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Tesla is taking gas cars off the road in huge numbers through trade-ins
Tesla revealed its trade-in statistics in the Q1 2021 Earnings Call Update Letter, showing that a majority of the vehicles it accepts through trade-in are gas-powered.
In the Update Letter that was released a few minutes after Wall Street closed up shop for the Monday trading session, Tesla revealed it had successfully accomplished another profitable quarter thanks to strong demand for its two mass-market vehicles, the Model 3 and Model Y. That, along with expanding production efforts, increasing gross margins, and decreasing manufacturing costs powered a positive quarter once again for the electric carmaker.
The fact of the matter is, however, that gas-powered cars are being displaced by electric vehicles. The market share for the automotive industry still remains heavily based on the production and sale of gas-powered vehicles, but electric cars are beginning to make their presence known. IHS Markit, a market analysis company, said that the overall presence of BEVs rose from .5% in 2019 to 1.2% in 2020. The firm forecasts global EV sales to rise by 70% this year.
With that being said, Tesla is undoubtedly the overall leader in EV sales by a single manufacturer. Statista broke down EV sales by manufacturer in 2020 via CleanTechnica, and Tesla had a commanding lead over second-place Volkswagen. Tesla sold 499,550 vehicles in 2020, Volkswagen sold 220,220 EVs.
However, some of these sales, not all of them, were brought in by the need for a new car. According to a graphic that the automaker included in its Update Letter, gas-powered vehicles make up an overwhelming percentage of Tesla’s trade-ins: 98%.

Credit: Tesla
The graphic seems to reveal that nearly 60% of its trade-ins come from “non-premium brands,” including Toyota, Honda, Ford, and Chevrolet. Close to 40% of the company’s trade-ins are premium brands, like Audi, Lexus, BMW, and Mercedes-Benz. Only 2% of the trade-ins are EVs, proving the competition, in the simplest terms, is other gas vehicles and not other EVs.
Tesla wrote in its Update Letter:
“ICE vehicles comprised 97% of cars sold globally in 2020 and 98% of Tesla trade-ins. As more OEMs join our mission by launching EVs, we believe consumer confidence in EVs continues to increase, and more customers are willing to make the switch. Our Q1 order rate was the strongest in our history, and we are moving as quickly as possible to add more production capacity.”
It has always been Tesla’s goal to create more EVs on the road, and doing this requires the displacement of gas-powered cars. Tesla has been able to make their vehicles a more appealing option than gas-powered cars, and consumers are beginning to recognize the advantages that driving an EV has over driving a gas car. The increase in EV market share, which is led by Tesla’s domination of the sector, shows that more people are turning away from fossil fuels and looking toward electrification to solve their transportation needs.
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Tesla is coming to Estonia and Latvia in latest European expansion: report
Tesla seems to be accelerating its regional expansion following its recent launch in Lithuania.
Recent reports have indicated that Tesla has taken a step toward entering the Baltic states by registering new subsidiaries in Latvia and Estonia.
Filings suggest that Tesla is accelerating its regional expansion following its recent launch in Lithuania, with service centers likely coming before full sales operations.
Official entities in Latvia and Estonia
Tesla has established two new legal entities, Tesla Latvia SIA and Tesla Estonia OÜ, both owned by Tesla International B.V., as noted in an EV Wire report. Corporate records show the Estonian entity was formed on December 16, 2025, while the Latvian subsidiary was registered earlier, on November 7.
Both entities list senior Tesla executives on their boards, including regional and finance leadership responsible for new market expansion across Europe. Importantly, the entities are registered under “repair and maintenance of motor vehicles,” rather than strictly vehicle sales. This suggests that Tesla service centers will likely be launched in both countries.
The move mirrors Tesla’s recent Baltic rollout strategy. When Tesla entered Lithuania, it first established a local entity, followed by a pop-up store within weeks and a permanent service center a few months later. It would then not be surprising if Tesla follows a similar strategy in Estonia and Latvia, and service and retail operations arrive in the first half of 2026.
Tesla’s European push
Tesla saw a drop in sales in Europe in 2025, though the company is currently attempting to push more sales in the region by introducing its most affordable vehicles yet, the Model 3 Standard and the Model Y Standard. Both vehicles effectively lower the price of entry into the Tesla ecosystem, which may make them attractive to consumers.
Tesla is also hard at work in its efforts to get FSD approved for the region. In the fourth quarter of 2025, Tesla rolled out an FSD ride-along program in several European countries, allowing consumers to experience the capabilities of FSD firsthand. In early December, reports emerged indicating that the FSD ride-along program would be extended in several European territories until the end of March 2026.
Elon Musk
Elon Musk’s X will start using a Tesla-like software update strategy
The initiative seems designed to accelerate updates to the social media platform, while maintaining maximum transparency.
Elon Musk’s social media platform X will adopt a Tesla-esque approach to software updates for its algorithm.
The initiative seems designed to accelerate updates to the social media platform, while maintaining maximum transparency.
X’s updates to its updates
As per Musk in a post on X, the social media company will be making a new algorithm to determine what organic and advertising posts are recommended to users. These updates would then be repeated every four weeks.
“We will make the new 𝕏 algorithm, including all code used to determine what organic and advertising posts are recommended to users, open source in 7 days. This will be repeated every 4 weeks, with comprehensive developer notes, to help you understand what changed,” Musk wrote in his post.
The initiative somewhat mirrors Tesla’s over-the-air update model, where vehicle software is regularly refined and pushed to users with detailed release notes. This should allow users to better understand the details of X’s every update and foster a healthy feedback loop for the social media platform.
xAI and X
X, formerly Twitter, has been acquired by Elon Musk’s artificial intelligence startup, xAI last year. Since then, xAI has seen a rapid rise in valuation. Following the company’s the company’s upsized $20 billion Series E funding round, estimates now suggest that xAI is worth tens about $230 to $235 billion. That’s several times larger than Tesla when Elon Musk received his controversial 2018 CEO Performance Award.
As per xAI, the Series E funding round attracted a diverse group of investors, including Valor Equity Partners, Stepstone Group, Fidelity Management & Research Company, Qatar Investment Authority, MGX, and Baron Capital Group, among others. Strategic partners NVIDIA and Cisco Investments also continued support for building the world’s largest GPU clusters.
News
Tesla FSD Supervised wins MotorTrend’s Best Driver Assistance Award
The decision marks a notable reversal for the publication from prior years, with judges citing major real-world improvements that pushed Tesla’s latest FSD software ahead of every competing ADAS system.
Tesla’s Full Self-Driving (Supervised) system has been named the best driver-assistance technology on the market, earning top honors at the 2026 MotorTrend Best Tech Awards.
The decision marks a notable reversal for the publication from prior years, with judges citing major real-world improvements that pushed Tesla’s latest FSD software ahead of every competing ADAS system. And it wasn’t even close.
MotorTrend reverses course
MotorTrend awarded Tesla FSD (Supervised) its 2026 Best Tech Driver Assistance title after extensive testing of the latest v14 software. The publication acknowledged that it had previously criticized earlier versions of FSD for erratic behavior and near-miss incidents, ultimately favoring rivals such as GM’s Super Cruise in earlier evaluations.
According to MotorTrend, the newest iteration of FSD resolved many of those shortcomings. Testers said v14 showed far smoother behavior in complex urban scenarios, including unprotected left turns, traffic circles, emergency vehicles, and dense city streets. While the system still requires constant driver supervision, judges concluded that no other advanced driver-assistance system currently matches its breadth of capability.
Unlike rival systems that rely on combinations of cameras, radar, lidar, and mapped highways, Tesla’s FSD operates using a camera-only approach and is capable of driving on city streets, rural roads, and freeways. MotorTrend stated that pure utility, the ability to handle nearly all road types, ultimately separated FSD from competitors like Ford BlueCruise, GM Super Cruise, and BMW’s Highway Assistant.
High cost and high capability
MotorTrend also addressed FSD’s pricing, which remains significantly higher than rival systems. Tesla currently charges $8,000 for a one-time purchase or $99 per month for a subscription, compared with far lower upfront and subscription costs from other automakers. The publication noted that the premium is justified given FSD’s unmatched scope and continuous software evolution.
Safety remained a central focus of the evaluation. While testers reported collision-free operation over thousands of miles, they noted ongoing concerns around FSD’s configurable driving modes, including options that allow aggressive driving and speeds beyond posted limits. MotorTrend emphasized that, like all Level 2 systems, FSD still depends on a fully attentive human driver at all times.
Despite those caveats, the publication concluded that Tesla’s rapid software progress fundamentally reshaped the competitive landscape. For drivers seeking the most capable hands-on driver-assistance system available today, MotorTrend concluded Tesla FSD (Supervised) now stands alone at the top.