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Elon Musk taking a page from Henry Ford’s playbook with Tesla price cuts: Ford CEO
Ford CEO Jim Farley recently commented that Elon Musk’s strategy of lowering electric vehicle prices to maintain sales volume over profit margins is actually quite reminiscent of Henry Ford’s approach with the Model T.
Farley noted that Musk’s aggressive pricing strategy for Tesla’s all-electric vehicle lineup has historical roots. Amidst Tesla’s ambitious delivery and production targets, Musk has opted to protect volume over profit margins. Musk highlighted this during the Q1 2023 earnings call, when he noted that Tesla could sell its cars at low profits if needed since the company could profit in the future with products like Full Self-Driving.
This, as per Farley, was something right out of Henry Ford’s Model T playbook. The Ford CEO noted that the automotive trailblazer’s strategies were outlined in the book “1913,” which takes a close look at the year Ford became a mass producer of automobiles. “This has all happened before,” Farley said, as noted in an Insider report.
Similar to Musk, Henry Ford reportedly slashed the prices of the Model T to boost sales in 1913. This was around the time when Ford started using a conveyor belt on the Model T assembly line, which allowed the automaker to build more units of the ubiquitous vehicle at greater volumes.
In a way, Tesla is quite a bit on its own “Model T moment.” The company has all but mastered the mass production of its mainstream vehicles, the Model 3 sedan and Model Y crossover. Tesla is also busy with its preparations for the buildout of its most affordable car yet, which will be produced at Gigafactory Mexico. For now, however, Tesla’s focus has been to sell as many vehicles as possible.
As of 2023, Musk has decreased the prices of Tesla’s most popular models multiple times to achieve a production goal of 1.8 million, or perhaps even 2 million, vehicles for the year. This strategy has impacted Tesla’s profit margins and raised concerns among investors, but Musk believes it is laying the groundwork for future gains.
But while Musk’s pricing strategy is very similar to Henry Ford, Farley also offered some cautionary advice to his fellow CEO. “I think what he’s going to learn is product freshness means a lot. The product gets commoditized, and then you lose your pricing premium. That’s a really dangerous thing,” Farley said.
Henry Ford eventually learned this lesson, and he proceeded to roll out new colors and the Model A. At the time, however, Chevrolet had already become the top car brand in the US.
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Tesla Cybercab tests are going on overdrive with production-ready units
Tesla is ramping its real-world tests of the Cybercab, with multiple sightings of the vehicle being reported across social media this week.
Tesla is ramping its real-world tests of the Cybercab, with multiple sightings of the autonomous two-seater being reported across social media this week. Based on videos of the vehicle that have been shared online, it appears that Cybercab tests are underway across multiple states.
Recent Cybercab sightings
Reports of Cybercab tests have ramped this week, with a vehicle that looked like a production-ready prototype being spotted at Apple’s Visitor Center in California. The vehicle in this sighting was interesting as it was equipped with a steering wheel. The vehicle also featured some changes to the design of its brake lights.
The Cybercab was also filmed testing at the Fremont factory’s test track, which also seemed to involve a vehicle that looked production-ready. This also seemed to be the case for a Cybercab that was spotted in Austin, Texas, which happened to be undergoing real-world tests. Overall, these sightings suggest that Cybercab testing is fully underway, and the vehicle is really moving towards production.
Production design all but finalized?
Recently, a near-production-ready Cybercab was showcased at Tesla’s Santana Row showroom in San Jose. The vehicle was equipped with frameless windows, dual windshield wipers, powered butterfly door struts, an extended front splitter, an updated lightbar, new wheel covers, and a license plate bracket. Interior updates include redesigned dash/door panels, refined seats with center cupholders, updated carpet, and what appeared to be improved legroom.
There seems to be a pretty good chance that the Cybercab’s design has been all but finalized, at least considering Elon Musk’s comments at the 2025 Annual Shareholder Meeting. During the event, Musk confirmed that the vehicle will enter production around April 2026, and its production targets will be quite ambitious.
News
Tesla gets a win in Sweden as union withdraws potentially “illegal” blockade
As per recent reports, the Vision union’s planned anti-Tesla action might have been illegal.
Swedish union Vision has withdrawn its sympathy blockade against Tesla’s planned service center and showroom in Kalmar. As per recent reports, the Vision union’s planned anti-Tesla action might have been illegal.
Vision’s decision to pull the blockade
Vision announced the blockade in early December, stating that it was targeting the administrative handling of Tesla’s facility permits in Kalmar municipality. The sympathy measure was expected to start Monday, but was formally withdrawn via documents sent to the Mediation Institute and Kalmar Municipality last week.
As noted in a Daggers Arbete report, plans for the strike were ultimately pulled after employer group SKR highlighted potential illegality under the Public Employment Act. Vision stressed its continued backing for the Swedish labor model, though Deputy negotiation manager Oskar Pettersson explained that the Vision union and IF Metall made the decision to cancel the planned strike together.
“We will not continue to challenge the regulations,” Petterson said. “The objection was of a technical nature. We made the assessment together with IF Metall that we were not in a position to challenge the legal assessment of whether we could take this particular action against Tesla. Therefore, we chose to revoke the notice itself.”
The SKR’s warning
Petterson also stated that SKR’s technical objection to the Vision union’s planned anti-Tesla strike framed the protest as an unauthorized act. “It was a legal assessment of the situation. Both for us and for IF Metall, it is important to be clear that we stand for the Swedish model. But we should not continue to challenge the regulations and risk getting judgments that lead nowhere in the application of the regulations,” he said.
Vision ultimately canceled its planned blockade against Tesla on December 9. With Vision’s withdrawal, few obstacles remain for Tesla’s long-planned Kalmar site. A foreign electrical firm completed work this fall, and Tesla’s Careers page currently lists a full-time service manager position based there, signaling an imminent opening.
Tesla Semi Program Director Dan Priestly teased the major improvements to the all-electric Class 8 truck on Thursday night, following the company’s decision to overhaul the design earlier this year.
Priestley said he drove the Semi on Thursday, and the improvements appear to be welcomed by one of the minds behind the project. “Our customers are going to love it,” he concluded.
Just drove the redesigned Semi. Our customers are going to love it. https://t.co/KZ88sf1CDL
— Dan Priestley (@danWpriestley) December 19, 2025
The small detail does not seem like much, but it is coming from someone who has been involved in the development of the truck from A to Z. Priestley has been involved in the Semi program since November 2015 and has slowly worked his way through the ranks, and currently stands as the Director of the program.
Tesla Semi undergoes major redesign as dedicated factory preps for deliveries
Tesla made some major changes to the Semi design as it announced at the 2025 Annual Shareholder Meeting that it changed the look and design to welcome improvements in efficiency.
Initially, Tesla adopted the blade-like light bar for the Semi, similar to the one that is present on the Model Y Premium and the Cybertruck.
Additionally, there are some slight aesthetic changes to help with efficiency, including a redesigned bumper with improved aero channels, a smaller wraparound windshield, and a smoother roofline for better aero performance.
All of these changes came as the company’s Semi Factory, which is located on Gigafactory Nevada’s property, was finishing up construction in preparation for initial production phases, as Tesla is planning to ramp up manufacturing next year. CEO Elon Musk has said the Semi has attracted “ridiculous demand.”
The Semi has already gathered many large companies that have signed up to buy units, including Frito-Lay and PepsiCo., which have been helping Tesla test the vehicle in a pilot program to test range, efficiency, and other important metrics that will be a major selling point.
Tesla will be the Semi’s first user, though, and the truck will help solve some of the company’s logistics needs in the coming years.
Tesla Cybercab tests are going on overdrive with production-ready units
Tesla gets a win in Sweden as union withdraws potentially “illegal” blockade
