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Tesla’s battery supply constraint is ending, price parity with gas cars is at hand
Tesla’s Semi is coming, and it will be here sooner than expected. But the production of the vehicle could be pointing to one thing: Tesla is no longer battery constrained.
Past the face value portion of the story, something much bigger is happening. While the Semi entering a “volume production” phase is big news, the development of the commercial vehicle comes at a time where battery production for Tesla seems to be the main focus of the electric automaker.
In Q3 2019, CEO Elon Musk indicated that a shortage of battery cells primarily drove the Semi’s delay. If Tesla wanted to start producing the Semi, the company would have to make cells available for it. That would mean one thing: cutting back on cells utilized for Tesla’s mass-market vehicles, which at the time was the Model 3.
Building the Semi before a sufficient battery production and supply chain was established would have been detrimental to the company’s long-term plans. Of course, the Model 3 has been Tesla’s most popular vehicle since it started deliveries in 2017. Its affordability has helped Tesla reach a new market, which was all apart of Elon’s original Master Plan.
With the Model Y now being produced in Fremont, Tesla now has two mass-market vehicles that are affordable by a vast segment of the population. Ultimately, this means that Tesla needed to levy a majority of its available lithium-ion cells for the Model 3 and Model Y. Unfortunately, the Semi just was not a priority over those two cars. Why would it be? The Model 3 (and Model Y now) are Tesla’s two top sellers. Therefore, the battery needs pointed toward the 3 and the Y, with Semi production being dependent on the availability of battery cells.
If we think about Musk’s statement from Q3, he indicated that the Semi production would be based on when Tesla could manufacture the appropriate amount of lithium-ion batteries to power the Class 8 vehicle. Although demand for the 3 and the Y continues to increase, so is Tesla’s production rate, and it could be indicative that the Silicon Valley-based electric car maker is pumping out enough batteries to produce all of its vehicles without any worries of possible cell shortages.
Ultimately, this idea could lead to another significant development in the EV world as a whole, and that is price parity.
For a long time, analysts have pinpointed the electric vehicle movement’s price parity at $100/kWh for battery cell production. This means that when cells are produced at a high enough rate, batteries will be lower in cost. Then, electric cars will be the same price as gas-powered machines, making the argument of “EVs are too expensive” obsolete.
The Tesla Model 3 Performance utilizes a 75 kWh battery pack. If battery production is at $120/kWh, this would mean that the Model 3 Performance’s battery pack costs $9,000 to produce. The car’s $54,990 price tag, hypothetically at $120 per kWh, is made up of a battery pack that costs about $9,000.
If Tesla could produce batteries at a high enough rate where the cost per kWh could come down to $100, the battery pack would only cost $7,500 to build, meaning an additional $1,500 comes off the price of the vehicle altogether. Tesla’s goal is to produce enough battery cells to justify this pricing point for its cars. Also, $100/kWh is just the price parity point, and not where the cost will ultimately end up. If demand continues to increase and battery cell production keeps growing, the cost could get even lower.
If Tesla has enough batteries to justify producing mass quantities of the Model 3 and Model Y, along with the sizable battery packs of the Semi, parity could be coming sooner than expected. Most analysts indicated 2023 as the year when battery production would be on a level where EV prices could compete with their petrol-powered counterparts.
However, if the Semi is ready for a production run now, Tesla may have enough cells to introduce a more affordable pricing model for its vehicles. This could, in turn, lead to even higher production numbers, increased demand, and a sharp increase in the company’s delivery numbers.
The announcement of the Tesla Semi meant much more than the company producing its commercial vehicle. It means batteries are no longer in restricted amounts, the technology is improving, and the prices of the company’s vehicles could be coming down soon. With this, it appears that Elon Musk’s endgame with his Master Plan may be getting closer to reality.
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Tesla rival’s CEO makes shock suggestion to customers about Model Y
“The Model Y is a great car, and Tesla also announced a number of promotions yesterday, so you might want to consider it.”

Tesla rival Xiaomi is experiencing demand that is off-the-charts with its new YU7 crossover, which competes with the Model Y. The company’s CEO has stated that demand is truly outpacing what it can build, and that customers in limbo should consider the Model Y because “it’s a great car.”
The Xiaomi YU7 has already gained an incredible number of orders so far. Its launch a few months ago had consumers busting down doors to place an order before others, and demand has been so high that customers will wait, on average, between 56 and 59 weeks for delivery.
Within 18 hours, Xiaomi received about 240,000 orders, CarScoops reported. Some customers are truly interested in the vehicle, but cannot wait the extended period to take delivery as they might need a car now.
Xiaomi CEO Lei Jun said on social meida that there are other cars out there that would be suitable as a replacement to the YU7:
“If you need to buy a car quickly, other China-produced new energy vehicles are pretty good.”
He explicitly mentioned the Model Y, Xpeng G7, and Li Auto i8.
Regarding the Model Y, he said:
“The Model Y is a great car, and Tesla also announced a number of promotions yesterday, so you might want to consider it.”
The Model Y has been the best-selling car in the world over the past two years, and it still leads in many markets as the most sought-after EV. However, in China, there are so many formidable competitors that customers are seemingly going for whatever they can get to first.
Of course, a car is a car, but Tesla has gained a more notable reputation for its industry-leading tech and driver assistance systems, including City Autopilot, which has been used in China for a few months now.
Tesla China owners share first impressions of FSD-style “City Autopilot”
News
Tesla offers tasty Supercharging incentive as Q3 push continues

Tesla is offering a tasty Supercharging incentive on inventory Model 3 units in Canada as it continues to push sales in the third quarter.
In the United States, Tesla is preparing for the end of the $7,500 electric vehicle tax credit. While it is offering a multitude of incentives in the U.S. to help push sales of its vehicles before the credit goes away, it is not saving the deals for Americans exclusively.
Yesterday, the company announced it is now offering Free Supercharging for life on all Model 3 inventory in Canada, a massive incentive for those who would use the vehicle as a daily driver:
Unlimited road trips through Canada
Free Supercharging now on all Model 3 inventory 🇨🇦
— Tesla North America (@tesla_na) August 15, 2025
The deal would normally only apply to Superchargers located in Canada, meaning if a Canadian drove over the border into the United States and Supercharged, they would have to pay for it.
However, Tesla also confirmed that the charging deal would extend to the U.S. Canadians will be able to drive across the U.S. and Supercharge for free for the life of the vehicle.
Free Supercharging is such a great perk because the money an owner saves on charging factors directly into what they are saving if they were to own a gas car. While Supercharging and home charging are, on average, cheaper than filling up with gas, the savings are not massive.
When Supercharging is free, it can save consumers hundreds of dollars per month, especially if they plan to use the Tesla for their daily commute. Some people could fill their gas cars up two times a week to get to work, spending $80-$100 every five days on gas.
Tesla has been using incentives like this to push vehicles into customers’ hands. Q3 could be one of the best three-month spans in recent memory with the push it is making.
News
Tesla is preparing to take on autonomy’s final boss
India’s city streets are notorious for their complexity and congestion.

If there is any sign that Tesla is now confident about its self-driving program, it would be this. As could be seen on Tesla’s Careers page, the company is now hiring Autopilot Vehicle Operators in Delhi and Mumbai, India.
As far as real-world traffic is concerned, one could argue that India’s city streets are the final boss of autonomous driving systems due to their complexity and congestion.
Tesla job openings
As per Tesla in its recent job openings, Prototype Vehicle Operators will be responsible for driving an engineering vehicle for extended periods and conducting dynamic audio and camera data collection for testing and training purposes. In both its job listings for Mumbai and Delhi, Tesla noted that successful applicants will be gathering real-world data on the weekends and around the clock.
Considering the job openings in India, Tesla seems to be intent on rolling out its advanced driver-assist systems like FSD in the country. This is quite interesting, as Tesla is not hiring Prototype Vehicle Operators in other territories that recently launched, such as the Philippines. Perhaps Tesla intends to tackle FSD’s final boss of sorts before rolling out FSD in other territories.
FSD’s rollout
Tesla’s autonomous driving program uses the company’s Full Self-Driving system, which is currently available on vehicles in North America and China. Tesla, however, has a more advanced version of FSD called Unsupervised FSD, which is currently being used in vehicles that are part of the Robotaxi pilot in Austin and the Bay Area.
Elon Musk has also recently announced on X that Tesla will be releasing FSD V14 in the coming weeks. He also shared a number of improvements that can be expected from FSD V14. “The FSD release in about 6 weeks will be a dramatic gain with a 10X higher parameter count and many other improvements. It’s going through training & testing now. Once we confirm real-world safety of FSD 14, which we think will be amazing, the car will nag you much less,” Musk wrote in his post.
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