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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.
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News
Tesla Full Self-Driving (FSD) testing gains major ground in Spain
Based on information posted by the Dirección General de Tráfico (DGT), it appears that Tesla is already busy testing FSD in the country.
Tesla’s Full Self-Driving (Supervised) program is accelerating across Europe, with Spain emerging as a key testing hub under the country’s new ES-AV framework program.
Based on information posted by the Dirección General de Tráfico (DGT), it appears that Tesla is already busy testing FSD in the country.
Spain’s ES-AV framework
Spain’s DGT launched the ES-AV Program in July 2025 to standardize testing for automated vehicles from prototypes to pre-homologation stages. The DGT described the purpose of the program on its official website.
“The program is designed to complement and enhance oversight, regulation, research, and transparency efforts, as well as to support innovation and advancements in automotive technology and industry. This framework also aims to capitalize on the opportunity to position Spain as a pioneer and leader in automated vehicle technology, seeking to provide solutions that help overcome or alleviate certain shortcomings or negative externalities of the current transportation system,” the DGT wrote.
The program identifies three testing phases based on technological maturity and the scope of a company’s operations. Each phase has a set of minimum eligibility requirements, and applicants must indicate which phase they wish to participate in, at least based on their specific technological development.
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Tesla FSD tests
As noted by Tesla watcher Kees Roelandschap on X, the DGT’s new framework effectively gives the green flight for nationwide FSD testing. So far, Tesla Spain has a total of 19 vehicles authorized to test FSD on the country’s roads, though it would not be surprising if this fleet grows in the coming months.
The start date for the program is listed at November 27, 2025 to November 26, 2027. The DGT also noted that unlimited FSD tests could be done across Spain on any national route. And since Tesla is already in Phase 3 of the ES-AV Program, onboard safety operators are optional. Remote monitoring would also be allowed.
Tesla’s FSD tests in Spain could help the company gain a lot of real-world data on the country’s roads. Considering the scope of tests that are allowed for the electric vehicle maker, it seems like Spain would be one of the European countries that would be friendly to FSD’s operations. So far, Tesla’s FSD push in Europe is notable, with the company holding FSD demonstrations in Germany, France, and Italy. Tesla is also pushing for national approval in the Netherlands in early 2026.
News
Tesla FSD V14.2.1 is earning rave reviews from users in diverse conditions
Tesla’s Full Self-Driving (Supervised) software continues its rapid evolution, with the latest V14.2.1 update drawing widespread praise.
Tesla’s Full Self-Driving (Supervised) software continues its rapid evolution, with the latest V14.2.1 update drawing widespread praise for its smoother performance and smarter decision-making.
Videos and firsthand accounts from Tesla owners highlight V14.2.1 as an update that improves navigation responsiveness, sign recognition, and overall fluidity, among other things. Some drivers have even described it as “more alive than ever,” hinting at the system eventually feeling “sentient,” as Elon Musk has predicted.
FSD V14.2.1 first impressions
Early adopters are buzzing about how V14.2.1 feels less intrusive while staying vigilant. In a post shared on X, Tesla owner @LactoseLunatic described the update as a “huge leap forward,” adding that the system remains “incredibly assertive but still safe.”
Another Tesla driver, Devin Olsenn, who logged ~600 km on V14.2.1, reported no safety disengagements, with the car feeling “more alive than ever.” The Tesla owner noted that his wife now defaults to using FSD V14, as the system is already very smooth and refined.
Adverse weather and regulatory zones are testing grounds where V14.2.1 shines, at least according to testers in snow areas. Tesla watcher Sawyer Merritt shared a video of his first snowy drive on unplowed rural roads in New Hampshire, where FSD did great and erred on the side of caution. As per Merritt, FSD V14.2.1 was “extra cautious” but it performed well overall.
-->Sign recognition and freeway prowess
Sign recognition also seemed to show improvements with FSD V14.2.1. Longtime FSD tester Chuck Cook highlighted a clip from his upcoming first-impressions video, showcasing improved school zone behavior. “I think it read the signs better,” he observed, though in standard mode, it didn’t fully drop to 15 mph within the short timeframe. This nuance points to V14.2.1’s growing awareness of temporal rules, a step toward fewer false positives in dynamic environments.
FSD V14.2.1 also seems to excel in high-stress highway scenarios. Fellow FSD tester @BLKMDL3 posted a video of FSD V14.2.1 managing a multi-lane freeway closure due to a police chase-related accident. “Perfectly handles all lanes of the freeway merging into one,” the Tesla owner noted in his post on X.
FSD V14.2.1 was released on Thanksgiving, much to the pleasant surprise of Tesla owners. The update’s release notes are almost identical to the system’s previous iteration, save for one line item read, “Camera visibility can lead to increased attention monitoring sensitivity.”
News
Tesla FSD Supervised ride-alongs in Europe begin in Italy, France, and Germany
The program allows the public to hop in as a non-driving observer to witness FSD navigate urban streets firsthand.
Tesla has kicked off passenger ride-alongs for Full Self-Driving (Supervised) in Italy, France and Germany. The program allows the public to hop in as a non-driving observer to witness FSD navigate urban streets firsthand.
The program, detailed on Tesla’s event pages, arrives ahead of a potential early 2026 Dutch regulatory approval that could unlock a potential EU-wide rollout for FSD.
Hands-Off Demos
Tesla’s ride-along invites participants to “ride along in the passenger seat to experience how it handles real-world traffic & the most stressful parts of daily driving, making the roads safer for all,” as per the company’s announcement on X through its official Tesla Europe & Middle East account.
Sign-ups via localized pages offer free slots through December, with Tesla teams piloting vehicles through city streets, roundabouts and highways.
“Be one of the first to experience Full Self-Driving (Supervised) from the passenger seat. Our team will take you along as a passenger and show you how Full Self-Driving (Supervised) works under real-world road conditions,” Tesla wrote. “Discover how it reacts to live traffic and masters the most stressful parts of driving to make the roads safer for you and others. Come join us to learn how we are moving closer to a fully autonomous future.”
-->Building trust towards an FSD Unsupervised rollout
Tesla’s FSD (Supervised) ride-alongs could be an effective tool to build trust and get regular car buyers and commuters used to the idea of vehicles driving themselves. By seating riders shotgun, Tesla could provide participants with a front row seat to the bleeding edge of consumer-grade driverless systems.
FSD (Supervised) has already been rolled out to several countries, such as the United States, Canada, Australia, New Zealand, and partially in China. So far, FSD (Supervised) has been received positively by drivers, as it really makes driving tasks and long trips significantly easier and more pleasant.
FSD is a key safety feature as well, which became all too evident when a Tesla driving on FSD was hit by what seemed to be a meteorite in Australia. The vehicle moved safely despite the impact, though the same would likely not be true had the car been driven manually.
Tesla Full Self-Driving (FSD) testing gains major ground in Spain
Tesla FSD V14.2.1 is earning rave reviews from users in diverse conditions
