News
Tesla Model 3 to be among the UK’s best company cars amid EV-friendly policy update
In what could only be described as a “milestone moment,” the UK Treasury has confirmed that employees who drive zero-emission company cars will pay no benefit-in-kind (BIK) tax for the year. This decision heavily incentivizes businesses to purchase electric vehicles for their fleets, which contribute to nearly six out of ten new car registrations in the UK today.
Under the updated rules from the government, those who choose zero-emission vehicles will pay no company car tax for the year from April 2020, followed by a measly 1% tax from April 2021 and 2% BIK from April 2022. This is in stark contrast to the BIK taxes placed on vehicles equipped with the internal combustion engine. A BMW 3-Series with a 2.0-liter diesel engine, for example, is priced at £32,000 (~$40,200). But due to its CO2 emissions of 110 and 115g/km, the vehicle will be subject to a 31% BIK rate from April 2020.
Considering that the UK’s personal income tax rates can hit 40% for taxpayers earning £50,001 (~$62,000) to £150,000 (~$188,500) per year, those under the income bracket would pay £4,000 (~$5,000) in BIK just for using the diesel-powered BMW 3-Series from April 2020 and March 2021. Taxpayers in the same income bracket that drive a Tesla Model 3, on the other hand, would pay no BIK for the same period. The 1% tax and 2% BIK that follows in the next two years are also marginal.
In a statement, the government noted that the regulations are expected to encourage businesses to make informed decisions about their purchase of fleet vehicles. “By providing clarity of future the appropriate percentages, businesses will have the ability to make more informed decisions about how they make the transition to zero-emission fleets. Appropriate percentages beyond 2022-23 remain under review and will be announced at future fiscal events,” the government stated.
It’s not just all-electric vehicles like the Tesla Model 3 that will benefit significantly from the UK’s updated policies. Plug-in hybrids could also take advantage of the government’s zero company car tax rate, provided that the PHEVs are capable of operating at least 130 miles as a pure electric car. Unfortunately, there are no PHEVs in the market today that meets this metric. This is quite ironic since BMW director of development Klaus Frölich recently stated that the carmaker is focusing its efforts in developing PHEVs with only 80 km (49 miles) of pure electric range. “PHEV gives them full freedom and 80 km of EV range,” he said.
Plug-in hybrids with short electric ranges, such as those mentioned by the BMW executive, will still see tax breaks, though they are notably less generous than those granted to all-electric cars. PHEVs that have less than 30 miles of electric range, such as the BMW 225xe Active Tourer, will be subject to a 12% BIK tax from April next year.
With these new regulations in place, the Tesla Model 3 has the potential to become one of the most competitive company vehicles in the UK. The car, after all, boasts 240 miles of range even at its Standard Plus variant, and it comes from a company that competes in the premium segment. Considering that company cars used by middle-level to upper-level employees are usually premium vehicles, Tesla’s midsize sedan might prove to be a perfect fit.
The turnover rates for company vehicles in the UK is quite quick, with approximately 300k-500k company cars coming off lease every year. If Tesla could tap into this market with the Model 3, the company could have a steady stream of EV buyers that will likely keep the demand for the vehicle thriving in the region for a considerable length of time. The UK’s company car market is now ripe for the picking for EV makers, and if Tesla plays its cards right, it could very well be on the lead to take the first bite.
Tesla was nice enough to hook us up with the new Model Y “Standard” trim for a few days, and while we’ll be sure to fill you in on the full experience in the coming days, there are a lot of differences we noticed right off the bat, which make the ownership experience different from the “Premium” configuration level.
I purchased a Model Y Long Range All-Wheel-Drive back in August and took delivery just two weeks later. Through the first three months of owning my car, I’ve come to love so many things about the Tesla experience.
I traded my ICE vehicle for a Tesla Model Y: here’s how it went
However, I was interested in experiencing the affordable trim and seeing whether I would miss any of the voided features of the “Premium” Model Y.
Through the first 24 hours, here are my first impressions of the Model Y Standard as a Premium trim level owner:
Overall Aesthetic
The lack of a light bar is not something that is a dealbreaker. In fact, I would argue that the Model Y Standard’s more traditional headlight design is just as pleasing from an aesthetic standpoint.
The car is great looking from top to bottom; there are not a substantial number of differences besides the lack of a lightbar on both the front and the back of the car.
Overall, it is a very sleek vehicle, but the major changes are obviously with the interior.
Interior Changes
This is where the big differences are, and some of the things I’ve gotten used to in the Premium are not included. If I didn’t have a Premium Model Y already, I’m not sure I’d miss some of the things that are not present in the Standard trim, but I believe I’d get annoyed with it.
First impressions:
✅ Interior is excellent. I definitely miss the additional storage already that is available in my Premium. I could definitely get over it though
✅ Noticeable step down in sound system. Long Time by Boston absolutely cranks in the Premium; it’s still very… https://t.co/JNWvxTd8p1
— TESLARATI (@Teslarati) November 25, 2025
Storage
The Premium has a large storage compartment between the cupholders and the wireless charger, which is not present in the Standard trim. Instead, it is more like the Cybertruck, as there is a pass-through and floor storage.
I think that the pass-through is nice, but the additional storage is something I take advantage of, especially as someone who films Full Self-Driving videos, which requires hauling mounts, GoPros, and other accessories.
The sleekness of the Premium trim is also something I prefer; I really enjoy having the ability to close those compartments and cover the cupholders.
Obviously, this is a really trivial issue and not something that is substantially impactful from an ownership experience. If I weren’t already an owner, I am not sure I’d even have something to complain about.
Material Differences
The Premium trim seats are completely Vegan Leather, which I really do like, even as someone who doesn’t really love leather seats due to their temperature dependency.
The Standard trim features a Textile and Vegan hybrid, which has half of the seat a different material than the other.
The material is very similar to what I had in my previous car, a Bronco Sport. It was very durable, easy to clean, dried quickly, and hid a lot of things that leather does not, like oils from your skin, which constantly require attention to keep your interior looking fresh.
The wireless charger is also a different material, as the Premium features an Alcantara material on that. The Standard has a rubberized and textured backing, which looks good, too. They’re both more than suitable.
Other Missing Features
The Standard lacks a few minor things, most noticeably is the ambient lighting. The biggest change, however, and something I really miss, is the glass roof.
A lot of people told me that when I got my Model Y, I wouldn’t even notice the glass roof after a few weeks. That could not be further from the truth. I look out of it all the time, and it’s one of my family’s favorite parts of the car.
My Fiancè and I really love parking and watching Netflix when we pick food up, especially when it’s raining, because the glass roof gives such a great view.
We also loved it as Fall arrived, because it was great to look at the foliage.
Buy the Tesla.
Enjoy the glass roof. pic.twitter.com/r2GDyOEEWu
— TESLARATI (@Teslarati) October 28, 2025
Bigger Differences
There are also a handful of very noticeable differences from the overall cabin experience, especially with the sound system.
Much Weaker Sound System
The Model Y Standard has just 7 speakers and 1 amp, with no subwoofer. This is a significant step down from the 13-15 speakers in the Premium Long Range AWD Model Y, the 2 amps it comes with, and 1 subwoofer in the trunk.
I usually like to listen to Long Time by Boston to test out a sound system, and it was noticeably weaker in the Standard. It was missing a big portion of the umph that is provided by the Premium’s sound system.
Cabin Noise
It feels like the Cabin Noise is definitely more noticeable in the Standard, which is something I really love about my Model Y. It is able to dampen so much road noise from louder cars, and I don’t feel as if it is very quiet in the Standard.
This is perhaps the biggest make-or-break for me with this car. I truly have been spoiled by how quiet the cabin is in the Premium, and it’s due to the lack of acoustic-lined glass in the Standard.
I will be doing a more in-depth review of the Model Y Standard, especially with ride quality, later this week.
News
Tesla takes a step towards removal of Robotaxi service’s safety drivers
Tesla watchers are speculating that the implementation of in-camera data sharing could be a step towards the removal of the Robotaxi service’s safety drivers.
Tesla appears to be preparing for the eventual removal of its Robotaxi service’s safety drivers.
This was hinted at in a recent de-compile of the Robotaxi App’s version 25.11.5, which was shared on social media platform X.
In-cabin analytics
As per Tesla software tracker @Tesla_App_iOS, the latest update to the Robotaxi app featured several improvements. These include Live Screen Sharing, as well as a feature that would allow Tesla to access video and audio inside the vehicle.
According to the software tracker, a new prompt has been added to the Robotaxi App that requests user consent for enhanced in-cabin data sharing, which comprise Cabin Camera Analytics and Sound Detection Analytics. Once accepted, Tesla would be able to retrieve video and audio data from the Robotaxi’s cabin.
Video and audio sharing
A screenshot posted by the software tracker on X showed that Cabin Camera Analytics is used to improve the intelligence of features like request support. Tesla has not explained exactly how the feature will be implemented, though this might mean that the in-cabin camera may be used to view and analyze the status of passengers when remote agents are contacted.
Sound Detection Analytics is expected to be used to improve the intelligence of features like siren recognition. This suggests that Robotaxis will always be actively listening for emergency vehicle sirens to improve how the system responds to them. Tesla, however, also maintained that data collected by Robotaxis will be anonymous. In-cabin data will not be linked to users unless they are needed for a safety event or a support request.
Tesla watchers are speculating that the implementation of in-camera data sharing could be a step towards the removal of the Robotaxi service’s safety drivers. With Tesla able to access video and audio feeds from Robotaxis, after all, users can get assistance even if they are alone in the driverless vehicle.
Investor's Corner
Mizuho keeps Tesla (TSLA) “Outperform” rating but lowers price target
As per the Mizuho analyst, upcoming changes to EV incentives in the U.S. and China could affect Tesla’s unit growth more than previously expected.
Mizuho analyst Vijay Rakesh lowered Tesla’s (NASDAQ:TSLA) price target to $475 from $485, citing potential 2026 EV subsidy cuts in the U.S. and China that could pressure deliveries. The firm maintained its Outperform rating for the electric vehicle maker, however.
As per the Mizuho analyst, upcoming changes to EV incentives in the U.S. and China could affect Tesla’s unit growth more than previously expected. The U.S. accounted for roughly 37% of Tesla’s third-quarter 2025 sales, while China represented about 34%, making both markets highly sensitive to policy shifts. Potential 50% cuts to Chinese subsidies and reduced U.S. incentives affected the firm’s outlook.
With those pressures factored in, the firm now expects Tesla to deliver 1.75 million vehicles in 2026 and 2 million in 2027, slightly below consensus estimates of 1.82 million and 2.15 million, respectively. The analyst was cautiously optimistic, as near-term pressure from subsidies is there, but the company’s long-term tech roadmap remains very compelling.
Despite the revised target, Mizuho remained optimistic on Tesla’s long-term technology roadmap. The firm highlighted three major growth drivers into 2027: the broader adoption of Full Self-Driving V14, the expansion of Tesla’s Robotaxi service, and the commercialization of Optimus, the company’s humanoid robot.
“We are lowering TSLA Ests/PT to $475 with Potential BEV headwinds in 2026E. We believe into 2026E, US (~37% of TSLA 3Q25 sales) EV subsidy cuts and China (34% of TSLA 3Q25 sales) potential 50% EV subsidy cuts could be a headwind to EV deliveries.
“We are now estimating TSLA deliveries for 2026/27E at 1.75M/2.00M (slightly below cons. 1.82M/2.15M). We see some LT drivers with FSD v14 adoption for autonomous, robotaxi launches, and humanoid robots into 2027 driving strength,” the analyst noted.
Tesla Model Y Standard: first impressions from a Premium owner
Tesla takes a step towards removal of Robotaxi service’s safety drivers
