenAI’s shift toward a for-profit structure violated early assurances made to him as a co-founder.
A U.S. judge has ruled that Elon Musk’s lawsuit accusing OpenAI of abandoning its founding nonprofit mission can proceed to a jury trial.
The decision maintains Musk’s claims that OpenAI’s shift toward a for-profit structure violated early assurances made to him as a co-founder. These claims are directly opposed by OpenAI.
Judge says disputed facts warrant a trial
At a hearing in Oakland, U.S. District Judge Yvonne Gonzalez Rogers stated that there was “plenty of evidence” suggesting that OpenAI leaders had promised that the organization’s original nonprofit structure would be maintained. She ruled that those disputed facts should be evaluated by a jury at a trial in March rather than decided by the court at this stage, as noted in a Reuters report.
Musk helped co-found OpenAI in 2015 but left the organization in 2018. In his lawsuit, he argued that he contributed roughly $38 million, or about 60% of OpenAI’s early funding, based on assurances that the company would remain a nonprofit dedicated to the public benefit. He is seeking unspecified monetary damages tied to what he describes as “ill-gotten gains.”
OpenAI, however, has repeatedly rejected Musk’s allegations. The company has stated that Musk’s claims were baseless and part of a pattern of harassment.
Rivalries and Microsoft ties
The case unfolds against the backdrop of intensifying competition in generative artificial intelligence. Musk now runs xAI, whose Grok chatbot competes directly with OpenAI’s flagship ChatGPT. OpenAI has argued that Musk is a frustrated commercial rival who is simply attempting to slow down a market leader.
The lawsuit also names Microsoft as a defendant, citing its multibillion-dollar partnerships with OpenAI. Microsoft has urged the court to dismiss the claims against it, arguing there is no evidence it aided or abetted any alleged misconduct. Lawyers for OpenAI have also pushed for the case to be thrown out, claiming that Musk failed to show sufficient factual basis for claims such as fraud and breach of contract.
Judge Gonzalez Rogers, however, declined to end the case at this stage, noting that a jury would also need to consider whether Musk filed the lawsuit within the applicable statute of limitations. Still, the dispute between Elon Musk and OpenAI is now headed for a high-profile jury trial in the coming months.
News
Tesla Giga Shanghai celebrates 5 million electric drive unit milestone
The milestone was celebrated by the company in a post on its official Weibo account.
Tesla China has reached another manufacturing milestone at Gigafactory Shanghai, rolling out the facility’s 5 millionth locally produced drive unit.
The milestone was celebrated by the company in a post on its official Weibo account. In its post, the Giga Shanghai team could be seen posing with the 5 millionth drive unit.
Giga Shanghai’s major benchmark
The milestone drive unit was produced at Gigafactory Shanghai, which produces the Model Y and the Model 3. In a release, Tesla China noted that its three-in-one integrated electric drive system combines the motor, gearbox, and inverter into a single compact assembly. This forms a powerful “heart” for the company’s electric cars.
Tesla China also noted that its drive units’ integrated design improves energy conversion efficiency while reducing overall weight and complexity, benefits that translate into stronger performance, improved handling, and longer service life for its vehicles.

The new milestone builds on earlier achievements at the same site. In July 2024, Tesla announced that its 10 millionth electric drive system globally had rolled off the line at the Shanghai plant, making it the first self-produced Tesla component to reach that volume.
More recently, the factory also produced its 4 millionth China-made vehicle, a Model Y L. The factory has also continued hitting global production milestones, rolling out Tesla’s 9 millionth EV worldwide late last year, with the landmark vehicle being a Tesla Model Y.
Tesla China’s role
Construction of Giga Shanghai began in January 2019, with production starting by the end of that year. This made it the first wholly foreign-owned automotive manufacturing project in China. The facility began delivering Model 3 vehicles locally in early 2020 and added Model Y production in 2021. The plant is now capable of producing about 1 million vehicles annually.

Throughout 2025, Giga Shanghai delivered 851,732 vehicles, representing a 7.08% year-on-year decline, according to data compiled by CNEVPost. Even so, recent months showed renewed momentum.
In December alone, Tesla China recorded wholesale sales of 97,171 vehicles, including domestic deliveries and exports, making it the company’s second-best monthly total on record, per data from the China Passenger Car Association. Retail sales during December reached roughly 94,000 units, up about 13% year over year.