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Tesla and Toyota to revisit old partnership for new EV development: report
A recent report from an esteemed South Korean publication has suggested that Tesla and Toyota are poised to revisit an old partnership to develop an all-new electric vehicle. The partnership has reportedly been under review since last year.
Citing an official from the Japanese automobile industry, the Chosun Ilbo, one of South Korea’s largest newspapers, stated that the upcoming partnership between Tesla and Toyota would likely result in the development of a small electric SUV. Toyota is reportedly providing the vehicle platform in the partnership, while Tesla will supply some of the EV’s electronic control platform and software.
By adopting such a strategy, the upcoming all-electric vehicle would practically have the best of both companies, as Toyota is experienced in the fundamentals of carmaking and Tesla holds a wide lead in the industry when it comes to software. With Tesla’s electronics and software, the upcoming electric vehicle would likely be ready for over-the-air update capabilities, something that Toyota has not achieved on its own so far.
A small electric SUV jointly developed by Tesla and Toyota would be a formidable competitor in the affordable electric crossover segment. Today, the segment is populated by simple but adequate vehicles like the MG ZS EV, Hyundai Kona Electric, and the Kia Niro EV. An affordable electric SUV with a Toyota platform and Tesla tech would likely be a compelling option for budget-conscious electric vehicle buyers.
A spokesperson from Toyota has neither confirmed nor denied the recent report from the South Korean publication. In a statement, the Toyota spokesperson simply noted that “We would like to refrain from commenting on speculations.”
Toyota spokesman has this to say on South Korean news report about Toyota and Tesla possibly working together. “We would like to refrain from commenting on speculations.” https://t.co/dq1L0zPmEM
— Faiz Siddiqui (@faizsays) March 30, 2021
While the Chosun Ilbo report may seem strange considering Tesla’s ongoing efforts to release an affordable $25,000 car, such a partnership may still work in the Silicon Valley-based company’s favor. Tesla’s $25,000 EV is expected to be a compact car that’s designed for China (and perhaps Europe), after all, which gives the Tesla-Toyota crossover SUV ample space to compete in the low-cost crossover EV market.
Tesla and Toyota actually have some history making vehicles together. Back in the early days of Tesla, the company partnered with Toyota to help build one of the Japanese carmaker’s compliance cars for California, the RAV4 EV. The vehicle featured a range of about 100 miles from its 50 kWh (41.8 kWh usable) battery pack, which came from Tesla. The Elon Musk-led company also developed its powertrain and software.
The RAV4 EV was not sold widely due to its compliance car status, but the vehicle was known to have been loved by its owners, thanks in no small part to its zippy acceleration that enabled a 0-60 mph time of 7 seconds in Sport Mode, its stellar software that included Elon Musk-esque functions like a built-in “smugometer” (a display that tells drivers the amount of CO2 it is not emitting), and its ample range—things that would eventually be the defining characteristics of Tesla’s electric vehicles today.
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News
Tesla Model 3 and Model Y earn Euro NCAP Best in Class safety awards
“The company’s best-selling Model Y proved the gold standard for small SUVs,” Euro NCAP noted.
Tesla won dual categories in the Euro NCAP Best in Class awards, with the Model 3 being named the safest Large Family Car and the Model Y being recognized as the safest Small SUV.
The feat was highlighted by Tesla Europe & Middle East in a post on its official account on social media platform X.
Model 3 and Model Y lead their respective segments
As per a press release from the Euro NCAP, the organization’s Best in Class designation is based on a weighted assessment of four key areas: Adult Occupant, Child Occupant, Vulnerable Road User, and Safety Assist. Only vehicles that achieved a 5-star Euro NCAP rating and were evaluated with standard safety equipment are eligible for the award.
Euro NCAP noted that the updated Tesla Model 3 performed particularly well in Child Occupant protection, while its Safety Assist score reflected Tesla’s ongoing improvements to driver-assistance systems. The Model Y similarly stood out in Child Occupant protection and Safety Assist, reinforcing Tesla’s dual-category win.
“The company’s best-selling Model Y proved the gold standard for small SUVs,” Euro NCAP noted.
Euro NCAP leadership shares insights
Euro NCAP Secretary General Dr. Michiel van Ratingen said the organization’s Best in Class awards are designed to help consumers identify the safest vehicles over the past year.
Van Ratingen noted that 2025 was Euro NCAP’s busiest year to date, with more vehicles tested than ever before, amid a growing variety of electric cars and increasingly sophisticated safety systems. While the Mercedes-Benz CLA ultimately earned the title of Best Performer of 2025, he emphasized that Tesla finished only fractionally behind in the overall rankings.
“It was a close-run competition,” van Ratingen said. “Tesla was only fractionally behind, and new entrants like firefly and Leapmotor show how global competition continues to grow, which can only be a good thing for consumers who value safety as much as style, practicality, driving performance, and running costs from their next car.”
News
Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
Tesla CEO Elon Musk confirmed the upcoming update in a post on social media platform X.
Tesla will be ending one-time purchases of its Full Self-Driving (FSD) system after Valentine’s Day, transitioning the feature to a monthly subscription-only model.
Tesla CEO Elon Musk confirmed the upcoming update in a post on social media platform X.
No more FSD one-time purchases
As per Elon Musk in his post on X, “Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter.” This marks a shift in how Tesla monetizes its FSD system, which can now be purchased for a one-time fee or accessed through a monthly subscription.
FSD’s subscription model has been $99 per month in the United States, while its one-time purchase option is currently priced at $8,000. FSD’s one-time purchase price has swung wildly in recent years, reaching $15,000 in September 2022. At the time, FSD was proficient, but its performance was not on par with v14. This made its $15,000 upfront price a hard sell for consumers.
Tesla’s move to a subscription-only model could then streamline how the company sells FSD. It also lowers the entry price for the system, as even price-conscious drivers would likely be able to justify FSD’s $99 monthly subscription cost during periods when long-distance travel is prevalent, like the holidays.
Musk’s compensation plan and FSD subscription targets
Tesla’s shift to a subscription-only FSD model comes amidst Musk’s 2025 CEO Performance Award, which was approved by Tesla shareholders at the 2025 Annual Shareholders Meeting with roughly 75% support. Under the long-term compensation plan, Musk must achieve a series of ambitious operational milestones, including 10 million active FSD subscriptions, over the next decade for his stock awards to vest.
The 2025 CEO Performance Award’s structure ties Musk’s potential compensation to Tesla’s aggressive targets that span market capitalization, vehicle deliveries, robotics, and software adoption. Apart from his 10-million active FSD subscription target, Musk’s compensation is also tied to Tesla producing 20 million vehicles cumulatively, delivering 1 million Tesla bots, and having 1 million Robotaxis in operation. He must also lead Tesla to a market cap of $8.5 trillion.
If successful, Elon Musk’s 2025 CEO Performance Award could make him the world’s first trillionaire. It could also help Tesla become the world’s most valuable company by market cap by a notable margin.
Tesla is planning for a new 300+ stall Supercharger station that will be an expansion of an existing facility, and the company is planning to add a surprise for the Semi.
The Firebaugh, California Supercharger is currently 72 Superchargers, but Tesla filed for an expansion that will add 232 additional plugs for passenger vehicles, and it also plans to add 16 Semichargers.
This will be the biggest Supercharger station Tesla will have to date, just months after it finished the Supercharger Oasis in Lost Hills, California, which has 168 stalls. This will have 304 total Supercharger stalls, and then the additional 16 Megachargers.
🚨 This Supercharger station will have 304 total stalls and 16 Semichargers following this expansion
Absolutely INSANE size 🔥
This is located on I-5, so many semis will be traveling along this route https://t.co/hM9hdLcWwg
— TESLARATI (@Teslarati) January 13, 2026
The Firebaugh Supercharger is located on I-5, which is a major reason for why Tesla has chosen the location for additional Megacharger plug-ins, as Tesla Semi Program Manager Dan Priestley said on X earlier today.
Lots of trucks to electrify on I-5
— Dan Priestley (@danWpriestley) January 13, 2026
The project was revealed by MarcoRP, a Supercharger tracker.
The expansion is a massive signal for charging demand, especially as Tesla’s Superchargers are opened to numerous automakers and are no longer exclusive to the company’s EVs. Additionally, the installation of Megachargers is a good sign to come for the Tesla Semi program, which aims to truly ramp up this year.
Tesla plans to launch production of the Semi later this year.
It could also mean Tesla is going to expand its footprint of large-scale Supercharger projects in the coming years, which would be a big boost as EV adoption continues to soar in the United States.
Tesla Model 3 and Model Y earn Euro NCAP Best in Class safety awards
Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
