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Why Tesla competitors will need more than affordability to take EV pioneer’s crown
Over the past several years, automotive manufacturers from all corners of the world have jumped head-first into electric vehicle production. In an attempt to catch Tesla, who has been recognized as the industry leader, car companies have tried all strategies, including undercutting pricing, but they’ll need much more than that to catch up.
Tesla’s most affordable vehicle is the Rear-Wheel Drive Model 3, which starts at $42,990 before incentives. It is far from the most affordable EV on the market, as several vehicles, both in production and planned for the future, have been marketed as the “Tesla Killers,” a term that was widely put to rest a few years ago.
There is no Tesla Killer, unfortunately, because those vehicles wouldn’t even exist if Tesla wasn’t around. They’re purely thoughts and eventual products of any automotive company because of Tesla’s mass influence on the automotive market.
Unfortunately, the angle that these car companies have come up with is, “If it’s cheaper than a Tesla, then people will buy it.”
But there’s a reason the 2023 Nissan Versa, which is priced at $15,730, isn’t the most popular car in the world: consumers want more than a nice, low price tag.
Customers take a lot of things into consideration: looks, features, technology, range, performance, and quality are just a few metrics that car buyers take into account when buying a new car.
When I read some of these headlines about cars that are expected to be the next big thing in the EV sector, it always seems to have something to do with price. But it goes much further than that.
Nearly 50% of 2017-19 Chevy Bolt EVs have been remedied after battery fire recall
In the EV sector today, Tesla still maintains a sizeable lead in terms of sales by model. The Model Y sold 251,974 times last year in the U.S., according to Kelley Blue Book data. The Model 3 was sold 211,618 times. The Model S recorded 32,675 sales, and the Model X had 26,121.
Even the Model X managed to outsell things like the Kia Niro, the Hyundai Ioniq, and the Volkswagen ID.4, despite being Tesla’s most expensive car and least popular model.
Why? There are many factors to EV ownership. The charging network might be the biggest influence, and Tesla dominates in that realm. It also holds a considerable advantage in technology, range, and performance.
Of course, looks are subjective, so it is not worth commenting on. But even if the best-looking car out there drove and operated like a piece of crap, nobody would want it.
Tesla’s advantages lie in places that are far past affordability. As previously mentioned, it goes past price and goes much deeper into what the company offers in terms of a variety of other metrics that make a car truly enjoyable to own.
Companies have long struggled with adequate charging, software, and other things that are hard to solve. It’s not an overnight fix, and Tesla may have much more experience in terms of having a car operate more like a phone than a vehicle. It will take time, and it will come around to these car companies on how to solve these issues.
But make no mistake, Tesla won’t be dethroned by cheaper options alone. Only if these cheaper options also offer superior software and adequate charging infrastructure, along with many other things, will Tesla be beaten.
I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.
News
Tesla loses Model Y program manager in second blow in single day
Tesla has lost its Model Y Program Manager, he announced on LinkedIn, marking the second major departure from the company today.
Emmanuel Lamacchia has been in the role for 4 years and 7 months, responsible for the rollout of the all-electric crossover in several markets.
The Model Y became the best-selling vehicle in the world for two years under Lamacchia’s watch, making this a huge loss for the company. However, it seems the decision was made under Lamacchia’s own initiative.
He confirmed his decision on LinkedIn:
“After 8 incredible years, I’m moving on from Tesla.
What a journey it’s been… from leading NPI for Model 3 and Model Y variants to becoming the Vehicle Program Manager for Model Y, the best-selling car in the world!
Leading the All-New Model Y launch was the highlight: converting all 4 factories across 3 continents in just 2 weeks. Something that had never been done before in the auto industry.
To the teams who made this possible: you should be incredibly proud. This achievement belongs to you: the engineers, designers, buyers, and associates in Fremont, Shanghai, Berlin, and Austin who turned an impossible timeline into reality.
Grateful to the leaders who trusted me with programs that stretched my capabilities and to the cross-functional partners who showed me that great solutions come from collaboration, not hierarchy.
Tesla taught me how to move fast without breaking things and how to scale from prototypes to millions of units.
Excited for what’s next. More to share soon.”
It marks the second major program loss for Tesla today, as it also bid farewell to Cybertruck and Model 3 Program Manager Siddhant Awasthi, who said he left voluntarily in “one of the hardest decisions of his life.”
Lamacchia was at Tesla for just a shade under eight years, and previously worked for Rolls-Royce for roughly the same amount of time.
After the loss of both Lamacchia and Awasthi today, Tesla has lost a handful of key executives in 2025, including:
- David Imai, Director of Design
- David Lau, VP of Software Engineering
- Mark Westfall, Head of Mechanical Engineering
- Prashant Menon, Regional Director in India
- Vineet Mehta, Head of Battery Architecture
- Omead Afshar, VP/Head of Sales and Manufacturing in North America
- Milan Kovac, Head of Optimus Team
- Jenna Ferrua, Director of HR
- Troy Jones, VP of Sales, Service, and Delivery
- Pete Bannon, VP of Hardware Engineering
- Piero Landolfi, Director of Service
News
Tesla prepares to expand Giga Texas with new Optimus production plant
Drone operator Joe Tegtmeyer recognized Tesla construction crews performing ground leveling and clearing efforts at the plant earlier today.
Tesla is preparing to expand Gigafactory Texas once again with a brand new facility that will house the eventual manufacturing efforts for Optimus, its humanoid robot.
It is already building some units on a Pilot line at the Fremont Factory in Northern California, but Tesla is planning to build the vast majority of its Optimus project at Gigafactory Texas.
Tesla Optimus gets its latest job, and it’s not in the company’s factories
It will build one million units per year in Fremont, but CEO Elon Musk said the company would build 10 million units every year in Texas at a new building at Giga Texas.
Musk said:
“I think there could be tens of billions of Optimus robots out there. Um, now obviously it’s very important we pay close attention to safety here. Then a 10 million unit uh per year production line here the I don’t know where we’re going to put the 100 million unit production line. on Mars. Maybe on Mars, I don’t know.”
Evidently, Tesla is ready to begin thinking about the production efforts of Optimus beyond a theoretical standpoint and is starting to prepare for the construction of the manufacturing plant on Giga Texas property.
Drone operator Joe Tegtmeyer recognized Tesla construction crews performing ground leveling and clearing efforts at the plant earlier today:
Giga Texas News!
A brand-new, stand-alone factory is starting construction! This follows the Shareholders meeting & info that a 10-million-per-year @Tesla_Optimus production facility “on the Giga Texas campus” will be built & enter into production in 2027!
Here are some… pic.twitter.com/7ig5DohfOt
— Joe Tegtmeyer 🚀 🤠🛸😎 (@JoeTegtmeyer) November 10, 2025
Production is still slated for 2027, at least at Gigafactory Texas. As previously mentioned, the company is building some units in Fremont for the time being, at least until subsequent versions of the Optimus project advance.
Tesla has done a great job of advancing Optimus forward, but it also has truly grand expectations for the project.
Musk said it could potentially be the biggest product in the history of the planet, as it will revolutionize the way humans perform tasks, probably eliminating monotonous tasks from everyday life.
News
Tesla reveals its first Semi customer after launch
Tesla revealed its first customer for the all-electric Semi truck after it launches next year. Who it truly is should not be a surprise.
The Semi is going to finally start deliveries to new companies outside of Tesla’s pilot program starting in 2026. The company has been building a dedicated production facility in Reno, Nevada, that has finally taken shape, but Tesla was evidently not finished with the Semi’s development.
Last week at the Annual Shareholder Meeting, Tesla said it had implemented some new designs into the Semi, helping with efficiency, updating its design, and making it a more suitable vehicle for hauling loads, as the changes also helped increase payload.
Tesla has obtained a lengthy list of companies that have committed to implementing the Semi in their own fleets, hoping to bring their logistics lineups up to date with electric powertrains and autonomous technologies.
While it is already operating a pilot program with PepsiCo. and Frito-Lay, Tesla will expand to other businesses, primarily using it internally after its launch.
Head of the Semi program at Tesla, Dan Priestley, said the company would be the first user of the vehicle after its launch next year. It has been using it to a certain extent, but the company has not been able to completely abandon gas haulers.
Instead, it will implement the Semi into its fleet for more sustainable vehicle logistics starting next year:
Tesla will be the first customer as we electrify our supply chain. This includes Texas operations.
— Dan Priestley (@danWpriestley) November 7, 2025
Tesla has already received orders for the Semi from a variety of large companies, including Walmart, Sysco, Anheuser-Busch, UPS, DHL, J.B. Hunt, among others.
Many analysts see the Tesla Semi as a major contributor to future growth and increasing value within the company, especially from a Wall Street perspective. Some firms say the Semi is one of several near and medium-term contributors to the company increasing its market cap.
Cantor Fitzgerald is just one of those firms, as last week it explicitly listed the Semi as a catalyst.
Analyst Andres Sheppard said, “Overall, we remain bullish on TSLA over the medium to long term. We continue to see meaningful future upside from Energy Storage & Deployment, FSD, Robotaxis/Cybercab, Semis, and Optimus Bots.”
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