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Elon Musk taking a page from Henry Ford’s playbook with Tesla price cuts: Ford CEO

Steve Jurvetson from Los Altos, USA, CC BY 2.0 , via Wikimedia Commons

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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. 

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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.

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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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla Cybertruck gets Full Self-Driving v14 release date, sort of

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Tesla Cybertruck owners are wondering when they will get access to the company’s Full Self-Driving version 14.1 that rolled out to other owners today for the first time.

Cybertruck owners typically receive Full Self-Driving updates slightly later than other drivers, as the process for the all-electric pickup is different. It is a larger vehicle that requires some additional attention from Tesla before FSD versions are rolled out, so they will be slightly delayed. CEO Elon Musk said the all-wheel steering technically requires a bit more attention before rollout as well.

After some owners got access to the v14.1 Full Self-Driving suite this morning, Cybertruck owners sought out a potential timeframe for when they would be able to experience things for themselves.

Tesla owners show off improvements with new Full Self-Driving v14 rollout

They were able to get an answer from Ashok Elluswamy, Tesla’s Head of AI, who said:

“We got you. Coming soon.”

The release of FSD v14.1 for Cybertruck will not be tempered, either. Elluswamy then confirmed that Tesla would be rolling out the full-featured FSD v14 for the pickup, meaning it would be able to reverse and park itself, among other features.

Elluswamy said it would be capable of these features, which were void in other FSD releases for Cybertruck in the past.

Tesla’s rollout of FSD v14.1 brings several extremely notable changes and improvements to the suite, including more refined operation in parking garages, a new ability to choose parking preferences upon arriving at your destination, a new driving mode called “Sloth,” which is even more reserved than “Chill,” and general operational improvements.

Those who were lucky enough to receive the suite have already started showing off the improvements, and they definitely seem to be a step up from what v13’s more recent versions were capable of.

CEO Elon Musk called v14 “sentient” a few weeks back, and it seems that it is moving toward that. However, he did state that additional releases with more capabilities would be available in the coming weeks, but many owners are still waiting for this first version.

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Tesla launches two new affordable models with ‘Standard’ Model 3, Y offerings

It is the first time Tesla has revealed any details about what it planned to launch in terms of its new, lower-cost vehicles, which are mainly aimed at countering the loss of the $7,500 EV tax credit.

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Credit: Tesla

Tesla has officially launched its affordable models with the new Model 3 and Model Y ‘Standard’ versions hitting the company’s Online Design Studio on Tuesday.

It is the first time Tesla has revealed any details about what it planned to launch in terms of its new, lower-cost vehicles, which are mainly aimed at countering the loss of the $7,500 EV tax credit.

Here’s what Tesla went with for its release of the new affordable models.

Tesla Model Y ‘Standard’

The Model Y Standard is a stripped-down version of the all-electric crossover and starts at $39,990.

Deliveries are slated for November and December, the company says if you plan to order one, and it comes with a few major changes to improve efficiency and bring down cost for owners.

  • New athletically tuned exterior and new alloy wheels to improve aerodynamics
  • 15.4″ touchscreen in the front, the same as the other trims
  • Available in three colors: Stealth Grey (free), White ($1,oo0 extra), Diamond Black ($1,500 extra)
  • Textile and vegan leather interior
  • Range sits at 321 miles
  • New front fascia
  • Covered glass roof (textile on inside)
  • Windows are not acoustically laminated for a quieter cabin
  • Manual mirrors and seats
  • Smaller frunk
  • No rear infotainment screen
  • No basic Autopilot
  • 69 kWh battery
  • New 19″ Aperture wheels
  • 0-60 MPH in 6.8 seconds
  • 7 speaker stereo, down from 15 speakers in premium models

Tesla Model 3 ‘Standard’

The Model 3 Standard was a surprise offering from Tesla, as many had only anticipated the company to refine and offer a more affordable version of the Model Y.

Coming in at $36,990, it features many of the same changes Tesla made with the Model Y “Standard,” all ways to improve price and make it less flashy than the more premium offerings.

Deliveries are also slated for November for this vehicle, and it features relatively the same stripped-down offerings as the Model Y Standard.

  • Available in three colors: Stealth Grey (free), White ($1,oo0 extra), Diamond Black ($1,500 extra)
  • Textile and vegan leather interior
  • Range sits at 321 miles
  • Covered glass roof (textile on inside)
  • Manual mirrors and seats
  • No rear infotainment screen
  • No basic Autopilot
  • 69 kWh battery
  • New 19″ Aperture wheels
  • 0-60 MPH in 6.8 seconds
  • 7 speaker stereo, down from 15 speakers in premium models
@teslarati 🚨 Tesla’s Affordable Models are here! Let’s talk about them! #tesla #fyp #viral #teslaev #elonmusk ♬ Natural Emotions – Muspace Lofi

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Tesla owners show off improvements with new Full Self-Driving v14 rollout

Some of the big things that Tesla faced head-on with the development and release of v14 were navigating in parking garages and handling parking after arriving at a destination.

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Credit: Tesla Europe & Middle East/X

Tesla owners with access to the company’s Full Self-Driving new version, v14, which rolled out on Tuesday morning, are showcasing some of the very impressive improvements that have arrived.

CEO Elon Musk called v14 “sentient” a few weeks ahead of its rollout, claiming the newest iteration of the company’s Full Self-Driving platform would be the most accurate to date.

Tesla FSD (Supervised) V14.1 with Robotaxi-style dropoffs is here

It was obvious this narrative had Tesla owners keeping their expectations high, as there were very evidently things that needed to be improved upon that were present in v13. I wrote about several improvements I was hoping to see, and based on the release notes for v14, Tesla did have these things in the works already.

Some of the big things that Tesla faced head-on with the development and release of v14 were navigating in parking garages and handling parking after arriving at a destination.

Tesla said it was working to increase the capabilities of Summon within parking garages, as many owners believe that is where it would be the most beneficial.

While that does not appear to be part of this initial v14 rollout, it does seem Tesla is focused on improving the suite’s ability to navigate through these garages, including stopping for a ticket to enter the facility, finding a spot, and parking in an appropriate space.

It was evident this was a huge improvement based on one example from an owner who received v14:

If you look closely, you will even see the car shift slightly to the right when it arrives at the ticketing station, making it easier for the driver to hand over their ticket and payment. It then moves back out to the right when leaving to return to the center of the lane. It’s very intuitive.

Additionally, it appears to be more accurate when parking, thanks to improvements that enable owners to select the type of parking upon arrival at a destination.

In the v14.1 release notes, Tesla said that it has added “Arrival Options for you to select where FSD should park: in a Parking Lot, on the Street, in a Driveway, in a Parking Garage, or at the Curbside.”

One owner chose to navigate home and chose a garage to park in. Full Self-Driving performed it without any issues:

These are just two evident improvements so far, and there are likely many more on the way. The changes and fixes will be tracked by anyone with access to FSD v14 in the coming weeks.

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