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Tesla Model 3 just became cheaper than Toyota Camry in California

Credit: Reddit | u/onthefrontlinegaming

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The Tesla Model 3 just became less expensive than the price of the Toyota Camry in California thanks to the company’s confirmation that each of the all-electric sedan’s trim levels qualifies for the full $7,500 tax credit.

Late last week, Tesla changed the language on its Model 3 Design Studio to reflect updated tax credit qualifications, indicating that all three configurations of the sedan qualified for the full tax credit amount.

Tesla adjusts Model 3 prices amid lowered $3,750 federal tax credit

Previously, only one variant, the Performance trim, qualified for the full amount, while the other two builds were only set to receive half, of $3,750, of the total credit.

The updated credit amount, when combined with local incentive amounts in some regions, like California, are helping Tesla vehicles reach price parity with gas cars. In some instances, they’re even undercutting the cost of some of the most popular sedans on the market in California, like the Toyota Camry.

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Reuters reported earlier today that the FuelEconomy.gov website has officially updated its website to reflect the new Model 3 tax credit qualifications, which are enabled through the use of domestic battery packs in the vehicles. Previously, the lower two configurations of the Model 3 used batteries built in China.

When the Model 3’s Rear-Wheel-Drive trim level is purchased at its sticker price of $40,240, the federal tax credit of $7,500 and the California tax rebate of $7,500, brings the price down to $25,240, which undercuts the cost of the Camry, which is listed at $26,320 in its entry-level configuration.

While other automakers are saying that price parity won’t come until the end of the decade, Tesla has seemingly already reached it with certain trim levels.

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Ford CEO Farley gives bold prediction regarding EV price parity with gas cars

The inclusion of the Model 3 receiving the full tax credit across the board is not only a huge disadvantage to competing EV makers, but also to the big petrol companies that have yet to source their vehicles completely from domestic regions that can’t offer comparable prices due to lack of scalability.

Tesla’s lead continues to grow with developments like this, and it is only a wonder of how long it will take for other companies to catch up.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Starlink to launch on United Airlines planes by May 15

Select United Airlines passengers will get free Starlink internet, with 200+ Mbps speeds. Early testers streamed MLB & live news with ease.

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(Credit: United Airlines)

Starlink will launch on United Airlines planes by May 15, 2025, providing select passengers with free internet inflight.

Recently, Sean Cudahy from The Points Guy tried out United Airlines’ free Starlink Wi-Fi. The airline invited a few media to try out Starlink Aviation Wi-Fi before its official launch.

According to Cudahy, connecting to Starlink was easy. All he had to do was take out his phone and connect to the Unitedwifi.com network, which took him to a landing page. Once he clicked “get started” on the landing page, it opened the United mobile app on his phone.

The United app verified Cudahy’s status as a MileagePlus member. After that, all he had to do was click on “connect,” and he was all set. Starlink’s speed was reliable and just what passengers would need on a long flight.

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“I ran a speed test, and it clocked the Wi-Fi at 217 Mbps of download speed, and 26.8 Mbps of upload speed,” noted Cudahy.

Cudahy added that connection to Starlink Wi-Fi on his other devices, like his tablet, was easier. All he had to do was scan a QR code on his phone from his tablet.

“United certainly isn’t exaggerating on the speed of the service: I was able to simultaneously watch a live news feed about the selection of a new Pope on one device, and stream a live Major League Baseball game on another,” The Points Guy noted in his review of Starlink Aviation.

United Airlines is offering Starlink services for free to MileagePlus members. Based on Cudahy’s experience, it’s best to download the United mobile app before your flight.

United Airlines expects to equip all 300 of its Embraer 175 planes with Starlink by the end of the year. It plans to install 40 regional jets with Starlink equipment every month.

Last month, the Federal Aviation Administration (FAA) approved United Airlines’ Starlink-equipped planes. United plans to roll out Starlink Wi-Fi across all its flights. It is currently working to receive FAA approval to install Starlink equipment on over 16 aircraft models.

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Ark Invest sees potential in xAI as the world adopts more AI models

Ark’s new stake in xAI bets on Musk’s future plans. Will the newly merged companies deliver the next AI breakthrough?

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Credit: x.AI

Ark Invest reinvested in X Corp in Q1 2025 through its Ark Venture Fund, which converted into a position in xAI, Elon Musk’s artificial intelligence company.

In March, xAI acquired X, intertwining the two companies’ futures. The stock merger values xAI at $80 billion and X at $33 billion. After xAI acquired X, Elon Musk noted that the combined company would unlock “immense potential.” Ark Invest believes in Musk’s vision for xAI and X Corp.

“…the deal created a new combined entity called XAI Holdings Corp., a strategic union that integrates xAI’s cutting-edge foundational models with X’s massive user base of over 600 million strong to unlock a platform that blends real-time communication with AI-enhanced discovery, truth-seeking, and personalized knowledge delivery.

“We believe this merger will be a significant catalyst for consumer AI adoption and foundational model monetization,” Ark noted.

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Musk is reportedly planning a valuation adjustment for xAI. CNBC’s David Faber noted in April that Musk hinted at a new funding round for his artificial intelligence startup during an investor call.

The merger supports Musk’s vision to transform X into an “everything app,” where people can communicate, make monetary transactions, catch up on news, and more. xAI is already working on providing financial services. It recently partnered with TWG Global and Palantir to integrate AI with financial services.

In addition, XAI Holdings also has X Money, a payment system that could rival Venmo, Zelle, and Apple Pay. X Corp. secured a Visa partnership in January and money-transmitter licenses in 42 states, including California, in September 2024.

X Money faces opposition in New York from Manhattan Democrats Assemblymember Micah Lasher and state Sen. Brad Hoylman-Sigal, who sent a letter Monday to the state’s Department of Financial Services, urging rejection of X Corp.’s money-transmitter license. The lawmakers cited Musk’s leadership as a risk to consumer data and financial infrastructure.

Ark’s investment in xAI underscores confidence in its AI-driven future, amplified by the XAI Holdings merger. As xAI leverages X’s platform to scale AI innovation, Ark’s stake positions it to benefit from a transformative shift in consumer AI and fintech, despite ongoing challenges.

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Starlink Direct to Cell to boost remote businesses in Chile

Entel teams up with Starlink Direct to Cell to power SMEs & industries in Chile’s remote regions. Remote businesses get a major tech upgrade.

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(Credit: SpaceX)

Entel will provide Starlink Direct to Cell services to businesses in Chile and Peru, boosting connectivity in underserved regions.

Entel is Chile’s leading telecommunications provider. Its strategic collaboration leverages Starlink’s Direct to Cell service by offering advanced internet solutions to small and medium-sized enterprises (SMEs) and large corporations.

The partnership targets industries like mining, agriculture, and forestry, which often face connectivity challenges in remote areas. By tapping into Starlink’s low-latency satellite constellation, Entel aims to bridge these gaps, driving innovation and competitiveness.

The collaboration with Entel follows Starlink’s April expansion in Brazil, where its internet was integrated into John Deere’s agricultural equipment. Through its mobile app, Starlink provided Brazilian farmers with live video feeds, sensor data, and real-time sharing.

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Entel’s Starlink Direct to Cell service includes value-added features such as 24/7 network monitoring, proactive management, and dedicated technical support. An observability feature will allow businesses to track real-time connectivity performance through web or mobile applications, enhancing operational efficiency.

The service’s accessibility to SMEs is a key focus. Starlink Direct to Cell is expected to empower small businesses to engage in e-commerce, improve customer communication, and expand digital operations.

Starlink’s Direct to Cell expansion into Peru underscores Entel’s regional ambitions, positioning it as a leader in Latin America’s business connectivity landscape. While details of the Peruvian rollout remain forthcoming, the move aligns with the region’s post-COVID-19 economic recovery. Reliable internet is critical for businesses to adopt cloud-based technologies and access global markets.

Starlink’s growing influence in Latin America highlights its role in transforming connectivity for underserved areas. Entel’s partnership strengthens its portfolio and helps businesses navigate a digital economy. As industries in Chile and Peru leverage Starlink’s capabilities, the collaboration could set a precedent for regional telecom providers, fostering innovation and economic growth across diverse sectors.

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