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Tesla is ready with a perfect counter to the end of US EV tax credits
Tesla executives have mentioned that these more affordable models would resemble the company’s current lineup.

The United States’ electric vehicle tax credit is coming to an end at the end of the third quarter. Tesla, the country’s leading electric vehicle maker, is ready to meet this challenge with a rather simple but clever counter.
Tesla executives outlined this strategy in the recently held Q2 2025 earnings call.
End of the US EV tax credit
While Elon Musk has always maintained that he prefers a market with no EV tax credit, he also emphasized that he supports the rollback of any incentives given to the oil and gas industry. The Trump administration has not done this so far, instead focusing on the expiration of the $7,500 EV tax credit at the end of the third quarter.
Tesla has been going all-in on encouraging customers to purchase their vehicles in Q3 to take advantage of lower prices. The company has also implemented a series of incentives across all its offerings, from the Cybertruck to the Model 3. This, however, is not all, as the company seems to be preparing a longer-term solution to the expiration of the EV tax credit.
Affordable variants
During the Q2 2025 earnings call, Vice President of Vehicle Engineering Lars Moray stated that Tesla really did start the production of more affordable models in June. Quality builds of these vehicles are being ramped this quarter, with the goal of optimizing production over the remaining months of the year. If Tesla is successful, these models will be available for everyone in Q4.
“We started production in June, and we’re ramping quality builds and things around the quarter. And given that we started in North America and our goal is to maximize production with a higher rate. So starting Q3, we’re going to keep pushing hard on our current models to avoid complexity… We’ll be ready with new, more affordable models available for everyone in Q4.,” Moravy stated.
These comments suggest that Tesla should be able to offer vehicles that are competitively priced even after the EV tax credit has been phased out. Interestingly enough, previous comments from Tesla executives have mentioned that these more affordable models would resemble the company’s current lineup. This suggests that the more affordable models may indeed be variations of the Model Y and Model 3, but offered at a lower price.
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Tesla has a new first with its Supercharger network
The contrast to the first-ever Tesla Supercharging highway sign is placed directly above the company’s iconic logo: it is the source of energy for what CEO Elon Musk has long sought to replace, gasoline-powered vehicles.

Tesla has gotten its first-ever Supercharger highway sign in the U.S. state of Arizona, bringing a big change to the appearance of what usually shows drivers where gas, lodging, and food options are.
Although Tesla has the ability to flex its muscles with its EV prowess and its charging presence in the United States, one thing it has never done before is been recognized on a highway sign.
As EVs have gotten more popular in the U.S., owners have relied on in-car navigation to get them to where they need to be.
Highway signs are still useful, though. They can point travelers in the direction of a nice coffee shop, a notable restaurant, or to a lodging option that might not appear on the in-car navigation.
I like to use them to point me in the direction of the nearest Waffle Shop when I’m on the road.
But for the first time, a Tesla Supercharger is advertised on one of these highway signs:
First highway sign with Superchargers, more to come pic.twitter.com/k6VWcEJDyZ
— Tesla Charging (@TeslaCharging) September 24, 2025
The contrast to the first-ever Tesla Supercharging highway sign is placed directly above the company’s iconic logo: it is the source of energy for what CEO Elon Musk has long sought to replace, gasoline-powered vehicles.
Perhaps a minor addition to a much broader change in the U.S. automotive sector, it serves as a reminder of how far the company has come in the past few years. Thinking back to just before the COVID-19 pandemic hit, Tesla was not doing anything close to what it is now.
It was delivering just over 100,000 vehicles in a quarter. It was not building the Model Y, and it was mostly reliant on its mass-market Model 3 for the vast majority of its volume, about 90 percent in Q4 2019.
Now, the landscape is changing, and it is changing quickly. Since many North American EV makers have access to the Supercharging infrastructure Tesla has built over the past several years, the advertisement of the location is advantageous for many.
Elon Musk
Elon Musk trolls Tesla stock skeptics after 23 percent one month boost
“A lot of people thought Tesla stock would collapse as the tax credits came to an end this month,” Musk wrote. “Guess not.”

Elon Musk spent some time trolling Tesla stock (NASDAQ: TSLA) skeptics following the company’s 23 percent boost over the past month.
Tesla’s rally on Wall Street over the past several weeks has completely erased any losses investors felt since the start of 2025. So far this year, shares have risen by over 13 percent.
Most of this has been evident over the past month, as the company has seen a nearly 25 percent increase in the past thirty days.
With the imminent abolishment of the $7,500 EV tax credit, some analysts and investors expected the stock to take a hit. It is no secret that the tax credit’s expiration will impact demand to some extent. In the short term, it has been strong for the company’s delivery outlook in Q3.
Musk trolled those who thought the stock would respond negatively to the tax credit going away:
A lot of people thought Tesla stock would collapse as the tax credits came to an end this month.
Guess not.
— Elon Musk (@elonmusk) September 25, 2025
The strength of Tesla shares over the past several weeks has prompted several analysts to adjust price targets and their firms’ overall outlook with the company’s automotive division, as well as its other projects.
Mizuho analysts pushed their price target from $375 to $450, mostly due to Tesla’s strength moving forward as a leader in the U.S. EV market.
Vijay Rakesh, managing director at the firm, wrote in a note to investors:
“We see TSLA maintaining key leadership in the U.S. BEV market despite some near-term challenges.”
Mizuho raises Tesla (TSLA) price target on stronger 2026 outlook
Some of this strength relies on the rollout of the lower-cost “Model 2,” which Tesla said it built the first production units of in its Q2 Earnings Shareholder Deck.
Goldman Sachs also increased its Tesla price target from $300 to $395, which is still below the current trading levels.
However, the firm is more bullish on the company’s humanoid robotics and autonomy projects:
“If Tesla can have [an] outsized share in areas such as humanoid robotics and autonomy, then there could be upside to our price target.”
Tesla shares are currently trading at $424.54 at the time of publication.
News
China releases draft on door handle design following Tesla scrutiny

China’s regulatory agency handling automotive concerns has released a draft on what it is considering to be standard for door handle designs on vehicles, following some scrutiny it placed upon Tesla’s designs.
Over the past few weeks, we have reported on two different criticisms Tesla has faced with its door handle designs, one in China and one in the United States. Both will require the company to come up with solutions and potentially new engineering.
Chief Designer Franz von Holzhausen appeared on Bloomberg last week and said the company is already looking to implement something that will bring together the mechanical and electrical releases that the door handles depend on.
Tesla addresses door handle complaints with simple engineering fix
Some vehicles in the Tesla lineup already have mechanical latches on all four doors to enable them to open in the event of a dead battery. However, there are some additional measures that need to be taken.
The first guidelines are being released by the Chinese Ministry of Industry and Information Technology (MIIT), which composed a draft called “Technical Requirements for Automobile Door Handle Safety.”
🚨 It sounds like some changes will be coming to Tesla’s door handles in China
The MIIT wrote in a new case study that it’s requiring a change to prevent getting locked in the car:
“[The] operating space must be ≥60mm×20mm×25mm (roughly the space for a palm to maneuver).” https://t.co/IYkruyzogI
— TESLARATI (@Teslarati) September 24, 2025
There are a handful of new standards, including a required mechanical release for every door on the vehicle apart from the trunk. Additionally, there are some other requirements, such as the ability to open side doors from the external handles without the use of tools.
Here are the six guidelines that the MIIT are mulling as requirements (via CarNewsChina):
- Every door (excluding trunk lids) must feature an external handle with mechanical release functionality
- In case of accidents involving battery thermal events, non-collision side doors must be openable through external handles without tools
- External door handles must provide adequate hand operation space of at least 60mm×20mm×25mm, regardless of handle position
- Every door must include internal handles with mechanical release capability that can open doors without external tools
- If electric internal handles are installed, mechanical backup handles must also be provided
- Internal handles must be easily identifiable, clearly visible, positioned within 300mm of door edges, and located within specific zones relative to seating positions
These new standards were developed by the China Automotive Standardization Research Institute, and Deputy Director Rong Hui stated that the organization used 63 vehicle models from 20 different companies to establish these early requirements:
“With the development of automotive electrification, electric concealed door handles have been widely adopted, and the operation methods and structural types of door handle products on the market are increasingly diverse. These standards aim to respond to new technologies and safety requirements.”
The MIIT also did its own research, which utilized 230 different vehicle models’ door handle configurations. Validation testing was performed on more than 20 models.
Tesla’s Planned Adjustments
Based on what von Holzhausen said, Tesla plans to make some adjustments to its door handles, implementing simple fixes.
Tesla plans to combine both the mechanical and electrical releases to help reduce stress in “panic situations.” Franz said the company has a “really good solution for that.”
In regard to the mechanical release, he said, “it’s in the cars now…The idea of combining the electronic and the manual one together in one button, I think, makes a lot of sense.”
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