Tesla has now applied similar price cuts across Europe
Tesla
Tesla continues to make waves in the electric vehicle market as it slashes prices for its cars in Europe, Israel, and Singapore. The price cuts follow similar moves in the US last week, putting immense pressure on competitors and making EVs increasingly affordable for consumers. Tesla's high margins and expanding global production facilities allow it to take bold steps.
Aggressive Price Cuts Put Pressure on Competitors
The recent price cuts have affected multiple countries' Model 3 and Model Y lineups. In Germany, for example, the Model 3 price was reduced by €2,000 (4.5%) to €41,990, while the Long Range version now costs €50,990, and the Performance version has seen a 9.8% reduction to €54,990. The Model Y Performance price was reduced by 9.2% to €60,990.
Singapore has witnessed price cuts ranging from 4.3% to 5% for Model 3 and Model Y vehicles. Israeli customers were pleasantly surprised as the base Model 3 with rear-wheel drive saw an impressive 25% reduction in price after multiple cuts since January 2023.
High Margins and Expanding Production Facilities Fuel Price Reductions
The Hong Kong Economic Times also reported that Tesla plans to slash prices for Model 3 and Model Y in China. The Model 3 Performance is expected to receive a 14.7% price reduction, the Long Range version an 11% cut, and Model Y prices to be reduced by about 9%.
These price cuts are both a good and bad sign for Tesla. On the one hand, it allows the company to move existing inventory and reach more price-sensitive customers. On the other hand, analysts argue that these reductions may affect Tesla's margins.
Tesla's Unique Pricing Strategy Boosts Market Share and Demand
Tesla's aggressive pricing strategy is a unique opportunity for the company to increase market share and demand for its vehicles. Unlike legacy automakers that operate through a dealership model, Tesla can control prices at the executive level, giving it an edge in the competitive EV market.
As Tesla continues to expand its production facilities globally and improve the production capacity of its Model 3 and Model Y vehicles, consumers can expect more price adjustments and growing pressure on Tesla's competitors.
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Tesla’s Safety Score is used to help determine an owner’s insurance premiums under Tesla Insurance. It attempts to evaluate how safely the vehicle is driven by taking into account several metrics such as harsh braking, turning too fast, and speeding.
Tesla has continuously improved its Safety Score program by adding new metrics or improving existing ones. Tesla is notably transparent about the specific factors that contribute to your Safety Score and, by extension, how insurance premiums are calculated.
With the launch of Safety Score V2.2, Tesla has introduced updates to how Excessive Speeding is factored into your score and removed the controversial Forward Collision Warnings (FCW).
While excessive speeding has been part of the scoring system since March 2024, it has primarily contributed to Tesla’s internal calculations for premium generation. The latest version improves how Tesla determines speeding and its weight into the Safety Score.
Improved Excessive Speeding
The latest version of Safety Score now measures Excessive Speeding as a proportion of the time you spend driving over 85 mph, or when you’re speeding relative to the vehicles in front of you.
This could affect how your score is impacted while overtaking slower drivers—we’ll have to wait and see how this plays out for Tesla Insurance users, and whether rates will rise, fall, or stay steady in the coming months.
Forward Collision Warning
While Tesla didn’t call out changes to Forward Collision Warnings in its Safety Score v2.2 update, it appears that Tesla is no longer using FCWs as a metric in Safety Score, at least in some regions.
Tesla’s Forward Collision Warnings are a helpful feature in Tesla vehicles since they can alert drivers when a vehicle stops suddenly in front of them. However, they can sometimes have false positives, which isn’t a huge deal… unless they’re affecting your insurance premium. While FCWs have been included in Tesla’s Safety Score since its inception, it has often been a controversial metric due to false positives.
With the release of Safety Score v2.2, Tesla has now removed FCWs as part of the Safety Score, and drivers will no longer be penalized when a vehicle stops suddenly in front of them. However, Unsafe Following, an existing Safety Score metric that is defined as “proportion of following time spent at an unsafe following distance,” is still a part of Tesla’s Safety Score.
According to Tesla, this update is designed to offer a more accurate reflection of future collision risk, using insights from over 23 billion miles of real-world driving data. New Safety Scores will begin to reflect these changes as the update rolls out. However, any impact on premiums won’t take effect until next month—so your current premium is safe for now.
It’s worth noting that in California, Safety Score doesn’t affect your insurance rate at all. In those cases, Tesla includes it strictly for educational purposes. But in states where it does apply, it will directly influence what you pay.
Due to constant improvements involving real-world data and billions of miles, Tesla’s Safety Score is a unique and fairly accurate way of assessing safe driving. Unlike traditional insurers—some of which rely on basic smartphone acceleration data—Tesla is able to calculate your score based on nuanced, vehicle-level data and real-time driving conditions. While it isn’t perfect, it gives a clear edge in measuring how you actually drive.
We’re still hoping to see Tesla Insurance expand to more states. Progress has slowed recently, even after the company brought on a former GEICO executive whose main mission is to broaden the program’s reach.
Tesla has just opened up their Early Access Program, which we found out about just a few days ago - to FSD owners and subscribers in the United States. This new Early Access Program will offer regular owners the ability to get early FSD updates before they get widely released.
Early Access
Tesla has begun to slowly roll out a pop-up (and button) in the Tesla app, offering users the ability to enroll in the FSD (Supervised) Early Access Program in the United States. This update is rolling out slowly, so don’t be surprised if you don’t have it yet.
For now, this program appears to be limited to the United States. Users in Canada and Mexico, even those with existing Early Access, have not yet received an invite to the program.
Once you join the Early Access Program, at the very bottom of your app, where your VIN and software version normally appear, you’ll see a new “Early Access” link. Tapping this will show your status as a member of the Early Access program and also offers you the opportunity to leave the program if so desired.
The bottom Early Access Button
Sawyer Merritt
How to Get In?
To be offered the program, you must own an AI4/Hardware 4 vehicle with FSD, either purchased or actively subscribed. Unfortunately, HW3 owners are not receiving this right now.
A pop-up will be displayed in your Tesla app once you get selected to join the program. If you dismiss the pop-up in a hurry, don’t worry. The ability to join Early Access stays as in the image below, and you can join the program at any time.
Ending your subscription while part of Early Access means your vehicle will be removed from the program.
In exchange for receiving early builds of FSD, Tesla will increase the amount of data, video, and audio gathered from your vehicle, and the data will be VIN-associated, meaning less privacy and anonymity for users.
Any software updates or release notes you receive, both in-vehicle and in-app, will be watermarked with your vehicle's VIN. Tesla has been watermarking employee release notes since June of 2024 to reduce leaks, and this new Early Access program appears to follow a similar format, even though it is more widespread.
A watermarked release note.
@BrianX2023 on X
Cautions
Of course, earlier FSD builds are usually less stable and potentially less safe than wide release, so it’s important to remain more vigilant during FSD’s use. If anyone else uses the vehicle, make sure they’re also aware of the situation.
On the flip side, this is really exciting for many Tesla owners. Tesla’s Early Access program has normally been limited to employees and influencers, so it’s awesome to see regular owners getting an opportunity to get in on all the fun of testing out Tesla’s latest FSD functionality.
This new Early Access program could also mean that Tesla has a new level of confidence in future builds, where it’s now willing to make them available to more users. It could also have to do with Tesla’s FSD Unsupervised ambitions, where they may need more data than was already collected in order to successfully launch their Robotaxi this June.
