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Tesla Model 3 Could Dominate the Entry Level Luxury Class

Bloomberg expects the Tesla Model 3 to outsell its competitors in the executive luxury class the way the Model S outsells all other large luxury cars. It thinks 170,000 US sales a year are a possibility.

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Bloomberg believes the Tesla Model 3 could dominate what the car industry calls the “compact executive” or “small luxury” class. Why? For the very same reasons the Model S is dominating the full size luxury car market in America — it offers better performance and a higher driving experience with greater safety for less money.

Tesla Model S US sales

Source: Bloomberg/Edmunds/Tesla Motors

According to a report from Bloomberg, the Model S is one of the least expensive options among all luxury cars. The Model 3 will also be one of the least expensive options in the small luxury class though it would be a mistake to compare the Model 3 to the Chevy Bolt or the Nissan LEAF.

Yes, both the Bolt and LEAF will offer drivers about the same range as the Model 3, but those cars are aimed at people who buy Civics, Corollas, and Altimas. The Model 3 will compete with the BMW 3 Series, Mercedes C Class, and Audi A4. Compared to the price of those cars, the Model 3 may appear to be a bargain.

Tesla Model 3 projection

Sourece: Bloomberg/Edmunds/Tesla Motors

Bloomberg raves about the Model S, heaping accolades on it for being faster than almost any other production car on earth while offering an extraordinary level of safety to the people riding inside. Assuming the Model 3 blows away the competition the way the Model S does, it will outsell the BMW 3 Series and Mercedes C Class by a significant margin. “For the newest Tesla to dominate entry-level luxury by the same margin held by the Model S in large luxury, it would mean sales of almost 170,000 a year in the U.S.,” says Bloomberg.

Forget about gas prices, it says. People who buy a BMW 3 Series or a Mercedes C Class don’t care very much about what they are paying at the pump. They are focused on what their cars say about them and their lifestyle. Let the Bolt and LEAF owners of the world worry about pinching pennies. Tesla Model 3 buyers will operate on an entirely different plane, one that looks up to the Model S rather than down to the mass produced people movers of the world.

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Tesla FSD V14.2.1 is earning rave reviews from users in diverse conditions

Tesla’s Full Self-Driving (Supervised) software continues its rapid evolution, with the latest V14.2.1 update drawing widespread praise.

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Credit: Grok Imagine

Tesla’s Full Self-Driving (Supervised) software continues its rapid evolution, with the latest V14.2.1 update drawing widespread praise for its smoother performance and smarter decision-making.

Videos and firsthand accounts from Tesla owners highlight V14.2.1 as an update that improves navigation responsiveness, sign recognition, and overall fluidity, among other things. Some drivers have even described it as “more alive than ever,” hinting at the system eventually feeling “sentient,” as Elon Musk has predicted.

FSD V14.2.1 first impressions

Early adopters are buzzing about how V14.2.1 feels less intrusive while staying vigilant. In a post shared on X, Tesla owner @LactoseLunatic described the update as a “huge leap forward,” adding that the system remains “incredibly assertive but still safe.”

Another Tesla driver, Devin Olsenn, who logged ~600 km on V14.2.1, reported no safety disengagements, with the car feeling “more alive than ever.” The Tesla owner noted that his wife now defaults to using FSD V14, as the system is already very smooth and refined.

Adverse weather and regulatory zones are testing grounds where V14.2.1 shines, at least according to testers in snow areas. Tesla watcher Sawyer Merritt shared a video of his first snowy drive on unplowed rural roads in New Hampshire, where FSD did great and erred on the side of caution. As per Merritt, FSD V14.2.1 was “extra cautious” but it performed well overall. 

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Sign recognition and freeway prowess

Sign recognition also seemed to show improvements with FSD V14.2.1. Longtime FSD tester Chuck Cook highlighted a clip from his upcoming first-impressions video, showcasing improved school zone behavior. “I think it read the signs better,” he observed, though in standard mode, it didn’t fully drop to 15 mph within the short timeframe. This nuance points to V14.2.1’s growing awareness of temporal rules, a step toward fewer false positives in dynamic environments.

FSD V14.2.1 also seems to excel in high-stress highway scenarios. Fellow FSD tester @BLKMDL3 posted a video of FSD V14.2.1 managing a multi-lane freeway closure due to a police chase-related accident. “Perfectly handles all lanes of the freeway merging into one,” the Tesla owner noted in his post on X.

FSD V14.2.1 was released on Thanksgiving, much to the pleasant surprise of Tesla owners. The update’s release notes are almost identical to the system’s previous iteration, save for one line item read, “Camera visibility can lead to increased attention monitoring sensitivity.”

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Tesla FSD Supervised ride-alongs in Europe begin in Italy, France, and Germany

The program allows the public to hop in as a non-driving observer to witness FSD navigate urban streets firsthand.

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Credit: Tesla

Tesla has kicked off passenger ride-alongs for Full Self-Driving (Supervised) in Italy, France and Germany. The program allows the public to hop in as a non-driving observer to witness FSD navigate urban streets firsthand. 

The program, detailed on Tesla’s event pages, arrives ahead of a potential early 2026 Dutch regulatory approval that could unlock a potential EU-wide rollout for FSD.

Hands-Off Demos

Tesla’s ride-along invites participants to “ride along in the passenger seat to experience how it handles real-world traffic & the most stressful parts of daily driving, making the roads safer for all,” as per the company’s announcement on X through its official Tesla Europe & Middle East account. 

Sign-ups via localized pages offer free slots through December, with Tesla teams piloting vehicles through city streets, roundabouts and highways.

“Be one of the first to experience Full Self-Driving (Supervised) from the passenger seat. Our team will take you along as a passenger and show you how Full Self-Driving (Supervised) works under real-world road conditions,” Tesla wrote. “Discover how it reacts to live traffic and masters the most stressful parts of driving to make the roads safer for you and others. Come join us to learn how we are moving closer to a fully autonomous future.”

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Building trust towards an FSD Unsupervised rollout

Tesla’s FSD (Supervised) ride-alongs could be an effective tool to build trust and get regular car buyers and commuters used to the idea of vehicles driving themselves. By seating riders shotgun, Tesla could provide participants with a front row seat to the bleeding edge of consumer-grade driverless systems.

FSD (Supervised) has already been rolled out to several countries, such as the United States, Canada, Australia, New Zealand, and partially in China. So far, FSD (Supervised) has been received positively by drivers, as it really makes driving tasks and long trips significantly easier and more pleasant.

FSD is a key safety feature as well, which became all too evident when a Tesla driving on FSD was hit by what seemed to be a meteorite in Australia. The vehicle moved safely despite the impact, though the same would likely not be true had the car been driven manually.

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Swedish union rep pissed that Tesla is working around a postal blockade they started

Tesla Sweden is now using dozens of private residences as a way to obtain license plates for its vehicles.

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Andrzej Otrębski, CC BY-SA 4.0 , via Wikimedia Commons

Two years into their postal blockade, Swedish unions are outraged that Tesla is still able to provide its customers’ vehicles with valid plates through various clever workarounds. 

Seko chairman Gabriella Lavecchia called it “embarrassing” that the world’s largest EV maker, owned by CEO Elon Musk, refuses to simply roll over and accept the unions’ demands.

Unions shocked Tesla won’t just roll over and surrender

The postal unions’ blockade began in November 2023 when Seko and IF Metall-linked unions stopped all mail to Tesla sites to force a collective agreement. License plates for Tesla vehicles instantly became the perfect pressure point, as noted in a Dagens Arbete report.

Tesla responded by implementing initiatives to work around the blockades. A recent investigation from Arbetet revealed that Tesla Sweden is now using dozens of private residences, including one employee’s parents’ house in Trångsund and a customer-relations staffer’s home in Vårby, as a way to obtain license plates for its vehicles.

Seko chairman Gabriella Lavecchia is not pleased that Tesla Sweden is working around the unions’ efforts yet again. “It is embarrassing that one of the world’s largest car companies, owned by one of the world’s richest people, has sunk this low,” she told the outlet. “Unfortunately, it is completely frivolous that such a large company conducts business in this way.”

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Two years on and plates are still being received

The Swedish Transport Agency has confirmed Tesla is still using several different workarounds to overcome the unions’ blockades.

As noted by DA, Tesla Sweden previously used different addresses to receive its license plates. At one point, the electric vehicle maker used addresses for car care shops. Tesla Sweden reportedly used this strategy in Östermalm in Stockholm, as well as in Norrköping and Gothenburg.

Another strategy that Tesla Sweden reportedly implemented involved replacement plates being ordered by private individuals when vehicles change hands from Tesla to car buyers. There have also been cases where the police have reportedly issued temporary plates to Tesla vehicles.

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