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Tesla’s $25k car gets update on its final name, options, and potential release date

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During a recent all-hands meeting, Tesla CEO Elon Musk provided some updates on one of the company’s most ambitious vehicles yet: the ~$25,000 compact car. As per information shared by individuals familiar with the items discussed in the meeting, Musk clarified that the upcoming vehicle would not be named the “Model 2,” but it could be a car designed for Full Self-Driving with no steering wheel or physical pedals. 

EV blog Electrek, citing individuals who were also at the recently-held all-hands meeting, further claimed that the $25,000 compact car has a tentative release date of 2023. This is notably conservative as previous reports from China hint that work on an affordable Tesla is already underway. Earlier this year, local reports from Chinese media outlets hinted that a vehicle that’s more affordable than the Model 3 would likely start testing at the latter half of the year. 

More recent reports from the world’s largest EV market hinted that a prototype of the affordable Tesla had also been completed, and most suppliers for the upcoming vehicle had already been lined up. Considering Musk’s recent comments at the hands-on meeting, it almost seems like Tesla is building two affordable all-electric cars: a more traditional compact EV that would be released in China and another low-cost car that’s primarily designed for Full Self-Driving in the United States. Both vehicles have the potential to be disruptive in their own way. 

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An affordable Tesla in China — particularly one that is reportedly based on the Model 3 platform — would likely be a substantial hit among budget-conscious buyers who are looking to get the most out of their vehicle purchase. Tesla tends to equip its cars with a robust set of standard features, and its vehicles typically offer performance that’s far above their price point. These, together with the convenience offered by the Supercharger Network, would likely allow Tesla’s affordable car in China to be competitive in the country’s local market.

A low-cost pure FSD car for the United States would also have some potential. Assuming that Tesla could indeed develop a fully autonomous solution for its vehicles, a fleet of affordable Robotaxis would definitely make sense. Such an idea is not that wild either, considering that GM’s Cruise debuted the exact same concept back in 2018. During that time, Cruise showed off a concept of a Chevy Bolt EV that has no steering wheel or physical pedals. Cruise was targeting a 2019 rollout for the vehicle then, though such a target was not met. Tesla also unveiled a similar concept for the Model 3 back in 2019 when it held its Autonomy Day event. 

Tesla’s affordable car is the next big project for Elon Musk and his team. Producing a mass-market car like the Model 3 profitably is no joke, after all, but rolling out an affordable car that could still turn a profit would be an even more challenging undertaking. If Tesla could pull it off, however, the company could effectively cement its place as this generation’s premier vehicle maker, and a company that holds the key to true autonomous driving. 

Don’t hesitate to contact us with account tips. Just send a message to tips@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 Full Self-Driving feature probe closed by NHTSA

Actually Smart Summon allows owners to move their parked Tesla via a smartphone app remotely, directing the vehicle short distances in parking lots or private property while the driver supervises from the phone.

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Credit: YouTube/Hector Perez

A probe into a popular Tesla self-driving feature has been closed by the National Highway Traffic Safety Administration (NHTSA) after over a year of scrutiny from the government agency.

The NHTSA has officially closed its investigation into Tesla’s Actually Smart Summon (ASS) feature, marking a regulatory win for the electric vehicle maker after more than a year of scrutiny.

Here’s our coverage on the launch of the probe:

Tesla’s Actually Smart Summon feature under investigation by NHTSA

The preliminary investigation, opened last January, examined roughly 2.59 million Tesla vehicles equipped with the feature across the Model S, Model X, Model 3, and Model Y lineups. ASS is not available for Cybertruck currently.

Actually Smart Summon allows owners to move their parked Tesla via a smartphone app remotely, directing the vehicle short distances in parking lots or private property while the driver supervises from the phone.

Here’s a clip of us using it:

Introduced as an upgrade to the original Smart Summon, the feature was designed to enhance convenience but drew attention after reports of low-speed incidents where vehicles bumped into stationary objects like posts, parked cars, or garage doors.

The NHTSA’s Office of Defects Investigation reviewed 159 incidents, including one formal Vehicle Owner’s Questionnaire complaint and media reports.

Notably, all events occurred at very low speeds, resulted only in minor property damage, and involved zero injuries or fatalities. The agency determined that the incidents were “extremely rare”, a fraction of one percent across millions of Summon sessions, and did not indicate a systemic safety-related defect.

A key factor in the closure was Tesla’s proactive response through over-the-air (OTA) software updates.

During the probe, Tesla deployed at least six updates that improved camera-based object detection, enhanced neural network performance for obstacle recognition, and refined the system’s response to potential hazards. These iterative improvements, delivered wirelessly to the entire fleet, addressed the primary concerns around detection reliability and operator reaction time.

Critics of Tesla’s autonomous features had initially pointed to the crashes as evidence of rushed deployment, especially given the feature’s reliance on the company’s vision-only Full Self-Driving (FSD) stack. However, NHTSA’s decision to close the case without seeking a recall underscores the low-severity nature of the events and the effectiveness of software-based fixes in modern vehicles.

It definitely has its flaws. I used ASS yesterday unsuccessfully:

However, improvements will come, and I’m confident in that.

The closure comes as Tesla continues to push boundaries with its autonomous driving ambitions, including unsupervised FSD rollouts and robotaxi initiatives. For owners, the ruling reinforces confidence in Actually Smart Summon as a convenient, low-risk tool rather than a hazardous experiment.

While broader NHTSA reviews of Tesla’s higher-speed FSD capabilities remain ongoing, this outcome highlights how data-driven analysis and rapid OTA remediation can satisfy regulators in the evolving landscape of automated driving technology.

Tesla has not issued an official statement on the closure, but the move is widely viewed as bullish for the company’s autonomy roadmap, reducing one layer of regulatory overhang and allowing focus on further refinements.

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Tesla uses Model S and X ‘sentimental’ value to enforce massive pricing move

By slashing production and creating immediate scarcity, the company has transformed these remaining vehicles into limited-edition relics. The price hike is not driven by rising material costs or new features.

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Credit: Tesla

Tesla is using the “sentimental” value that CEO Elon Musk talked about with the Model S and Model X to enforce one of the most massive pricing moves it has ever applied as it begins to phase out the flagship vehicles.

Tesla quietly executed one of its most calculated pricing plays yet. After officially ending production of the Model S and Model X, the company raised prices on every remaining new and demo unit by roughly $15,000.

The refreshed starting prices now sit at:

  • $109,990 for the Model S AWD
  • $124,900 for the Model S Plaid
  • $114,900 for the Model X AWD
  • $129,900 for the Model X Plaid

Every vehicle comes fully loaded with the Luxe Package, Full Self-Driving Supervised, four years of premium connectivity and service, and lifetime free Supercharging. What looks like a simple inventory adjustment is, in reality, a masterclass in monetizing nostalgia.

These are not ordinary cars. For many owners, the Model S and Model X represent the purest expression of Tesla’s original promise—the sleek, over-engineered flagships that proved electric vehicles could be faster, quieter, and more desirable than their gasoline counterparts.

Tesla removes Model S and X custom orders as sunset officially begins

They are the vehicles that carried Elon Musk’s vision from Silicon Valley startup to global automaker.

The final units rolling off the line carry an emotional weight that numbers alone cannot capture. Buyers are not simply purchasing transportation; they are acquiring a piece of Tesla history, the last examples of the very models that defined the brand’s first decade.

Tesla, with this move, understands this sentiment deeply.

By slashing production and creating immediate scarcity, the company has transformed these remaining vehicles into limited-edition relics. The price hike is not driven by rising material costs or new features.

It is driven by the knowledge that a certain segment of buyers, loyalists, collectors, and enthusiasts, will pay a premium precisely because these cars are about to disappear. The strategy converts emotional attachment into margin.

Where other automakers might discount outgoing models to clear lots, Tesla is betting that sentiment is worth more than volume.

The move also quietly rewards existing owners. Scarcity instantly boosts resale values for the hundreds of thousands of Model S and X already on the road, reinforcing brand loyalty among the very people who helped build Tesla’s reputation.

In the end, Tesla’s pricing decision reveals a sophisticated understanding of its audience. As the company pivots toward next-generation platforms, it has found a way to extract one final, lucrative chapter from its heritage.

For buyers willing to pay the new prices, the premium is not just for the car; it is for the feeling of owning the last true originals. Tesla has turned sentiment into strategy, and in the process, reminded everyone that even in the EV era, emotion remains a powerful line on the balance sheet.

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Tesla broadens most-wanted Model Y to eight new markets

This rollout targets Asia’s booming EV adoption, driven by family buyers seeking practicality without sacrificing performance or luxury. It positions Tesla against rising local competitors offering affordable three-row options.

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Credit: Tesla China

Tesla has broadened the availability of the most-wanted Model Y trim to eight new Asian markets, expanding the footprint of what is one of the most highly requested vehicle configurations in the U.S.

Tesla has officially launched ordering for the Model Y L, its long-wheelbase six-seater electric SUV, across eight key Asian territories: Japan, South Korea, Hong Kong, Macau, Singapore, Thailand, Malaysia, and the Philippines.

The announcement signals a major expansion for the family-oriented variant first introduced in China in August 2025. In Thailand, Malaysia, and the Philippines, the vehicle had already been previewed at several motor shows, so fans in the area were familiar with the Model Y L and its distinct differences to the standard-sized trims.

Local pricing reflects taxes, incentives, and import duties. Malaysia estimates RM260,000 with Q2 2026 deliveries; Singapore lists S$248,999 (including COE); Macau prices at 398,750 patacas. Similar competitive positioning is expected in Japan, South Korea, Hong Kong, Thailand, and the Philippines, where the Model Y L undercuts many traditional three-row SUVs while offering full EV benefits.

This rollout targets Asia’s booming EV adoption, driven by family buyers seeking practicality without sacrificing performance or luxury. It positions Tesla against rising local competitors offering affordable three-row options.

Notably, the Model Y L remains unavailable in the U.S. market, where demand for a stretched Model Y has been high. Although CEO Elon Musk said that something “way cooler than a minivan” is on the way in the U.S., the dimensions of the Model Y L simply fit the needs of many American families.

Elon Musk says Tesla is developing a new vehicle: ‘Way cooler than a minivan’

The Model Y L stands out with its stretched dimensions: 4,976 mm long and a 3,040 mm wheelbase—179 mm and 150 mm longer, respectively, than the standard Model Y. Height increases slightly to 1,668 mm, creating a true three-row, 2+2+2 layout with individual captain’s chairs in the second row for easier third-row access.

Maximum cargo capacity reaches 2,539 liters with seats folded, making it ideal for growing families or those needing versatile space in dense urban environments. But it’s not just a grocery-getter or a kid-hauler: The performance matches Tesla’s reputation.

Dual-motor all-wheel drive delivers 0-100 km/h acceleration in about 5.0 seconds (or 4.5 seconds in some market specs), with a top speed of 201 km/h. The vehicle boasts a WLTP-rated range of up to 681 km, supported by an approximately 88-97 kWh battery pack (market-dependent) and 250 kW DC fast charging.

With deliveries slated for Q2 2026 and strong early interest mirroring China’s rapid pre-orders, the Model Y L could become a bestseller in these dynamic markets. Tesla’s targeted expansion essentially generalizes its commitment to tailoring vehicles to regional needs while advancing sustainable mobility across Asia.

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