Tesla Massively Reduces Prices. Here Are the New Prices and Why They Did It

By Kevin Armstrong
Tesla makes their vehicles more affordable in regions around the world
Tesla makes their vehicles more affordable in regions around the world
Not a Tesla App

Tesla dropped prices on all models in several countries, which should not be surprising. It's unlikely it has anything to do with the company's plummeting value on the stock market, a perceived lower demand, or an effort to qualify for tax credits. Tesla's entire price drop game plan was forecast just a few days ago by a Tesla executive in China.

Tesla does not have a communications department. All the company information comes from its website, social media accounts or Elon Musk's Twitter account. That's why it was worth finding a translation of a rare interview a Tesla vice president gave to the media in China on January 9, 2023.

When Tesla Executives Speak, You Should Listen

Tao Lin spoke to reporters just days after Tesla dropped the prices in China. Her answers provided reasons behind the lower prices, not only in China but worldwide. "Some media said that we lowered the price because we couldn't sell anymore. I think it's really nonsense," Lin said. "I personally think that the price adjustment reflects our better planning for the supply chain in a sense, and what level the vehicle cost will be, and then we make such adjustments according to this estimate."

Lin then explained, "The price adjustment of a product is actually a forecast of the company's cost changes in the next period of time. The biggest difference between 2023 and last year is that the epidemic has basically passed. We believe that the supply chain has returned to normal to a large extent, and there will be no such unpredictable shortages of materials as in previous years, which brought cost uncertainty."

Tesla Supply Chain Certainty Indicated in Q3

During the third quarter earnings call, Musk spoke about supply chain issues that had hampered production during the pandemic. But he also discussed how the company had advanced in other areas and was optimistic about future production. "What we are seeing is practical improvements as we redesign the whole supply chain and all of the elements that go into a battery cell. We're figuring out dramatic efficiencies."

Zachary Kirkhorn, Tesla's Chief Financial Officer, answered a question about the Inflation Reduction Act during that same earnings call. There were not many details available at that time. Still, he stated, "it's difficult to fully determine the eligibility criteria, but we believe Tesla is very well-positioned to capture a significant share of that for solar storage and also electric vehicles."

Tesla's Transparency is the Problem

Some customers in China who bought a Tesla just before the price cut were furious. That's likely to be the case in other countries as well. However, consumers need to remember that Tesla is a direct sales model. How quickly everyone forgets auto dealers have been changing prices for decades.

Lin gave this example, "for a traditional car, everyone buys it at a different price at a dealer, so you don't really know whether the price you bought is the lowest or not, and you don't know what price other people are buying. Is it fair to consumers?"

Tesla has not only changed the automotive industry by making electric vehicles a viable product, but it also changed how people buy cars. "We adopted some relatively new concepts, such as the direct sales model, such as price adjustment strategies, and we hope to gradually make everyone feel that these concepts are feasible. Under the direct sales model, the prices are completely open and transparent, without discounts or price increases, and everyone is the same at the same time."

Price Reductions in the U.S.

We suspected these price cuts were coming as the EV tax credit in the US listed all Model 3s and Model Ys as qualifying for the tax credit. All variations of the Model Y now qualify for the $7,500 tax credit in the US.

The price cuts also affect many countries around the world such as Spain, France and Portugal. Although the reduced pricing of the Model S and Model X appears to be limited.

Below is a list of the new and previous prices of all Teslas models in the US and the percentage changed.

Model New Price Prev Price Percent Change
Model 3 RWD $43,990 $46,990 -6.4%
Model 3 Performance $53,990 $62,990 -14.3%
Model Y Long Range $52,990 $65,990 -19.7%
Model Y Performance $56,990 $69,990 -18.6%
Model S $94,990 $104,990 -9.5%
Model S Plaid $114,990 $135,990 -15.4%
Model X $109,990 $120,990 -9.1%
Model X Plaid $119,990 $138,990 -13.7%

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Tesla FSD V13.2.2 Arrives With Holiday Update Features; Rolling out to HW4 Models

By Karan Singh
Not a Tesla App

FSD users can now join in the Holiday revelry, as FSDS V13.2.2 has started rolling out to customers, and it includes all the 2024 Telsa Holiday Update features.

Tesla’s VP of AI - Ashok Elluswamy, previously mentioned that the Holiday Update would be making its way to FSD users sometime this week. Ashok’s timelines have been right on point. All models with AI4/HW4 vehicles in North America are starting to receive the updated FSD release alongside all the features of the Holiday update.

This new build is update 2024.45.25.5, which should make its way throughout the fleet over the week.

Holiday Highlights

The Holiday update has a ton of new features in it, including new app features like Apple Watch support, the Dashcam and Sentry Mode Viewer and the ability to start Light Shows.

We also received rear cross-traffic alerts, while navigation received Search Along Route, Arrival Energy at Destination and Weather at Destination, and Precipitation Maps.

On the entertainment side, the Holiday Update brings the SiriusXM streaming app to the Model 3, Model Y, and Cybertruck, as well as an updated TuneIn player. Of course, there are new Cybertruck-specific features such as custom Cybertruck Wraps (don’t worry it’s coming to all models), a new Cyber Santa Mode, and Santa and Rainbow Road ambient lighting support.

Video of FSD V13.2.2

Here is our first look at FSD V13.2.2. While the release notes don’t point out any new features for FSD, it’s expected to include several unknown fixes and improvements.

Already on the Holiday Update?

If you’re already on Tesla’s Holiday update, version 2024.44.25.2, and you have a HW4 vehicle, then this version now qualifies you to receive FSD V13.2. We expect all HW4 vehicles with FSD to migrate to this version in the coming week or two.

Update 2024.45.25.5

FSD Supervised 13.2.2
Installed on 1.2% of fleet
101 Installs today
Last updated: Dec 22, 10:50 pm UTC

If you have HW3, then look out for a future update, including FSD v12.6.

FSD V12.6 for HW3 Soon

For Hardware 3 owners, FSD V12.6 is also right around the corner - it should be launching no later than the end of the year, according to Ashok. We’re expecting the new tech stack for highway driving, the updated speed profiles, including Hurry Mode, as well as improvements from V12.5.6 to land for HW3 soon.

If you’re excited about that, go read our in-depth look at V12.5.6 to see a preview of what you’ll be getting in V12.6.

We’re looking forward to seeing the demo drives of V13.2.2 from some of our usual influencers, but the good news is the update has already started rolling out to the general public, so expect larger waves soon.

Tesla Referral Code - Get Up to $2,000 Off a New Tesla

By Not a Tesla App Staff
Not a Tesla App

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Plus, if you take delivery by December 31st, you’ll also get 3 months of free Supercharging and Full Self-Driving (FSD).

Discount Per Model

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Free Supercharging and FSD

You must take delivery by December 31st, 2024 to qualify for the three months of FSD and free Supercharging. It’s not clear whether Tesla will offer these benefits starting January 1st.

Referral Codes

All referral codes will give you the same benefits. However, each one is limited to 10 uses, so if one hits the limit, try another one.

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