News
Questions About Model X Pricing Continue To Swirl
Elon Musk spoke about Model X pricing at a Vanity Fair conference on October 7. He said a less expensive model would begin at around $75,000 next year.
Just when we thought we finally had a handle on the actual base price of a Model X, Elon Musk has gone ahead and created more reason for speculation. Let’s review.
Elon Musk tweeted last week that a Model X will cost $5,000 more than a Model S when both cars are configured the same. Since the Model S 70D is listed at $75,000 on the company website, Musk’s tweet should mean an identically equipped Model X will sell for $80,000.
But Musk attended a conference hosted by Vanity Fair on October 7, where he spoke about Model X pricing and told the audience, “We’ll have a more affordable version out next year that will start at around $75,000 before incentives, about $65,000 after.” Wait. Does this mean there might be a price reduction of $5,000 on a similarly equipped base Model S 70D in the near future?
Clearly, the redoubtable and peripatetic Mr. Musk knows things that we do not. And once again, his tweets may say more than perhaps they should. Just recently, he tweeted that a less expensive version of the Model X featuring a battery that would be “something like a 70” would be available some time in 2016.
Last month, Jefferies analyst Dan Dolev predicted the cost of Tesla batteries could fall by as much as 50% when the GigaFactory gets into full production in the second half of 2016. He justified his prediction based on the company “using a more efficient lithium-rich nickel cobalt manganese cathode, doubling the percentage of silicon in the synthetic graphene anode, replacing the liquid electrolyte with an ionic gel electrolyte which eliminates the need for a separator, and using a water-based electrode solvent for the cathode.”
If we combine Dolev’s prediction with Musk’s most recent statement, it’s possible to conclude that by the time all the Model X cars promised to reservation holders get built, the basic battery may be larger than 70 kWh, and with a starting price far less than what it is today. That could also suggest the entry level Model S may benefit from a larger battery and a lower price a year from now.
Elon’s pronouncements are always cryptic. About all we can say for sure is that 2016 is shaping up to be a pivotal year for the company with lots of improvements and the possibility of lower prices in the offing.
Energy
Tesla meets Giga New York’s Buffalo job target amid political pressures
Giga New York reported more than 3,460 statewide jobs at the end of 2025, meeting the benchmark tied to its dollar-a-year lease.
Tesla has surpassed its job commitments at Giga New York in Buffalo, easing pressure from lawmakers who threatened the company with fines, subsidy clawbacks, and dealership license revocations last year.
The company reported more than 3,460 statewide jobs at the end of 2025, meeting the benchmark tied to its dollar-a-year lease at the state-built facility.
As per an employment report reviewed by local media, Tesla employed 2,399 full-time workers at Gigafactory New York and 1,060 additional employees across the state at the end of 2025. Part-time roles pushed the total headcount of Tesla’s New York staff above the 3,460-job target.
The gains stemmed in part from a new Long Island service center, a Buffalo warehouse, and additional showrooms in White Plains and Staten Island. Tesla also said it has invested $350 million in supercomputing infrastructure at the site and has begun manufacturing solar panels.
Empire State Development CEO Hope Knight said the agency was “very happy” with Giga New York’s progress, as noted in a WXXI report. The current lease runs through 2029, and negotiations over updated terms have included potential adjustments to job requirements and future rent payments.
Some lawmakers remain skeptical, however. Assemblymember Pat Burke questioned whether the reported job figures have been fully verified. State Sen. Patricia Fahy has also continued to sponsor legislation that would revoke Tesla’s company-owned dealership licenses in New York. John Kaehny of Reinvent Albany has argued that the project has not delivered the manufacturing impact originally promised as well.
Knight, for her part, maintained that Empire State Development has been making the best of a difficult situation.
“(Empire State Development) has tried to make the best of a very difficult situation. There hasn’t been another use that has come forward that would replace this one, and so to the extent that we’re in this place, the fact that 2,000 families at (Giga New York) are being supported through the activity of this employer. It’s the best that we can have happen,” the CEO noted.
News
Tesla avoids California sales suspension after DMV review
The agency confirmed Tuesday that Tesla has taken “corrective action.”
Tesla will not face a 30-day sales suspension in California after the state’s Department of Motor Vehicles (DMV) stated that the company has come into compliance regarding the marketing of its automated-driving features.
The agency confirmed Tuesday that Tesla has taken “corrective action” following a prior ruling over how it promoted Autopilot and Full Self-Driving (FSD), as noted in a Bloomberg News report.
The California DMV had previously given Tesla 90 days to address concerns that were raised by an administrative judge. Regulators had alleged that Tesla overstated the capabilities of its driver-assist systems, which were branded as Autopilot and Full Self-Driving.
A potential 30-day suspension of vehicle sales in California was on the table if Tesla had failed to comply. On Tuesday, however, the DMV stated that Tesla had met the requirements to avoid that penalty, though it did not provide detailed specifics about the changes that were made.
That being said, Tesla did discontinue its standalone Autopilot product in January and has ramped the marketing of its most advanced driver-assistance package available to consumers today, Full Self Driving (Supervised). From its naming, FSD (Supervised) clearly emphasizes that the system, despite its advanced features, still requires driver attention.
Following reports of a potential sales ban in California, Tesla clarified the matter on X, stating that the issue “was a ‘consumer protection’ order about the use of the term ‘Autopilot’ in a case where not one single customer came forward to say there’s a problem.” Tesla also noted that “Sales in California will continue uninterrupted.”
Tesla has not issued a comment about the matter as of writing.
Elon Musk
Elon Musk confirms Tesla Cybercab pricing and consumer release date
Elon Musk has confirmed that Tesla does intend to sell a version of the Cybercab for less than $30,000 by 2027.
Elon Musk has confirmed that Tesla does intend to sell a version of the Cybercab for less than $30,000 by 2027. He shared the update in a post on social media platform X.
Amidst Tesla’s announcement that the first Cybercab has been produced at Giga Texas’ production line, some members of the Tesla community immediately started joking about how the milestone will affect a wager shared by popular YouTube tech reviewer Marques Brownlee (MKBHD.)
Following Tesla’s We, Robot event in October 2024, MKBHD noted that while the Cybercab was impressive in a lot of ways, he is very skeptical about Elon Musk’s estimate that the autonomous two-seater could be sold to consumers for below $30,000 around 2027.
“I think the obvious red flag, the biggest red flag to me is the timeline stuff. This is notorious Elon stuff. He gets on stage, he says we’re going to have this vehicle out for $30,000 before 2027,” he said, adding “No, they’re not. There’s just no way that they’re actually going to be able to do that. I mean, if they do, let’s say they do, I will shave my head on camera because I’m that confident.”
It was then no surprise that meme images of MKBHD with his head shaved immediately spread on X following Tesla’s announcement that the first Cybercab has been built at Giga Texas. One of these, which was posted by longtime FSD tester Whole Mars Catalog, received a response from Elon Musk. The CEO responded with the words “Gonna happen,” together with a laughing emoji.
Apart from riding jokes about MKBHD’s wager, Musk also confirmed that Tesla will be selling a Cybercab to regular consumers before 2027, and the vehicle will be priced for $30,000 or less. In response to an X user who asked if the exact scenario will be happening, Musk responded with a simple “Yes.”
While the first Cybercab has been produced at Giga Texas, it would not be surprising if the following months will only see low volumes of the autonomous two seater being produced. As per Elon Musk in previous comments, the Cybercab’s early production will likely be slow, but it will eventually be extremely fast. “For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being insanely fast,” he said.
