Tesla has reduced the price of the Model 3 in several European markets. The changes occurred on Wednesday and were applied to several variants of the all-electric sedan.
The Model 3 is Tesla’s most affordable vehicle and is the company’s most popular car in Europe. After leading several European markets in terms of EV sales, Tesla is making several changes to the pricing options of the Model 3 to increase affordability while combating increasingly tough competition in some of the markets.
Some of the reductions in cost were more sizeable than in others. The largest price cut occurred in France, where the Standard Range+ variant dropped by €6,190, from €49,990 to €43,800. The new price qualifies the vehicle for the more hefty €7,000 incentive package. It previously qualified for a €3,000 incentive in France, DriveTeslaCa reported. The Long Range and Performance variants of the Model 3 also dropped in price in France: the LR from €57,800 to €51,990 and the Performance from €65,990 to €59,990.
Germany also saw sizeable decreases in Model 3 price. The SR+ dropped from €42,990 to €39,990, down €3,000. The Long Range configuration reduced in price equally, from €52,490 to €49,990. The Performance variant is now €4,000 cheaper, moving from €58,990 to €54,990.
Tesla has been relatively successful in Europe with its vehicles. Demand has increased over the past few years, especially with the Model 3 introduction in 2017. However, Europe, a hot spot for electric vehicles, is not a region where Tesla manufactures its vehicles yet. With the Giga Berlin production facility in Germany expected to begin operation later this year, Tesla will be even more competitive in the European market in the coming years.
Most of Tesla’s success has come from Germany, the UK, France, and Switzerland. Other markets, like Norway, have also contributed to Tesla’s growth in Europe. The Model 3 was the most popular EV in December in Norway, selling 4,232 units, 1,900 units more than the second-place Volkswagen ID.3. However, there are plenty of worthy competitors, like the Renault Zoe, Hyundai Kona EV, and the Audi e-Tron. Each of these vehicles has also tasted a bit of success in the European market, something that Tesla is attempting to take away moving forward.
Tesla Model 3 dominates December in Norway, halts VW ID.3 winning streak
Tesla will attempt to combat its competition with the introduction of the Made-in-Germany Model 3 and Model Y. Both will be built locally in Germany at the new Giga Berlin facility later this year. However, other automakers are making significant strides toward developing successful electric vehicles, but it is undoubtedly Tesla that still dominates that sector as a whole.
Elon Musk
Elon Musk’s xAI brings 1GW Colossus 2 AI training cluster online
Elon Musk shared his update in a recent post on social media platform X.
xAI has brought its Colossus 2 supercomputer online, making it the first gigawatt-scale AI training cluster in the world, and it’s about to get even bigger in a few months.
Elon Musk shared his update in a recent post on social media platform X.
Colossus 2 goes live
The Colossus 2 supercomputer, together with its predecessor, Colossus 1, are used by xAI to primarily train and refine the company’s Grok large language model. In a post on X, Musk stated that Colossus 2 is already operational, making it the first gigawatt training cluster in the world.
But what’s even more remarkable is that it would be upgraded to 1.5 GW of power in April. Even in its current iteration, however, the Colossus 2 supercomputer already exceeds the peak demand of San Francisco.
Commentary from users of the social media platform highlighted the speed of execution behind the project. Colossus 1 went from site preparation to full operation in 122 days, while Colossus 2 went live by crossing the 1-GW barrier and is targeting a total capacity of roughly 2 GW. This far exceeds the speed of xAI’s primary rivals.
Funding fuels rapid expansion
xAI’s Colossus 2 launch follows xAI’s recently closed, upsized $20 billion Series E funding round, which exceeded its initial $15 billion target. The company said the capital will be used to accelerate infrastructure scaling and AI product development.
The round attracted a broad group of investors, including Valor Equity Partners, Stepstone Group, Fidelity Management & Research Company, Qatar Investment Authority, MGX, and Baron Capital Group. Strategic partners NVIDIA and Cisco also continued their support, helping xAI build what it describes as the world’s largest GPU clusters.
xAI said the funding will accelerate its infrastructure buildout, enable rapid deployment of AI products to billions of users, and support research tied to its mission of understanding the universe. The company noted that its Colossus 1 and 2 systems now represent more than one million H100 GPU equivalents, alongside recent releases including the Grok 4 series, Grok Voice, and Grok Imagine. Training is also already underway for its next flagship model, Grok 5.
Elon Musk
Tesla AI5 chip nears completion, Elon Musk teases 9-month development cadence
The Tesla CEO shared his recent insights in a post on social media platform X.
Tesla’s next-generation AI5 chip is nearly complete, and work on its successor is already underway, as per a recent update from Elon Musk.
The Tesla CEO shared his recent insights in a post on social media platform X.
Musk details AI chip roadmap
In his post, Elon Musk stated that Tesla’s AI5 chip design is “almost done,” while AI6 has already entered early development. Musk added that Tesla plans to continue iterating rapidly, with AI7, AI8, AI9, and future generations targeting a nine-month design cycle.
He also noted that Tesla’s in-house chips could become the highest-volume AI processors in the world. Musk framed his update as a recruiting message, encouraging engineers to join Tesla’s AI and chip development teams.
Tesla community member Herbert Ong highlighted the strategic importance of the timeline, noting that faster chip cycles enable quicker learning, faster iteration, and a compounding advantage in AI and autonomy that becomes increasingly difficult for competitors to close.
AI5 manufacturing takes shape
Musk’s comments align with earlier reporting on AI5’s production plans. In December, it was reported that Samsung is preparing to manufacture Tesla’s AI5 chip, accelerating hiring for experienced engineers to support U.S. production and address complex foundry challenges.
Samsung is one of two suppliers selected for AI5, alongside TSMC. The companies are expected to produce different versions of the AI5 chip, with TSMC reportedly using a 3nm process and Samsung using a 2nm process.
Musk has previously stated that while different foundries translate chip designs into physical silicon in different ways, the goal is for both versions of the Tesla AI5 chip to operate identically. AI5 will succeed Tesla’s current AI4 hardware, formerly known as Hardware 4, and is expected to support the company’s Full Self-Driving system as well as other AI-driven efforts, including Optimus.
News
Tesla Model Y and Model 3 named safest vehicles tested by ANCAP in 2025
According to ANCAP in a press release, the Tesla Model Y achieved the highest overall weighted score of any vehicle assessed in 2025.
The Tesla Model Y recorded the highest overall safety score of any vehicle tested by ANCAP in 2025. The Tesla Model 3 also delivered strong results, reinforcing the automaker’s safety leadership in Australia and New Zealand.
According to ANCAP in a press release, the Tesla Model Y achieved the highest overall weighted score of any vehicle assessed in 2025. ANCAP’s 2025 tests evaluated vehicles across four key pillars: Adult Occupant Protection, Child Occupant Protection, Vulnerable Road User Protection, and Safety Assist technologies.
The Model Y posted consistently strong results in all four categories, distinguishing itself through a system-based safety approach that combines structural crash protection with advanced driver-assistance features such as autonomous emergency braking, lane support, and driver monitoring.
This marked the second time the Model Y has topped ANCAP’s annual safety rankings. The Model Y’s previous version was also ANCAP’s top performer in 2022.
The Tesla Model 3 also delivered a strong performance in ANCAP’s 2025 tests, contributing to Tesla’s broader safety presence across segments. Similar to the Model Y, the Model 3 also earned impressive scores across the ANCAP’s four pillars. This made the vehicle the top performer in the Medium Car category.
ANCAP Chief Executive Officer Carla Hoorweg stated that the results highlight a growing industry shift toward integrated safety design, with improvements in technologies such as autonomous emergency braking and lane support translating into meaningful real-world protection.
“ANCAP’s testing continues to reinforce a clear message: the safest vehicles are those designed with safety as a system, not a checklist. The top performers this year delivered consistent results across physical crash protection, crash avoidance and vulnerable road user safety, rather than relying on strength in a single area.
“We are also seeing increasing alignment between ANCAP’s test requirements and the safety technologies that genuinely matter on Australian and New Zealand roads. Improvements in autonomous emergency braking, lane support, and driver monitoring systems are translating into more robust protection,” Hoorweg said.
Elon Musk’s xAI brings 1GW Colossus 2 AI training cluster online
Tesla AI5 chip nears completion, Elon Musk teases 9-month development cadence
