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Tesla is taking gas cars off the road in huge numbers through trade-ins

(Credit: everythingtesla via Instagram)

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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%.

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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.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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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.

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Ministério Das Comunicações, CC BY 2.0 , via Wikimedia Commons

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.

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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.

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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.

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Credit: Grok Imagine

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.

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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.

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Elon Musk’s Grokipedia surges to 5.6M articles, almost 79% of English Wikipedia

The explosive growth marks a major milestone for the AI-powered online encyclopedia, which was launched by Elon Musk’s xAI just months ago.

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UK Government, CC BY 2.0 , via Wikimedia Commons

Elon Musk’s Grokipedia has grown to an impressive 5,615,201 articles as of today, closing in on 79% of the English Wikipedia’s current total of 7,119,376 articles. 

The explosive growth marks a major milestone for the AI-powered online encyclopedia, which was launched by Elon Musk’s xAI just months ago. Needless to say, it would only be a matter of time before Grokipedia exceeds English Wikipedia in sheer volume.

Grokipedia’s rapid growth

xAI’s vision for Grokipedia emphasizes neutrality, while Grok’s reasoning capabilities allow for fast drafting and fact-checking. When Elon Musk announced the initiative in late September 2025, he noted that Grokipedia would be an improvement to Wikipedia because it would be designed to avoid bias. 

At the time, Musk noted that Grokipedia “is a necessary step towards the xAI goal of understanding the Universe.”

Grokipedia was launched in late October, and while xAI was careful to list it only as Version 0.1 at the time, the online encyclopedia immediately earned praise. Wikipedia co-founder Larry Sanger highlighted the project’s innovative approach, noting how it leverages AI to fill knowledge gaps and enable rapid updates. Netizens also observed how Grokipedia tends to present articles in a more objective manner compared to Wikipedia, which is edited by humans.

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Elon Musk’s ambitious plans

With 5,615,201 total articles, Grokipedia has now grown to almost 79% of English Wikipedia’s article base. This is incredibly quick, though Grokipedia remains text-only for now. xAI, for its part, has now updated the online encyclopedia’s iteration to v0.2. 

Elon Musk has shared bold ideas for Grokipedia, including sending a record of the entire knowledge base to space as part of xAI’s mission to preserve and expand human understanding. At some point, Musk stated that Grokipedia will be renamed to Encyclopedia Galactica, and it will be sent to the cosmos

“When Grokipedia is good enough (long way to go), we will change the name to Encyclopedia Galactica. It will be an open source distillation of all knowledge, including audio, images and video. Join xAI to help build the sci-fi version of the Library of Alexandria!” Musk wrote, adding in a later post that “Copies will be etched in stone and sent to the Moon, Mars and beyond. This time, it will not be lost.”

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