Tesla appears to be preparing to launch its new Model Y units in North America, as substantial discounts on legacy Model Y inventory units have gone live.
After Tesla launched the highly anticipated Model Y refresh in the Asia-Pacific and European markets earlier this month, many have been wondering when the company will debut the vehicle in the U.S. and Canada. The redesign is expected by some to launch in Tesla’s home market in the coming weeks, and recent discounts on inventory units of the legacy Model Y in both the U.S. and Canada suggest that this may be right.
This week, Tesla launched price cuts of up to $4,120 on inventory Model Y units in the U.S. and Canada, as seen on the company’s website. At the time of writing, the company is offering a variety of discounts in areas across both countries, a move that is commonly used to clear out inventory to make way for upcoming refresh versions.
At the time of writing, we were able to find Model Y units with discounts ranging from $960 to $2,500, with multiple Long Range AWD trim options getting the max price reduction. Prior to the inclusion of local tax credits and the $7,500 electric vehicle (EV) tax credit, the latter of which is widely expected to go away under the incoming Trump administration, some LR AWD units are selling for a starting price of $47,490, despite also including add-ons such as Quicksilver or Ultra Red paint or induction wheels.
For the Performance trim, we were able to find a few upgraded units with discounts of $4,120, with prices dropping as low as $47,370 before credits. As such, this could be a good time to pick up the legacy Model Y ahead of the refresh launch, especially if you’re looking for something full spec at the base price. When considering the tax credit, some of these AWD LR units saw their prices drop to as low as $39,990 with upgrades, or as low as $37,490 for the RWD configuration.
For example, Tesla has been offering inventory discounts on its legacy Model Y in China in recent weeks, even still offering many since the vehicle’s launch, and prior to its debut, the company was also offering a wide range of promotions on the vehicle. During the company’s launch of the refreshed Model 3 in 2023 and 2024, Tesla also launched significant legacy Model 3 discounts in the U.S. in the months leading up to the North America debut, when it had already launched in the Asia-Pacific, Europe and Middle East markets.
Credit: Tesla
READ MORE ON TESLA MODEL Y REFRESH: Tesla’s refreshed Model Y design should make repairing this part easier
Tesla’s new Model Y: lightbars, front-facing camera and more
Sightings of Tesla’s new Model Y have been spotted since as early as mid-2024, and sightings have been increasing significantly over the past several weeks leading up to the launch in other markets. Before the official launch, many correctly speculated that covered versions of the model appeared to include lightbars on both the front and rear bumpers, as opposed to the more traditional headlights and taillights that can be found on the legacy models.
Tesla also added a front-facing camera to the new Model Y, which offers a wider field of view for its semi-automated features such as Autopilot, Actually Smart Summon and Supervised Full Self-Driving (FSD), which is expected to launch in China sometime this year. It’s not exactly clear just yet when Tesla plans to launch the new Model Y in the U.S. or Canada, though we wouldn’t be surprised to see it launch as soon as this month—especially with some of these massive discounts going live.
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Elon Musk
Elon Musk’s xAI brings 1GW Colossus 2 AI training cluster online
Elon Musk shared his update in a recent post on social media platform X.
xAI has brought its Colossus 2 supercomputer online, making it the first gigawatt-scale AI training cluster in the world, and it’s about to get even bigger in a few months.
Elon Musk shared his update in a recent post on social media platform X.
Colossus 2 goes live
The Colossus 2 supercomputer, together with its predecessor, Colossus 1, are used by xAI to primarily train and refine the company’s Grok large language model. In a post on X, Musk stated that Colossus 2 is already operational, making it the first gigawatt training cluster in the world.
But what’s even more remarkable is that it would be upgraded to 1.5 GW of power in April. Even in its current iteration, however, the Colossus 2 supercomputer already exceeds the peak demand of San Francisco.
Commentary from users of the social media platform highlighted the speed of execution behind the project. Colossus 1 went from site preparation to full operation in 122 days, while Colossus 2 went live by crossing the 1-GW barrier and is targeting a total capacity of roughly 2 GW. This far exceeds the speed of xAI’s primary rivals.
Funding fuels rapid expansion
xAI’s Colossus 2 launch follows xAI’s recently closed, upsized $20 billion Series E funding round, which exceeded its initial $15 billion target. The company said the capital will be used to accelerate infrastructure scaling and AI product development.
The round attracted a broad group of investors, including Valor Equity Partners, Stepstone Group, Fidelity Management & Research Company, Qatar Investment Authority, MGX, and Baron Capital Group. Strategic partners NVIDIA and Cisco also continued their support, helping xAI build what it describes as the world’s largest GPU clusters.
xAI said the funding will accelerate its infrastructure buildout, enable rapid deployment of AI products to billions of users, and support research tied to its mission of understanding the universe. The company noted that its Colossus 1 and 2 systems now represent more than one million H100 GPU equivalents, alongside recent releases including the Grok 4 series, Grok Voice, and Grok Imagine. Training is also already underway for its next flagship model, Grok 5.
Elon Musk
Tesla AI5 chip nears completion, Elon Musk teases 9-month development cadence
The Tesla CEO shared his recent insights in a post on social media platform X.
Tesla’s next-generation AI5 chip is nearly complete, and work on its successor is already underway, as per a recent update from Elon Musk.
The Tesla CEO shared his recent insights in a post on social media platform X.
Musk details AI chip roadmap
In his post, Elon Musk stated that Tesla’s AI5 chip design is “almost done,” while AI6 has already entered early development. Musk added that Tesla plans to continue iterating rapidly, with AI7, AI8, AI9, and future generations targeting a nine-month design cycle.
He also noted that Tesla’s in-house chips could become the highest-volume AI processors in the world. Musk framed his update as a recruiting message, encouraging engineers to join Tesla’s AI and chip development teams.
Tesla community member Herbert Ong highlighted the strategic importance of the timeline, noting that faster chip cycles enable quicker learning, faster iteration, and a compounding advantage in AI and autonomy that becomes increasingly difficult for competitors to close.
AI5 manufacturing takes shape
Musk’s comments align with earlier reporting on AI5’s production plans. In December, it was reported that Samsung is preparing to manufacture Tesla’s AI5 chip, accelerating hiring for experienced engineers to support U.S. production and address complex foundry challenges.
Samsung is one of two suppliers selected for AI5, alongside TSMC. The companies are expected to produce different versions of the AI5 chip, with TSMC reportedly using a 3nm process and Samsung using a 2nm process.
Musk has previously stated that while different foundries translate chip designs into physical silicon in different ways, the goal is for both versions of the Tesla AI5 chip to operate identically. AI5 will succeed Tesla’s current AI4 hardware, formerly known as Hardware 4, and is expected to support the company’s Full Self-Driving system as well as other AI-driven efforts, including Optimus.
News
Tesla Model Y and Model 3 named safest vehicles tested by ANCAP in 2025
According to ANCAP in a press release, the Tesla Model Y achieved the highest overall weighted score of any vehicle assessed in 2025.
The Tesla Model Y recorded the highest overall safety score of any vehicle tested by ANCAP in 2025. The Tesla Model 3 also delivered strong results, reinforcing the automaker’s safety leadership in Australia and New Zealand.
According to ANCAP in a press release, the Tesla Model Y achieved the highest overall weighted score of any vehicle assessed in 2025. ANCAP’s 2025 tests evaluated vehicles across four key pillars: Adult Occupant Protection, Child Occupant Protection, Vulnerable Road User Protection, and Safety Assist technologies.
The Model Y posted consistently strong results in all four categories, distinguishing itself through a system-based safety approach that combines structural crash protection with advanced driver-assistance features such as autonomous emergency braking, lane support, and driver monitoring.
This marked the second time the Model Y has topped ANCAP’s annual safety rankings. The Model Y’s previous version was also ANCAP’s top performer in 2022.
The Tesla Model 3 also delivered a strong performance in ANCAP’s 2025 tests, contributing to Tesla’s broader safety presence across segments. Similar to the Model Y, the Model 3 also earned impressive scores across the ANCAP’s four pillars. This made the vehicle the top performer in the Medium Car category.
ANCAP Chief Executive Officer Carla Hoorweg stated that the results highlight a growing industry shift toward integrated safety design, with improvements in technologies such as autonomous emergency braking and lane support translating into meaningful real-world protection.
“ANCAP’s testing continues to reinforce a clear message: the safest vehicles are those designed with safety as a system, not a checklist. The top performers this year delivered consistent results across physical crash protection, crash avoidance and vulnerable road user safety, rather than relying on strength in a single area.
“We are also seeing increasing alignment between ANCAP’s test requirements and the safety technologies that genuinely matter on Australian and New Zealand roads. Improvements in autonomous emergency braking, lane support, and driver monitoring systems are translating into more robust protection,” Hoorweg said.
Elon Musk’s xAI brings 1GW Colossus 2 AI training cluster online
Tesla AI5 chip nears completion, Elon Musk teases 9-month development cadence
