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Sales of the sub-$30,000 Chevy Bolt, being assembled here in Orion Township, Michigan, allowed GM to recently pass Ford as a distant No. 2 behind Tesla in EVs.

Joe White | Reuters

From the headlines, car buyers might think the most important force driving down the cost of electric vehicles is the $7,500 tax credit that was expanded last summer, followed by Tesla’s recent aggressive cost-cutting to gain more market share.

Look closer, and the work auto companies are doing themselves to refine EV technology — and, crucially, new manufacturing processes — loom as an even bigger deal. And that’s resulting in a series of newly-announced and coming-soon models that will make EVs much cheaper, and more mainstream, highlighted by Tesla‘s first detailed public explanation of how its next-generation car due next year will come at a lower price tag, expected to start between $25,000 and $30,000.

The rise of the mass-market EV will be a milestone — environmentally, economically, financially and even politically. And as the Biden administration pushes changes that seek to aggressively remake the car market in favor of EVs more quickly than previously anticipated.

Biden's EV push: EPA set to propose strict new auto pollution limits

Hitting price points well below the $48,763 U.S. average new-vehicle price, which Kelley Blue Book says has risen 30% in the last three years, will make obsolete the shibboleth that EVs are an elite affectation of rich people. If the new models catch on, they will cement electric transportation as a mainstream consumer good, while also making Tesla, a refocused Ford and General Motors — and a still-to-be-winnowed out collection of EV startups — fully mainstream carmakers.

“For Tesla to go mass-market, they have to have a cheaper car,” said Wedbush analyst Dan Ives, who thinks Tesla’s version will be a compact luxury vehicle akin to an Audi A3 gas-powered car, whose base model starts at $35,400. “And mass market is the holy grail.”

Tesla’s lowest-priced model today is the Model 3 base MSRP of $41,990. There are currently three EV models with base MSRPs under $30,000, the Chevy Bolt, Bolt EUV, and Nissan Leaf, but average sales prices in March for both were still above $30,000, according to Edmunds, and above $34,000 in the case of the Leaf.

Lower-priced EVs are among a flood of new electric models that have begun to hit the market, with more than 60 new EVs expected in the next few years. Volkswagen on March 15 announced the sub-25,000 euro ID.2 model for the European market. Startup Fisker plans to launch the $29,900 PEAR crossover next year in the U.S., and GM is set to ship a sub-$30,000 Chevrolet Equinox electric sport-utility vehicle by fall. Most will compete in a market for compact sedans that could hit 10 million units over five years globally, even as automakers otherwise deemphasize smaller cars to focus on SUVs, Ives said.

All of these prices are before the tax breaks extended in last year’s Inflation Reduction Act, which let U.S. buyers take credits as large as $7,500 for most EVs made in North America, but are getting more complicated, with rules including eligibility based on where batteries are produced. There are also more financing options available in the auto loan market designed specifically for environmentally friendly cars.

The big questions for automakers in budget EVs

The rise of the budget EV raises a host of questions for car makers, including where they achieve the near-term cost savings needed from production lines, how fast they need to move to gain an edge over rivals entering the low end of the market, and whether the cost-saving techniques that EV-only companies Tesla and Fisker are claiming spread to more expensive vehicles, ultimately either lowering or containing their prices to consumers.

But the biggest question of all right now: what kind of EV will consumers be likely to find at these prices, and will they buy it?

“Think [Toyota’s gasoline-powered mainstay] Corolla and other entry-level vehicles,” said Stephanie Brinley, associate director of research at S&PGlobal Mobility. “There’s nothing wrong with having a basic car as a first car. It’s a reasonable expectation to have a lower feature point.” 

Analysts don’t expect a vehicle like Fisker’s PEAR – an acronym for Personal Electric Automotive Revolution – to compete with a bigger SUV like Ford’s gas-powered Explorer. Instead, the PEAR may look more like a smaller version of Honda’s CRV or Toyota’s RAV4, the two best-selling SUVs in the U.S. last year, according to Goodcarbadcar.net. They sell for as low as $27,500 for the RAV4, which is four inches longer than the PEAR’s expected 177-inch length, and just under $30,000 for the larger CRV.

Tesla’s initial low-cost car, known colloquially as a Model 2, is expected to be a hatchback, most likely made at the company’s coming factory in Monterrey, Mexico, with some production possible at Tesla’s Austin, Texas facility, Ives said. Likely comparable models for the next-generation Tesla and other cheap EVs include the Honda Civic or Toyota’s Corolla, which retail for base prices of $25,050 and $21,550, respectively, according to Brinley. Their U.S. unit sales rank 9th and 13th among all models, and tops among compact sedans, according to Goodcarbadcar. Other similar cars include Hyundai’s Kona and Honda’s Fit. 

The lowest-cost EVs may have as little as 250 miles of range between charges, similar to the existing $28,000 Nissan Leaf and cars like Hyundai’s Kona that sell in the mid-$30,000-range now, letting consumers save by going for a smaller, cheaper battery, CFRA Research analyst Garrett Nelson said. 

Brinley says consumers are unlikely to accept less than that, and will likely insist that even less-pricey EVs keep popular safety features like lane-departure warnings. Consumers may accept a shorter range in exchange for lower cost because they use a PEAR as a second car or use it in cities, where short trips with time to recharge in between are common, Fisker CEO Henrik Fisker said on the company’s Feb. 27 earnings call.

“They may not need to carry around a giant expensive battery, if they’re only using [it] as a city car,” Fisker said. “So we’ll offer some different variations there.”

For market leader Tesla, the key to pulling costs down from the $41,990 list price of the Model 3 standard range begins with new or reimagined factories, vastly greater scale and advances in battery technology, Nelson and Ives said. Ives said battery costs have another 30 to 50 percent to fall after years of decline.

At the No. 2 U.S. EV maker, Ford expects simple scale economies to improve EVs’ operating profit margins by 20 percentage points by 2026, according to a presentation to analysts on the company webcast on March 23. Another 25 points of margin will come from falling battery costs, and from redesigning vehicles so they can use smaller batteries, said Ford CFO John Lawler. Fisker has moved to save by outsourcing production of the PEAR to Foxconn.

How Tesla plans to lower costs

Tesla devoted the biggest chunk of its March 1 investor day to explaining its next-generation strategy, which it said will drive down unit production costs that are already low by another 50%. While Elon Musk has been dogged by a history of over-promising and under-delivering — at least by the original deadline — this is a trick the company says it has already accomplished once, when moving from the premium-priced Model S and Model X vehicles to a lineup dominated now by the Model 3 and Model Y.

The keys include new, bigger factories and a design that makes vehicles’ large, flat battery do double duty as the floor of the car. Those moves let Tesla assemble cars in a different order, skipping steps like removing doors after painting to let workers install seats and other interior components, resulting in less downtime during production, Lars Moravy, Tesla’s vice president of vehicle engineering, said at the investor day. The company’s new power train factories have 65% lower costs than what they replace, he added. 

Tesla argues that its vertical integration, in which it designs its own batteries and much of its manufacturing equipment and software, will drive costs down further. Tesla said its overall efforts have driven the cost of drive units, which include the car’s electric motor, as low as $1,000. 

“We don’t think any other automaker is even close to that number,” vice president of drivetrain engineering Colin Campbell said, a contention backed by engineering firm Munro & Associates, which says suppliers to other automakers charge $2,500 or more for similar systems. 

“That’s big news,” Cory Steuben, Munro president, said.

Tesla is one generation ahead of other automakers in the race to EVs, says former Ford CEO

While Tesla hopes the entry-level car will cement its role as a carmaker that can serve all segments of the market, automakers have spent years reducing their footprint in the less-profitable low end of the market, preferring to concentrate on larger vehicles with wider profit margins. Indeed, a spokesman for Hyundai’s U.S. operation said in an e-mail that the company has no plans to introduce a lower-end EV. No low-end Fords have been announced either. GM will add the Equinox to its existing Bolt sedan, which starts at $26,500 – itself down almost $6,000 for the 2023 model year. A majority of the EV sales that allowed GM to surpass Ford as No. 2 behind Tesla, though still far behind, have been the Bolt.

“At this moment a $25,000 [battery electric vehicle] is difficult without compromising driving range,” Hyundai said in the statement. “Eventually, Hyundai expects ICE and BEV models to reach price parity, but the exact timing is still unclear.”

The solution to low profits in lower-end electric cars, the companies hope, will be to load them with options, just as mid-priced cars and trucks do, Nelson said. In Tesla’s case, this might mean battery upgrades and subscriptions to services, or even a version that lets drivers deploy the vehicle for autonomous rideshare driving while the owner stays home, Nelson added. Or automakers can simply try to sell buyers of smaller EVs on leather seats, more powerful batteries and premium stereos, counting on the same forces that make some Civic buyers pay $43,000-plus for the sportier Type R version or push some Model 3s as high as $79,000.

Or the automakers might simply not make the new vehicles as inexpensive as they are promising now, Brinley said.

“Tesla hasn’t hit a price point yet,” she said.

The real answer depends on exactly how far costs come down, and how aggressively Tesla lowers prices, if at all, as healing supply chains and its own falling costs empower it to squeeze some of the recent inflation in car prices out of the market.

“Everybody is watching to see where Tesla heads,” Ives said. “That’s going to dictate pricing and competition in the market.”

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RadExpand 5 Plus and RadWagon 5 e-bikes $200 off, exclusive $3,297 savings on three Anker SOLIX BP3800 expansion batteries, much more

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May 23, 2025

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RadExpand 5 Plus and RadWagon 5 e-bikes 0 off, exclusive ,297 savings on three Anker SOLIX BP3800 expansion batteries, much more

With Memorial Day on the horizon, we’re giving you a more jam-pack Green Deals to close out this week, with a spotlight being returned on Rad Power’s Memorial Day Sale that is seeing the first discounts on its newest models, this time focusing on the RadExpand 5 Plus Folding e-bike at $1,699 and the RadWagon 5 Cargo e-bike at $2,199. We’ve also secured a massive $3,297 in savings on three Anker SOLIX BP3800 Expansion Batteries at a new $4,200 low, while spotting Velotric increasing savings on its Nomad 1 Plus and Summit 1 All-Terrain e-bikes, starting from $1,399. There’s also a $1,300 discount on Samsung’s Bespoke AI Laundry Combo Electric Ventless Heat Pump Washer/Dryer that starts from $1,900 through Memorial Day, as well as a one-day-only sale on Anker’s SOLIX EverFrost 2 58L Dual-Zone Electric Cooler that is returning it to its $800 pre-sale low for the first time. Plus, all the other hangover Green Deals are in the links at the bottom of the page, like yesterday’s full Rad Power Memorial Day Sale coverage, and more.

Head below for other New Green Deals we’ve found today and, of course, Electrek’s best EV buying and leasing deals. Also, check out the new Electrek Tesla Shop for the best deals on Tesla accessories.

Run errands and more on Rad’s new RadExpand 5 Plus and RadWagon 5 e-bikes with first discounts from $1,699

Yesterday, Rad Power Bikes launched its Memorial Day Sale that is offering up to $500 discounts on several e-bikes, some of which are the brand’s newer models that are getting their first discounts through Memorial Day weekend only. Alongside the Radster Road and Trail e-bikes, we’re also seeing two other new models getting these flash savings, starting with the RadExpand 5 Plus Folding e-bike for $1,699 shipped. It’s keeping down off its $1,899 tag for only a few more days, with the only savings we’ve seen on this model so far being a free accessory tacked on during select sales. The $200 markdown is setting the stage for what we can expect down the road in future sales, giving you the best opportunity yet to hop aboard the latest of the brand’s space-saving utility models, alongside the new RadRunner Cargo Utility options that recently launched.

Rad Power’s RadExpand 5 Plus e-bike arrives as the latest generation of the brand’s space-saving folding models, condensing down to 29 inches high by 25 inches wide by 41 inches long and weighing in at 72.5 pounds in full and 62.5 pounds with the battery removed. It’s been equipped with a 750W rear hub motor and a 720Wh battery that pair together in order to deliver 20 MPH top speeds for up to 60+ miles with its 5 pedal assist levels activated (which also offer a zero-assist option and are supported by a torque sensor). As an updated model, it comes with plenty of notable features like the hydraulic suspension fork, hydraulic disc brakes, puncture-resistant tires with fenders, the rear cargo rack, an LED headlight, an integrated taillight with brake lighting, a color display with a USB-C port to charge devices, and plenty more.

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And for folks looking for something with even more cargo-hauling power, you can grab the RadWagon 5 Cargo e-bike for $2,199 shipped, down from $2,399 while the flash savings last through the upcoming holiday. It comes with a similar 750W motor and 720Wh battery pairing that gives it an increased 60+ miles of travel over its predecessor, with the top speed also increased up to 28 MPH. This model has also traded in the cadence sensor for a superior torque sensor that lends towards its hauling capabilities, which can also take inclines much better. It shares many of the same stock features as the above model, with certain obvious differences like the increased rear cargo rack payload, among others.

Rad Power’s Memorial Day new e-bike deals (through May 26):

And to check out the full lineup of deals that include the three legacy models seeing discounts, while also getting the rundown on what makes up the Radster e-bikes, be sure to check out our original coverage of Rad Power’s Memorial Day Sale here. You can also find tons of other e-bike sales through the holiday from Lectric, Ride1Up, Aventon, Velotric, Heybike, Segway, and many more in our Ride to Work EV hub.

Anker SOLIX BP3800 expansion batteries

Expand your Anker SOLIX F3800 setup with exclusive $3,297 in savings on three expansion batteries at $4,200 low

We’ve secured a special exclusive, and expansive bundle discount from Wellbots on three Anker SOLIX BP3800 Expansion Batteries for $4,200 shipped, after using the code 9TO5BP600 at checkout. This bundle starts from a $5,697 price tag here, which is where Anker currently has this same package discounted to from a higher $7,497 MSRP. All-in-all, with our code, you’re getting $1,497 off the going rate at Wellbots and $3,297 in total savings from the direct MSRP. This is the lowest price we have tracked for this sizeable bundle, ultimately giving you each battery at $1,400 each.

Compatible with either the Anker SOLIX F3800 or F3800 Plus power stations, each of these BP3800 LiFePO4 expansion batteries carries and adds 3,840Wh to your existing setup while also boasting some backup power support for charging devices with its multiple AC, USB-A, and USB-C ports, should you ever choose to rely just on it and not the power station itself. All together, your F3800 setup will gain an additional 11,520Wh capacity, putting you in the higher-end range of serious home backup power capabilities, as long as you have the appropriate transfer switch or Smart Home Panel 2 to connect it to your circuit breaker. They each come rated for 3,000 life cycles and for a 10-year lifespan, though that can easily be extended were you to utilize them more sparingly than every single day.

We also still have another exclusive low price active on the Bluetti AC200PL 2,304Wh LiFePO4 Power Station for $899, with there being no sign as to just when it will end.

Velotric Nomad 1 Plus all-terrain e-bike

Travel any terrain with up to $500 savings on Velotric’s Nomad 1 Plus and Summit 1 e-bikes starting from $1,399

Velotric has increased savings on two e-bikes during the remaining time of its Bike Month/Memorial Day Sale through May 26, with the biggest of these savings being on the Nomad 1 Plus All-Terrain e-bike that is now down at $1,399 shipped. This model normally goes for $1,899 at full price, with it having started this sale at $1,499 and the additional $100 markdown landing it back at the second-lowest price we have tracked. All-in-all, you’ll be saving $500 off the going rate, which only sits $100 above the low that we last saw during Black Friday. Head below for more on this and the other model seeing increased savings.

Upgraded from its original variant last year, Velotric’s Nomad 1 Plus e-bike is the go-anywhere option from the brand, outfitted for off-road ventures with features like puncture-resistant fat tires, a hydraulic suspension fork, hydraulic disc brakes, and an IPX6 waterproof build. It sports a 750W motor (peaking at 1,200W) paired with a removable 691Wh battery, which work together to provide 55 miles of travel with its five PAS levels at up to 28 MPH top speeds. You can also cruise on pure electric power via the throttle at a limited mileage. Alongside the other features already listed, you’ll find a Shimano 8-speed derailleur, fenders over both tires, an integrated LED headlight, a taillight with a braking indicator, and a 3.5-inch backlit LCD display with USB port to charge your devices as you ride. There’s also the on-page 30% discounts for other add-on accessories too.

The second of these savings is hitting the Summit 1 Multi-Terrain e-bike, bringing it down from its $1,999 full price to $1,899 shipped. A more advanced all-terrain counterpart to the above model, it sports many similar features like the 750W motor, though it does have a larger 705.6Wh battery, giving you the same top speeds with an increased range up to 70 miles. It has more pedal assist options, with three modes and five levels, while also sporting a dual torque/cadence sensor that you can switch between depending on just where you are and what kind of terrain you’ll be riding through. The rougher rides are smoothed out by the 120mm hydraulic front suspension fork that also gets added support from the hydraulic disc brakes, puncture-resistant tires, and IPX6 protection. There’s many similar features as the Nomad 1 Plus, but this model definitely takes a step further with smart features like Apple Find My.

Samsung Bespoke AI Laundry Combo ventless heat pump washer/dryer

Samsung Bespoke AI Combo electric ventless washer/dryer $1,300 off, now $1,900 for Memorial Day

As part of Samsung’s Memorial Day Sale, the brand is offering its Bespoke AI Laundry Combo Electric Ventless Heat Pump Washer/Dryer for $1,999 shipped alongside up to $298 in additional savings you can score too. This eco-friendly unit normally goes for $3,299 at full price, with most of the discounts we usually see taking things down around $2,199, though we have seen it go as low as $1,899 from Samsung and $1,700 at other retailers – the latter pricing having only popped up during last year’s Christmas sales. You can also save a bit more going with the open-box option at $1,520 on the same page, or we also spotted it going for $1,900 from Best Buy right now too, though keep in mind you won’t be getting any chances at additional savings and the price will increase there based on installation, haul-away, and other needs/services. Head below for more on this model, the extra savings opportunities, and other discounted laundry appliances.

So what are these extra savings you can score? Well, to start, you can get up to $100 in instant trade-in credit. There’s also two Samsung Care+ plan options you can go with – the first being a 3-year plan ($200 value) at $1 or you can get a 5-year plan ($699 value) at $30. For all these savings, decisions can be made on the washer/dryer’s main landing page here.

Coming to you ENERGY STAR-certified, Samsung’s Bespoke AI Laundry Combo puts both your washing and drying needs into one convenient unit that not only saves space or allows you to double up for faster laundry turn-around, but also comes supported by AI for easier systems management and increased energy efficiency. One such way it does so is by identifying fabrics placed inside and automatically adjusting its settings for the ideal washing and drying cycles. That AI can also calculate and estimate electricity costs to “reduce energy usage by up to 19%,” with a bunch of other eco-conscious performance features, as well as the obvious ventless design that allows for it to be placed virtually anywhere without needing a dedicated exhaust vent.

What I really love about these types of washer/dryers is the large capacity detergent tank that holds up to 47 loads worth so you don’t have to constantly have to add anything in between loads. On top of this there’s also the Flex One compartment that allows that capacity to be divided for 25 loads of detergent and 34 loads of softener. There’s also the self-cleaning and self-drying tech to ensure everything going in comes out fresh, as well as an auto-open door, smart controls through the SmartThings app, hands-free voice controls, the EPA’s seal of approval, and more.

During this sale, you’ll also find Samsung’s newest appliance release, the vented Bespoke AI Laundry Combo variant down at $2,499 shipped from its full $3,099 price tag. You’ll be getting all the same AI support, performance specs, and extra savings options here, minus the ventless design of the above model.

You can check out more of Samsung’s Memorial Day Sale appliance offers on the landing page here.

Anker SOLIX EverFrost 2 58L electric cooler

For today only, grab Anker’s SOLIX EverFrost 2 58L dual-zone electric cooler back at its $800 low

As part of its Deals of the Day, Best Buy is returning the best pricing on the new Anker SOLIX EverFrost 2 58L Dual-Zone Electric Cooler through the rest of the day for $799.99 shipped. It’s been carrying a $1,100 price tag since it was released in March, with this being the first time we’ve seen the pre-sale pricing return post-launch. It’s undercutting Anker’s Memorial Sale by $50, but will only last for 13 hours more before its gone. Taking advantage of the savings puts $300 back in your pocket and gives you the latest ice-free cooling tech from the brand at the best price we have tracked. You can learn more about this model below or by checking out our hands-on review here.

The largest of Anker’s two available sizes for this new generation of coolers, the SOLIX EverFrost 2 58L model sports the dual-zone compartments that allow you to refrigerate and freeze your perishables at the same time, whereas the smaller-sized model only provides the option to choose one over the other. Cooldown times have been decreased thanks to the air-cooled system replacing the previous generation’s direct cooling. The unit comes with one 288Wh removable battery, with a second port to add another one should you purchase it separately elsewhere. With two batteries connected, Anker claims that you can get up to 104 hours of continuous runtime when its set to its eco mode for battery conservation.

These batteries can also provide additional backup power support for your devices when not running the cooler, as they have a 60W USB-C or a 12W USB-A port for versatility. You’ll have four ways to recharge them (AC outlet, solar charging, car port charging, USB-C charging), and they’ll be protected when inside the cooler by its IPX3 water-resistant construction. There’s other nice little features too, like the 6-inch wheels for semi-rough terrain, a built-in bottle opener, a fold-down tray that also functions as a pull-along handle, and mounting points for the brand’s add-on accessories. Get a full rundown in our hands-on review.

If you would prefer going with the smaller EverFrost 2 unit or want to go ahead and grab this dual-zone model with two batteries or more, be sure to check out our coverage of Anker’s SOLIX EverFrost 2 Memorial Day Sale deals here.

Best Spring EV deals!

Best new Green Deals landing this week

The savings this week are also continuing to a collection of other markdowns. To the same tune as the offers above, these all help you take a more energy-conscious approach to your routine. Winter means you can lock in even better off-season price cuts on electric tools for the lawn while saving on EVs and tons of other gear.

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BYD’s new Seal 06 EV leaks with 375 miles range

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3 hours ago

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May 23, 2025

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BYD's new Seal 06 EV leaks with 375 miles range

BYD-Seal-06-EV
BYD Seal 06 EV (Source: China MIIT)

BYD’s new electric SUV is about the size of a Tesla Model Y, but it’s expected to cost much less. The Seal 06 leaked in China this week, giving us a closer look at the new BYD EV, which is set to arrive later this year.

Meet the new BYD Seal 06 EV

Another day, another BYD electric car is surfacing. We knew it was coming soon after China’s Ministry of Industry and Information Technology (MIIT) revealed a regulatory filing last month.

Now, we are getting a better idea of what to expect when it arrives, with new information surfacing. China’s MIIT released key specs and a few new images of the Seal 06 this week.

BYD will offer the Seal 06 in both battery electric (EV) and plug-in hybrid (PHEV) powertrain options. The electric version will be available in three trims. A base model will draw power from a 65.28 kWh battery and 170 kW electric motor, providing up to 520 km (323 miles) CLTC range.

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The extended-range 78.72 kWh battery is rated with a CLTC range of up to 605 km (376 miles). Meanwhile, a more powerful AWD variant includes an additional 110 kW front motor but has slightly less range at 550 km (342 miles).

BYD’s electric SUV is 4,810 mm long, 1,920 mm wide, and 1,675 mm tall, or about the same size as the Tesla Model Y.

The new Model Y starts at 263,500 yuan ($36,500) in China. That’s for the base RWD model with a CLTC range of 593 km (368 miles). Upgrading to the Long Range AWD variant with a range of 719 km (447 miles) costs 313,500 yuan ($43,500).

BYD-Seal-06-EV
BYD Seal 06 (Source: BYD)

According to CarNewsChina, BYD is expected to officially launch the Seal 06 in the third quarter of 2025. Prices will be revealed closer to launch, but the new SUV will likely start at around 160,000 yuan ($22,000).

BYD is coming off its best sales week of the year with nearly 68,000 vehicles registered in China from May 5 to May 11. Tesla, on the other hand, had just over 3,000.

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Tesla Full Self-Driving veers off road, flips car in scary crash driver couldn’t prevent

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5 hours ago

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May 23, 2025

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Tesla Full Self-Driving veers off road, flips car in scary crash driver couldn't prevent

Tesla Full Self-Driving crash upside down hero

A Tesla vehicle on the latest Full Self-Driving (FSD) Supervised update suddenly veered off road and flipped the car upside down – creating a scary crash that the driver said he couldn’t prevent.

We have seen many crashes involving Tesla’s Supervised FSD over the years, but the vast majority of them have a major contributing factor in common: the driver is not paying attention or is not ready to take control.

A common crash scenario with Tesla FSD is that the vehicle doesn’t see an obstacle on the road, like a vehicle, and crashes into it, even though the driver would have had time to react if they were paying enough attention.

Despite its name, Full Self-Driving (FSD) is still considered a level 2 driver assist system and is not fully self-driving. It requires drivers to stay attentive at all times and for them to be ready to take control – hence while Tesla has more recently added ‘Supervised’ to the name.

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According to Tesla, the driver is always responsible in a crash, even if FSD is activated.

The automaker has implemented driver monitoring systems to ensure drivers’ attention, but it is gradually relaxing those.

Just today, Tesla released a post on X in which it said drivers just have to “lean back and watch the road” when using FSD:

Sitting back and watching the road was exactly what Wally, a Tesla driver in Alabama, was doing when his car suddenly veered off the road in Toney, Alabama, earlier this year.

Wally leased a brand new 2025 Tesla Model 3 with FSD and understood that he needed to pay attention. When talking with Electrek yesterday, he said that he would regularly use the feature:

I used FSD every chance I could get I actually watched YouTube videos to tailor my FSD settings and experience. I was happy it could drive me to Waffle House and I could just sit back and relax while it would drive me on my morning commute to work.

Two months ago, he was driving to work on Tesla Full Self-Driving when his car suddenly swerved off the road. He shared the Tesla camera video of the crash:

Wally told Electrek that he didn’t have time to react even though he was paying attention:

I was driving to work had Full Self-Driving on. The oncoming car passed, and the wheel started turning rapidly, driving into the ditch, and side-swiping the tree, and the car flipped over. I did not have any time to react.

The car ended up flipping upside down from the crash:

Fortunately, Wally only suffered a relatively small chin injury from the accident, but it was a scary experience:

My chin split open, and I had to get 7 stitches. After the impact, I was hanging upside down watching blood drip down to the glass sun roof, not knowing where I was bleeding from. I unbuckled my seatbelt and sat on the fabric interior in the middle of the two front seats, and saw that my phone’s crash detection went off and told me the first responders were on their way. My whole body was in shock from the incident.

The Tesla driver said that one of the neighbors came out of their house to make sure he was okay and the local Firefighters arrived to get him out of the upside-down Model 3.

Wally said he was on Tesla FSD v13.2.8 on Hardware 4, Tesla’s latest FSD technology. He requested that Tesla send him the data from his car to better understand what happened.

Electrek’s Take

This is where Tesla FSD gets really scary. I get that Tesla admits that FSD can make mistakes at the worst possible moment and that the driver needs to pay attention at all times.

The idea is that if you pay attention, you can correct those mistakes, which is true most of the time, but not always.

In this case, the driver had less than a second to react, and even if he had reacted, it might have made things worse, like correcting, but not enough to get back on the road and hit the tree head-on instead.

In cases like this one, it’s hard to put the blame on the driver. He was doing exactly what Tesla says you should do: “lean back and watch the road.”

A very similar thing happened to me last year when my Model 3 on FSD veered to the left, trying to take an emergency exit on the highway for no reason. I was able to take control in time, but it created a dangerous situation as I almost overcorrected into a vehicle in the right lane.

In Wally’s case, it’s unclear what happened. It’s possible that FSD believed it was about to hit something because of the shadows on the ground. Here’s the view from the front-facing camera, a fraction of a second before FSD veered to the left:

But it’s just speculation at this time.

Either way, I think Tesla has a problem with complacency with FSD where its drivers are starting to pay less attention on FSD – leading to some crashes, but there are also these even scarier crashes that appear to be 100% caused by FSD with very little to no opportunity for the drivers to prevent them.

That’s even scarier.

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