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Tesla at a tipping point: How a focus on safety and features is building a formidable car brand
Last week, JD Power revealed the results of a study about the public’s perception of electric vehicles and autonomous driving technologies. The results of the survey were not that encouraging, with 68% of the respondents stating that they had zero experience with electric cars. The majority of the study’s demographic also stated that they would not consider an EV as their next car purchase.
Yet, despite these results, one particular vehicle seems to be bucking the trend. In June, Tesla sold just shy of 40,000 Model 3 across the globe, making it the best-selling electric car worldwide. Following the Model 3 was the BAIC EU-Series from China, which was far behind at almost 18,000 units sold. Third place in June’s global EV sales rankings was the BYD Yuan, which sold 6,566 units. The Model 3’s feat is impressive, considering that the market is just beginning to seriously embrace electric cars as a viable alternative to gas-powered automobiles.
Baillie Gifford’s recently-released Annual Financial Report noted that Tesla had reached a milestone with the Model 3, as exhibited by the vehicle becoming the US’ best-selling passenger car by revenue over the past four quarters. This milestone could have been achieved by Tesla because the company has and continues to develop a reputation for building great cars that just happen to be electric, not electric cars that just happen to be good. By emphasizing the innate strengths of electric vehicles, Tesla has created a brand that is becoming synonymous with safety and bleeding-edge features.
The Tesla Model 3, Model S, and Model X are three of the safest vehicles on the road today. This is partly due to the vehicles being designed from the ground up as electric cars. With their generous crush zones and rigid frames, Teslas are capable of protecting their occupants, even in potentially serious crashes. Some of these incidents are shared online through the Tesla community and beyond, and they help spread the word that the company’s vehicles are among the safest vehicles on the road today.
The aftermath of these incidents usually follows a similar pattern too, with a Tesla getting damaged and the other vehicle coming out worse for wear. An example of this could be found in this recent incident involving an otherwise intact Model 3 toppling a fire hydrant after getting rear-ended by a Subaru. As could be seen in pictures of the crash’s aftermath, the gas-powered car looked like it hit a wall when it smashed into the Model 3.
Teslas are essentially computers on wheels, and this is one of the reasons why the Model S, Model X, and Model 3 are among the very few vehicles on the road that can receive new features through free over-the-air updates. This has become a crucial part of the Tesla ownership experience, as cars that are handed over to customers only get better with time. Some of these features, such as Sentry Mode and TeslaCam, have even helped owners catch individuals that vandalize their vehicles.
In a recent report, the Highway Loss Data Institute stated that Teslas are among the least likely vehicles to get stolen in the United States, with the Model S and X nearly 90% less likely to attract thieves than the average automobile. The reasons for this could vary, but the fact that Teslas are equipped with a suite of security features, and the fact that the National Crime Information Center tracked 112 recovered Teslas out of 115 stolen vehicles between 2011 and May 2018, establishes the company’s electric cars as vehicles that are pretty tricky to steal.
Tesla only commands a tiny fraction of the overall automotive market today. Even with the aggressive ramp of the Model 3, Tesla is still far from breaching the mass markets that are dominated by low-cost vehicles that have been around for decades. This does not mean to say that Tesla is not making progress, as the company is steadily increasing its reach in the auto industry’s premium segment. And thanks to the company’s innovations and unique approach to its vehicles, Tesla is making itself into a brand that simply attracts a ton of interest.
An example of this could be seen in Japan recently, where Tesla showcased the Model 3 (which is yet to be distributed to the country) at the Haneda Airport. Not too far from the Model 3 was an exhibit of the gas-powered B-Class from Mercedes-Benz, a premium vehicle from a veteran carmaker that is synonymous with luxury. The interest attracted by the two vehicles among the people at the Japanese airport was very telling.
Elon Musk
Tesla CEO Elon Musk sends final warning to Bill Gates over short position
“If Gates hasn’t fully closed out the crazy short position he has held against Tesla for ~8 years, he had better do so soon,” Musk said.
Tesla CEO Elon Musk sent a final warning to former Microsoft CEO Bill Gates over his short position, which he confirmed he held to Musk directly several years ago.
Gates has been a skeptic of Tesla for some time, but he has also tried to work with Musk on philanthropic opportunities several years ago, which was coincidentally when he admitted to the company’s frontman that he held a short position.
Musk was, in turn, “super mean” to Gates, according to Walter Isaacson’s biography about the Tesla CEO. Gates had put $500 million against Tesla, shorting the stock and hoping to profit from its failure.
Elon Musk explains Bill Gates beef: He ‘placed a massive bet on Tesla dying’
A short position essentially means Gates is betting Tesla shares will go down, which would make him money. However, shares have gone up over six percent this year and increased nearly 150 percent over the past five years.
At the recent Annual Shareholder Meeting, Musk made many claims about Tesla’s future projects and how they could manage to disrupt various industries. He also recently had a massive $1 trillion compensation package approved, which will be awarded in twelve tranches, all of which combine a company valuation goal and an individual goal related to a product.
Musk was able to complete his last approved pay package, but it was not awarded due to a ruling by a Delaware Chancery Court. Nevertheless, his track record of proving growth for Tesla shareholders is excellent, and investors are obviously very encouraged by his capabilities as a CEO, considering 76.6 percent of shareholders voted to approve his new compensation.
After it was revealed that the Gates Foundation dumped 65 percent of its Microsoft position for nearly $9 billion, Musk had one final message for him: drop your Tesla short position soon, or else.
If Gates hasn’t fully closed out the crazy short position he has held against Tesla for ~8 years, he had better do so soon
— Elon Musk (@elonmusk) November 16, 2025
Musk’s rivalry with Gates is mostly founded on the Tesla CEO’s discontent with the former Microsoft frontman’s short position. However, Musk might have a bit of a soft spot for Gates, considering he is giving him a warning of what is potentially to come. If he really wanted to do some damage to Gates, he would not give him any heads-up at all.
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Tesla rolls out most aggressive Model Y lease deal in the US yet
With the promotion in place, customers would be able to take home a Model Y at a very low cost.
Tesla has rolled out what could very well be its most aggressive promotion for Model Y leases in the United States yet. With the promotion in place, customers would be able to take home a Model Y at a very low cost.
Zero downpayment leases
The new Model Y lease promotion was initially reported on X, with industry watcher Sawyer Merritt stating that while the vehicles’ monthly payments are still similar to before, the cars can now be ordered with a $0 downpayment.
Tesla community members noted that this promotion would cut the full payment cost of Model Y leases by several thousand dollars, though prices were still a bit better when the $7,500 federal tax credit was still in effect. Despite this, a $0 downpayment would likely be appreciated by customers, as it lowers the entry point to the Tesla ecosystem by a notable margin.
Premium freebies included
Apart from a $0 downpayment, customers of Model Y leases are also provided one free upgrade for their vehicles. These upgrades could be premium paint, such as Pearl White Multi-Coat, Deep Blue Metallic, Diamond Black, Quicksilver or Ultra Red, or 20″ Helix 2.0 Wheels. Customers could also opt for a White Interior or a Tow Hitch free of charge.
A look at Tesla’s Model Y order page shows that the promotion is available for all the Model Y Premium Rear-Wheel Drive and the Model Y Premium All-Wheel Drive. The Model Y Standard and the Model Y Performance are not eligible for the $0 downpayment or free premium upgrade promotion as of writing.
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Tesla is looking to phase out China-made parts at US factories: report
Tesla has reportedly swapped out several China-made components already, aiming to complete the transition within the next two years.
Tesla has reportedly started directing its suppliers to eliminate China-made components from vehicles built in the United States. This would make Tesla’s US-produced vehicles even more American-made.
The update was initially reported by The Wall Street Journal.
Accelerating North American sourcing
As per the WSJ report, the shift reportedly came amidst escalating tariff uncertainties between Washington and Beijing. Citing people reportedly familiar with the matter, the publication claimed that Tesla has already swapped out several China-made components, aiming to complete the transition within the next two years. The publication also claimed that Tesla has been reducing its reliance on China-based suppliers since the pandemic disrupted supply chains.
The company has quietly increased North American sourcing over the past two years as tariff concerns have intensified. If accurate, Tesla would likely end up with vehicles that are even more locally sourced than they are today. It would remain to be seen, however, if a change in suppliers for its US-made vehicles would result in price adjustments for cars like the Model 3 and Model Y.
Industry-wide reassessments
Tesla is not alone in reevaluating its dependence on China. Auto executives across the automotive industry have been in rapid-response mode amid shifting trade policies, chip supply anxiety, and concerns over rare-earth materials. Fluctuating tariffs between the United States and China during President Donald Trump’s current term have made pricing strategies quite unpredictable as well, as noted in a Reuters report.
General Motors this week issued a similar directive to thousands of suppliers, instructing them to remove China-origin components from their supply chains. The same is true for Stellantis, which also announced earlier this year that it was implementing several strategies to avoid tariffs that were placed by the Trump administration.
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