Tesla has dropped the prices of its electric vehicles (EVs) and its Full Self-Driving (FSD) software over the past few weeks, reigniting larger discussions about the automaker’s overall pricing strategy. In response to one person criticizing the frequency of Tesla’s price changes, Elon Musk has pointed to the dealership model, noting that most automakers change prices on their vehicles more regularly than consumers may realize.
On Friday, Tesla reduced the price of the Model S, X, and Y by $2,000, after the company cut the price of monthly FSD subscriptions in half earlier this month. On Saturday, Tesla also cut the price of the outright FSD purchase option, to which some consumers and shareholders responded with frustration.
Tesla’s pricing strategy comes down to one key difference from its competitors
Following the news, Omar of Whole Mars Blog noted that he finds Tesla’s pricing strategy incoherent, to which Sawyer Merritt noted that this was one of the rare downsides of the direct-to-consumer sales model, despite the extra pricing transparency.
“I think that if you had a monkey throw shit at a keyboard to come up with a pricing strategy for Tesla it would be more coherent than what we’ve seen,” Omar said on Sunday. “Subscription price will go up once we release FSD. Actually we will cut it. We are raising Model Y prices. Actually now we are lowering them.”
“It’s amusing to follow, but probably confusing to consumers. Should I buy FSD now because the price was cut? Or should I wait for the next FSD price cut and save thousands of dollars?”
In response, Musk noted that the dealership model doesn’t offer the same level of transparency that a direct-to-consumer model offers, with the MSRP on a car often being far from its actual price.
Other cars change prices constantly and often by wide margins via dealer markups and manufacturer/dealer incentives. Only a fool thinks the “MSRP” is the real price.
Tesla prices must change frequently in order to match production with demand.
— Elon Musk (@elonmusk) April 21, 2024
To be sure, last week’s Model S, X, and Y price cuts followed additional price cuts just a few weeks ago, which included the Model 3, and saw some vehicle prices dropping off by as much as $5,000.
Last year, following aggressive price cuts that sent shockwaves through the industry, Musk noted that Tesla would be opting for a high volume of vehicles delivered at slightly lower margins, especially given its future potential for revenue from software and services.
“We’ve taken a view that pushing for higher volumes and a larger fleet is the right choice here versus a lower volume and higher margin,” Musk said during the company’s Q1 2023 earnings call. “However, we expect our vehicles, over time, will be able to generate significant profit through autonomy.”
“So we do believe we’re like laying the groundwork here, and then it’s better to ship a large number of cars at a lower margin, and subsequently, harvest that margin in the future as we perfect autonomy. This is an extremely important point.”
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.
Elon Musk
Elon Musk reveals date of Tesla Robotaxi’s first rides open to public
Tesla CEO Elon Musk continues to roll out new details regarding the Robotaxi launch that is expected to happen soon.
Tesla Robotaxi is set to launch in the coming days, but the first rides will be confined to those who receive invitations that the company sends out. However, CEO Elon Musk revealed the date that Tesla is aiming for when anyone in the general public will be able to call for a Robotaxi.
There has been quite a bit of information today about what appears to be an imminent launch of the Robotaxi platform. The first video of a Robotaxi was captured on a public road in Austin today, just one day after Tesla was added to the City of Austin’s list of licensed autonomous vehicle operators.
First Tesla driverless robotaxi spotted in the wild in Austin, TX
In the coming days, it is expected that Tesla will launch the Robotaxi platform in Austin to a select few. For now, Tesla is taking this ultra-conservative approach as it pertains to the rollout, citing safety precautions. It will be the first time Tesla has done this in public and offered it to people outside of the company.
It did launch a small, limited version of it to employees last month in Austin and the San Francisco Bay Area, but there was someone in the driver’s seat. Today’s video only had an occupant in the passenger seat.
People are eager to know: when will they be able to fetch a driverless Tesla Model Y Robotaxi in Austin for themselves? Musk finally answered the long-awaited question with a tentative date of June 22:
🚨 BREAKING: Elon Musk confirms public Robotaxi rides will tentatively begin on June 22
Safety remains the ultimate priority for Tesla with this cautious rollout https://t.co/Mw5kOzA9Sm
— TESLARATI (@Teslarati) June 11, 2025
Musk cited that Tesla’s utmost priority is still safety and not necessarily the speed of rollout. The current plan seems to be to deploy it in a controlled and slow fashion until confidence is at an extremely high level. Musk seems to believe the rollout will go smoothly, as the date comes less than two weeks after the initial launch.
Anyone who has experienced Full Self-Driving for themselves knows what the cars are capable of. However, Tesla, at this point in time, still requires drivers to pay attention and remain ready to take over the wheel in case of an emergency. This will be a major step in the right direction for Tesla as it prepares to launch Robotaxi in Austin and slowly expand to surrounding areas.
Elon Musk
Elon Musk says Tesla Robotaxi launch will force companies to license Full Self-Driving
“The automakers keep being told that this isn’t real or that just buying some hardware from Nvidia will solve it. As Tesla robotaxis become widespread and their other solutions don’t work, they will naturally turn to us.”
Tesla CEO Elon Musk says the automaker’s Robotaxi platform launch later this month will essentially force other companies to license Full Self-Driving to achieve their own goals of achieving autonomy.
Musk’s statement comes as a video captured today showed the first Tesla Robotaxi test mules on public streets in Austin, Texas, just one day after the City officially listed the company as an autonomous vehicle operator.
A prediction by investing YouTube and Tesla community member Dave Lee stated that “at least one automaker by end of year” will license Full Self-Driving from the Musk-led company, as it will give rivals the confidence to use the software to run their own self-driving operations.
Lee detailed his theory by stating that the company that chooses to commit to FSD licensing will not be able to integrate the hardware and sell those units immediately. Instead, it will take two years or so to solve the engineering and design applications.
First Tesla driverless robotaxi spotted in the wild in Austin, TX
Musk revealed his true thoughts on other automakers’ attempts at vehicle autonomy, and said many are being told that Robotaxi is not real or that they can solve their problems with hardware orders to Nvidia.
He went on to say that companies will be forced to turn to Tesla at some point or another, because Robotaxi will be widespread and their solutions to figuring out an effective deployment will prove to be failures:
“The automakers keep being told that this isn’t real or that just buying some hardware from Nvidia will solve it. As Tesla robotaxis become widespread and their other solutions don’t work, they will naturally turn to us.”
The automakers keep being told that this isn’t real or that just buying some hardware from Nvidia will solve it.
As Tesla robotaxis become widespread and their other solutions don’t work, they will naturally turn to us.
— Elon Musk (@elonmusk) June 10, 2025
Musk has not been shy to respond to speculation regarding the video of the Robotaxi, which was shared on X earlier today. This is perhaps one of the more fiery things he revealed. He seems ultra-confident in what Tesla will prove and achieve in the near future with the launch of the Robotaxi platform.
Many believe it will be rolled out this month. Bloomberg reported recently that Tesla was internally aiming for June 12. The company has not directly responded to these rumors.
Tesla has discussed on several occasions that it is in talks with an automaker about licensing Full Self-Driving, but it has never revealed who. The company first revealed discussions with another automaker in early 2024 when Elon Musk said:
“We’re in conversations with one major automaker regarding licensing FSD. It really just becomes a case of having them use the same cameras and inference computer and licensing our software. Once it becomes obvious that if you don’t have this (FSD) in a car, nobody wants your car. It’s a smart car… The people don’t understand all cars will need to be smart cars, or you will not sell, or nobody would buy it. Once that becomes obvious, I think licensing becomes not optional.”
Tesla confirms it is in talks with major automaker for potential FSD licensing
Many, including us, suspected that Ford was the company that Tesla was speaking of due to Musk’s relationship with Jim Farley, which resulted in the legacy automaker being the first major car company to adopt Tesla’s North American Charging Standard (NACS), which gave them access to the Supercharging Network.
This catalyzed an onslaught of companies choosing to make the same move as Tesla had truly set itself apart in terms of charging infrastructure.
Companies may be forced to make a similar decision if it can make the same type of statement with the rollout of Robotaxi.
Elon Musk
Tesla CEO Elon Musk reveals new details about Robotaxi rollout
The first Tesla Robotaxi unit was spotted in Austin earlier today, and CEO Elon Musk is revealing some cool new details.
Tesla CEO Elon Musk has revealed new details about the company’s relatively imminent rollout of the Robotaxi platform as the suspected launch date of June 12 continues to near.
Earlier today, the first video showing the first driverless Tesla Robotaxi in Austin was shared on X, just a day after the City officially listed the company as an autonomous vehicle operator on its website. Tesla is listed as a company in the “Testing” phase.
🚨 BREAKING: The first Tesla Robotaxi has been spotted in Austin!
It’s has the word “Robotaxi” inscribed on the side, and it’s very clear that there is nobody in the driver’s seat.
It does appear that someone is in the passenger’s seat. https://t.co/6BdTfd4B8p pic.twitter.com/dygWCeQ5kZ
— TESLARATI (@Teslarati) June 10, 2025
The initial details of the Robotaxi are being revealed by Musk, who is carefully releasing small tidbits that seem to show the capabilities of the entire Tesla fleet, and not necessarily just the vehicles that will be involved in the initial rollout in Austin.
First Tesla driverless robotaxi spotted in the wild in Austin, TX
His first tidbit is one that many Tesla owners and fans will already know: many Teslas are capable of this driveless performance, but Full Self-Driving is not yet refined to the point where the software is quite ready to handle it. Current versions are robust, but not prepared for driverless navigation. The hardware, however, will enable Teslas to be Robotaxis, even if they’re already purchased by owners:
These are unmodified Tesla cars coming straight from the factory, meaning that every Tesla coming out of our factories is capable of unsupervised self-driving! https://t.co/n94ln0Uas6
— Elon Musk (@elonmusk) June 10, 2025
This is one of the biggest advantages Tesla has over other vehicle makers. Simply put, the Over-the-Air software updates that will roll out to FSD users will eventually make their cars into Robotaxis as well.
However, Musk shed some details on the version of FSD that is being run in these new Robotaxis that were spotted. Musk said that the version these Robotaxis are running is a new version, but will soon “merge to main branch.”
There is also an even newer version that has four times the parameters as this newer version that the test-stage Robotaxis are using, but Musk admits that this needs significant refinement before it is released to the public.
It’s a new version of software, but will merge to main branch soon.
We have a more advanced model in alpha stage that has ~4X the params, but still requires a lot of polishing.
That’s probably ready for deploy in a few months.
— Elon Musk (@elonmusk) June 10, 2025
As of now, Tesla is simply teasing the actual launch date of the Robotaxi program, but Bloomberg reported earlier this month that it will occur on June 12.
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