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Tesla Model 3 wreaks havoc on Mercedes-Benz and BMW in luxury sedan segment

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Since the Tesla Model 3 began initial deliveries in Summer 2017, figures show that the United States’ ten most popular petrol-powered luxury sedans have seen a decline in popularity. All ten of the sedans have experienced a drop in sales when comparing numbers from 2017 and 2019.

The sales figures for the Model 3 have shown a striking increase over the past two years since its release. But a report from wheelsjoint.com shows other automakers haven’t had the success Tesla has experienced.

The downswing in these vehicles can all be attributed to the beginning of Tesla’s mass production of the Model 3 in 2018. Tesla’s most affordable sedan has clearly caused a change in what appeals to the average consumer who is looking to purchase a luxury vehicle.

Credit: wheelsjoint.com

Tesla reported that it delivered 145,846 Model 3s in 2018 after its mass production phase for the vehicle began. But 2019 would prove to be the biggest year for Tesla yet. They delivered 92,550 Model 3s in 2019 Q4 alone or 63% of what they delivered in the previous year as a whole.

Increased Model 3 deliveries in 2019 only caused a sharper dip in sales for the group of internal combustion engine luxury vehicles. The popularity of the Model 3 has effected all of the vehicles negatively, but no car felt the effects more than the BMW 4-Series.

The 4-Series has seen a 53% drop in sales figures from 2017 to 2019. The car’s numerous variants were sold 39,634 times in 2017, but that number dropped to below 19,000 units in 2019. The 4-Series was first offered to the public in 2013 and was one of BMW’s best selling lines. However, sales of sharply dropped off and BMW is planning to release a new “2nd Gen” body style of the 4-series to hopefully revive its popularity.

The Mercedes-Benz C-Class also has watched its numbers crumble as a result of the Model 3. The C-Class is a car that has shown steady growth since its first model was released in 1993. While the car is the most popular on the list as Mercedes-Benz sold 77,446 C-Class units in 2017, it experienced the second sharpest drop on the list at 36%. It managed to only sell 40,739 units in 2019.

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The Model 3’s popularity and appeal comes from a variety of things, it just depends on who you ask. Some may have decided to go electric because of the gas savings, the EV incentives, the environmental impact, or the proven performance of Tesla vehicles. One thing is for certain, the company is steadily making an impact on the automotive market. As the Model 3 quickly becomes one of the most popular cars in the world, the next question is: Will Tesla’s other cars begin to disrupt their respective sectors as well?

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla hints its already prepping for Cybercab fleet orders

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Tesla Cybercab fleet spotted at Gigafactory Texas [Credit: Joe Tegtmeyer)

Tesla has quietly opened a public interest form for companies that want to buy fleets of its purpose-built Cybercab robotaxis, marking the first official channel for commercial purchases of the two-seat autonomous vehicle. The form went live on September 3, the same day Tesla hosted an invite-only Cybercab launch event in Austin, Texas.

Tesla titled the page “Help Us Build Our Robotaxi Network.” Applicants provide name, email, phone number, company name, and deployment region. They then select one or more categories: Cybercab fleet vehicle purchasing, mobility hubs and infrastructure, event collaboration, or other. Tesla says a representative will follow up with those who express commercial interest.

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Until now, the company had no public ordering path for the vehicle, which was first shown as a concept at the October 2024 “We, Robot” event.

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The Cybercab is designed from the ground up for unsupervised operation. It has no steering wheel and no pedals.

Regulatory filings list a 48-kilowatt-hour battery, a single 219-horsepower front motor, a curb weight of 3,113 pounds, and an EPA-adjusted range near 290 to 300 miles. Tesla has already registered dozens of the vehicles with Texas authorities and has been testing them on public streets around Austin.

Tesla Cybercab sightings broaden well outside of Austin with autonomy in focus

The company’s existing Robotaxi service, which currently uses modified Model Y vehicles in parts of Texas and Florida, is expected to add Cybercabs as production ramps up at Gigafactory Texas.

The form signals that Tesla is preparing to treat the Cybercab as more than an in-house fleet asset. Investors and operators have discussed buying groups of the vehicles and placing them on Tesla’s ride-hailing network, with Tesla taking a platform fee. High-profile figures have publicly stated plans to acquire fleets if Tesla allows third-party ownership.

The new page gives those parties a direct way to register interest rather than waiting for a conventional configurator.

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Whether the form leads quickly to firm purchase agreements remains unclear. Regulatory approval for widespread unsupervised operation still varies by state, and Tesla has not published pricing or delivery timelines for fleet customers. The company has previously discussed a target price near $25,000 to $30,000 per vehicle.

For now, the form is an early signal that Tesla wants partners to help scale the network rather than operate every Cybercab itself.

Pairing the launch of the Cybercab fleet form with the Austin event is no coincidence. Tesla is inviting businesses to participate in the next phase of its Robotaxi plan at the moment the production vehicle first appears in public.

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Tesla Robotaxi riders will face the best dilemma when booking a ride

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Credit: Joe Tegtmeyer | X

Tesla has updated its Robotaxi app so riders can pick which vehicle they want before they book. The latest in-app screens now show two options side by side: the two-seat Cybercab and the four-seat Model Y.

A screenshot circulating Thursday shows the change in practice. In Austin, a rider could choose a gold Cybercab for two people or a Model Y for four. Tesla’s updated description calls Cybercab “our first purpose-built autonomous vehicle,” designed for safety, accessibility, and comfort, and says the lineup is available only through the Robotaxi app.

The distinction is more than cosmetic, and it’s important to note that Robotaxi refers to the platform, while Cybercab refers to a vehicle.

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Model Y Robotaxis have carried the service since it opened in Austin in mid-2025 and later expanded to Dallas, Houston, and parts of Florida. Those vehicles are converted production SUVs that still have steering wheels and pedals.

Cybercab is different. It has no driver controls, butterfly doors, a low seat height meant to work with wheelchairs, extra trunk space for assistive devices, and braille on the handles. Tesla has registered dozens of the two-seaters with Texas regulators in the days leading up to its September 3 Austin event.

Giving riders a choice lets Tesla match the vehicle to the trip. Most rides involve one or two people, which is where Cybercab is meant to be cheaper and more efficient to operate. Groups of three or four, or anyone who needs more space, can still request a Model Y.

The same app handles booking, payment, cabin settings, and, on Cybercab, features such as phone-based door opening and in-cabin voice controls.

Tesla Cybercab event gains steam ahead of massive launch

The update does not mean every city suddenly has both cars available. Cybercab support is listed for Austin first, and the purpose-built fleet is still small compared with the existing Model Y roster. Even so, the app change marks a shift from a single-vehicle pilot to a mixed fleet.

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Riders can now choose between the compact, purpose-built robotaxi and the familiar SUV that launched the service.

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Tesla Cybercab sightings broaden well outside of Austin with autonomy in focus

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Credit: Tesla Robotaxi | X

Tesla Cybercab sightings are broadening far and wide, well outside of downtown Austin, Texas, with autonomy in focus as the company plans to launch the all-electric, two-seater this evening in the Lone Star State.

Tesla is set to launch Cybercab to a small group of people this evening in a dedicated event in Austin, Texas. Public details on the event are relatively slim.

However, Tesla’s focus on Cybercab falls well outside of the downtown Austin area and is expanding well across the United States as things continue to move quickly with the company’s autonomous efforts in 2026. Today, various images of Cybercab fleets in interesting locations have started to circulate.

The most notable is a fleet of at least 20 Cybercabs at Miami International Airport in Florida. Spotted last night, the fleet is expansive and is indicative of a looming release of Cybercabs once regulatory boxes are checked off.

Tesla has already been operating the Robotaxi platform in Miami for several months, but this Cybercab fleet at the airport could be joining the ride-hailing platform as approvals arrive:

Another fleet of Cybercabs was spotted at the Devon, PA showroom just outside of Philadelphia. We have seen several Cybercab units testing around the Philadelphia Metro Area, which is interesting considering Tesla does not have any active Robotaxi geofence in Pennsylvania.

Philadelphia would be an ideal location to test ride-hailing due to its dense tourist population, large, sprawling city layout, and to compete with other ride-hailing companies that operate in the city.

Expansive fleets of Cybercabs will be popping up in and around major cities throughout the rest of the year, if we were betting on it. Tesla has made it obvious that the Cybercab rollout will be aggressive and fast-paced, but within reason. Tesla is still prioritizing safety, so these testing phases will likely go on for some period of time before more members of the public are able to snag a Cybercab for a personal chariot.

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