Tesla sets many records, but it may have a new one - the quickest discontinuation of a model. Just two weeks ago, the company introduced the Standard Range Model S and Model X. Those have been dropped, but that is not the only thing that dropped. Instead of offering a less expensive version of the luxury models, Tesla drastically reduced the prices of the flagship vehicles.
New Pricing in the U.S. and Canada
The Model S Long Range is now priced at $74,990 USD, down from $88,490, a 15% reduction. The Model X Long Range is now available for $79,990 USD, down from $98,490, an 18.7% reduction. Similarly, in Canada, the Model S Long Range now costs $99,990 CAD, down from $121,990 CAD, an 18% reduction, and the Model X Long Range is priced at $109,990 CAD, down from $135,990 CAD, a 19% reduction.
The price changes have important implications in both Canada and the U.S. Notably, the price of the Model S LR is now under the luxury tax threshold in Canada, and in the U.S., the Model X LR now qualifies for the full $7,500 federal tax credit.
Free Color Options for Model S and Model X
All colors for the Model S and Model X are now free, including the premium Ultra Red. Tesla may be trying to remain under the threshold for the federal tax credit and possibly a push to incentivize customers to opt for the more eye-catching colors, which are arguably more deserving of the Model S and Model X’s flagship status.
Full Self-Driving Package Price Reduction
In addition to vehicle prices, the cost of Tesla’s Full Self-Driving (FSD) package has also been reduced. In the U.S., the FSD package now costs $12,000 USD, down from $15,000; in Canada, it is available for $16,000 CAD, down from $19,500 CAD.
The reason for the FSD price drop is unclear, as the software package has not changed the listed features. The FSD Transfer offer is also still available until September 30.
The price changes were not limited to just North America; X.com lit up all night with different prices popping up worldwide.
The global price changes indicate a strategic move by Tesla, possibly to boost sales, clear inventory, or remain dominant in the EV market worldwide. The stock price has not indicated any problems with the company's previous trajectory.
Whatever the reason, it is a welcomed change by prospective buyers. As Tesla continues to lead the EV market, these price adjustments not only make their technology more accessible.
Tesla’s been on a roll with Supercharger improvements lately, from the 325kW charging update for the Cybertruck, to 500kW with V4 Superchargers coming next year. While those improvements have been limited to the Cybertruck, Tesla didn’t put all their focus on their new flagship vehicle, but looked at their more affordable vehicles as well.
LFP Battery Heating
Tesla’s Superchargers can now heat LFP Batteries - those that are in the Model 3 and Model Y Rear Wheel Drive variants. This applies to Long Range and Standard Range models, which saw a limited run. This is another update included as part of the 2024 Tesla Holiday Update - which really arrived with a lot of unannounced new features and capabilities.
The change is pretty interesting - Superchargers of the V3 and V4 variety can now pre-heat batteries for Model 3 and Model Y vehicles equipped with LFP battery packs. That means those vehicles are able to get back on the road faster when it's extremely cold. Of course, Tesla still advises you to precondition before you arrive, saving drivers time and money.
Max de Zegher, Tesla’s Director of Charging, also commented on the new feature. Essentially, Tesla is inducing an AC (alternating) ripple current through the battery to warm it up. Keep in mind that Superchargers are DC charging. That means it is possible to get a cold-soaked LFP vehicle on the road 4x faster than before, assuming that it didn’t precondition at all and that it is in the worst-case scenario (below 0ºF).
In essence, Tesla is using some engineering magic to turn the circuits inside the LFP battery into an electric heater - and powering that heater through the Supercharger. An AC ripple current is a small oscillation in the DC charging current that generates heat through electrical resistance, warming up the battery. Those ripples are a byproduct of converting AC to DC and back - so Tesla is using the onboard charger to induce those ripples to warm up the battery. Definitely an innovative technique that’s really only possible with the versatility of the NACS connector.
We’re hoping Tesla can implement this across their full lineup of vehicles, but we’ll have to wait and see how it is trialed across LFP vehicles first and if it is even possible on vehicles with 2170 or 4680 battery packs.
Tesla launched two FSD updates simultaneously on Saturday night, and what’s most interesting is that they arrived on the same software version. We’ll dig into that a little later, but for now, there’s good news for everyone. For Hardware 3 owners, FSD V12.6.1 is launching to all vehicles, including the Model 3 and Model Y. For AI4 owners, FSD V13.2.4 is launching, starting with the Cybertruck.
FSD V13.2.4
A new V13 build is now rolling out to the Cybertruck and is expected to arrive for the rest of the AI4 fleet soon. However, this build seems to be focused on bug fixes. There are no changes to the release notes for the Cybertruck with this release, and it’s unlikely to feature any changes when it arrives on other vehicles.
FSD V12.6.1 builds upon V12.6, which is the latest FSD version for HW3 vehicles. While FSD V12.6 was only released for the redesigned Model S and Model X with HW3, FSD V12.6.1 is adding support for the Model 3 and Model Y.
While this is only a bug-fix release for users coming from FSD V12.6, it includes massive improvements for anyone coming from an older FSD version. Two of the biggest changes are the new end-to-end highway stack that now utilizes FSD V12 for highway driving and a redesigned controller that allows FSD to drive “V13” smooth.
It also adds speed profiles, earlier lane changes, and more. You can read our in-depth look at all the changes in FSD V12.6.
Same Update, Multiple FSD Builds
What’s interesting about this software version is that it “includes" two FSD updates, V12.6.1 for HW3 and V13.2.4 for HW4 vehicles. While this is interesting, it’s less special when you understand what’s happening under the hood.
The vehicle’s firmware and Autopilot firmware are actually completely separate. While a vehicle downloading a firmware update may look like a singular process, it’s actually performing several functions during this period. First, it downloads the vehicle’s firmware. Upon unpacking the update, it’s instructed which Autopilot/FSD firmware should be downloaded.
While the FSD firmware is separate, the vehicle can’t download any FSD update. The FSD version is hard-coded in the vehicle’s firmware that was just downloaded. This helps Tesla keep the infotainment and Autopilot firmware tightly coupled, leading to fewer issues.
What we’re seeing here is that HW3 vehicles are being told to download one FSD version, while HW4 vehicles are being told to download a different version.
While this is the first time Tesla has had two FSD versions tied to the same vehicle software version, the process hasn’t actually changed, and what we’re seeing won’t lead to faster FSD updates or the ability to download FSD separately. What we’re seeing is the direct result of the divergence of HW3 and HW4.
While HW3/4 remained basically on the same FSD version until recently, it is now necessary to deploy different versions for the two platforms. We expect this to be the norm going forward, where HW3 will be on a much different version of FSD than HW4. While each update may not include two different FSD versions going forward, we may see it occasionally, depending on which features Autopilot is dependent on.
Thanks to Greentheonly for helping us understand what happened with this release and for the insight into Tesla’s processes.
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