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Tesla Model S beats 70 years of motoring legends to win MotorTrend’s Ultimate Car of the Year award
After seven years in the market, multiple awards, and establishing itself as the undisputed king of premium electric sedans, the Tesla Model S has earned what could very well be its most impressive award to date. Just recently, the Model S, the first vehicle designed from the ground up by Tesla, was dubbed by MotorTrend as its Ultimate Car of the Year, beating 70 years worth of motoring legends in the process.
MotorTrend started its Car of the Year awards in 1949, which was won by Cadillac. Over the years, the publication’s Car of the Year award would expand to several segments such as Imports, Trucks, and SUVs. Despite this, each winner of the esteemed award had one thing in common: each vehicle scored very well under the publication’s six criteria — Advancement in Design, Engineering Excellence, Efficiency, Performance of Intended Function, Value, and Safety.
With MotorTrend celebrating its 70th anniversary, the publication opted to do something special this year. Ninety-two vehicles have received the Car of the Year award to date, but as mentioned by the publication in an announcement, one of these 92 vehicles is more significant than the others. From this 92, eight finalists were selected, corresponding to every decade that the publication has been active. These vehicles are the 1949 Cadillac lineup, the 1955 Chevrolet lineup, the 1968 Pontiac GTO, the 1972 Citroën SM, the 1986 Mazda RX-7, the 1996 Dodge Caravan, the 2004 Toyota Prius, and the 2013 Tesla Model S.
While the 2010-2020 decade is not over yet, it is difficult to argue that the most essential car of recent years is the Tesla Model S. Created as a successor to the original Tesla Roadster and designed to prove that all-electric cars can be viable (and even superior) alternatives to gas and diesel-powered sedans, the Model S was a groundbreaking vehicle from the inside out. The sedan’s production ramp experienced some delays considering Tesla’s inexperience (the company had only been producing the low-volume Roadsters when the Model S came out), but when it did, it shook the auto industry to its core.
MotorTrend calls the Model S as a “rolling manifesto,” a car that personifies CEO Elon Musk’s view of electric vehicles as tomorrow’s form of transportation. Even before its insanely quick configurations were released, the original Model S proved enough to disrupt the luxury sedan segment. Thanks to its rear-mounted electric motor, it was quick off the line, hitting 0-60 mph in 4.0 seconds, it seated seven (two in jump seats), and it was also incredibly efficient. What’s more, it had 265 miles of range per charge, showing the auto industry that electric cars can go the distance too, literally. These, together with the vehicle’s never-before-seen tech, ultimately helped the Model S become MotorTrend’s 2013 Car of the Year.
The Model S is more than a great electric car. Rather, it is an excellent vehicle that just happens to be electric. Bold and progressive, Tesla’s flagship sedan still stands as the gold standard that competing EVs today are still benchmarked against. Constantly evolving thanks to free, over-the-air updates from Tesla, the Model S also stands as one of the only vehicles released this decade that actually becomes better with age. For MotorTrend, these characteristics make the Model S deserving of the Ultimate Car of the Year award, perhaps even more.
“No vehicle we’ve awarded, be it Car of the Year, Import Car of the Year, SUV of the Year, or Truck of the Year, can equal the impact, performance, and engineering excellence that is our Ultimate Car of the Year winner, the 2013 Tesla Model S,” the publication wrote.
MotorTrend’s feature on the Tesla Model S as a finalist in its Ultimate Car of the Year awards could be accessed here. The final results of the awards could be accessed here.
The Tesla Model S’ Ultimate Car of the Year award comes just a day after its smaller sibling, the Model 3, was deemed as the 2019 Car of the Year and 2019 Premium Electric Car of the Year by AutoExpress UK. Just like its larger sibling, the Model 3 was granted the accolade for its perfect blend of technology and driving dynamics, making the car that a likely disruptor in the auto industry, but in a much bigger scale.
Tesla has announced it has hit a major milestone with Full Self-Driving subscriptions, shortly after it said it would exclusively offer the suite without the option to purchase it outright.
Tesla announced on Wednesday during its Q4 Earnings Call for 2025 that it had officially eclipsed the one million subscription mark for its Full Self-Driving suite. This represented a 38 percent increase year-over-year.
This is up from the roughly 800,000 active subscriptions it reported last year. The company has seen significant increases in FSD adoption over the past few years, as in 2021, it reported just 400,000. In 2022, it was up to 500,000 and, one year later, it had eclipsed 600,000.
NEWS: For the first time, Tesla has revealed how many people are subscribed or have purchased FSD (Supervised).
Active FSD Subscriptions:
• 2025: 1.1 million
• 2024: 800K
• 2023: 600K
• 2022: 500K
• 2021: 400K pic.twitter.com/KVtnyANWcs— Sawyer Merritt (@SawyerMerritt) January 28, 2026
In mid-January, CEO Elon Musk announced that the company would transition away from giving the option to purchase the Full Self-Driving suite outright, opting for the subscription program exclusively.
Musk said on X:
“Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter.”
The move intends to streamline the Full Self-Driving purchase option, and gives Tesla more control over its revenue, and closes off the ability to buy it outright for a bargain when Musk has said its value could be close to $100,000 when it reaches full autonomy.
It also caters to Musk’s newest compensation package. One tranche requires Tesla to achieve 10 million active FSD subscriptions, and now that it has reached one million, it is already seeing some growth.
The strategy that Tesla will use to achieve this lofty goal is still under wraps. The most ideal solution would be to offer a less expensive version of the suite, which is not likely considering the company is increasing its capabilities, and it is becoming more robust.
Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
Currently, Tesla’s FSD subscription price is $99 per month, but Musk said this price will increase, which seems counterintuitive to its goal of increasing the take rate. With that being said, it will be interesting to see what Tesla does to navigate growth while offering a robust FSD suite.
News
Tesla confirms Robotaxi expansion plans with new cities and aggressive timeline
Tesla plans to launch in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas. It lists the Bay Area as “Safety Driver,” and Austin as “Ramping Unsupervised.”
Tesla confirmed its intentions to expand the Robotaxi program in the United States with an aggressive timeline that aims to send the ride-hailing service to several large cities very soon.
The Robotaxi program is currently active in Austin, Texas, and the California Bay Area, but Tesla has received some approvals for testing in other areas of the U.S., although it has not launched in those areas quite yet.
However, the time is coming.
During Tesla’s Q4 Earnings Call last night, the company confirmed that it plans to expand the Robotaxi program aggressively, hoping to launch in seven new cities in the first half of the year.
Tesla plans to launch in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas. It lists the Bay Area as “Safety Driver,” and Austin as “Ramping Unsupervised.”
These details were released in the Earnings Shareholder Deck, which is published shortly before the Earnings Call:
🚨 BREAKING: Tesla plans to launch its Robotaxi service in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas in the first half of this year pic.twitter.com/aTnruz818v
— TESLARATI (@Teslarati) January 28, 2026
Late last year, Tesla revealed it had planned to launch Robotaxi in Las Vegas, Phoenix, Dallas, and Houston, but Tampa and Orlando were just added to the plans, signaling an even more aggressive expansion than originally planned.
Tesla feels extremely confident in its Robotaxi program, and that has been reiterated many times.
Although skeptics still remain hesitant to believe the prowess Tesla has seemingly proven in its development of an autonomous driving suite, the company has been operating a successful program in Austin and the Bay Area for months.
In fact, it announced it achieved nearly 700,000 paid Robotaxi miles since launching Robotaxi last June.
🚨 Tesla has achieved nearly 700,000 paid Robotaxi miles since launching in June of last year pic.twitter.com/E8ldSW36La
— TESLARATI (@Teslarati) January 28, 2026
With the expansion, Tesla will be able to penetrate more of the ride-sharing market, disrupting the human-operated platforms like Uber and Lyft, which are usually more expensive and are dependent on availability.
Tesla launched driverless rides in Austin last week, but they’ve been few and far between, as the company is certainly easing into the program with a very cautiously optimistic attitude, aiming to prioritize safety.
Investor's Corner
Tesla (TSLA) Q4 and FY 2025 earnings call: The most important points
Executives, including CEO Elon Musk, discussed how the company is positioning itself for growth across vehicles, energy, AI, and robotics despite near-term pressures from tariffs, pricing, and macro conditions.
Tesla’s (NASDAQ:TSLA) Q4 and FY 2025 earnings call highlighted improving margins, record energy performance, expanding autonomy efforts, and a sharp acceleration in AI and robotics investments.
Executives, including CEO Elon Musk, discussed how the company is positioning itself for growth across vehicles, energy, AI, and robotics despite near-term pressures from tariffs, pricing, and macro conditions.
Key takeaways
Tesla reported sequential improvement in automotive gross margins excluding regulatory credits, rising from 15.4% to 17.9%, supported by favorable regional mix effects despite a 16% decline in deliveries. Total gross margin exceeded 20.1%, the highest level in more than two years, even with lower fixed-cost absorption and tariff impacts.
The energy business delivered standout results, with revenue reaching nearly $12.8 billion, up 26.6% year over year. Energy gross profit hit a new quarterly record, driven by strong global demand and high deployments of MegaPack and Powerwall across all regions, as noted in a report from The Motley Fool.
Tesla also stated that paid Full Self-Driving customers have climbed to nearly 1.1 million worldwide, with about 70% having purchased FSD outright. The company has now fully transitioned FSD to a subscription-based sales model, which should create a short-term margin headwind for automotive results.
Free cash flow totaled $1.4 billion for the quarter. Operating expenses rose by $500 million sequentially as well.
Production shifts, robotics, and AI investment
Musk further confirmed that Model S and Model X production is expected to wind down next quarter, and plans are underway to convert Fremont’s S/X line into an Optimus robot factory with a capacity of one million units.
Tesla’s Robotaxi fleet has surpassed 500 vehicles, operating across the Bay Area and Austin, with Musk noting a rapid monthly expansion pace. He also reiterated that CyberCab production is expected to begin in April, following a slow initial S-curve ramp before scaling beyond other vehicle programs.
Looking ahead, Tesla expects its capital expenditures to exceed $20 billion next year, thanks to the company’s operations across its six factories, the expansion of its fleet expansion, and the ramp of its AI compute. Additional investments in AI chips, compute infrastructure, and future in-house semiconductor manufacturing were discussed but are not included in the company’s current CapEx guidance.
More importantly, Tesla ended the year with a larger backlog than in recent years. This is supported by record deliveries in smaller international markets and stronger demand across APAC and EMEA. Energy backlog remains strong globally as well, though Tesla cautioned that margin pressure could emerge from competition, policy uncertainty, and tariffs.
Tesla hits major milestone with Full Self-Driving subscriptions
Tesla confirms Robotaxi expansion plans with new cities and aggressive timeline
