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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 analyst Gary Black of The Future Fund claims that the company is making a big mistake getting rid of the Model S and Model X. Instead, he believes another vehicle within the company’s lineup should be discontinued: the Cybertruck.
Black divested The Future Fund from all Tesla holdings last year, but he still covers the stock as an analyst as it falls in the technology and autonomy sectors, which he covers.
In a new comment on Thursday, Black said the Cybertruck should be the vehicle Tesla gets rid of due to the negatives it has drawn to the company.
The Cybertruck is also selling in an underwhelming fashion considering the production capacity Tesla has set aside for it. It’s worth noting it is still the best-selling electric pickup on the market, and it has outlasted other EV truck projects as other manufacturers are receding their efforts.
Black said:
“IMHO it’s a mistake to keep Tesla Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully autonomous?”
IMHO it’s a mistake to keep $TSLA Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully…
— Gary Black (@garyblack00) January 29, 2026
On Wednesday, CEO Elon Musk confirmed that Tesla planned to transition Model S and Model X production lines at the Fremont Factory to handle manufacturing efforts of the Optimus Gen 3 robot.
Musk said that it was time to wind down the S and X programs “with an honorable discharge,” also noting that the two cars are not major contributors to Tesla’s mission any longer, as its automotive division is more focused on autonomy, which will be handled by Model 3, Model Y, and Cybercab.
Tesla begins Cybertruck deliveries in a new region for the first time
The news has drawn conflicting perspectives, with many Tesla fans upset about the decision, especially as it ends the production of the largest car in the company’s lineup. Tesla’s focus is on smaller ride-sharing vehicles, especially as the vast majority of rides consist of two or fewer passengers.
The S and X do not fit in these plans.
Nevertheless, the Cybertruck fits in Tesla’s future plans. Musk said the pickup will be needed for the transportation of local goods. Musk also said Cybertruck would be transitioned to an autonomous line.
In a groundbreaking new report from Reuters, SpaceX is reportedly discussing merger possibilities with xAI ahead of the space exploration company’s plans to IPO later this year, in what would be a blockbuster move.
The outlet said it would combine rockets and Starlink satellites, as well as the X social media platform and AI project Grok under one roof. The report cites “a person briefed on the matter and two recent company filings seen by Reuters.”
Musk, nor SpaceX or xAI, have commented on the report, so, as of now, it is unconfirmed.
With that being said, the proposed merger would bring shares of xAI in exchange for shares of SpaceX. Both companies were registered in Nevada to expedite the transaction, according to the report.
On January 21, both entities were registered in Nevada. The report continues:
“One of them, a limited liability company, lists SpaceX and Bret Johnsen, the company’s chief financial officer, as managing members, while the other lists Johnsen as the company’s only officer, the filings show.”
The source also stated that some xAI executives could be given the option to receive cash in lieu of SpaceX stock. No agreement has been reached, nothing has been signed, and the timing and structure, as well as other important details, have not been finalized.
SpaceX is valued at $800 billion and is the most valuable privately held company, while xAI is valued at $230 billion as of November. SpaceX could be going public later this year, as Musk has said as recently as December that the company would offer its stock publicly.
The plans could help move along plans for large-scale data centers in space, something Musk has discussed on several occasions over the past few months.
At the World Economic Forum last week, Musk said:
“It’s a no-brainer for building solar-powered AI data centers in space, because as I mentioned, it’s also very cold in space. The net effect is that the lowest cost place to put AI will be space and that will be true within two to three years, three at the latest.”
He also said on X that “the most important thing in the next 3-4 years is data centers in space.”
If the report is true and the two companies end up coming together, it would not be the first time Musk’s companies have ended up coming together. He used Tesla stock to purchase SolarCity back in 2016. Last year, X became part of xAI in a share swap.
Tesla has announced it has hit a major milestone with Full Self-Driving subscriptions, shortly after it said it would exclusively offer the suite without the option to purchase it outright.
Tesla announced on Wednesday during its Q4 Earnings Call for 2025 that it had officially eclipsed the one million subscription mark for its Full Self-Driving suite. This represented a 38 percent increase year-over-year.
This is up from the roughly 800,000 active subscriptions it reported last year. The company has seen significant increases in FSD adoption over the past few years, as in 2021, it reported just 400,000. In 2022, it was up to 500,000 and, one year later, it had eclipsed 600,000.
NEWS: For the first time, Tesla has revealed how many people are subscribed or have purchased FSD (Supervised).
Active FSD Subscriptions:
• 2025: 1.1 million
• 2024: 800K
• 2023: 600K
• 2022: 500K
• 2021: 400K pic.twitter.com/KVtnyANWcs— Sawyer Merritt (@SawyerMerritt) January 28, 2026
In mid-January, CEO Elon Musk announced that the company would transition away from giving the option to purchase the Full Self-Driving suite outright, opting for the subscription program exclusively.
Musk said on X:
“Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter.”
The move intends to streamline the Full Self-Driving purchase option, and gives Tesla more control over its revenue, and closes off the ability to buy it outright for a bargain when Musk has said its value could be close to $100,000 when it reaches full autonomy.
It also caters to Musk’s newest compensation package. One tranche requires Tesla to achieve 10 million active FSD subscriptions, and now that it has reached one million, it is already seeing some growth.
The strategy that Tesla will use to achieve this lofty goal is still under wraps. The most ideal solution would be to offer a less expensive version of the suite, which is not likely considering the company is increasing its capabilities, and it is becoming more robust.
Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
Currently, Tesla’s FSD subscription price is $99 per month, but Musk said this price will increase, which seems counterintuitive to its goal of increasing the take rate. With that being said, it will be interesting to see what Tesla does to navigate growth while offering a robust FSD suite.
Tesla analyst claims another vehicle, not Model S and X, should be discontinued
SpaceX reportedly discussing merger with xAI ahead of blockbuster IPO
