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Tesla has fully overtaken BMW for US’ luxury crown, new data confirms

Credit: YouTube/Ash Davies on Cars

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New data has confirmed that Tesla has indeed overtaken BMW as the United States’ top luxury vehicle maker in 2022. The race was not close either, especially considering the trends exhibited by the two companies. 

While speculations were already high that Tesla ended 2022 as the country’s number one luxury car maker, new data from Experian has now confirmed these estimates. Experian data shows that Tesla saw 484,351 new vehicle registrations during the year, compared to 327,929 for BMW. 

With its 2022 results, Tesla effectively saw a 41% increase over 2021, while BMW saw a 5.3% decline in the same period. Fellow luxury car maker Mercedes-Benz ended the year as the country’s number three luxury auto maker with 269,511 registrations. Mercedes-Benz’s 2022 registrations were almost the same as its 2021 figure. 

As noted in an Automotive News report, the total new vehicle registrations among 15 luxury brands in the United States saw a 2.5% drop last year to 2.18 million units. 

Tesla’s results are quite impressive. The EV maker is competing not only with veteran luxury car makers with far more experience in the industry; it is also competing with rivals that produce internal combustion cars. In a way, Tesla won the luxury market in the United States while selling only one type of vehicle, but one that consumers are heavily demanding now. 

It should be noted that Tesla lies far ahead of its rivals in the electric vehicle sector. Tesla’s 484,351 new vehicle registrations tracked by Experian are all electric vehicles. In comparison, BMW only posted 14,159 new EV registrations last year. Mercedes-Benz posted only 11,444, as per Experian data. 

While Tesla’s all-electric cars do not really follow the conventions of traditional luxury vehicles, the company is nonetheless considered a premium automaker due to its vehicles’ prices, as well as their robust performance and technology-focused features. 

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla Cybercab undergoes winter testing as Elon Musk reiterates production start date

CEO Elon Musk confirmed the timeline in a recent post on X, while Tesla’s official social media accounts separately revealed that Cybercab prototypes are now undergoing winter testing in Alaska.

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Credit: Tesla Robotaxi/X

Tesla has reiterated that production of its fully autonomous Cybercab is set to begin in April, even as the company continues expanding real-world testing of the vehicle. 

CEO Elon Musk confirmed the timeline in a recent post on X, while Tesla’s official social media accounts separately revealed that Cybercab prototypes are now undergoing winter testing in Alaska.

Musk confirms April Cybercab initial production

In a post on X, Musk reiterated that Cybercab production is scheduled to begin in April, reiterating his guidance about the vehicle’s manufacturing timeline. Around the same time, Tesla shared images showing the Cybercab undergoing cold-weather testing in Alaska. Interestingly enough, the Cybercab prototypes being tested in Alaska seemed to be equipped with snow tires. 

Winter testing in Alaska suggests Tesla is preparing the Cybercab for deployment across a wide range of climates in the United States. Cold temperatures, snow, ice, and reduced traction present some of the most demanding scenarios for autonomous systems, making Alaska a logical proving ground for a vehicle designed to operate without a human driver.

Taken together, Musk’s production update and Tesla’s testing post indicate that while the Cybercab is nearing the start of manufacturing, validation efforts are still actively ramping to ensure reliability in real-world environments.

What early Cybercab production might look like

Musk has previously cautioned that the start of Cybercab manufacturing will be slow, reflecting the challenges of launching an all-new vehicle platform. In a recent comment, Musk said initial production typically follows an S-curve, with early output constrained by how many new parts and processes are involved.

According to Musk, both Cybercab and Optimus fall into this category, as “almost everything is new.” As a result, early production rates are expected to be very deliberate before eventually accelerating rapidly as manufacturing processes mature.

“Initial production is always very slow and follows an S-curve. The speed of production ramp is inversely proportionate to how many new parts and steps there are. For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being insanely fast,” Musk wrote in a post on X.

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Tesla to increase Full Self-Driving subscription price: here’s when

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Credit: Tesla

Tesla will increase its Full Self-Driving subscription price, meaning it will eventually be more than the current $99 per month price tag it has right now.

Already stating that the ability to purchase the suite outright will be removed, Tesla CEO Elon Musk said earlier this week that the Full Self-Driving subscription price would increase when its capabilities improve:

“I should also mention that the $99/month for supervised FSD will rise as FSD’s capabilities improve. The massive value jump is when you can be on your phone or sleeping for the entire ride (unsupervised FSD).”

This was an expected change, especially as Tesla has been hinting for some time that it is approaching a feature-complete version of Full Self-Driving that will no longer require driver supervision. However, with the increase, some are concerned that they may be priced out.

$99 per month is already a tough ask for some. While Full Self-Driving is definitely worth it just due to the capabilities, not every driver is ready to add potentially 50 percent to their car payment each month to have it.

While Tesla has not revealed any target price for FSD, it does seem that it will go up to at least $150.

Additionally, the ability to purchase the suite outright is also being eliminated on February 14, which gives owners another reason to be slightly concerned about whether they will be able to afford to continue paying for Full Self-Driving in any capacity.

Some owners have requested a tiered program, which would allow people to pay for the capabilities they want at a discounted price.

Unsupervised FSD would be the most expensive, and although the company started removing Autopilot from some vehicles, it seems a Supervised FSD suite would still attract people to pay between $49 and $99 per month, as it is very useful.

Tesla will likely release pricing for the Unsupervised suite when it is available, but price increases could still come to the Supervised version as things improve.

This is not the first time Musk has hinted that the price would change with capability improvements, either. He’s been saying it for some time. In 2020, he even said the value of FSD would “probably be somewhere in excess of $100,000.”

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Tesla starts removing outright Full Self-Driving purchase option at time of order

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(Credit: Tesla)

Tesla has chosen to axe the ability to purchase Full Self-Driving outright from a select group of cars just days after CEO Elon Musk announced the company had plans to eliminate that option in February.

The company is making a clear-cut stand that it will fully transition away from the ability to purchase the Full Self-Driving suite outright, a move that has brought differing opinions throughout the Tesla community.

Earlier this week, the company also announced that it will no longer allow buyers to purchase Full Self-Driving outright when ordering a pre-owned vehicle from inventory. Instead, that will be available for $99 per month, the same price that it costs for everyone else.

The ability to buy the suite for $8,000 for a one-time fee at the time of order has been removed:

This is a major move because it is the first time Tesla is eliminating the ability to purchase FSD outright for one flat fee to any of its vehicles, at least at the time of purchase.

It is trying to phase out the outright purchase option as much as it can, preparing people for the subscription-based service it will exclusively offer starting on February 14.

In less than a month, it won’t be available on any vehicle, which has truly driven some serious conversation from Tesla owners throughout the community.

There’s a conflict, because many believe that they will now lose the ability to buy FSD and not pay for it monthly, which is an attractive offer. However, others believe, despite paying $8,000 for FSD, that they will have to pay more money on top of that cost to get the unsupervised suite.

Additionally, CEO Elon Musk said that the FSD suite’s subscription price would increase over time as capabilities increase, which is understandable, but is also quite a conflict for those who spent thousands to have what was once promised to them, and now they may have to pay even more money.

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