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Tesla appears to be making gains after declaring a price war on rivals
Tesla’s price war against both electric vehicle makers and traditional automakers in the United States appears to be working. While it’s too early to tell which company will come out on top, there are signs Tesla is making some early gains.
In January, Tesla rolled out an aggressive price reduction strategy across its entire lineup. Even best-selling vehicles such as the Model Y Dual Motor AWD, which is already selling well to begin with, saw a price reduction of about 20% to $52,990. The price of the Model Y Dual Motor has climbed a bit since then, but its cost today is still far lower than in the previous quarter.
Tesla also lowered the prices of its Model S sedan and Model X SUV in mid-January, before lowering them again in early March. Presently, the basic Model S sells at $89,990, 14% less than its initial price at the start of the year. The entry-level Model X now costs $99,990, which is 17% lower than its previous cost.
Other automakers have followed suit. Ford also cut its prices recently, with the Mustang Mach-E seeing price reductions between 1% and 8.8%. Seth Goldstein, an analyst at Morningstar, noted in a comment to Insider that Tesla’s competition at this point lies far beyond just other EV makers. Tesla’s completion is other automakers that make combustion-powered cars.
“Tesla’s competition isn’t just other EV makers. It’s other carmakers. They’re cutting prices so that the Model 3 can eventually compete with other sedans, and the Model Y can compete with other SUVs,” Goldstein said.
During the Q4 and FY 2022 earnings call, Elon Musk noted that Tesla saw a rise in demand following its price cuts in January. Jessica Caldwell, the executive director of insights at the car-shopping website Edmunds, corroborated Musk’s statement. This trend was also hinted at in research from AllianceBernstein, which showed that the waiting times for new Model Y orders have climbed since January.
“We saw interest spike for the Model 3 and the Model Y after the price cuts, so it definitely did move the needle,” Caldwell said. She also noted that Tesla’s pricing strategy is advantageous to the electric vehicle maker since the company does not utilize a dealership model. As per Caldwell, it’s a “lot more complicated” for traditional carmakers to implement price cuts “because they are selling to their dealer who has final say in the price, whereas Tesla doesn’t operate like that.”
But Tesla is not done just yet. As per the company during its 2023 Investor Day event, a more affordable next-generation vehicle is in the works. And as per Dan Ives, an analyst at Wedbush, the upcoming vehicle, informally dubbed “Model 2” today, could very well be Tesla’s “golden goose.” “The lower-priced future Model 2 is key to going after the masses, with the golden goose being a sub-$30,000 vehicle. It’s Tesla’s world with everyone else paying rent,” Ives said.
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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Tesla is testing a new way to eliminate a rare but concerning Supercharger issue
Tesla is testing a new way to end a rare issue at Superchargers, and its internal pilot program has already started.

Tesla is now testing a new way to eliminate a rare but concerning issue that can arise at Superchargers, especially as the company’s vehicles become more popular.
Tesla’s Supercharger Network is the most robust in the world, but the company has opened it up to other manufacturers, which makes the network even more congested than it already is.
Superchargers are continually being built, and existing stations are undergoing expansion in congested areas. However, there is one rare issue that still arises from time to time, and that’s the case of drivers cutting in line to charge before another vehicle that arrived before they did.
Tesla is rolling out a new ‘Supercharger queue’ in an effort to end one issue
A few months ago, Tesla said it would start testing a “virtual queuing” system that would tell cars what their position is in line. This would eliminate any instances of confusion between drivers and would also keep cutters from butting in front of those who arrived before them.
Now, Tesla is officially testing the program, according to Max de Zegher, the company’s North American charging head:
Pressure testing virtual queuing with the awesome @TeslaCharging teams, including for corner cases & bad actors. Public pilots next. If we get this right, it will be a big improvement for those rare cases with a wait. https://t.co/mxpFarYgJi pic.twitter.com/IgVVH2wiOe
— Max (@MdeZegher) June 26, 2025
Public pilots will begin soon at select sites after Tesla completes its internal testing. Admittedly, this is an incredibly rare issue, but it is something that is worth confronting because it will eliminate confrontations at Superchargers.
Elon Musk
Tesla still has two major milestones on track before end of Q2
Tesla still is on track to complete two monumental achievements as Q2 nears its end.

Tesla still has two major milestones it is on track to complete before the end of the second quarter, according to statements made by the automaker earlier this year.
With the launch of the Robotaxi platform in Austin on Sunday, Tesla has already completed perhaps its biggest milestone of 2025.
However, these are not the only things the company hopes to accomplish before we head into the latter half of the year, as there are two major things the company said it is aiming to complete before the third quarter starts next week.
Affordable Models
Tesla said earlier this year, on two separate occasions, that it is still on track to develop, build, and unveil the first affordable models that will be built on both the next-gen platform and also have aspects of the current vehicle platform.
Potential affordable Tesla “Model 2/Model Q” test car spotted anew in Giga Texas
In the Q4 2024 Earnings Call in January, the company said:
“Preparations are underway across our existing factories for the launch of new products in 2025, including more affordable models.”
The company continued:
“Plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025. These vehicles will utilize aspects of the next generation platform as well as aspects of our current platforms and will be produced on the same manufacturing lines as our current vehicle line-up.”
Although there are only a few days left, Tesla has yet to confirm that these affordable models are delayed, so we can expect that they’ll be arriving before the quarter ends.
The company might have been hinting toward one recently at the Fremont Factory, but it is more likely that the vehicle seen was the new Model Y Performance trim:
Tesla’s apparent affordable model zips around Fremont test track
Tesla delivers itself to customers
Back in late May, CEO Elon Musk said that the first Tesla to self-deliver would happen in June:
For the past several days, Tesla has been testing self-driving Model Y cars (no one in driver’s seat) on Austin public streets with no incidents.
A month ahead of schedule.
Next month, first self-delivery from factory to customer.
— Elon Musk (@elonmusk) May 29, 2025
Tesla just launched its Robotaxi platform on Sunday, so this would be a tremendous step if it can, in fact, make this happen.
The customer would likely be extremely local to Gigafactory Texas. In the future, the company would load the vehicles onto haulers and then drive to customer homes from delivery centers, showrooms, and repair centers.
Teslas will self-deliver to customers, Elon Musk says: here’s when
Tesla has a few days left to complete both of these tasks, and then it will report delivery figures for the second quarter next week.
Elon Musk
Tesla’s Omead Afshar, known as Elon Musk’s right-hand man, leaves company: reports
Tesla’s Head of North American sales and European ops, Omead Afshar, has reportedly left the company. He was widely-known as Elon Musk’s right-hand man.

Tesla’s Omead Afshar, who is widely known as CEO Elon Musk’s right-hand man, has reportedly left the company.
Several outlets are reporting that Afshar either left voluntarily or was potentially terminated on Thursday. His LinkedIn profile has not been updated to reflect this, and still states he presently works at Tesla in the “Office of the CEO.”
Afshar was promoted to Head of North American sales and European operations late last year. We reported on his promotion in October, as he was previously a Project Manager in the Office of the CEO before Musk and co. stepped up his responsibilities.
According to the initial report on Afshar’s departure from Bloomberg, the news has been circulating throughout the company in recent days. His name no longer appears in the company’s internal directory.
It is interesting to think about what could have caused this. Tesla has felt some pressure in Europe with struggling sales figures in some markets. It is the second-best-selling EV maker in the region, with Volkswagen performing slightly better for the year, according to EU-EVs.
Tesla’s Model Y is the best-selling EV in the region.
While the company has not directly confirmed the news, it appears to be true based on the reports.
Tesla is usually relatively quick to dispel any headlines that go out from mainstream media that are not factual. This has yet to be responded to by any executive, including Musk.
Afshar has been with Tesla for seven years and ten months, first joining in September 2017 as a Project Manager in the Office of the CEO.
He then became a Project Director, before his job title was updated to a Cowboy hat emoji in July 2020, around the time Tesla started moving some things to Texas.
Forbes is reporting that Afshar was terminated and did not leave voluntarily. This has yet to be confirmed.
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