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Tesla Model X cited as “most significant vehicle”, by growth contribution to record 2016 PEV sales

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Electric and plug-in hybrid car sales established new sales records in 2016 with the Tesla Model X earning the title of “most significant vehicle” according to EV Volumes. The industry tracking site cites the Model X for its contribution to the growth of plug-in car sales in the US this past year.

EV Volumes defines any car with a plug as a plug-in, which may cause some Tesla fans heartburn. The site does acknowledge that plug-in hybrids are probably a stop-gap solution until there are more pure electric cars with at least 200 miles of range available to American consumers.

“The volume increase in 2016 can be attributed to Tesla (+95 % for S & X combined), the new GM Volt (+61 %), Ford Fusion (+63 %) and a number of newcomers, mostly in the Plug-in Hybrid category.” indicates the published report. “By its growth contribution, the Tesla Model X must be regarded the most significant vehicle this year.”

The Tesla Model S was the overall sales leader for the year with 28,821 units sold to US customers, a 22% increase over 2015. The Model X finished the year with 17,629 US sales, good enough for 3rd place overall. The second generation Chevy Volt claimed 2nd place with 24,739 cars delivered to customers in the US, a 61% increase.

US plug-in car sales since January, 2011. Source: ZEV Facts by Alliance of Automobile Manufacturers

California claimed nearly 50% of all plug-in sales with the other 9 states that adhere to the California zero emissions standards accounting for another 13%. Combined, all ten states accounted for nearly 62% of all US plug-in sales. In the conventional car market, those states make up about 28% of the US new car market.

Other cars with plugs that sold more than 10,000 units in the US in 2016 include the Ford Fusion Energi plug-in hybrid, which saw its sales grow 63% last year to almost equal the Tesla Model X in total sales. The Fusion Energi now accounts for about 10% of all Fusion sales, despite the fact that Ford CEO Mark Fields insists that nobody wants to buy electric cars.

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Sales of the Fusion Energi took off midyear after Ford began to advertise it as the longest range plug-in hybrid available. That claim is technically accurate — the Fusion Energi can travel more than 600 miles on a tank of fuel. But it is misleading in that the car only has 22 miles of range on battery power alone, which is only fair to middling for a plug-in hybrid these days.

To give the Fusion Hybrid more range, Ford simply increased the size of the gas tank. All of which suggests that the buying public is still woefully uninformed about cars with plugs, just as Elon Musk always claims when he talks about what a poor job car companies and automobile dealers do marketing electric cars.

The last car to sell more than 10,000 units last year is the venerable Nissan LEAF. Although Nissan promises an all new second generation LEAF with 200 miles or more of range sometime before the end of 2019, the current car is hopelessly out of date. It is essentially the same as it was when it first went on sale at the end of 2010. Still, the LEAF soldiered on to sell just over 14,000 cars in the US last year.

2016 Plug-in car sales in the US. Source: EV Volumes

In all, more than 156,000 cars with plugs were sold in the US in 2016. EV Volumes predicts that number will climb to 250,000 or more in 2017, assuming at least 50,000 Tesla Model 3 sedans are included. Whether the Model 3 makes it to market in significant numbers is one of the biggest stories industry watchers will be following this year.

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Tesla announces closure date on widely controversial Full Self-Driving program

Tesla has said that it will officially bring closure to its free Full Self-Driving transfer program on March 31, 2026, giving owners until the end of the quarter to move their driving suite to another vehicle with no additional cost.

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Credit: Tesla

Tesla has officially announced a closure date for a widely controversial Full Self-Driving program, which has been among the most discussed pieces of the driving suite for years.

The move comes just after the company confirmed it would no longer offer the option to purchase the suite outright, instead opting for a subscription-based platform that will be available in mid-February.

Tesla has said that it will officially bring closure to its free Full Self-Driving transfer program on March 31, 2026, giving owners until the end of the quarter to move their driving suite to another vehicle with no additional cost.

After that date, Tesla owners who purchased the FSD suite outright will have to adopt the exclusive subscription-only program, which will be the only option available after February 14.

CEO Elon Musk announced earlier this month that Tesla would be ending the option to purchase Full Self-Driving outright, but the reasoning for this decision is unknown.

However, there has been a lot of speculation that Tesla could offer a new tiered program, which would potentially lower the price of the suite and increase the take rate.

Tesla is shifting FSD to a subscription-only model, confirms Elon Musk

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Others have mentioned something like a pay-per-mile platform that would charge drivers based on usage, which seems to be advantageous for those who still love to drive their cars but enjoy using FSD for longer trips, as it can take the stress out of driving.

Moving forward, Tesla seems to be taking any strategy it can to increase the number of owners who utilize FSD, especially as it is explicitly mentioned in Musk’s new compensation package, which was approved last year.

Musk is responsible for getting at least 10 million active Full Self-Driving subscriptions in one tranche, while another would require the company to deliver 20 million vehicles cumulatively.

The current FSD take rate is somewhere around 12 percent, as the company revealed during the Q3 2025 Earnings Call. Tesla needs to bump this up considerably, and the move to rid itself of the outright purchase option seems to be a move to get things going in the right direction.

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Tesla Model Y leads South Korea’s EV growth in 2025

Data from the Korea Automobile and Mobility Industry Association showed that the Tesla Model Y emerged as one of the segment’s single biggest growth drivers.

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Credit: Tesla Malaysia/X

South Korea’s electric vehicle market saw a notable rise in 2025, with registrations rising more than 50% and EV penetration surpassing 10% for the first time. 

Data from the Korea Automobile and Mobility Industry Association showed that the Tesla Model Y, which is imported from Gigafactory Shanghai, emerged as one of the segment’s single biggest growth drivers, as noted in a report from IT Home News.

As per the Korea Automobile and Mobility Industry Association’s (KAMA) 2025 Korea Domestic Electric Vehicle Market Settlement report, South Korea registered 220,177 new electric vehicles in 2025, a 50.1% year-over-year increase. EV penetration also reached 13.1% in the country, entering double digits for the first time. 

The Tesla Model Y played a central role in the market’s growth. The Model Y alone sold 50,397 units during the year, capturing 26.6% of South Korea’s pure electric passenger vehicle market. Sales of the Giga Shanghai-built Model Y increased 169.2% compared with 2024, driven largely by strong demand for the all-electric crossover’s revamped version.

Manufacturer performance reflected a tightly contested market. Kia led with 60,609 EV sales, followed closely by Tesla at 59,893 units and Hyundai at 55,461 units. Together, the three brands accounted for nearly 80% of the country’s total EV sales, forming what KAMA described as a three-way competitive market.

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Imported EVs gained ground in South Korea in 2025, reaching a market share of 42.8%, while the share of domestically produced EVs declined from 75% in 2022 to 57.2% last year. Sales of China-made EVs more than doubled year over year to 74,728 units, supported in no small part by Tesla and its Model Y.

Elon Musk, for his part, has praised South Korean customers and their embrace of the electric vehicler maker. In a reply on X to a user who noted that South Koreans are fond of FSD, Musk stated that, “Koreans are often a step ahead in appreciating new technology.”

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Samsung’s Tesla AI5/AI6 chip factory to start key equipment tests in March: report

Samsung Electronics seems to be ramping its efforts to start operations at its Taylor, Texas semiconductor plant.

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Image used with permission for Teslarati. (Credit: Tom Cross)

Samsung Electronics seems to be ramping its efforts to start operations at its Taylor, Texas semiconductor plant, which will produce Tesla’s next-generation AI5 chip. 

Preparing for Tesla’s AI5/AI6 chips

As per a report by Sina Finance, Samsung Electronics is looking to begin trial operations of extreme ultraviolet (EUV) lithography equipment at its Taylor facility in March. These efforts are reportedly intended to support the full production of Tesla’s AI5 chips starting in the latter half of 2026.

The Taylor factory, Samsung’s first wafer fabrication plant in the United States, covers roughly 4.85 million square meters and is nearing completion. Media reports, citing contractors, have estimated that about 7,000 workers now work on the factory, about 1,000 of whom are reportedly working from the facility’s office building. 

Samsung is reportedly preparing to apply for a temporary occupancy permit, which would allow production to begin before the plant is fully completed.

Tesla’s aggressive AI chip roadmap

Elon Musk recently stated that Tesla’s next-generation AI5 chip is nearly complete, while early development on its successor, AI6, is already underway. Musk shared the update in a post on X, which also happened to be a recruiting message for engineers.

As per Musk, Tesla is looking to iterate its in-house AI chips on an accelerated timeline, with future generations, including AI7, AI8, and AI9, targeting a roughly nine-month design cycle. He also stated that the rapid cadence could allow Tesla’s chips to become the highest-volume AI processors in the world.

Previous reports have indicated that Samsung Electronics would be manufacturing Tesla’s AI5 chip, alongside its rival, Taiwan Semiconductor Manufacturing Company (TSMC). The two suppliers are expected to produce different versions of Tesla’s AI5 chip, with TSMC using a 3nm process and Samsung targeting 2nm production.

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