Tesla may be targeting the release of FSD Beta 10.8 on Tuesday together with the company’s fun Holiday Update, but this has not stopped the EV maker from releasing FSD Beta 10.7 this past weekend nonetheless. And despite its impending quick replacement with v10.8, v10.7 seems to include a number of key updates that make the advanced driver-assist system smoother to operate.
Immediately recognizable from v10.7’s detailed Release Notes was that vehicles could now react to things quite a bit faster. With v10.7, FSD Beta would also be less likely to slow down due to bad readings from other cars and objects on the road. Also, the aggressiveness of FSD Beta seems to have been toned down to some degree, with the system now rolling and stopping smoothly for jaywalkers, instead of slamming on the brakes.
Release notes for #FSDBeta V10.7 pic.twitter.com/BFFiQh7iww
— Dirty Tesla (@DirtyTesLa) December 19, 2021
Perhaps most interestingly, however, was that FSD Beta 10.7 also effectively enables one-pedal driving by expanding the use of vehicles’ regenerative braking systems. This should make stops smoother while keeping the physical brakes as infrequently used as possible. This update would likely be a welcome change, as conversations in the r/TeslaMotors subreddit among FSD Beta testers suggest that some users are annoyed by the system’s use of physical brakes in past iterations.
The following are the specific Release Notes for Tesla’s FSD Beta 10.7.
FSD Beta v10.7 Release Notes
– Improved object attributes network to reduce false cut-in slowdowns by 50% and lane assignment error by 19%.
– Improved photon-to-control vehicle response latency by 20% on average.
– Expanded use of regenerative braking in Autopilot down to 0 mph for smoother stops and improved energy efficiency.
– Improved VRU (pedestrians, bicyclists, motorcycles, animals) lateral velocity 1 error by 4.9% by adding more auto-labeled and simulated training examples to the dataset.
– Reduced false slowdowns for crossing objects by improved velocity estimates for objects at the end of visibility.
– Reduced false slowdowns by adding geometric checks to cross-validate lane assignment of objects.
– Improved speed profile for unprotected left turns when visibility is low.
– Added more natural behavior to bias over bike lanes during right turns.
– Improved comfort when yielding to jaywalkers by better modeling of stopping region with soft and hard deadlines.
– Improved smoothness for merge control with better modeling of merge point and ghost objects positioned at the edge of visibility.
– Improved overall comfort by enforcing stricter lateral jerk bounds in trajectory optimizer.
– Improved short deadline lane changes through richer trajectory modeling.
– Improved integration between lead vehicle overtake and lane change gap selection.
– Updated trajectory line visualization.
Tesla FSD 10.8 plus holiday fun software release probably Tuesday
— Elon Musk (@elonmusk) December 18, 2021
While FSD Beta 10.7 seems quite impressive, Elon Musk has noted that v10.8 would probably be released this coming Tuesday, together with the company’s Holiday Update. Tesla’s Holiday Updates are typically comprised of fun additions to vehicles’ features such as games and tricks like the external boombox.
This time around, however, it appears that the company is ensuring that its Holiday Update brings more functionality to its ever-expanding group of FSD Beta testers. These include the capability of FSD Beta to work with other features such as Waypoints, a function that was confirmed by Musk on Twitter.
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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.
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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.”
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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
