On January 31, CEO Elon Musk announced that, beginning February 14, Tesla will discontinue annual and lifetime purchase options for its Full Self-Driving (FSD) package, offering it exclusively as a month-to-month subscription. The move is designed to lower the upfront barrier for customers—who currently number around 200,000 active subscribers—and to smooth revenue recognition through recurring payments. Analysts estimate that shifting to a purely subscription model could boost Tesla’s annualized software-related revenue by up to 15%, while also introducing higher churn risk if feature updates fail to meet user expectations.

Tesla has formally agreed to mediation with the U.S. Equal Employment Opportunity Commission in an effort to resolve a high-profile lawsuit alleging widespread racial harassment of Black employees at its Fremont, California, assembly plant. The EEOC filed the suit in October after a multi-year investigation uncovered claims of severe verbal abuse, racist graffiti and discriminatory promotion practices. Entering mediation could limit potential financial damages—currently estimated by legal experts to exceed $50 million in back pay and damages—and help Tesla avoid protracted court proceedings that might further erode investor confidence in its workplace governance.

Industry data from Cox Automotive shows that Tesla’s share of electric vehicle sales in the United States surged from 41% in Q3 to 59% in Q4, driven by deliveries of approximately 138,000 units. In comparison, Ford’s share held at 6%, Rivian at 4% and General Motors at just over 10%, with GM reporting $6 billion in EV-related charges for the quarter. Tesla’s volume advantage allows it to maintain pricing discipline and profitability while competitors struggle with high per-unit manufacturing costs and declining federal incentives.

Tesla has launched a new rear-wheel-drive variant of the Model Y in Europe, dubbed the Standard Long Range, combining an estimated 330-mile range with enhanced efficiency and a reduced entry-price point. The new model incorporates optimized battery chemistry and a revised thermal management system, boosting real-world energy consumption by 8% compared with the previous base trim. By targeting customers in Germany, France and the Netherlands—where EV incentives have been scaled back—Tesla aims to reinforce its leadership against regionally focused competitors and capture incremental market share among cost-sensitive buyers.