In an interview with CNBC, Elon Musk laid out his argument against the idea that Tesla has an affordability problem.
One of the oddest and most unique criticisms that Tesla receives from skeptics is that its vehicles are far too expensive. And further, despite the automaker’s consistent efforts to make its vehicles increasingly more affordable, this stereotype seems deep-rooted for many consumers. Now, Tesla CEO Elon Musk has addressed this criticism during an interview on CNBC following the shareholder meeting yesterday.
Elon Musk argued against the idea of the Tesla affordability problem in a segment of his interview with David Faber of CNBC. The discussion was held immediately after the shareholder meeting yesterday, and segments have been subsequently posted to Twitter by the broadcaster.
“A lot of people still think Teslas are super expensive…but now we’re at the point where the starting point of a Tesla is actually below the average selling price of a car in the United States,” Elon Musk said Tuesday after Tesla’s shareholder meeting. https://t.co/HDj69iAFmA pic.twitter.com/cDNnAUTR9R
— CNBC (@CNBC) May 16, 2023
Besides the main argument from Musk that the starting price of both the Model 3 and Model Y now fall below the average car purchase price in the United States, the CEO also proudly pointed out that the entry-level Model 3 is cheaper to own than a similarly priced Toyota Camry; a car well known for its practicality and affordability. Musk’s affordability argument fed into a broader point that Tesla will begin advertising its vehicles to help dispel common myths and consumer concerns.
Luckily for buyers, Tesla is continuing to work to make its vehicles increasingly more affordable, most recently evidenced by the company’s wave of price cuts, but also by rumors of a lower-priced “Model 2” currently in development. With a price tag supposedly below $30,000, the new Tesla model could be the perfect offering for pinnacle affordability, though it remains unclear when the vehicle will become available.
Elon Musk addressed multiple other concerns and ideas fielded by Tesla investors during yesterday’s shareholder meeting, most notably including the idea of advertising, which the automaker now plans to employ. Further, the CEO laid out his economic forecast, noting that troubles in the world market could cause upheaval in the auto industry in the not-too-distant future.
What do you think of the article? Do you have any comments, questions, or concerns? Shoot me an email at william@teslarati.com. You can also reach me on Twitter @WilliamWritin. If you have news tips, email us at tips@teslarati.com!
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Tesla pushes crazy ‘Luxe’ incentive package on flagship Model S and X
Tesla is pushing more customers to the Model S and Model X with a new incentive package.

Tesla has pushed a crazy new incentive package, known as the “Luxe Package,” on the flagship Model S and Model X, along with a $10,000 price increase on each trim level.
The move aims to likely bolster margins for the company on the two cars while also giving those who choose to buy the Tesla lineup mainstays a variety of awesome advantages, including Free Supercharging, Full Self-Driving, and other add-ons.
Tesla is offering a crazy Supercharging incentive on its two ‘sentimental’ vehicles
Last night, Tesla launched the “Luxe Package” for the Model S and Model X, which includes the following four add-ons:
- Full Self-Driving (Supervised) – Your car will be able to drive itself almost anywhere with minimal driver intervention
- Four-Year Premium Service – Wheel and Tire Protection, Windshield Protection, and Recommended Maintenance
- Supercharging – Charge for free at 70,000+ Superchargers worldwide
- Premium Connectivity – Listen to music, stream movies, monitor live traffic, and more – no Wi-Fi needed
Full Self-Driving is priced at $8,000. Free Supercharging for the life of the car is between $10,000 and $15,000 over the life of the vehicle, although Tesla has valued it at $5,000 in recent promotions.
Free Premium Connectivity is roughly $1,000, and the four-year tire, wheel, windshield, and maintenance plan is about $3,200.
🚨 Tesla increased the price of both the Model S and Model X by $10,000, but both vehicles now include the “Luxe Package,” which includes:
-Full Self-Driving
-Four years of included maintenance, tire and wheel repairs, and windshield repairs/replacements
-Free lifetime… pic.twitter.com/LKv7rXruml— TESLARATI (@Teslarati) August 16, 2025
In all, the value is over $25,000, but this is loosely based on usage.
The Model S and Model X are low contributors to Tesla’s overall sales figures, as they make up less than five percent of sales from a quarterly perspective and have for some time.
As they are certainly the luxury choices in Tesla’s lineup, the Model 3 and Model Y are the bigger focus for the company, as a significantly larger portion of the company’s sales is made up of those vehicles.
The Luxe Package is an especially good idea for those who drive high-mileage and plan to use the Model S or Model X for commuting or long drives. The free Supercharging makes the deal worth it on its own.
As for the price bumps, each of the vehicles are now priced as follows:
- Model S All-Wheel-Drive: $94,990
- Model S Plaid: $109,990
- Model X All-Wheel-Drive: $99,990
- Model X Plaid: $114,990
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Tesla Roadster could have a formidable competitor with BYD’s 3000-HP supercar
The Roadster is one of the most anticipated vehicles of all time, especially because we’ve all had to wait so long for it. On its own, it will have a 1.9-second 0-60 MPH acceleration rate, which is projected to be better than the 2.3 seconds the U9 Track Edition will offer.

The Tesla Roadster is on the way, and yes, we know we’ve heard that for quite a few years. But when it comes, it might have a formidable competitor, and it might come from no one other than Chinese rival BYD.
BYD’s Yangwang U9 Track Edition is a new configuration of the U9 supercar that hit the Chinese Ministry of Information Technology (MIIT) database recently.
The vehicle was first spotted on the MIIT database by CarNewsChina. It will have a quad-motor powertrain, each dedicated to one wheel. Instead of the 1,287 horsepower that comes with the standard U9 configuration, the Track Edition will have 2,977.
There are only two cars that even come close in terms of horsepower: the Lotus Evija with 1,972 and the Rimac Nevera at 1,914 horsepower. The Tesla Roadster is expected to have somewhere around 1,000 horsepower.
The Roadster is one of the most anticipated vehicles of all time, especially because we’ve all had to wait so long for it. On its own, it will have a 1.9-second 0-60 MPH acceleration rate (without the SpaceX package, which brings the projection to 1.1 seconds), which is projected to be better than the 2.3 seconds the U9 Track Edition will offer.
The Roadster also beats the U9 Track Edition in projected top speed and range. The Roadster could top out at over 250 MPH, compared to the 217 conservative projection for the U9 Track Edition.
Range on the Roadster is 620 miles, beating 280 miles for the BYD.
- Credit: BYD
- Credit: BYD
The U9 Track Edition will also have some additional features compared to its base model. These include some aerodynamic additions, like a carbon fiber rear wing, diffuser, and an adjustable front splitter and adjustable rear wing.
The latter two are optional, but if you have enough scratch to drop on this car, you’re probably adding those two features as well.
We hope that both the Roadster and U9 Track Edition will hit a drag strip, road course, or even a superspeedway for some racing. It would truly be something for EV fans to drool over.
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Tesla is breaking even its own rules to cap off an intense Q3
Tesla is pulling out all the stops to have a strong Q3 as the EV tax credit will phase out.

Tesla is breaking its own rules by advertising on various platforms in an effort to sell as many cars as possible before the end of the $7,500 electric vehicle tax credit.
Tesla has had a very polarizing perspective on advertising. Over the years, it has taken on different attitudes toward spending any money on marketing. It has instead put those dollars into research and development to make its vehicles more advanced.
Back in 2019, Tesla CEO Elon Musk talked about the company advertising its vehicles and energy products:
Tesla does not advertise or pay for endorsements. Instead, we use that money to make the product great. https://t.co/SsrfOq1Xyc
— Elon Musk (@elonmusk) May 19, 2019
In 2021, in response to analyst Gary Black, who has pushed for Tesla to have a PR or marketing department, Musk said:
Other companies spend money on advertising & manipulating public opinion, Tesla focuses on the product.
I trust the people.
— Elon Musk (@elonmusk) April 27, 2021
However, this did not hold as Tesla’s strategy for the long haul. While Musk did resist advertising for a long time, Tesla started placing ads on platforms like X, Google, and YouTube several years back. It’s pretty rare that Tesla pushes these ads, however.
Tesla launches advertising on X in the U.S., expanding ‘small scale’ strategy outlined by Musk
The company’s stance on setting aside capital for advertising seems to be circumstantial. Right now, it is working to sell as many vehicles as it can before the tax credit comes to a close.
As a result, it is pushing some ads on YouTube:
$TSLA is starting to advertise on YouTube. pic.twitter.com/1cwO2KNzJm
— Cole Grinde (@GrindeOptions) August 15, 2025
It’s a move that makes sense considering the timing. With just six weeks roughly left in the quarter, Tesla is going to work tirelessly to push as many cars into customer hands as possible. It will use every ounce of effort to get its products on people’s screens.
Tesla counters jab at lack of advertising with perfect response
Throw in one of the many incentives it is offering currently, and there will surely be some takers.
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