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Tesla trails Volkswagen in Q1 EV sales, Model Y still on top

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Volkswagen surpassed Tesla in Q1 2025 electric vehicle (EV) sales in Europe.

The German automaker sold 65,679 battery EVs compared to Tesla’s 53,237 in the first three months of the year, per JATO Dynamics data. Volkswagen’s registrations soared 157% year-over-year (yoy), while Tesla saw a 38% decline in the same period, the steepest among the top 30 brands. The German automaker’s strong performance highlights a growing competitive landscape in the EV market.

Despite losing the overall lead, Tesla’s Model Y and Model 3 remain the top two in Europe’s battery EV registrations. Volkswagen’s ID.4 ranked third in EU registrations, trailing the Model 3 by 2,000 units.

Model Y registrations dropped 43% in March, but the Model 3 increased 1% in the first quarter. The decline in Model Y registrations could be linked to Tesla’s upgraded Model Y, which debuted at the beginning of the year. In the first quarter, Tesla retooled and upgraded its factories worldwide to produce the new Model Y.

“As the brand continues to deal with a host of PR issues in addition to the changeover of the Model Y, Tesla is now relying on the Model 3 to offset its losses. Despite the controversy surrounding the brand’s CEO and the limited availability of the new Model Y, Tesla continues to perform well,” said Felipe Munoz, a global analyst at JATO Dynamics.

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Tesla addressed its Q1 challenges during its recent earnings calls, with CEO Elon Musk attributing the dip to seasonal and strategic factors.

“Now, Q1, [the] first quarters of a year, are usually pretty tricky. Because it’s usually the worst quarter of the year because people don’t want to go buy a car in the middle of winter during the blizzard. So we picked Q1 as a good quarter to do a cutover to the new version of the Model Y and we changed the production of the world’s best-selling cars with — remember, the Model Y is the best-selling car of any kind on earth with a 1.1 billion unit per year output of a single model,” Musk stated.

Volkswagen’s surge reflects its continued focus on and dedication to EVs. While Tesla’s Model Y remains the global best-seller, Volkswagen’s momentum signals intensifying competition. As both companies navigate market dynamics, Tesla’s focus on its Robotaxi network and upcoming launches will be critical to regaining its edge.

Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

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Tesla’s new Holiday perk is timed perfectly to make FSD a household name

Tesla AI4 owners get FSD (Supervised) through Christmas, New Year’s Eve and well into the post-holiday travel season.

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Credit: Grok Imagine

Tesla quietly rolled out a free Full Self-Driving (Supervised) trial for roughly 1.5 million HW4 owners in North America who never bought the package, and the timing could very well be genius. 

As it turns out, the trial doesn’t end after 30 days. Instead, it expires January 8, 2026, meaning owners get FSD (Supervised) through Christmas, New Year’s Eve and well into the post-holiday travel season. This extended window positions the feature for maximum word-of-mouth exposure.

A clever holiday gift

Tesla watcher Sawyer Merritt first spotted the detail after multiple owners shared screenshots showing the trial expiring on January 8. He confirmed with affected users that none had active FSD subscriptions before the rollout. He also observed that Tesla never called the promotion a “30-day trial,” as the in-car message simply reads “You’re Getting FSD (Supervised) For the Holidays,” which technically runs until after the new year.

The roughly 40-day period covers peak family travel and gatherings, giving owners ample opportunity to showcase the latest FSD V14’s capabilities on highway trips, crowded parking lots and neighborhood drives. With relatives riding along, hands-off highway driving and automatic lane changes could become instant conversation starters.

Rave reviews for FSD V14 highlight demo potential

FSD has been receiving positive reviews from users as of late. Following the release of FSD v14.2.1, numerous owners praised the update for its smoothness and reliability. Tesla owner @LactoseLunatic called it a “huge leap forward from version 14.1.4,” praising extreme smoothness, snappy lane changes and assertive yet safe behavior that allows relaxed monitoring. 

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Another Tesla owner, @DevinOlsenn, drove 600 km without disengagements, noting his wife now defaults to FSD for daily use due to its refined feel. Sawyer Merritt also tested FSD V14.2.1 in snow on unplowed New Hampshire roads, and the system stayed extra cautious without hesitation. Longtime FSD tester Chuck Cook highlighted improved sign recognition in school zones, showing better dynamic awareness. These reports of fewer interventions and a more “sentient” drive could turn family passengers into advocates, fueling subscriptions come January.

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Elon Musk predicts AI and robotics could make work “optional” within 20 years

Speaking on entrepreneur Nikhil Kamath’s podcast, Musk predicted that machines will soon handle most forms of labor, leaving humans to work only if they choose to.

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Gage Skidmore, CC BY-SA 4.0 , via Wikimedia Commons

Elon Musk stated that rapid advances in artificial intelligence and robotics could make traditional work unnecessary within two decades. 

Speaking on entrepreneur Nikhil Kamath’s podcast, Musk predicted that machines will soon handle most forms of labor, leaving humans to work only if they choose to.

Work as a “hobby”

During the discussion, Musk said the accelerating capability of AI systems and general-purpose robots will eventually cover all essential tasks, making human labor a choice rather than an economic requirement. “In less than 20 years, working will be optional. Working at all will be optional. Like a hobby,” Musk said.

When Kamath asked whether this future is driven by massive productivity growth, Musk agreed, noting that people will still be free to work if they enjoy the routine or the challenge. He compared future employment to home gardening, as it is something people can still do for personal satisfaction even if buying food from a store is far easier

“Optional” work in the future

Elon Musk acknowledged the boldness of his claim and joked that people might look back in 20 years and say he was wrong. That being said, the CEO noted that such a scenario could even happen sooner than his prediction, at least if one were to consider the pace of the advancements in AI and robotics. 

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“Obviously people can play this back in 20 years and say, ‘Look, Elon made this ridiculous prediction and it’s not true,’ but I think it will turn out to be true, that in less than 20 years, maybe even as little as ten or 15 years, the advancements in AI and robotics will bring us to the point where working is optional,” Musk said. 

Elon Musk’s comments echo his previous sentiments at Tesla’s 2025 Annual Shareholder Meeting, where he noted that Optimus could ultimately eliminate poverty. He also noted that robots like Optimus could eventually provide people worldwide with the best medical care.

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Elon Musk reiterates why Tesla will never make an electric motorcycle

Tesla CEO Elon Musk preemptively shut down speculations about a Tesla road bike once more.

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Tesla CEO Elon Musk preemptively shut down speculations about a Tesla road bike once more, highlighting that the electric vehicle maker has no plans to enter the electric motorcycle market.  

Musk posted his clarification in a post on X.

Musk’s reply to a fun AI video

X user @Moandbhr posted an AI video featuring the Tesla CEO on the social media platform, captioning it with “Mr. Elon Musk Just Revealed the Game-Changing Tesla Motorcycle.” The short clip depicted Musk approaching a sleek, single-wheeled vehicle, stepping onto it, and gliding off into the distance amid cheers. The fun video received a lot of traction on X, gaining 3.1 million views as of writing. 

Musk replied to the post, stating that a Tesla motorcycle is not going to happen. “Never happening, as we can’t make motorcycles safe. For Community Notes, my near death experience was on a road bike. Dirt bikes are safe if you ride carefully, as you can’t be smashed by a truck,” Musk wrote in his reply. 

Musk’s Past Comments on Two-Wheelers

Musk also detailed his reservations about motorcycles in a December 2019 X post while responding to questions about Tesla’s potential ATV. At the time, he responded positively to an electric ATV, though he also opposed the idea of a Tesla road-going motorcycle. Musk did state that electric dirt bikes might be cool, since they do not operate in areas where large vehicles like Class 8 trucks are present. 

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“Electric dirt bikes would be cool too. We won’t do road bikes, as too dangerous. I was hit by a truck & almost died on one when I was 17,” Musk wrote in his post. 

Considering Musk’s comments about dirt bikes, however, perhaps Tesla would eventually offer a road bike as a recreational vehicle. Such a two-wheeler would be a good fit for the Cybertruck, as well as future products like the Robovan, which could be converted into an RV.

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