Last week, the Fremont Factory started producing the upgraded Model 3 sedan. With the change, Tesla effectively phased out the original Model 3. It was the end of an era, and numerous electric vehicle enthusiasts expressed their appreciation for the vehicle. The original Model 3, after all, is what made Tesla into a mainstream automaker — a company that is considered the undisputed trailblazer in the EV sector.
As we bid farewell to the original Model 3, it seems pertinent to look behind the vehicle that changed it all for the electric vehicle movement. While the Model S proved that EVs can be just as good or even better than combustion-powered cars, the Model 3 proved that EVs can compete with ICE-powered vehicles at a competitive price.
And that changed everything.
I still remembered my first time going to the show room at Palo Alto to sit in OG Model 3.
Woah, that felt like a future, and secretly hoping that I would own one someday and work for this company.
Then on my first year at Tesla, many old employees told me the legendary stories… pic.twitter.com/FDmCnH5dCX— Yun-Ta Tsai (@YunTaTsai1) January 11, 2024
Tesla’s iPhone moment
The Model 3 made a lot of headlines even before it was unveiled. At the time, the world was shocked as electric vehicle enthusiasts lined up outside Tesla stores so they could place a reservation for the Model 3, not unlike Apple fans waiting for the newest iPhone. But unlike Apple fans lining up for the newest iPhone, the Tesla fans lined up for a car whose design and specs are yet to be revealed.
That was a huge vote of confidence for Tesla and a huge step forward for the electric vehicle movement as a whole. It did, if any, show that there is ample interest in electric cars, provided that they are high quality and well-designed. The Model 3 is both of these things.
Still remember the day I picked up my 2017 Model3. It was absolutely mind blowing! All other cars became old and wrong after that day. Trying Autopark (while working at NIO lol) for the first time ?: https://t.co/iPaidk2mXy pic.twitter.com/qytzw3SvL7— Allen Veach (@allen_veach) January 11, 2024
The OG mainstream Tesla
The original Tesla Roadster proved that electric cars can be taken seriously. The Model S and Model X proved that EVs can be objectively and legitimately better than combustion-powered cars on every important metric. The Model 3 proved that EVs are ready for the mainstream market, and it was the success of the all-electric sedan that ultimately allowed Tesla to bring the Model Y to market.
Needless to say, without the Model 3, there would be no Model Y. And if it were not for the fact that the Model 3 was so well-loved all over the world, Tesla would have had a far harder time cracking the million-vehicle mark at all.
Little story time for me and the now "legacy" Model 3:
As I was going through my late teens and entered my 20's, I was an anti-Tesla, Chevy Volt (with a V) elitist. I believed in lots of the anti-Tesla FUD, as I didn't know anyone in the Tesla community or anyone really that… https://t.co/dGdZHqV8OB— Anthony Spina (@Speenuh) January 11, 2024
“An AK-47 Disguised as a Butter Knife”
There are a lot of things to love about the Model 3. It’s filled to the brim with tech and safety features, even in its base model, and its performance is amazing. When Tesla started shipping Basic Autopilot as standard, the Model 3 pretty much became the best bang-for-the-buck car in the market. But beyond the tech and the features, the Model 3 is simply a great driver’s car. Chris Harris of Top Gear, during a review of the Model 3 Performance, remarked that the vehicle is an “AK-47 disguised as a butter knife.” That’s a perfect description of the Model 3.
It would not be an exaggeration to state that the Model 3, particularly the Model 3 Performance, is the most fun car in Tesla’s lineup. Its Track Mode feature proved that EVs can be driven hard around corners, and it could keep pace with the best ICE-powered track weapons out there. For now, all eyes are on Tesla to see if the company could release a worthy successor to the Model 3 Performance.
After an incredible 6.5 year run & and ~2.3 million units sold, legacy Model 3 production is ending.
The 2017-2023 @Tesla Model 3 not only revolutionized the auto industry, but also dismantled the notion that EVs couldn't be profitable low-cost mass-market cars ? pic.twitter.com/4W8i5jiDX4— Sawyer Merritt (@SawyerMerritt) January 11, 2024
An Everlasting Legacy
Tesla owes its current success to the Model 3. CEO Elon Musk himself admitted that during the Model 3’s infamous production hell, Tesla came close to dying. But the company didn’t fail. Instead, demand for the Model 3 remained healthy, and the all-electric sedan became so successful that Tesla was able to build a strong, profitable business on its back.
The original Model 3 may be gone from Tesla’s production lines at the Fremont Factory and Gigafactory Shanghai. Despite this, the vehicle’s legacy shall live on. Its successor is promising, as the upgraded Model 3 has been critically acclaimed by owners and professional reviewers alike since it was initially revealed last year.
Tesla watchers note that over the original Model 3’s 6.5-year run, the vehicle sold about 2.3 million units. That’s not bad at all for a car that Tesla critics assumed had serious demand problems from the get-go.
Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.
News
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.
News
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.”
News
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
