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%

Tesla Intel Atom (MCU 2) and AMD Ryzen (MCU 3): Feature Differences and How to Tell What You Have

By Karan Singh
DirtyTesla

Tesla vehicles are equipped with two main computer systems: the MCU (Media Control Unit), which is responsible for entertainment and display functions, and the Autopilot/FSD Unit, often referred to as the FSD Computer.

Both of these systems have evolved over the years, and they’re commonly referred to by their generation. For example, MCU 2 refers to the second generation of the Media Control Unit. Similarly, the FSD computer is identified by its generation, often called Hardware 3 or Hardware 4, when referring to the third and fourth-generation hardware. More recently, Tesla has started referring to the FSD Computer as AI3 and AI4, but you’ll still hear the older terms used interchangeably.

These two systems are separate and they’re not upgraded at the same time, meaning it’s possible to have a vehicle with MCU 2 and FSD Hardware 3 or MCU 3 with Hardware 3. Some vehicles even feature MCU 1 alongside Hardware 3.

The MCU is not involved with Autopilot or FSD functions—it’s purely for infotainment and in-vehicle features such as vehicle visualization, gaming, maps, and entertainment. It doesn’t impact the capabilities or limitations of Tesla’s autonomous driving systems.

MCU 1 - NVIDIA Tegra 3

MCU 1 was the first media control unit to be introduced in Tesla vehicles, starting back in 2012. This system was used in the Model S and Model X until about April 2018, when Tesla began transitioning to MCU 2.

By the time the Model 3 launched in late 2017, it already included MCU 2. To keep legacy vehicles up to date, Tesla offers an infotainment retrofit that upgrades MCU 1 to MCU 2, which helps make the infotainment unit much more responsive and adds a variety of newer features. Tesla continues to support vehicles with MCU 1, although upgrades are much further apart. In 2024, Tesla added Automatic Emergency Braking (AEB) improvements to vehicles with MCU 1 and even support for FSD V12.3.6 (FSD HW3 required).

Period Offered: 2012 through April 2018

Upgrade: Available as a paid upgrade for Model S and Model X vehicles to go from MCU 1 to MCU 2.

MCU 2 - Intel Atom

The launch of the Model 3 introduced MCU 2, which ran on Intel’s Atom mobile processor. While the Intel Atom was capable at the time, it’s now considered outdated compared to modern standards. As Tesla continues to roll out new features, the limitations of the Atom processor have become more apparent.

There is a notable list of features that are unavailable to vehicles with MCU 2. Although Tesla has optimized software to improve compatibility, not all features have been made accessible to these vehicles.

Period Offered: MCU 2 was offered in 2017 (Model 3) through 2022 (availability differs based on region and model).

Upgrade: As of now, Tesla has not offered an upgrade path or retrofit to transition from MCU 2 to MCU 3, and they’re unlikely to do so.

MCU 3 - AMD Ryzen

In December 2021, Tesla began shipping vehicles with MCU 3, powered by AMD’s Ryzen processor. The first vehicles to feature MCU 3 were the refreshed Model S and Model X, which debuted in 2021. Shortly after, Model 3s and Model Ys were also equipped with MCU 3, and today, all Tesla vehicles, including the Cybertruck, come standard with MCU 3.

This MCU is now the most widely used on the road and is Tesla’s most advanced infotainment processor. It supports impressive 3D visualizations, allows improved gaming on the center touchscreen (and rear screens in equipped vehicles), and offers a host of other capabilities. MCU 3 is also the most feature-complete version, with new features being designed for it first and then backported to MCU 2 or MCU 1 when possible.

Period Offered: The first MCU 3 vehicles were released in December 2021 and is current through today.

Upgrade: MCU 3 is the most current infotainment unit that Tesla offers.

Features Missing on MCU 2 (Intel Atom)

High-fidelity park assist is limited to vehicles with MCU 3
High-fidelity park assist is limited to vehicles with MCU 3
Not a Tesla App

While Tesla does its best to continue to support MCU 2, there is a growing difference between the features available on a vehicle with an Intel Atom infotainment unit and one with the AMD Ryzen processor.

Feature

MCU 2

MCU 3

Games / Arcade

⚠️ Limited Games*

✅ Additional Games**

Parked View

⚠️ Split screen visualization with vehicle on left and map on right

✅ Full-screen Parked Viz - Shadows, Sun Reflections, Shadows

Vehicle Visualizations 

⚠️ Some limitations, such as non-transparent glass

✅ Improved visualizations

Full-Screen FSD Visualization

⚠️ Only Available in North America

✅ Available in All Regions

Zoom Meetings

❌ Not Available

✅ Available

High Fidelity Park Assist

⚠️ Top-Down Visualization Only

✅ Full 3D Visualization

Autopark Visualizations (video)

⚠️ Top-Down Visualization Only

✅ 3D Visualization

Improved UI for Display Modules - Media, Next Turn, Trip Planner

⚠️ Solid Color/Semi-Transparent

✅ Transparency + Background Blur for Display Modules

*Many recent game additions are available to MCU 3 only, including the ever-popular Vampire Survivors and Castle Doombad. Only certain Model S and Model X vehicles include a GPU and the ability to play games on Steam.

**Atari Games were removed from MCU 3 vehicles due to Emulator Licensing issues.

How to Tell - Intel or AMD

Identifying which MCU your vehicle has is straightforward. Simply go to Vehicle Options > Software > Additional Vehicle Information.

In the interface, you’ll find details about whether your vehicle is equipped with an Intel Atom (MCU 2) or AMD Ryzen processor (MCU 3).

MCU 4?

It’s been more than three years since Tesla introduced the AMD Ryzen-powered MCU. Despite advancements, including the transition from FSD Hardware 3 to AI4—and eventually AI5—there’s been no indication of an MCU 4 on the horizon.

The Ryzen processor’s impressive capabilities make it a solid choice for infotainment, and it’s well-suited to serve until there’s another big leap in CPU performance.

While Tesla will upgrade to MCU 4 at some point, it doesn’t seem imminent. Some may argue that Tesla transitioned to MCU 3 too late, leaving vehicles just a few years old feeling outdated. It’s possible Tesla might choose to introduce MCU 4 ahead of the need for more processing power, ensuring that older vehicles can continue to benefit from new software features in the future.

Tesla Expected to Add Turn Signal Stalk Back to Model 3

By Karan Singh
Not a Tesla App

Following the surprising return of the turn signal stalk on the refreshed Model Y, reliable Tesla source Chris Zheng has indicated that the Model 3 will also be receiving a turn stalk. While it initially seems surprising, Tesla mentioned that after receiving lots of customer feedback, there is a lot of demand for the return of the stalk.

For those who appreciate the newer turn signal buttons on vehicles like the Cybertruck, this might come as a surprise. However, the Model 3 and Model Y are designed for the average driver transitioning from a traditional vehicle, making the removal of the turn signal stalk an unexpected and potentially disappointing change.

Turn Stalk

In a conversation during the latest episode of Jay Leno’s Garage, Tesla’s VP of Vehicle Engineering, Lars Moravy, mentioned that Tesla works to remove superfluous parts. In this case, they removed one part too many - and are now bringing back the turn signal stalk.

The updated stalk on the refreshed Model Y is a simplified version of the current Model Y stalk. It doesn’t include multi-stage turn signals (short three flashes versus staying), buttons, or other features. Pure and simple - it is utilized for signaling left and right. The rest of the functions of a traditional stalk remain either on the wheel or on the screen.

Lack of Right ‘Shifter’ Stalk

Tesla has no intent to bring back the right stalk, which is traditionally used to shift the vehicle from Drive to Reverse and Park in Teslas. It’s also used to activate Autopilot. The shifting functionality will remain on-screen or available via the backup by tapping the buttons on the ceiling near the hazards button. Shifting via the dash is intuitive and convenient once you get used to it - and with AutoShift hopefully coming out of Beta sometime soon, this could get even better.

Autopilot activation will remain with a button on the steering wheel. While a vehicle with a single stalk may look a little odd at first, Lars mentioned that Tesla didn’t receive many complaints about shifting or Autopilot use.

Retrofit

Not a Tesla App

We haven’t heard anything about retrofitting the 2024+ Model 3s with the turn signal stalk at this point. However, we imagine this may be a possibility in the future.

However, we can recommend using the wireless Enhauto’s S3XY Stalks if you want to bring a single or dual stalks back to your refreshed Model 3 and don’t want to wait for an official retrofit to arrive. They’re easy to install, well-designed, and reliable.

Other Models

The big question now is: will Tesla bring back the turn signal stalk for its other models? It’s possible, but we doubt it. The Model S and Model X, especially with the Yoke, feel more natural without a stalk, and the button-based signals suit their design. While a stalk might occasionally be useful—like signaling in and out of a roundabout—any future refresh of the S or X would likely include steer-by-wire instead.

On the Cybertruck, the absence of a stalk goes unnoticed, thanks to steer-by-wire, as the squircle steering wheel is never in an awkward position. After thousands of kilometers of daily driving, including plenty of roundabouts, the author can confidently say the signal stalk isn’t missed at all. In fact, the turn signal buttons feel more intuitive, given how the Cybertruck handles.

That said, could Tesla offer signal stalks as an option for those who prefer them? It’s not out of the question. We’ll keep you updated, but in the meantime, let us know—do you prefer turn signal buttons or a traditional stalk?

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