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Tesla selling display and test drive units due to high demand: report

(Credit: Tesla Owners Mexico/Twitter)

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Recent reports have suggested that Tesla has started selling its display and test drive units in North America due to strong demand. The company’s efforts come amidst the rollout of new incentives for its vehicles, such as a $7,500 discount to US customers if they decide to take delivery of their new car by the end of December 2022. 

Tesla’s efforts to push more sales this quarter using discounts is bit of a departure from the company’s typical strategies. While Tesla has frequently rolled out adjustments for its vehicles’ prices, the company does not usually offer discounts at all. Considering Tesla’s targets this year, however, it is no surprise that incentives are now being used to push more sales. 

The electric vehicle maker’s new strategies were initially reported by EV fan blog Electrek, which claimed that Tesla had authorized several of its locations in North America to allow the sale of demo vehicles. The blog also claimed that Tesla’s inventory has been on a decline in the United States.

Unofficial trackers of Tesla’s available inventory, such as EV-CPO Hunter, suggest that the company’s inventory is getting depleted in several areas across the globe. The unofficial tracker’s estimates, for example, show that there are just about 120 Model 3 and 168 Model Y left in the United States, including used vehicles. This suggests that Tesla’s demand for its electric cars remains strong, despite the stream of competition coming out. 

Tesla has noted that it aims to show a growth of about 50% this year in terms of deliveries. Amidst the challenges in China, which were brought in no small part by the country’s Covid-19 lockdowns, the company noted in the third quarter earnings call that it expects to post growth of just under 50% by the end of the year. 

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“As we look ahead, our plans show that we’re on track for the 50% annual growth in production this year, although we are tracking supply chain risks which are beyond our control. On the delivery side, we do expect to be just under 50% growth due to an increase in the cars in transit at the end of the year, as noted, just above. This means that, again, you should expect a gap between production and deliveries in Q4, and those cars in transit will be delivered shortly to their customers upon arrival to their destination in Q1,” Tesla Chief Financial Officer Zachary Kirkhorn said. 

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 AI team burns the Christmas midnight oil by releasing FSD v14.2.2.1

The update was released just a day after FSD v14.2.2 started rolling out to customers. 

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Credit: Grok

Tesla is burning the midnight oil this Christmas, with the Tesla AI team quietly rolling out Full Self-Driving (Supervised) v14.2.2.1 just a day after FSD v14.2.2 started rolling out to customers. 

Tesla owner shares insights on FSD v14.2.2.1

Longtime Tesla owner and FSD tester @BLKMDL3 shared some insights following several drives with FSD v14.2.2.1 in rainy Los Angeles conditions with standing water and faded lane lines. He reported zero steering hesitation or stutter, confident lane changes, and maneuvers executed with precision that evoked the performance of Tesla’s driverless Robotaxis in Austin.

Parking performance impressed, with most spots nailed perfectly, including tight, sharp turns, in single attempts without shaky steering. One minor offset happened only due to another vehicle that was parked over the line, which FSD accommodated by a few extra inches. In rain that typically erases road markings, FSD visualized lanes and turn lines better than humans, positioning itself flawlessly when entering new streets as well.

“Took it up a dark, wet, and twisty canyon road up and down the hill tonight and it went very well as to be expected. Stayed centered in the lane, kept speed well and gives a confidence inspiring steering feel where it handles these curvy roads better than the majority of human drivers,” the Tesla owner wrote in a post on X.

Tesla’s FSD v14.2.2 update

Just a day before FSD v14.2.2.1’s release, Tesla rolled out FSD v14.2.2, which was focused on smoother real-world performance, better obstacle awareness, and precise end-of-trip routing. According to the update’s release notes, FSD v14.2.2 upgrades the vision encoder neural network with higher resolution features, enhancing detection of emergency vehicles, road obstacles, and human gestures.

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New Arrival Options also allowed users to select preferred drop-off styles, such as Parking Lot, Street, Driveway, Parking Garage, or Curbside, with the navigation pin automatically adjusting to the ideal spot. Other refinements include pulling over for emergency vehicles, real-time vision-based detours for blocked roads, improved gate and debris handling, and Speed Profiles for customized driving styles.

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Elon Musk’s Grok records lowest hallucination rate in AI reliability study

Grok achieved an 8% hallucination rate, 4.5 customer rating, 3.5 consistency, and 0.07% downtime, resulting in an overall risk score of just 6.

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UK Government, CC BY 2.0 , via Wikimedia Commons

A December 2025 study by casino games aggregator Relum has identified Elon Musk’s Grok as one of the most reliable AI chatbots for workplace use, boasting the lowest hallucination rate at just 8% among the 10 major models tested. 

In comparison, market leader ChatGPT registered one of the highest hallucination rates at 35%, just behind Google’s Gemini, which registered a high hallucination rate of 38%. The findings highlight Grok’s factual prowess despite the AI model’s lower market visibility.

Grok tops hallucination metric

The research evaluated chatbots on hallucination rate, customer ratings, response consistency, and downtime rate. The chatbots were then assigned a reliability risk score from 0 to 99, with higher scores indicating bigger problems.

Grok achieved an 8% hallucination rate, 4.5 customer rating, 3.5 consistency, and 0.07% downtime, resulting in an overall risk score of just 6. DeepSeek followed closely with 14% hallucinations and zero downtime for a stellar risk score of 4. ChatGPT’s high hallucination and downtime rates gave it the top risk score of 99, followed by Claude and Meta AI, which earned reliability risk scores of 75 and 70, respectively. 

Why low hallucinations matter

Relum Chief Product Officer Razvan-Lucian Haiduc shared his thoughts about the study’s findings. “About 65% of US companies now use AI chatbots in their daily work, and nearly 45% of employees admit they’ve shared sensitive company information with these tools. These numbers show well how important chatbots have become in everyday work. 

“Dependence on AI tools will likely increase even more, so companies should choose their chatbots based on how reliable and fit they are for their specific business needs. A chatbot that everyone uses isn’t necessarily the one that works best for your industry or gives accurate answers for your tasks.”

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In a way, the study reveals a notable gap between AI chatbots’ popularity and performance, with Grok’s low hallucination rate positioning it as a strong choice for accuracy-critical applications. This was despite the fact that Grok is not used as much by users, at least compared to more mainstream AI applications such as ChatGPT. 

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Tesla (TSLA) receives “Buy” rating and $551 PT from Canaccord Genuity

He also maintained a “Buy” rating for TSLA stock over the company’s improving long-term outlook, which is driven by autonomy and robotics.

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Credit: Tesla China

Canaccord Genuity analyst George Gianarikas raised his Tesla (NASDAQ:TSLA) price target from $482 to $551. He also maintained a “Buy” rating for TSLA stock over the company’s improving long-term outlook, which is driven by autonomy and robotics. 

The analyst’s updated note

Gianarikas lowered his 4Q25 delivery estimates but pointed to several positive factors in the Tesla story. He noted that EV adoption in emerging markets is gaining pace, and progress in FSD and the Robotaxi rollout in 2026 represent major upside drivers. Further progress in the Optimus program next year could also add more momentum for the electric vehicle maker. 

“Overall, yes, 4Q25 delivery expectations are being revised lower. However, the reset in the US EV market is laying the groundwork for a more durable and attractive long-term demand environment. 

“At the same time, EV penetration in emerging markets is accelerating, reinforcing Tesla’s potential multi‑year growth runway beyond the US. Global progress in FSD and the anticipated rollout of a larger robotaxi fleet in 2026 are increasingly important components of the Tesla equity story and could provide sentiment tailwinds,” the analyst wrote. 

Tesla’s busy 2026

The upcoming year would be a busy one for Tesla, considering the company’s plans and targets. The autonomous two-seat Cybercab has been confirmed to start production sometime in Q2 2026, as per Elon Musk during the 2025 Annual Shareholder Meeting.

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Apart from this, Tesla is also expected to unveil the next-generation Roadster on April 1, 2026. Tesla is also expected to start high-volume production of the Tesla Semi in Nevada next year. 

Apart from vehicle launches, Tesla has expressed its intentions to significantly ramp the rollout of FSD to several regions worldwide, such as Europe. Plans are also underway to launch more Robotaxi networks in several more key areas across the United States.

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