Tesla announced plans to compensate for electric vehicle (EV) subsidies in Germany after the government abruptly ended the incentives program for EVs. The Texas-based automaker said it would also maintain its manufacturer’s share of €2,250 in its new Model 3 and Model Y orders, starting December 18 to 31.
Model Y prices in Germany before Tesla’s compensation are as follows:
- Model Y RWD – €44,890
- Model Y Long Range – €54,990
- Model Y Performance – €60,990
Below are the Model 3 prices in Germany before Tesla’s compensation:
- Model 3 RWD – €42,990
- Model 3 Long Range – €51,990
To continue supporting the transition to sustainable energy, Tesla will compensate for the termination of the government EV subsidy in Germany for new Model 3/Y orders (starting 18 Dec for vehicles delivered by 31 Dec)
We will also maintain the manufacturer’s share of 2250€.…— Tesla Europe & Middle East (@teslaeurope) December 18, 2023
Before the end of the EV subsidy program in Germany, customers would get a discount of €6,750, which is split between the government and the manufacturer. The automaker bears €2,250 worth of the discount. Moving forward, Tesla will handle the entire €6,750 EV subsidy.
In a press release dated December 16, Germany’s Federal Ministry for Economic Affairs and Climate Protection (BMWK) announced the end of its EV subsidy program.
BMWK stated the following:
-->“As part of the negotiations on the Climate and Transformation Fund (KTF), it was decided on December 13, 2023, to end support through the environmental bonus as soon as possible. As of December 17, 2023, no new applications for the environmental bonus can be submitted to the Federal Office of Economics and Export Control (BAFA). The background is the implementation of the Federal Constitutional Court’s ruling, as a result of which 60 billion euros will be withdrawn from the KTF. Therefore, the KTF’s economic plan for 2024 has to be redrafted, and fewer resources are available to it.”
BMWK noted that it would stop accepting new applications for the EV subsidy program on December 17. The applications BMWK accepted up to December 17 would still be processed and approved.
BMWK’s EV subsidy program has paid out €10 million in EV subsidies since 2016, covering 2.1 million electric vehicle purchases. The department considers its EV subsidy program to be successful.
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Tesla will expand its factory shuttle service in Germany beginning January 4, adding direct rail trips from Berlin Ostbahnhof to Giga Berlin-Brandenburg in Grünheide.
The upgraded link, which includes six daily services aligned with shift schedules, reduces travel time to roughly 35 minutes despite ongoing station construction. With this initiative, Tesla aims to boost the number of Gigafactory Berlin employees commuting by rail while keeping the shuttle free for all riders.
New shuttle route
As noted in a report from rbb24, the new service will run between the Berlin Ostbahnhof East Station and the Erkner Station at the Gigafactory. Tesla stated that the timetable mirrors shift changes for the facility’s employees, and similar to before, the service will be completely free. The train will offer six direct trips per day as well.
“The service includes six daily trips, which also cover our shift times,” Tesla stated. “The trains will run between Berlin Ostbahnhof (with a stop at Ostkreuz) and Erkner station to the Gigafactory.”
Even with construction continuing at Fangschleuse and Köpenick stations, the company said the route has been optimized to maintain a predictable 35-minute travel time. The upgrade follows earlier phases of Tesla’s self-funded shuttle program, which initially connected Erkner to the factory grounds before expanding to Berlin-Lichtenberg.
-->Tesla pushes for majority rail commuting
Tesla began production at Grünheide in March 2022, and the factory’s workforce has since grown to around 11,500 employees, with an estimated 60% commuting from Berlin. The facility produces the Model Y, Tesla’s best-selling vehicle, for both Germany and other territories.
The company has repeatedly emphasized its goal of having more than half its staff rely on public transportation rather than cars, positioning the shuttle as a key part of that initiative. In keeping with the factory’s sustainability focus, Tesla continues to allow non-employees to ride the shuttle free of charge, making it a broader mobility option for the region as the site’s output and workforce continue to scale.
News
Tesla Model 3 and Model Y dominate China’s real-world efficiency tests
The Tesla Model 3 posted 20.8 kWh/100 km while the Model Y followed closely at 21.8 kWh/100 km.
Tesla’s Model 3 and Model Y once again led the field in a new real-world energy-consumption test conducted by China’s Autohome, outperforming numerous rival electric vehicles in controlled conditions.
The results, which placed both Teslas in the top two spots, prompted Xiaomi CEO Lei Jun to acknowledge Tesla’s efficiency advantage while noting that his company’s vehicles will continue refining its own models to close the gap.
Tesla secures top efficiency results
Autohome’s evaluation placed all vehicles under identical conditions, such as a full 375-kg load, cabin temperature fixed at 24°C on automatic climate control, and a steady cruising speed of 120 km/h. In this environment, the Tesla Model 3 posted 20.8 kWh/100 km while the Model Y followed closely at 21.8 kWh/100 km, as noted in a Sina News report.
These figures positioned Tesla’s vehicles firmly at the top of the ranking and highlighted their continued leadership in long-range efficiency. The test also highlighted how drivetrain optimization, software management, and aerodynamic profiles remain key differentiators in high-speed, cold-weather scenarios where many electric cars struggle to maintain low consumption.
Xiaomi’s Lei Jun pledges to continue learning from Tesla
Following the results, Xiaomi CEO Lei Jun noted that the Xiaomi SU7 actually performed well overall but naturally consumed more energy due to its larger C-segment footprint and higher specification. He reiterated that factors such as size and weight contributed to the difference in real-world consumption compared to Tesla. Still, the executive noted that Xiaomi will continue to learn from the veteran EV maker.
“The Xiaomi SU7’s energy consumption performance is also very good; you can take a closer look. The fact that its test results are weaker than Tesla’s is partly due to objective reasons: the Xiaomi SU7 is a C-segment car, larger and with higher specifications, making it heavier and naturally increasing energy consumption. Of course, we will continue to learn from Tesla and further optimize its energy consumption performance!” Lei Jun wrote in a post on Weibo.
-->Lei Jun has repeatedly described Tesla as the global benchmark for EV efficiency, previously stating that Xiaomi may require three to five years to match its leadership. He has also been very supportive of FSD, even testing the system in the United States.
Elon Musk
Elon Musk reveals what will make Optimus’ ridiculous production targets feasible
Musk recent post suggests that Tesla has a plan to attain Optimus’ production goals.
Elon Musk subtly teased Tesla’s strategy to achieve Optimus’ insane production volume targets. The CEO has shared his predictions about Optimus’ volume, and they are so ambitious that one would mistake them for science fiction.
Musk’s recent post on X, however, suggests that Tesla has a plan to attain Optimus’ production goals.
The highest volume product
Elon Musk has been pretty clear about the idea of Optimus being Tesla’s highest-volume product. During the Tesla 2025 Annual Shareholder Meeting, Musk stated that the humanoid robot will see “the fastest production ramp of any product of any large complex manufactured product ever,” starting with a one-million-per-year line at the Fremont Factory.
Following this, Musk stated that Giga Texas will receive a 10 million-per-year unit Optimus line. But even at this level, the Optimus ramp is just beginning, as the production of the humanoid robot will only accelerate from there. At some point, the CEO stated that a Mars location could even have a 100 million-unit-per-year production line, resulting in up to a billion Optimus robots being produced per year.
Self-replication is key
During the weekend, Musk posted a short message that hinted at Tesla’s Optimus strategy. “Optimus will be the Von Neumann probe,” the CEO wrote in his post. This short comment suggests that Tesla will not be relying on traditional production systems to make Optimus. The company probably won’t even hire humans to produce the humanoid robot at one point. Instead, Optimus robots could simply produce other Optimus robots, allowing them to self-replicate.
-->The Von Neumann is a hypothetical self-replicating spacecraft proposed by the mathematician and physicist John von Neumann in the 1940s–1950s. The hypothetical machine in the concept would be able to travel to a new star system or location, land, mine, and extract raw materials from planets, asteroids, and moons as needed, use those materials to manufacture copies of itself, and launch the new copies toward other star systems.
If Optimus could pull off this ambitious target, the humanoid robot would indeed be the highest volume product ever created. It could, as Musk predicted, really change the world.
Tesla is improving Giga Berlin’s free train service for employees
Tesla Model 3 and Model Y dominate China’s real-world efficiency tests
