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Tesla China denies rumor that EV orders are lower than expected after price cuts

Credit: Terry橙小曦 via Tesla Asia/Twitter

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Tesla China has denied local reports claiming that orders for its vehicles have been lower than expected despite last month’s price cuts. The statements come amidst rumors that the electric vehicle maker is considering another set of price reductions for the Made-in-China Model 3 and Model Y as a means to boost interest in the vehicles. 

Tesla China initiated a serious round of price reductions for the domestically produced Model 3 sedan and Model Y crossover last month, effectively bringing the cost of the vehicle’s base variants into the range of the country’s new energy vehicle (NEV) purchase incentive, which is expected to expire at the end of the year. 

A number of additional perks were introduced by Tesla China to encourage customers to purchase its vehicles. Discounts for inventory cars that are delivered by the end of the year were rolled out, and a dedicated Referral Program was also launched. 

Citing sources familiar with the matter, local news outlet Huxiu recently claimed that Tesla China’s vehicle orders have fallen short of expectations. Sun Shaojun, founder of Che Fans, a car consumer platform, claimed that the Model 3 and Model Y price cuts have only resulted in Tesla China gaining about 50,000 new orders, far less than the 100,000-170,000 new orders that were rumored online. 

Considering these alleged circumstances, Huxiu claimed that Tesla China would probably initiate another round of price cuts in the coming weeks to boost demand for its EVs. The publication further claimed that the Model 3 is losing its appeal to the local market amidst a wave of competitors and that Tesla Stores are only receiving a few visitors per day. 

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Tesla China has issued a response to the Huxiu report, telling Sina Finance that the tech outlet’s claims were false. Tesla China, however, did not provide details such as how many orders it has received since its recent round of price cuts for the Model 3 and Model Y. 

Ultimately, Tesla China’s statement may hold some water. Following Tesla’s price reductions last month, local electric vehicle makers such as NIO, XPeng, and Li Auto all saw a dip in their respective deliveries. Gao Shen, an independent analyst in Shanghai, noted then that the trend was likely affected by Tesla China’s price cuts. With this in mind, something does not seem to add up very well if Tesla China is seeing a drop in demand while its rivals in the EV sector are also seeing a dip in deliveries. 

Tesla’s fourth-quarter results for China would likely be extremely interesting. 

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

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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 begins validating Robotaxi in a new area, hinting at expansion

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Credit: Tesla

Tesla is validating Robotaxi in a new area, and as the company has continued to gain some additional permissions to begin testing in new states, it seems its Full Self-Driving-based ride-hailing project is moving toward a larger footprint.

Two Robotaxi units with LiDAR validation equipment were spotted in Gilbert, Arizona, recently, showing that Tesla is aiming to launch its ride-hailing service in the state soon:

Another unit was spotted in Tempe, Arizona:

These types of validation vehicles have been spotted in several areas ahead of their launch as a public ride-hailing service for passengers. Tesla first launched Robotaxi in Austin, Texas, back in late June, and since then, it has expanded to the Bay Area of California.

However, Tesla has continued to attempt to expand Robotaxi to other areas as well, including Nevada and Arizona. It has also been working toward approvals in other states based on job postings, as Tesla is hiring for Autopilot Vehicle Operators in New York and Florida, as well.

The expansion of the Robotaxi ride-hailing service has been an effort that Tesla has been spending a lot of time on over the past few months. CEO Elon Musk said the expansion aims to bring Robotaxi to at least half of the U.S. population by the end of the year, but there is still plenty of work to be done.

Tesla Robotaxi heads to a new major Texas city for the first time

Tesla did make its Robotaxi app public in recent months, allowing more members of the public to experience the suite for themselves, as long as they could get to Austin or the Bay Area.

In the coming months, it seems more apparent that Tesla will take a broader focus on expanding Robotaxi, especially with the fact that these validation vehicles are being spotted throughout different parts of the United States.

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Tesla mulls revamping $25k car, strange report claims

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Credit: Tine Rusc

Tesla is reportedly mulling the potential revamp of its $25,000 vehicle project, a strange report claims.

It seems unlikely, especially since Tesla launched two new, more affordable models last week with the Model 3 and Model Y Standard trims.

However, a report from European media outlet 36kr claims Tesla has started to advance two vehicle projects, internally codenamed E41 and D50, in China.

People familiar with the matter reportedly told the outlet that “some design and verification reports of the new projects are inherited from the current Model Y and Model 3.”

Tesla axed one of the Model Y’s best features in ‘Standard’ trims: here’s why

These new simplified models would be priced between $5,000 and $5,500 cheaper than what the new ‘Standard’ trims cost. The report also claims that these vehicles would be launched only if the new ‘Standard’ models “fall short of sales expectations.”

This report suggests that potentially more affordable models are being offered, but this seems unlikely, considering Tesla launched the two Standard models just last week, and the only truly affordable model it is working on will be the Cybercab.

However, there is potential for a car to launch that undercuts the newest configurations of the Model 3 and Model Y. As of now, it just seems as if it is something that is far-fetched.

When Tesla’s patent for the unboxed process was published just last month, it seemed more than obvious that the vehicle it would be used for was the Cybercab.

The language used in the patent itself was geared toward more streamlined and quality production and manufacturing, which Tesla must implement to meet the likely demand for the vehicle.

It will be easier to scale vehicles with the unboxed process, and the Cybercab has been routinely mentioned with the sub-$30,000 price tag, even by CEO Elon Musk.

He said during the Q3 2024 Earnings Call:

“I think having a regular 25K model is pointless. It would be silly. Like it would be completely at odds with what we believe…It’s fully considered cost per mile is what matters. And if you try to make a car that is essentially a hybrid, manual, or automatic car, it’s not going to be as good as a dedicated autonomous car. So, yes, Cybercab is just not going to have steering wheels and pedals.”

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SpaceX aces Starship’s 11th launch with success in every mission objective

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Credit: SpaceX

SpaceX aces its eleventh Starship test launch on Monday evening, marking the company’s second consecutive takeoff that crossed off each of the planned mission objectives.

It was also the final launch of the V2 Starship rocket. The twelfth test flight will feature the larger V3 Starship rocket, followed by V4, which will eventually make the first trip to Mars.

The launch was overwhelmingly successful. In its 12th test flight, SpaceX was able to achieve every major mission objective, including the second successful deployment of Starlink satellite simulators and the relight of a Raptor engine while in space. The latter achievement demonstrated “a critical capability for future deorbit burns,” the company said.

The ship officially launched at 6:23 p.m. local time in Starbase, Texas, with all 33 engines igniting and sending the Ship to space.

Stage separation occurred just over eight minutes later, and Super Heavy started its descent back to the Gulf of America, where it successfully splashed down. The first part of the launch was complete.

Starlink simulators were deployed about twenty-one minutes after launch, as the Pez dispenser sent the faux-satellites out to space without any issue:

Perhaps the most anticipated part of the launch was with Starship’s banking maneuver and subsequent splashdown in the Indian Ocean.

Prior to Starship 11’s launch and successful re-entry and splashdown, SpaceX had lost a few vehicles during this portion of the previous flights.

However, the company had made tremendous improvements and has now aced two consecutive launches. On Monday, its approach and splashdown were both overwhelmingly successful:

The re-entry phase of this particular Starship launch aimed to gather data on the performance of the heatshield, SpaceX said. The heatshield was intentionally stressed to its limits to determine how much it could withstand without failing.

SpaceX will now turn its focus to the next vehicles, including V3, which is larger, more capable, and will help the company gather even more information about its launches into space:

CEO Elon Musk has said the third-generation Starship rocket will be built and tested by the end of the year.

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