Tesla’s pricing strategy comes down to one key difference from its competitors, and as the automaker recently cut pricing for the fifth time this year, the method to its madness is being further examined.
Tesla’s most recent price cuts on Friday are a far cry from its most drastic, which came in January after the Model Y was discounted by $13,000, nearly 20 percent on some trim levels.
While legacy automakers are not prone to cut prices by that much, Barron’s notes in a recent article that substantial price cuts for these companies are usually $1,000, and not the $13,000 that Tesla is able to apply to its vehicles because of its dealership model:
“Tesla, of course, doesn’t have a traditional dealer network. It is both car maker and car dealer. That is one reason investors should expect more volatility from Tesla versus its competition. All of its discounts are visible. Dealer-related discounts rarely rise to become investor-level news.”
Tesla customers have a distinct advantage in terms of consumerism, as they avoid basically the most stressful part of car buying, and that’s pricing. All too often, people who are at dealerships to buy a car are stuck wondering if someone else bought the same model for a lesser price, if they should have haggled more, and if there was more negotiating to be done.
The direct-to-consumer model has changed this.
The dealership model is not the only reason for the price cuts, but it is one major influence. Legacy automakers like Ford and GM are often cutting prices to clear their lots, bringing new vehicles to their inventories, and generating revenue for the larger corporation.
The reasoning for Tesla’s massive price cuts all depends on who you ask. Some analysts will say it is to recapture market share, and Tesla has the ability to control prices to manipulate competitors and consumer interest in their products. Others will say it is to counter weakening demand, although Tesla’s delivery figures increase quarter-over-quarter regularly.
Tesla can almost utilize its price cuts as a PR campaign. Meanwhile, an example of a BMW iX being cut by $10,000 without the customer asking was told by auto analyst Mike Ward. These stories do not make it to the media.
Meanwhile, Tesla’s price cuts apply to everyone and these broad market adjustments make for mass exposure, showing the company reduces prices.
“I assume Tesla’s strategy is based on the assumption of customer retention,” Nicholas Colas of DataTrek said. “Car buyers are a notoriously fickle lot, with only about 50 percent brand loyalty at the next purchase. Maybe a new technology like EVs is different, with higher retention.”
Lower prices will impact Tesla’s margins, which are among the strongest in the industry. However, more important is the retention of its customer base and a growth in sales as it still is only delivering a fraction of what legacy automakers will this year, even if their figures count ICE vehicles.
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Tesla adjusts Robotaxi safety monitor strategy in Austin with new service area
The positioning of the driver, as well as the driver’s hands being closer to the steering wheel, is more similar to what Tesla is doing in the Bay Area Robotaxi program than it is to what it has done in Austin.
Tesla has adjusted its Robotaxi safety monitor strategy in Austin after it expanded its service area in the city last week for the third time.
Tesla has been operating its Robotaxi platform in Austin since June 22. The vehicles have been operated without a driver, but Tesla has placed safety monitors in the passenger’s seat as a precaution.
The safety monitors are responsible for performing any necessary interventions and maintaining a safe and comfortable cabin for riders as they experience Tesla’s first venture into the driverless ride-sharing space.
Last week, Tesla expanded its service area in Austin for the third time, expanding it from about 90 square miles to 170 square miles. The expansion included new territory, including the Austin-Bergstrom International Airport, Tesla’s Gigafactory Texas, and several freeways.
Tesla Robotaxi geofence expansion enters Plaid Mode and includes a surprise
The freeway is an area that is uncharted territory for the Tesla Robotaxi program, and this fact alone encouraged Tesla to switch up its safety monitor positioning for the time being.
For now, they will be riding in the driver’s seat when routes require freeway travel:
Sept 1 in Austin and our Robotaxi arrived with Tesla safety driver in the driver seat, similar to the Bay area (no logo on the car). Here’s that first moment when I realized, our autonomous car was heading onto the freeway. pic.twitter.com/1QfyN2Ubzf
— Gail 🇺🇸 (@gailalfaratx) September 2, 2025
The positioning of the driver, as well as the driver’s hands being closer to the steering wheel, is more similar to what Tesla is doing in the Bay Area Robotaxi program than it is to what it has done in Austin.
This is sure to draw criticism from skeptics, but it is simply a step to keep things controlled and safe while the first Robotaxi drives take passengers on the highway with this version of the Full Self-Driving software.
This FSD version differs from the one that customers have in their own vehicles, but CEO Elon Musk has indicated something big is coming soon. FSD v14 is coming to vehicles in the near future, and Musk has said its performance is pretty incredible.
Tesla’s Elon Musk shares optimistic teaser about FSD V14: “Feels sentient”
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Tesla has best month ever in Turkey with drastic spike in sales
Tesla managed to sell 8,730 Model Y vehicles in Turkey, outpacing almost every competitor by a substantial margin. Only one brand sold better than Tesla in August in Turkey, and it was Renault.
Tesla had its best monthly performance ever in Turkey in August, thanks to a drastic spike in sales.
Tesla saw an 86 percent bump in sales of the new Model Y in Turkey in August compared to July, dominating the market.
The performance was one of Tesla’s best in the market, and the company’s sales for the month accounted for half of all EV sales in Turkey for August, as it dominated and led BYD, which was the second-best-selling brand with just 1,639 units sold.
Tesla managed to sell 8,730 Model Y vehicles in Turkey, outpacing almost every competitor by a substantial margin. Only one brand sold better than Tesla in August in Turkey, and it was Renault.
Turkey reported 8,730 Tesla sales and 10.6% market share in August. BEV penetration is 21.3% and Tesla has 49.9% of this segment. 🇹🇷
• Market share is 558 basis points or 111% above the 3-month trailing average of 5.0%
• Tesla second best-selling brand
• Model Y best-selling… pic.twitter.com/qLhX7VQWXp— Roland Pircher (@piloly) September 2, 2025
Electric vehicles are, in some ways, more desirable than their gas counterparts in Turkey for several reasons. Most of the reasoning is financial.
First, EVs are subject to a lower Special Consumption Tax in Turkey. EVs can range from 25 percent to up to 170 percent, but this is less than the 70 to 220 percent rate that gas-powered vehicles can face. The tax is dependent on engine size.
Additionally, EVs are exempt from the annual Motor Vehicle Tax for the first ten years, providing consumers with a long-term ownership advantage. There are also credits that can amount to $30,000 in breaks, which makes them more accessible and brings down the cost of ownership.
Let’s not forget the other advantages that are felt regardless of country: cheaper fuel costs, reduced maintenance, and improved performance.
The base Model Y is the only configuration available in Turkey currently.
News
Tesla is upgrading airbag safety through a crazy software update
“This upgrade builds upon your vehicle’s superior crash protection by now using Tesla Vision to help offer some of the most cutting-edge airbag performance in the event of a frontal crash.”
Tesla is upgrading airbag safety through a crazy software update, which will utilize the company’s vision-first approach to enable better protection in the event of an accident.
Over the years, Tesla has gained an incredible reputation for prioritizing safety in its vehicles, with crash test ratings at the forefront of its engineers’ minds.
This has led to Tesla gaining numerous five-star safety ratings and awards related to safety. It is not just a statistical thing, either. In the real world, we’ve seen Teslas demonstrate some impressive examples of crash safety.
Everything from that glass roof not caving in when a tree falls on it to a Model Y surviving a drive off a cliff has been recorded.
However, Tesla is always looking to improve safety, and unlike most companies, it does not need a physical hardware update to do so. It can enhance features such as crash response and airbag performance through Over-the-Air software updates, which download automatically to the vehicle.
In Tesla’s 2025.32 Software Update, the company is rolling out a Frontal Airbag System Enhancement, which aims to use Tesla Vision, the company’s camera-based approach to self-driving, to keep occupants safe.
The release notes state (via NotaTeslaApp):
“This upgrade builds upon your vehicle’s superior crash protection by now using Tesla Vision to help offer some of the most cutting-edge airbag performance in the event of a frontal crash. Building on top of regulatory and industry crash testing, this release enables front airbags to begin to inflate and restrain occupants earlier, in a way that only Tesla’s integrated systems are capable of doing, making your car safer over time.”
The use of cameras to predict a better time to restrain occupants with seatbelts and inflate airbags prior to a collision is a fantastic way to prevent injuries and limit harm done to those in the vehicle.
The feature is currently limited to the Model Y.
Tesla adjusts Robotaxi safety monitor strategy in Austin with new service area
Tesla has best month ever in Turkey with drastic spike in sales
Tesla is upgrading airbag safety through a crazy software update
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