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The Tesla Model 3 is driving the chip industry’s transition into the post-silicon age
The winds are changing in the global chip industry, and the Tesla Model 3 may very well be one of the catalysts for the impending shift. Tesla became one of the first automakers to use silicon carbide (SiC) chips in a mass-produced vehicle. And by incorporating SiC chips into the Model 3, the American automaker ended up giving the material some momentum in the EV supply chain
Tesla’s use of silicon carbide in the Model 3 was a bold move, considering that silicon has long been the material of choice in the semiconductor industry. Since replacing germanium crystals in the 1960s, silicon has effectively ushered in a golden age of semiconductors. But today, other materials such as silicon carbide have emerged to challenge silicon for its throne.
Silicon carbide contains silicon and carbon, and with chemical bonds that are stronger than those in plain silicon, it holds the title of the world’s third-hardest substance. As noted in a Nikkei Asia report, processing silicon carbide requires advanced technology, but its stability, among its other properties, allows chipmakers to cut energy loss by more than half compared to conventional silicon wafers. SiC chips are also good at dissipating heat, paving the way for smaller inverters.
Masayoshi Yamamoto, a professor at Nagoya University in Japan, noted that these advantages are well represented in the Tesla Model 3’s design. “The Model 3 has an air resistance factor as low as a sports car’s. Scaling down inverters enabled its streamlined design,” Yamamoto said.
The runaway success of the Tesla Model 3 effectively sent shockwaves in the chip industry. And these shockwaves have started to inspire a wave of commitments on silicon carbide chips. In June alone, German chipmaker Infineon Technologies unveiled an SiC module for EV inverters. Hyundai later announced that these Infineon-made SiC chips would be used in its next-generation electric cars. The South Korean automaker added that by using Infineon’s SiC chips, its EVs could see a 5% improvement in range compared to vehicles equipped with plain silicon chips.
Kazuhide Ino, chief strategy officer at Japanese chipmaker Rohm, noted that at this stage, makers of silicon carbide chips have reached a point where they are already competing with each other. “Thus far, chipmakers have worked together to build up the silicon carbide market, but we’ve reached the stage of competing with each other,” he said.
French market research firm Yole Developpement noted in a forecast that the market for silicon carbide chips would likely grow sixfold by 2026 compared to 2020. This should make the SiC chip segment into a $4.48 billion market. A lot of this would rely on whether production costs for SiC chips could be reduced adequately, however, as SiC chips are still more expensive than conventional silicon chips today. That being said, the gap between silicon and SiC chips has been narrowing. Five years ago, SiC chips were about 10X more expensive than traditional silicon. Today, they’re only twice as expensive.
*Quotes courtesy of Nikkei Asia.
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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.”
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 is planning for a new 300+ stall Supercharger station that will be an expansion of an existing facility, and the company is planning to add a surprise for the Semi.
The Firebaugh, California Supercharger is currently 72 Superchargers, but Tesla filed for an expansion that will add 232 additional plugs for passenger vehicles, and it also plans to add 16 Semichargers.
This will be the biggest Supercharger station Tesla will have to date, just months after it finished the Supercharger Oasis in Lost Hills, California, which has 168 stalls. This will have 304 total Supercharger stalls, and then the additional 16 Megachargers.
🚨 This Supercharger station will have 304 total stalls and 16 Semichargers following this expansion
Absolutely INSANE size 🔥
This is located on I-5, so many semis will be traveling along this route https://t.co/hM9hdLcWwg
— TESLARATI (@Teslarati) January 13, 2026
The Firebaugh Supercharger is located on I-5, which is a major reason for why Tesla has chosen the location for additional Megacharger plug-ins, as Tesla Semi Program Manager Dan Priestley said on X earlier today.
Lots of trucks to electrify on I-5
— Dan Priestley (@danWpriestley) January 13, 2026
The project was revealed by MarcoRP, a Supercharger tracker.
The expansion is a massive signal for charging demand, especially as Tesla’s Superchargers are opened to numerous automakers and are no longer exclusive to the company’s EVs. Additionally, the installation of Megachargers is a good sign to come for the Tesla Semi program, which aims to truly ramp up this year.
Tesla plans to launch production of the Semi later this year.
It could also mean Tesla is going to expand its footprint of large-scale Supercharger projects in the coming years, which would be a big boost as EV adoption continues to soar in the United States.
Tesla Model 3 and Model Y earn Euro NCAP Best in Class safety awards
Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
