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Tesla adjusts Model 3 prices amid lowered $3,750 federal tax credit
To say that the past year has been monumental for Tesla is a gross understatement. By the end of 2018, the electric car maker had established itself as a leader in the premium EV market, and the Model 3, its most ambitious vehicle, continues to perform well. Seemingly as a means to ensure that the electric sedan remains competitive regardless of the phaseout of the $3,750 federal tax credit, Tesla has adjusted the prices of its Model 3 lineup.
With the recent price adjustments in place, the Mid Range Model 3 RWD — the most affordable version of the vehicle currently available — is now priced at $44,000 before incentives. This is $1,000 less than the vehicle’s introductory price of $45,000 and $2,000 less than the electric sedan’s $46,000 cost, which was in effect until the end of 2018. The most recent price adjustments also lowered the price of the Tesla Model 3 Performance to $62,000 before incentives. The Dual Motor AWD variant, on the other hand, is now priced at $51,000 before gas savings and the remaining $3,750 tax credit.
https://twitter.com/28delayslater/status/1080429285112979456
By adopting this pricing strategy, Tesla is all but ensuring that its customers would not feel the full brunt of the $7,500 federal tax credit’s phaseout. Had Tesla not rolled back its vehicles’ prices, the cost of the entire Model 3 line would increase by $3,750 after 2018 ended. With the current adjustments in place, though, $2,000 of the lost tax credit would practically be covered by Tesla. Thus, for all intents and purposes, it appears that the phaseout of the $7,500 federal tax credit only resulted in Tesla’s vehicles raising their total prices by about $1,750.
Such adjustments could be yet another strategy for Tesla to ensure that demand in the United States remains healthy despite the vehicle’s international rollout. A notable portion of the electric car’s remaining reservation holders in the US, after all, are likely waiting for the Model 3’s $35,000 base variant. So far, Tesla’s website notes that Model 3 equipped with a Standard Battery would be available in 4 to 6 months.
Tesla is yet to release its production and delivery figures for the fourth quarter of 2018, though estimates from the electric car community expect the automaker to deliver around 33,000 vehicles in December, of which about 24,500 were Model 3. Considering that Tesla reportedly hit a production rate of 1,000 Model 3 per day in Q4, and considering that the company was pushing deliveries until the end of the year, there is a good chance that the electric car maker has achieved yet another record-setting quarter.
The next 12 months would likely go down as Tesla’s most historic year yet. Apart from the international rollout of the Model 3, the company is also expected to unveil the Model Y SUV this year. Just like the Model 3, the Model Y is aimed at the mass market, and considering the industry’s preference for SUVs, expectations are high that demand for the Model Y would exceed even that of the electric sedan. This is not all, though, as Elon Musk has teased that the Tesla Truck might be unveiled in 2019, and initial production of its all-electric long hauler — the Semi — could enter its first phases sometime this year as well. Lastly, Tesla’s Energy products such as the Solar Roof, which also has a long line of reservation holders, is expected to ramp production in 2019.
Elon Musk
Elon Musk’s xAI gains first access to Saudi supercluster with 600k Nvidia GPUs
The facility will deploy roughly 600,000 Nvidia GPUs, making it one of the world’s most notable superclusters.
A Saudi-backed developer is moving forward with one of the world’s largest AI data centers, and Elon Musk’s xAI will be its first customer. The project, unveiled at the U.S.–Saudi Investment Forum in Washington, D.C., is being built by Humain, a company supported by Saudi Arabia’s Public Investment Fund.
The facility will deploy roughly 600,000 Nvidia GPUs, making it one of the world’s most notable superclusters.
xAI secures priority access
Nvidia CEO Jensen Huang stated that the planned data center marks a major leap not just for the region but for the global AI ecosystem as a whole. Huang joked about the sheer capacity of the build, emphasizing how unusual it is for a startup to receive infrastructure of such magnitude. The facility is designed to deliver 500 megawatts of Nvidia GPU power, placing it among the world’s largest AI-focused installations, as noted in a Benzinga report.
“We worked together to get this company started and off the ground and just got an incredible customer with Elon. Could you imagine a startup company, approximately $0 billion in revenues, now going to build a data center for Elon? 500 megawatts is gigantic. This company is off the charts right away,” Huang said.
Global Chipmakers Join Multi-Vendor Buildout To Enhance Compute Diversity
While Nvidia GPUs serve as the backbone of the first phase, Humain is preparing a diversified hardware stack. AMD will supply its Instinct MI450 accelerators, which could draw up to 1 gigawatt of power by 2030 as deployments ramp. Qualcomm will also contribute AI200 and AI250 data center processors, accounting for an additional 200 megawatts of compute capacity. Cisco will support the networking and infrastructure layer, helping knit the multi-chip architecture together.
Apart from confirming that xAI will be the upcoming supercluster’s first customer, Musk also joked about the rapid scaling needed to train increasingly large AI models. He joked that a theoretical expansion one thousand times larger of the upcoming supercluster “would be 8 bazillion, trillion dollars,” highlighting the playful exaggeration he often brings to discussions around extreme compute demand.
Elon Musk
Elon Musk debunks pay package and lip reader claims in double takedown
Musk’s quick debunks highlighted once more that X is an ideal platform for directly countering misinformation.
Elon Musk recently took to X to debunk some misinformation about his 2025 CEO performance award, as well as some comments he made during Donald Trump’s banquet in honor of Saudi Prince Mohammed bin Salman.
Musk’s quick debunks highlighted once more that X is an ideal platform for directly countering misinformation.
Musk’s pay package
Elon Musk’s 2025 CEO performance award was created as a path for him to gain a 25% stake in Tesla. It would also make him a trillionaire, provided that he manages to meet all of the performance award’s aggressive targets. This has not stopped critics from running with the apparent narrative that Musk will be getting the $1 trillion with utmost certainty, however.
This included the More Perfect Union account on X, which noted that “Elon Musk is set to make more than every U.S. elementary school teacher combined, according to the Washington Post.”
Musk responded to the pro-union amount’s post, highlighting that he has not earned any of his $2025 performance award so far. Musk also noted that those who believe he will be getting $1 trillion should invest in TSLA stock, as his compensation is tied to the company’s performance and growth. Investors who hold their TSLA until Musk achieves his full pay package would likely get notable returns.
Lip reader fail
Musk also debunked claims from the Daily Mail, which claimed that he made an “explosive” remark at Trump’s banquet for Saudi Prince Mohammed bin Salman. Citing observations from lip reader Nicola Hickling, the Mail claimed that Musk asked Pfizer CEO Albert Bourla, “What is your opinion, is he a terrorist?” The publication also posted a video of Musk allegedly making the risqué comment on X.
Musk proceeded to correct the publication, stating that the lip reader’s observations were fake. Instead of asking the Pfizer CEO if the Saudi Prince was a terrorist, Musk noted that he was asking the executive about cancer medicine. “False, I was asking about upcoming cancer drugs,” Musk wrote in a response on X.
Musk’s comments resulted in numerous critical responses to the Mail’s video, with some X users joking that the lip reader who analyzed the clip should probably get a visual acuity test, or a better training course on lip reading at least.
News
Tesla Diner to transition to full-service restaurant as Chef heads for new venture
“I am leaving the Tesla Diner project to focus on the opening of Mish, my long-desired Jewish deli. Projects like Mish and the Tesla Diner require a sharpness of focus and attention, and my focus and attention is now squarely on Mish.”
Tesla Diner, the all-in-one Supercharging and dining experience located in Los Angeles, will transition to a full-service restaurant in January, staff said, as Chef Eric Greenspan said he would take on a new project.
A report from the Los Angeles Times says Greenspan confirmed through a text that he would leave the Diner and focus on the opening of his new Jewish deli, Mish.
Greenspan confirmed to the paper:
“I am leaving the Tesla Diner project to focus on the opening of Mish, my long-desired Jewish deli. Projects like Mish and the Tesla Diner require a sharpness of focus and attention, and my focus and attention is now squarely on Mish.”
Greenspan took on the job at the Tesla Diner and curated the menu back in March, focusing on locally-sourced ingredients and items that would play on various company products, like Cybertruck-shaped boxes that hold burgers.
Tesla Cybertruck leftovers are the main course at the Supercharger Diner
The Tesla Diner has operated as somewhat of a self-serve establishment, where Tesla owners can order directly from their vehicles through the center touchscreen. It was not exclusive to Tesla owners. Guests could also enter and order at a counter, and pick up their food, before sitting at a booth or table.
However, the report indicates Tesla is planning to push it toward a sit-down restaurant, full of waiters, waitresses, and servers, all of which will come to a table after you are seated, take your order, and serve your food.
It will be more of a full-featured restaurant experience moving forward, which is an interesting move from the company, but it also sounds as if it could be testing for an expansion.
We know that Tesla is already considering expanding locations, as it will be heading to new areas of the country. CEO Elon Musk has said that Tesla will be considering locations in Palo Alto near the company’s Engineering HQ, and in Austin, where its HQ and Gigafactory Texas are located.
Musk said that the Diner has been very successful in its first few months of operation.
Elon Musk’s xAI gains first access to Saudi supercluster with 600k Nvidia GPUs
Elon Musk debunks pay package and lip reader claims in double takedown
