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Tesla’s aggressive pricing strategy was explained by Elon Musk last month

(Credit: Tesla)

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There’s no denying that Tesla’s new pricing strategy is aggressive. In recent days, the electric vehicle community has witnessed Tesla practically go for its competitors’ jugular by giving its current vehicle lineup significantly lower starting prices. This was quite evident with the Tesla Model Y, which received notable price reductions across the globe. 

While Tesla executives such as Tesla China VP Grace Tao have remarked that the company’s pricing strategies have so far not been driven by the momentum of competitors, it’s difficult to argue against the notion that the EV maker now has some legitimate rivals. This is especially the case in China, where companies like BYD are seemingly putting pressure on vehicles like the Tesla Model 3. 

Interestingly enough, Tesla CEO Elon Musk actually provided an early explanation about the company’s new pricing strategy last month. During an appearance at a Twitter Spaces session, Musk explained that he would like to push Tesla’s rapid growth even if it meant that the company’s profits would take a hit. The CEO noted that long term, such a strategy would likely be proven correct. 

“‘Do you want to grow unit volume, in which case, you have to adjust prices downward, or do you want to grow at a lower rate or go steady? That’s sort of the choice there. My inclination would be to still grow. My bias would be to say like, ‘Okay, let’s grow fast as we can without putting the company at risk,’ which would mean that in that scenario, profits would be low to negative during a recession. Provided the cash position is okay, I think that’s still the right move long term,” Musk said

Elon Musk’s comments about Tesla’s cash position are quite notable. Over the years, Tesla has been growing its war chest, and during the third quarter of 2022, the company saw a $2.2 billion increase in its cash and marketable securities. With this amount added, Tesla’s cash and marketable securities reached $21.1 billion at the end of the third quarter. This was driven mainly by Tesla’s free cash flow of $3.3 billion, and offset partly by debt repayments of $900 million. 

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More importantly, Tesla’s Q3 2022 Update Letter also highlighted that the company has “sufficient liquidity to fund our product roadmap, long-term capacity expansion plans, and other expenses.” This bodes well for Tesla in the coming years, especially considering the company’s increasingly ambitious goals, such as hitting 20 million vehicles per year by the end of the decade.

Elon Musk’s full Twitter Spaces session can be viewed here.

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla reportedly places large order for robot parts, hinting that Optimus V3 design is all but finalized

Tesla has reportedly placed a large order of linear actuators for humanoid robots from a Chinese supplier.

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Credit: Tesla

Tesla might have all but finalized the design for its Optimus V3 humanoid robot, at least if rumors from China prove accurate. As per recent reports, Tesla has reportedly placed a large order of linear actuators for humanoid robots from a Chinese supplier, with deliveries expected sometime in the first quarter of 2026.

The volume of orders suggested by the reports from China suggests that the components will not just be used for Optimus prototypes.

The rumor

As noted in a report from Sina News, media outlets across China have recently reported that Tesla has placed a $685 million (5 billion RMB) order for linear actuators from Sanhua Intelligent Controls. The components will reportedly be used for the production of Optimus, which will likely be mass-produced in its V3 iteration. The reports claimed that the delivery of the actuators will likely start sometime in the first quarter of 2026. 

Industry watchers have estimated that such a volume would be enough for about 180,000 Optimus robots. This suggests that while Tesla might not be able to start the initial production of its humanoid robots this year, the electric vehicle maker might be able to hit the ground running with its Optimus production next year. And as hinted at by Elon Musk’s comments on X, Tesla seems to be preparing to produce Optimus V3 en masse.

Company comments

The reports of Tesla’s alleged actuator orders have resulted in Sanhua Intelligent Controls’ stock rising. Interestingly enough, a Tesla China representative has stated that “no official information about this order that could be disseminated externally.” A representative from Sanhua, on the other hand, simply stated that the company’s robotics business is progressing smoothly, but they could not comment on market rumors. 

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While these reports are rumors for now, there are some optimistic hints that Tesla might have all but finalized the design for Optimus V3, and the company might be looking to start the robot’s production. For one, Sanhua is already a Tesla supplier, providing components for the company’s electric cars. A report from The Information also alleged that Tesla is no longer looking to produce 5,000 Optimus robots in 2025. This was reportedly due to challenges in the robot’s hands.

If Tesla is really starting to order large volumes of components for Optimus’ production, it would suggest that the company might have overcome the challenges it was facing with the humanoid robot earlier this year. It would then not be farfetched if Tesla were able to start the initial production of Optimus V3 next year.

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Tesla eyes two new states for Robotaxi

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Credit: @TerrapinTerpene/X

Tesla has officially shown that it is eyeing two new states for Robotaxi operation in the U.S., as it hopes to add the new areas to its ever-growing list of places where the suite is either active or in the testing phase.

Tesla first launched its Robotaxi suite in Austin, Texas, in late June. It expanded the suite to the San Francisco Bay Area just a month later. Since then, it has not launched any public rides in any other states, but it has gained several approvals for early testing.

Tesla officially launches Robotaxi service with no driver

In preparation for operation in new states, Tesla routinely lists job postings on its Careers website, which helps align potential employees with opportunities ahead of regulatory approvals. This is a strategy that allows Tesla to start operations immediately upon licensing for testing.

Tesla started hiring Vehicle Operators for Autopilot in Arizona and Nevada months before the company gained any sort of approvals from state governments for Robotaxi. However, those approvals eventually came in the form of testing licenses, which allow the company to perform validation ahead of its public launch.

Tesla begins validating Robotaxi in a new area, hinting at expansion

Now, Tesla has posted job listings for Vehicle Operators for Autopilot in two new states: Colorado and Illinois. The Colorado job listing is located in Aurora, a suburb of Denver. Tesla is looking for Robotaxi operators in Chicago as well.

These postings hint toward Tesla’s continuing efforts to expand Robotaxi to new places. Earlier this year, CEO Elon Musk said the company would like to have Robotaxi available to at least half of the U.S. population.

It has expanded significantly since its initial launch in late June, but it is still a far way off from where Tesla would like it to be by year’s end.

So far, Tesla has job listings for Autopilot Vehicle Operators in Arizona, California, Texas, Florida, Colorado, Nevada, and Illinois.

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Tesla launched an ad for Elon Musk’s pay package on Paramount+

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Credit: Tesla

Tesla’s advertising strategy has taken a drastic turn as the company’s upcoming Shareholder Meeting will feature perhaps the most crucial vote in its history: the approval of CEO Elon Musk’s new pay package.

For years, the issue of Tesla’s advertising and marketing strategy has been a major point of conversation for investors in fans. It seems to be split right down the middle, with half wanting Tesla to set aside some money for advertising. The other half, just the opposite.

Tesla has been transparent that the money it would spend on advertising, marketing, and public relations is better set aside for the development of future products.

However, it has recently adopted a different tone in advertising, pushing some commercials on social media platforms like X and Instagram.

For the first time, an ad was seen on streaming services like Paramount+, but it wasn’t promoting Tesla’s products directly. Instead, it was more of a message for shareholders to vote on Musk’s pay package, something Tesla feels is a necessity:

“The future of Tesla is in your hands,” the ad reads at the end. It seems as if Tesla is taking whatever steps it needs to accomplish the task of getting Musk a new pay package and retaining him as its CEO.

On September 5, Tesla officially outlined its plans for a CEO Performance Award for Musk. It would require him to lift Tesla’s market capitalization to about $8.5 trillion, up from the $1.36 trillion it sits at today.

Elon Musk’s new pay plan ties trillionaire status to Tesla’s $8.5 trillion valuation

It is obvious that Tesla is really hoping to get the pay package passed and is willing to shift some of its budget to encourage shareholders to vote.

However, there are some interesting perspectives on the move, and it’s sort of strange to see Tesla not advertising its vehicles or products, but only its pay package that would get its CEO paid.

Some of those who saw the ad are questioning the strategy:

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