BMW and Volkswagen (VW) have announced massive price cuts in China, following the likes of 5 other automakers who are battling an initial price cut from Tesla late last year.
Tesla’s massive price cut in China has caused an avalanche of similar price adjustments from competing manufacturers attempting to keep up. This includes domestic Chinese brands like Xpeng and BYD and import brands like Ford, Nissan, and Toyota. Now, BMW and VW have also jumped into the mix, slashing prices on some of their most popular models.
As initially reported by CnEVPost, BMW’s price cut is by far the most significant of the adjustments seen in the market. The BMW i3 (not the same as the hatchback sold in western markets) has seen its price cut by 100,000 yuan ($14,623) to help combat the slide in sales the premium German automaker has seen. At the same time, VW has cut prices across the board by up to 40,000 yuan ($5,849), applying to ID.4, ID.6, and ID.3 vehicles in China. This follows an 8.5% decline in VW sales in the region during the first two months of the year compared to the same time in 2022.
VW has also cut its prices in Europe following the introduction of its newest generation ID.3.
The response from other brands has been similar, if not more extreme. On select models, Ford cut prices by as much as 40,000 yuan ($5,849), Nissan by as much as 60,000 yuan ($8,773), Toyota by as much as 30,000 yuan ($4,386), Xpeng by as much as 36,000 yuan ($5,264), and BYD by as much as 8,888 yuan ($1,299).
Ironically, Tesla is far from the price leader in electric vehicles, with numerous brands like BYD and NIO already offering substantially cheaper vehicles. But many analysts believe that Tesla’s more popular offerings attract buyers at multiple price brackets, hence the resulting adjustment from so many competitors.
Sadly, these same price adjustments have not been instituted outside the Chinese market with the same regularity. Despite a similar price adjustment from Tesla in the United States earlier this year, thus far, the only sizable adjustment has come from Ford. The same can be said for Europe, where, despite a slightly smaller discount, other brands have yet to respond as aggressively.
Tesla has shown a willingness to continue to cut prices in many markets, including China and the West, but it remains unclear how other manufacturers will react to the movement. With such a clear response from buyers in China, competitors had little choice but to battle the more popular offerings from Tesla, but the reaction in the West has not been as pronounced. However, with Tesla’s first-quarter delivery numbers expected to be announced shortly, consumer reaction to North American price adjustments may become more apparent.
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Elon Musk
First Tesla Cybercab rolls off Giga Texas production line
Tesla’s official account on X shared an image showing employees gathered around the first Cybercab built at Gigafactory Texas.
Tesla has produced the first Tesla Cybercab at Texas Gigafactory, marking a key milestone ahead of the planned autonomous two-seater’s production in April. The two-seat Robotaxi, which was unveiled in 2024, is designed without pedals or a steering wheel and represents Tesla’s most aggressive step yet toward fully autonomous mobility.
Tesla’s official account on X shared an image showing employees gathered around the first Cybercab built at Gigafactory Texas. Elon Musk echoed the milestone, writing, “Congratulations to the Tesla team on making the first production Cybercab!”
Previous comments from Musk on X reiterated the idea that production of the Cybercab “starts in April.” The vehicle will launch without traditional driver controls, and it will rely entirely on Tesla’s vision-based Full Self-Driving (FSD) system.
The Cybercab is positioned to compete with autonomous services such as Waymo. While Tesla has deployed Model Y vehicles in limited Robotaxi operations in Austin and the Bay Area, a serious ramp of the service to other cities across the United States is yet to be implemented. The production of the Cybercab could then be seen as a push towards the company’s autonomy plans.
Musk has linked the Cybercab to Tesla’s proposed “Unboxed” manufacturing process, which would assemble large vehicle modules separately before integrating them, rather than following a traditional production line. The approach is intended to cut costs, reduce factory footprint, and speed up output.
That being said, Elon Musk has set expectations for the Cybercab’s production ramp. As per Musk, it would likely take some time before meaningful volumes of the Cybercab are produced because it is such a new and different vehicle. But when the vehicle hits its pace, volumes will be notable.
“Initial production is always very slow and follows an S-curve. The speed of production ramp is inversely proportionate to how many new parts and steps there are. For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being insanely fast,” Musk noted.
Elon Musk
California city weighs banning Elon Musk companies like Tesla and SpaceX
A resolution draft titled, “Resolution Ending Engagement With Elon Musk-Controlled Companies and To Encourage CalPERS To Divest Stock In These Companies,” alleges that Musk “has engaged in business practices that are alleged to include violations of labor laws, environmental regulations, workplace safety standards, and regulatory noncompliance.”
A California City Council is planning to weigh whether it would adopt a resolution that would place a ban on its engagement with Elon Musk companies, like Tesla and SpaceX.
The City of Davis, California, will have its City Council weigh a new proposal that would adopt a resolution “to divest from companies owned and/or controlled by Elon Musk.”
This would include a divestment proposal to encourage CalPERS, the California Public Employees Retirement System, to divest from stock in any Musk company.
A resolution draft titled, “Resolution Ending Engagement With Elon Musk-Controlled Companies and To Encourage CalPERS To Divest Stock In These Companies,” alleges that Musk “has engaged in business practices that are alleged to include violations of labor laws, environmental regulations, workplace safety standards, and regulatory noncompliance.”
It claims that Musk “has used his influence and corporate platforms to promote political ideologies and activities that threaten democratic norms and institutions, including campaign finance activities that raise ethical and legal concerns.”
If adopted, Davis would bar the city from entering into any new contracts or purchasing agreements with any company owned or controlled by Elon Musk. It also says it will not consider utilizing Tesla Robotaxis.
Hotel owner tears down Tesla chargers in frustration over Musk’s politics
A staff report on the proposal claims there is “no immediate budgetary impact.” However, a move like this would only impact its residents, especially with Tesla, as the Supercharger Network is open to all electric vehicle manufacturers. It is also extremely reliable and widespread.
Regarding the divestment request to CalPERS, it would not be surprising to see the firm make the move. Although it voted against Musk’s compensation package last year, the firm has no issue continuing to make money off of Tesla’s performance on Wall Street.
The decision to avoid Musk companies will be considered this evening at the City Council meeting.
The report comes from Davis Vanguard.
It is no secret that Musk’s political involvement, especially during the most recent Presidential Election, ruffled some feathers. Other cities considered similar options, like the City of Baltimore, which “decided to go in another direction” after awarding Tesla a $5 million contract for a fleet of EVs for city employees.
News
Tesla launches new Model 3 financing deal with awesome savings
Tesla is now offering a 0.99% APR financing option for all new Model 3 orders in the United States, and it applies to all loan terms of up to 72 months.
Tesla has launched a new Model 3 financing deal in the United States that brings awesome savings. The deal looks to move more of the company’s mass-market sedan as it is the second-most popular vehicle Tesla offers, behind its sibling, the Model Y.
Tesla is now offering a 0.99% APR financing option for all new Model 3 orders in the United States, and it applies to all loan terms of up to 72 months.
It includes three Model 3 configurations, including the Model 3 Performance. The rate applies to:
- Model 3 Premium Rear-Wheel-Drive
- Model 3 Premium All-Wheel-Drive
- Model 3 Performance
The previous APR offer was 2.99%.
NEWS: Tesla has introduced 0.99% APR financing for all new Model 3 orders in the U.S. (applies to loan terms of up to 72 months).
This includes:
• Model 3 RWD
• Model 3 Premium RWD
• Model 3 Premium AWD
• Model 3 PerformanceTesla was previously offering 2.99% APR. pic.twitter.com/A1ZS25C9gM
— Sawyer Merritt (@SawyerMerritt) February 15, 2026
Tesla routinely utilizes low-interest offers to help move vehicles, especially as the rates can help get people to payments that are more comfortable with their monthly budgets. Along with other savings, like those on maintenance and gas, this is another way Tesla pushes savings to customers.
The company had offered a similar program in China on the Model 3 and Model Y vehicles, but it had ended on January 31.
The Model 3 was the second-best-selling electric vehicle in the United States in 2025, trailing only the Model Y. According to automotive data provided by Cox, Tesla sold 192,440 units last year of the all-electric sedan. The Model Y sold 357,528 units.
First Tesla Cybercab rolls off Giga Texas production line
California city weighs banning Elon Musk companies like Tesla and SpaceX
