Tesla Model Y Dominates Sales, New FSD Features Roll Out

This system is designed to engage even when drivers are inattentive, acting as an additional safety layer. The feature is currently rolling out with FSD Supervised, with potential future expansion to non-FSD users as a general safety enhancement.

Through July, sales show a nearly 20% year-over-year growth. This consistent performance underscores the Model Y's strong global market acceptance and demand.

Giga Berlin is ramping up production significantly to meet the overwhelming demand for the Model Y. Current production stands at approximately 6,500 cars per week. The factory has implemented mandatory extra shifts this month, aiming to reach 7,500 cars per week by mid-October, illustrating the urgent need to boost supply despite FSD not yet being available in Europe.

This quarter-end push comes as August retail sales in China reached 50,000 units, a 12.4% decrease annually, while export figures saw a nearly 39% rise. The incentive aims to stimulate domestic sales and clear inventory.

The Automatic Collision Evasion (ACE) system engages when steering around an obstacle is more likely to prevent a collision than braking alone. The system actively steers around the obstacle, adjusting braking or accelerating as necessary. These maneuvers include changing lanes or moving onto the shoulder, but the feature is currently limited to highway environments without cross-traffic, pedestrians, or cyclists. For ACE to activate, both Automatic Emergency Braking and FSD Supervised must be active.

Despite the autonomous intervention, the human driver retains ultimate control over the vehicle. Taking control from ACE requires firm, deliberate steering input. While the brake pedal can slow the vehicle, it does not automatically cancel the ongoing evasion maneuver, emphasizing that intentional driver action is needed to override the system.

ACE can also engage if the system detects that the driver is insufficiently attentive to the road or if FSD Supervised has been unintentionally disengaged. This capability acts as an additional safety layer, helping to prevent accidents by keeping the vehicle on a safe path when human vigilance falters. The system aims to compensate for human error or oversight.

After an emergency maneuver by ACE, drivers are required to manually initiate a new drive. This ensures that the driver is fully aware and engaged before resuming travel. The ACE feature is currently rolling out to FSD users, with future plans to expand access to non-FSD users, making it a broader safety function across Tesla's vehicle fleet.

The host argues that supervised FSD offers greater safety than manual driving, particularly on long, monotonous stretches of road. Humans often lose focus and become complacent on easy, open highways, whereas the vehicle's system maintains constant vigilance. The car proactively manages safety by tracking every object, avoiding debris, dodging animals, and anticipating lane merges. This includes accounting for surrounding traffic, even objects behind the vehicle, providing a comprehensive safety net that human drivers might miss over extended periods.

A current limitation of the ACE system is its non-engagement when pedestrians or cyclists are detected in the vicinity. This restriction is characterized by the host as a way to avoid the complex ethical dilemmas associated with the "trolley problem," where the system might have to choose between two undesirable outcomes involving human life.

Over 4 million Model Y units have been sold globally. As of July 2026, sales continue to climb, showing a nearly 20% year-over-year increase, demonstrating its successful competition against a range of gas, hybrid, and electric rivals.

There is an ongoing debate regarding how Tesla's sales figures compare to competitors like the Toyota RAV4, mainly due to differing reporting methodologies. Tesla reports actual customer deliveries, which directly reflects vehicles put into owners' hands. In contrast, Toyota's reported sales often represent dealer deliveries, which count vehicles sent to dealerships rather than directly sold to customers. Furthermore, RAV4 sales figures frequently aggregate multiple distinct models under a single umbrella, complicating direct comparisons. While Tesla's production was temporarily impacted by retooling phases, current growth figures indicate production is back on track.

The Model Y, in particular, has seen surprising success in smaller or lower-income markets, such as Colombia. This expansion includes markets like Korea and Japan, where Tesla previously had a limited presence. As factory capacity increases, Tesla strategically prioritizes these newer or smaller markets to diversify and boost its global sales footprint.

Tesla China has announced a limited-time cash incentive program for vehicle purchases made through September 30th. This promotion offers 5,000 yuan for Model 3 and 10,000 yuan for Model Y vehicles. The initiative focuses on clearing in-stock vehicles to help meet ambitious quarterly targets. These incentives are strategically designed to avoid permanent price reductions, thereby maintaining brand perception and value.

FSD Supervised has been approved in six European countries, with a critical EU-wide decision expected on October 6th. Achieving European approval requires representation in 65% of the population. In China, FSD Supervised remains limited, not offering the full version available elsewhere. Tesla established local data centers in China for training due to the country's unique road conditions, leading to challenges in comparing FSD performance globally due to regional training data differences. This localized approach is crucial for adapting the system to diverse traffic rules and driving environments.