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Despite Tesla’s hopes that a lightly refreshed Model Y would reverse its sliding sales figures, the update has largely failed to deliver the desired results. Market data shows year-over-year declines in key markets like the U.S., China, and Europe, while competition from Chinese automakers grows fiercer.

Elon Musk announced that Tesla shareholders will vote on whether the company should invest in his artificial intelligence startup xAI. This comes as SpaceX, another Musk-led venture, has already committed $2 billion to xAI. Integration of xAI’s Grok model into Tesla vehicles and Starlink support is underway, deepening ties among Musk’s enterprises. However, increasing political involvement and growing concerns over his divided attention raise questions among Tesla investors, especially as the company faces ongoing sales challenges.

Tesla’s Spring 2025 update excluded Intel Atom-based HW3 Model 3/Y vehicles from major new features, revealing a growing software divide. FSD owners on legacy hardware are now demanding free upgrades, clearer support timelines, and fairness as Tesla prioritizes newer platforms like HW4.