Germany’s car-check watchdog has crunched the reliability numbers and once again, Tesla finds itself parked at the very bottom of the heap. The 2026 TÜV-Report, covering annual roadworthiness inspections of approximately 9.5 million vehicles between July 2024 and June 2025, found that Tesla EVs occupied the two bottom spots in the league table.

The Model 3, which was the worst-ranked car for the two previous years was found to have a defect rate of 13.1 percent, meaning one in every 7.6 cars in the two-to-three-year-old ages group failed the Hauptuntersuchung safety check.

Why Is The Model Y So Troubled?

But the Model Y was even worse. It had a defect rate of 17.3 percent, versus 3.5 percent for a Mini Cooper SE, making it the worst TÜV has seen in this age group in a decade. The biggest defect culprits were the axle assembly, suspension, brakes and lighting.

Related: Tesla Is Now The World’s Most Avoided EV Brand And It’s Probably Musk’s Fault

Pulling back to look at the bigger picture covering cars of all ages reveals that 21.5 percent, or one in five cars failed the inspection due to a “significant” or “dangerous” defect, an increase of 0.9 percent on last year, ADAC reported. And the proportion with minor defects rose 0.8 percent to 12.3 percent.

Other reliability villains include the BMW 5-series and 6-series in both the 4-5-year-old and 8-9-year-old age groups, the Dacia Duster in the 6-7 and 10-11 age groups and the Renault Clio among 12-13-year-old cars.

Electric Cars Defect Rate, 2-3 Years Old

Pop the Champagne for VW

But with every list of losers there has to be a list of winners, and for cars that have passed their fourth birthday, this one is headed by Volkswagen.

The VW Golf wagon and T-Roc scored well in the 4-7-year-old categories and the automaker’s Touareg was top of the oldies. The Mazda CX-3 and Mercedes B-Class were also commended.

Looking at the 2-3-year-old group, Fiat’s 500e toped the small car category, proving to Tesla that EVs can be reliable, the Mazda 2 and BMW 1-series were the top-rated small car and compact, and the C-class took the mid-range award (if you’re reading from the US, those classifications will look kinda messed up).

The T-Roc popped up again to take best SUV, and the B-class bagged most reliable nearly-new minivan.

Rate of Serious Inspection Defects

One big change in this year’s study is the introduction of an award for long-term quality, handed out to brands whose vehicles, aged 10+ exhibit the lowest average defect rate for safety-related faults and stand for quality, durability, and good service.

Mercedes took gold with an 18.5 percent defect rate – almost matching that of a 2-3-year-old Model Y – Audi was second with 19.2 percent and Toyota snuck onto the podium’s last step with a 22 percent defect rate.

Winners By Segment, 2-3 Years Old

Winners In Other Age Groups

It looks like Tesla’s found itself with a problem of abundance. The automaker has more cars sitting on lots across the United States than it seems to know what to do with. And with the federal EV tax credit gone, sales have slowed considerably.

To keep things moving, Tesla has decided to do something a little different, by renting out its own cars directly to customers, starting at two locations in California, with more likely on the way.

Read: Elon Musk’s Trillion Dollar Pay Hinges On A Bet That Could Break Tesla

The company recently confirmed that its stores in San Diego and Costa Mesa are now offering rentals from the entire Tesla lineup.

What Does It Cost?

If you’ve been curious about living with a Model 3 or Model Y, you can now take one home for as little as $60 per day. The Cybertruck, perhaps the most talked-about of the bunch, is listed at $75 per day, while the more premium Model S and Model X command $90 per day.

Of course, no deal from Tesla would be complete without some important caveats. For starters, cars must be rented for a minimum of three days and a maximum of seven days.

Furthermore, while renters will be able to enjoy unlimited mileage, they will not be permitted to drive the Tesla out of the state. They’ll also be hit with a $30 fee if the car is returned with less than 50 percent charge.

There’s no word on whether the advertised rates include insurance, or if Tesla, like traditional car rental companies, will try to sting shoppers with exorbitant insurance fees.

What we do know is that only the upper-tier Premium trims are being offered. The entry-level Standard versions aren’t part of the deal, and neither are the high-performance Performance or Plaid variants.

Tesla will no doubt hope that by offering cheap rentals, it can convince interested shoppers to place an order. To help further convince them, they’ll receive a $250 credit if they place an order within seven days of the rental.

A Tesla driver in Illinois has been arrested after plowing into the rear of a Ford Explorer police cruiser that had stopped for a traffic investigation.

However, this was more than a simple case of a distracted driver rear-ending another motorist, as the Tesla owner told police that the vehicle’s Autopilot system was engaged and that he had fallen asleep behind the wheel.

Read: Tesla Quietly Settles Fatal Autopilot Crash Just Before Jury Could Weigh In

Local authorities say a 2022 Tesla Model Y caused the crash and shared images of the crumpled cruiser on Facebook. They show that the impact has caved in the SUV’s rear end and that both taillights have been knocked out of position.

In all likelihood, some damage has also been done to the frame, and there’s a good chance the Ford could be declared a complete write-off.

Autopilot or Absent Driver?

The South Barrington Police Department says the squad car was pulled over to the shoulder with its emergency lights flashing when the Tesla plowed into the back of it. The driver told officers he had activated Autopilot, dozed off, and didn’t wake up in time to react.

Two officers and the driver were taken to Ascension St. Alexius Medical Center in Hoffman Estates. All three sustained non-life-threatening injuries and were later released.

Driver Arrested and Charged

To make matters worse for the 43-year-old driver, he was found to be carrying a loaded handgun, despite not having a valid Firearm Owner’s Identification card. As a result, he was reportedly arrested and charged with unlawful possession of a firearm.

He was also cited for failing to yield a full lane or reduce speed when approaching an emergency vehicle. The Tesla owner was taken to Cook County Circuit Court, where he’s scheduled to appear on December 3.

If the driver did indeed fall asleep with Autopilot engaged, it could raise concerns about the effectiveness of Tesla’s driver monitoring system.

The electric carmaker will likely send engineers out to analyze the Model Y and determine whether the driver-assistance system was enabled at the time of the collision and if its warning systems functioned as they should have.

Final sales results for the third quarter are now in, closing one of the most closely watched reporting periods the electric vehicle market has seen in recent years. No doubt, the Trump administration’s move to scrap the federal EV tax credit sparked a final buying spree that sent sales figures sharply upward.

Unsurprisingly, two familiar Tesla models held a commanding lead, but several other notable models experienced significant demand spikes.

How Big Was the Jump?

According to Kelley Blue Book data, U.S. EV sales hit an all-time quarterly high of 438,487 units, up 40.7 percent from Q2 and 29.6 percent higher year over year, surpassing the previous record from Q4 2024 by nearly 20 percent.

Electric vehicles also claimed a record 10.5 percent share of total vehicle sales, up from 8.6 percent in the same period last year.

Read: Federal Deadline Turns EV Into One Of VW’s Hottest Sellers

The Tesla Model Y was still comfortably the most popular EV in the United States, as 114,897 were sold during the period, a 29 percent increase from 89,077 delivered last year. Even so, Tesla’s overall market share slipped to 41 percent from 49 percent a year ago.

In second place was another Tesla, the Model 3, at 53,857 units. That result was actually down 7.8 percent year over year, suggesting some buyers may have shifted their attention toward the updated Model Y.

Top 10 Best-Selling EVs In Q3 2025

What About Non-Tesla Models?

The first non-Tesla entrant on the best-sellers list was the Chevrolet Equinox EV. A total of 25,085 were sold, a huge 156.7 percent rise from 9,772.

Positioned not far behind it were the Hyundai Ioniq 5 with 21,999 sales, the Honda Prologue with 20,236 sales, and the Ford Mustang Mach-E with 20,177 sales. The VW ID.4 was also a strong performer for the quarter, with 12,470 units, a 176 percent increase from Q3 2024.

A surprise inclusion among the best-sellers was the Audi Q6 e-tron. A total of 10,299 SUVs were sold during the quarter, an impressive result considering that model’s premium positioning that allowed it to outsell the Ford F-150 Lightning (10,005 units).

Other strong performers included the Rivian R1S with 8,184 sales, the Chevrolet Blazer EV (8,089), the Kia EV9 (7,510), and the Cadillac Lyriq, of which 7,309 found new homes.

Still, fewer than 10 models managed to exceed 10,000 sales in Q3 2025, underscoring how top-heavy the market remains. For most automakers, EV volume remains well below the levels needed for profitability.

The Best Sellers YTD

Year-to-date figures show total U.S. EV sales surpassed 1.04 million units, up 11.7 percent from about 935,000 a year earlier.

Tesla continued to lead with 451,160 units, down 4.3 percent year over year but still holding a 41 percent market share. Chevrolet followed in second place with 87,137 units, a 113 percent jump, while Ford ranked third with 69,600 (+2.8%) and Hyundai came in fourth at 57,167 (+31.1%).

Among individual models, the Tesla Model Y led the way with 265,085 units, down 8 percent year over year, followed by the Model 3 at 155,180, up 18 percent. Chevrolet’s Equinox EV climbed into third place with 52,834 sales, a massive 390 percent surge.

Ford’s Mustang Mach-E posted 41,962, the Hyundai Ioniq 5 reached 41,091, and the Honda Prologue recorded 36,553. Tesla’s Cybertruck ranked seventh at 25,973, edging out the Ford F-150 Lightning’s 23,034 and Volkswagen’s ID.4 at 22,125. The Chevrolet Blazer EV closed the top ten with 20,825 units.

What Happens Next

With federal incentives now expired, analysts expect a cooldown. “The training wheels are coming off,” said Cox Automotive’s Director of Industry Insights, Stephanie Valdez Streaty. “The federal tax credit was a key catalyst for EV adoption, and its expiration marks a pivotal moment.”

Cox Automotive projects a temporary dip in EV sales through late 2025 and early 2026 before growth steadies again over the long term.

John Halas contributed to this story.

BEST SELLING EVs JAN-SEP 2025

EV BRAND SALES USA 2025

EV MODEL SALES USA 2025

Cox Automotive

The elimination of the clean vehicle tax credit isn’t Tesla’s only problem as the automaker is recalling 12,963 EVs. The National Highway Traffic Safety Administration says they may be equipped with a battery pack contactor that can fail, causing a loss of drive power.

The issue impacts thousands of vehicles including the 2025 Model 3 and 2026 Model Y. However, only 1% of them are believed to have the defect.

More: EU Regulators Say Drivers Are Dying Inside Cars With Electric Door Handles

According to the safety recall report, the vehicles have a battery pack contactor with an InTiCa solenoid. The latter can “suddenly open” due to a poor coil termination connection, which can lead to a loss of propulsion.

This increases the risk of a collision and drivers won’t receive any warning prior to losing drive power.

Tesla launched an investigation in August, following multiple reports about vehicles that wouldn’t shift into drive from park. These were found to have a high coil resistance on the pack contactor, which caused Tesla to replace the component.

The company examined the contactors and eventually blamed them for causing the issue. While details are limited, Tesla is aware of 26 field reports and 36 warranty claims related to the issue. Thankfully, no accidents or injuries were reported.

To address the problem, customers will need to take their vehicle to a Tesla service center where technicians will replace the contactor with one that doesn’t include an InTiCa solenoid. Letters are scheduled to go out on December 9 and repairs will be performed free of charge.