Earlier this week, Tesla reduced the price of the Model S by $3,000. When a price change is applied to any of Tesla’s vehicles, it is usually a race between media outlets to report it first. I believe that many news sites look at it as an opportunity to have a post with high views, and being the first to report it could lead to that. Also, with human beings remaining relatively misinformed about EVs and Teslas’ prices in specific, whenever a price drop is applied, it is a huge deal.
But the reason for misinformation spreads to journalists as well. I found myself shocked at the Fox Business article that implied that Tesla was undergoing some sort of “sales slide.” At least, that’s what they put in their headline.
Baffled at what I had read, I felt compelled to post it on Twitter and LinkedIn (the only two forms of social media I have) and set the record straight. While it is true that the percentage of the Model S sales has gone down, it is untrue that Tesla, or the flagship sedan, is seeing record low numbers because of a “sales slide.”
https://twitter.com/KlenderJoey/status/1316017793070850053
First, Tesla just had its most successful quarter in terms of production and deliveries in Q3. 139,300 cars were delivered, and 145,036 cars were produced at Fremont and Giga Shanghai. Nothing about that indicates a sales slide, especially considering the massive growth during the quarter in both deliveries and production.
The Model S and Model X were delivered 15,200 times during the quarter. Yes, this is a relatively small percentage, just a tad more than 10% of the total deliveries that Tesla performed over the course of the quarter. It is a 33% growth from the last quarter, where the company only delivered around 10,000 of the two vehicles.
In my opinion, it isn’t that Tesla’s flagship sedan is “less popular” or even “slumping” in terms of sales. I think that the Model Y and Model 3 are simply better options for most car buyers. I’ll tell you why.
First, we have their price. The Model 3 and Model Y have better price points, and they are Tesla’s first two mass-market vehicles. This means that the prices will fit more budgets, and it will be a more popular vehicle because of that.
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Secondly, the Model 3 and Model Y technology is significantly better than the Model S and Model X. Of course, the Model S has a lot of power, and the Model X has those awesome falcon-wing doors that everyone freaks out about. But in terms of sheer technology, the Model 3 and Model Y are just better options. They are minimalistic, they are newer designs, and they are also operating with better batteries than the Model S and Model X.
The Model 3 is, as far as we know, still utilizing the 2170 cells, while some speculation suggests that Tesla could already be putting the 4680 cells in the Model Y. These cells are not only more affordable, but they’re also more efficient, offer better power, and their energy capacity is greater.
The Model S and the Model X are still using the 18650 battery cells, which are still great batteries. The Model S has an EPA record 402 miles of range, and they both have 100 kWh battery packs in their performance models, which makes them a better option for the speed demons out there. Nevertheless, battery tech has gotten better since the Model S and Model X have been built, and neither of these cars has undergone a refresh, which brings me to my next point.
Buying a Model 3 or a Model Y ensures that a car buyer has the most up-to-date Tesla technology available. In addition to the already more minimalist design that the 3 and the Y offer, these two cars’ look is fresh in people’s minds. The Model 3 literally just underwent a refresh last night, and the Model Y is only seven months old as of right now.
Meanwhile, the Model S and Model X have relatively the same design as they did when they were released. The only things that have really changed are the available colors and the grille, which are minor cosmetic modifications. I love the look of the S and the X, but some people out there need the most updated versions of things. That is why we see so many people waiting for Apple to release a new phone, even though theirs works perfectly fine.
There’s nothing wrong with wanting something new. I get it. Believe me, I will be one of the first people in Pennsylvania to have a PS5, but that’s a $500 purchase. A car is $35,000 at the least if you want a Tesla.
All of this brings me to my point: These large-scale media networks reporting price cuts should just report the price cuts. Nothing more, and nothing less. There is no reason for these media outlets who have no idea what they’re talking about to sit there and suggest that the Model S is having a sales slide when they are still selling a healthy amount of vehicles.
Even Tesla knows that the Model S and Model X are not going to be big factors in the company’s future growth. That’s why the company has confined production to Fremont and hasn’t expanded it to Shanghai or even mentioned it with Giga, Texas. There is no need to. Remember, Tesla’s ultimate mission is to accelerate sustainable energy and transportation, not turn a massive profit with really fast cars. If that were the case, I’m sure the Roadster would already be built and roaming around the streets of California being driven by celebrities and Tesla referral code masters.
There is a real danger here with the way media outlets are angling their headlines. Ultimately, Tesla is doing a great job of expanding its presence in the automotive market. If mainstream media was more responsible with its reporting, could Tesla’s popularity be even more widespread at this point?
I use this newsletter to share my thoughts on what is going on in the Tesla world. If you want to talk to me directly, you can email me or reach me on Twitter. I don’t bite, be sure to reach out!
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News
Tesla FSD ruins other intelligent driving systems for NIO Superfan influencer
“Since I drove FSD, I have been disenchanted with all the ‘driving assistance’ of domestic brands,” Lee wrote.
Tesla Full Self-Driving (FSD) has been making waves in China, with owners pushing the system to its limits on what appears to be a regular basis. Videos of Tesla drivers in China show FSD navigating the trickiest of roads, from busy city streets to narrow, unpaved paths in rural areas.
And as per an influencer and NIO superfan, FSD is ruining other driver-assist systems from other automakers in China.
FSD Ruins It For Influencer
China-based influencer and NIO superfan Andy Lee recently shared his thoughts about FSD on social media. As per Lee, Chinese intelligent driving systems are overhyped by marketing. But once he personally experienced FSD’s capabilities, he became disillusioned with the offerings of domestic carmakers.
“Since I drove FSD, I have been disenchanted with all the ‘driving assistance’ of domestic brands. I once thought that the ‘driving assistance’ of domestic brands could beat FSD in seconds, but it seems that I was wrong. Not only did they fail to outperform FSD, they were actually crushed in reverse,” Lee wrote in his post.
FSD could very well become Tesla’s moat since even cars that are equipped with the same hardware would not be able to perform similarly unless they have access to the company’s training data and software. Tesla’s fleet is ever-growing as well, which means that FSD will only get better over the years.
Unsupervised on the Horizon
Tesla is already using FSD Unsupervised for its vehicles that are produced in the Fremont Factory and Gigafactory Texas. As per Elon Musk during the Q1 2025 earnings call, he expects Tesla to be able to roll out FSD Unsupervised to consumers before the end of this year. He also highlighted that Tesla is being extremely careful with FSD Unsupervised’s rollout.
“Before the end of this year. Not necessarily — I say within the U.S., like we do want to test — at Tesla, we’re absolutely hardcore about safety. We go to great lengths to make the safest car in the world and have the lowest accidents per mile in.
“So we want to be very careful. We want autonomy to be definitively safer than manual driving. So it’s not enough that it just be as safe. It needs to be meaningfully safer than if the car’s manually driven,” Musk stated.
Investor's Corner
Tesla hints at ‘Model 2’ & next-gen EV designs
Tesla’s Q1 2025 update confirms new models this year, with production tied to existing factory lines. Could it be time for the Model 2 debut?
During its Q1 2025 earnings call, Tesla executives hinted at the much-rumored “Model 2” and other next-gen EV designs.
Tesla slightly addressed whether or not it will be pushing forward with the debut of new models later this year in its latest earnings call. The company’s product development executive, Lars Moravy, shared some details about Tesla’s design process and the upcoming affordable models.
“We’re still planning to release models this year. As with all launches, we’re working through, like, the last minute issues that pop up. We’re knocking them down one by one. At this point, I would say that the ramp might be a little slower than we had hoped initially…But there’s nothing that’s blocking us from starting production within the next, within the timeline laid out in the opening remarks.
“And I will say it’s important to emphasize that, as we’ve said all along, the full utilization of our factories is the primary goal for these new products. And so the flexibility of what we can do within the form factor and, you know, the design of it is really limited to what we can do on our existing lines rather than building new ones. But we’ve been targeting the low cost of ownership. Monthly payment is the biggest differentiator for our vehicles, and that’s why we’re focused on bringing these new models with the, you know, the lowest price, to the market, within the constraints I just highlighted.”
In January, Tesla’s Chief Financial Officer Vaibhav Taneja teased several new product introductions for this year. There is at least one product that most Tesla supporters and investors are hoping to see: the company’s affordable vehicles, which have been dubbed by the EV community as the “Model 2” or “Model Q.”
Before Tesla’s Robotaxi event last year, many speculated that the company would also unveil its affordable next-gen vehicle. Gene Munster from Deepwater had expected Tesla to release a stripped-down version of the Model 3 as its affordable vehicle during the Robotaxi event. In the end, Tesla unveiled its Robotaxi vehicle and its Robovan design.
It’s been a while since the Robotaxi event, and Tesla has kept mum about its affordable vehicle. Considering its Q1 2025 performance, TSLA investors look forward to catalysts that could boost the stock.
The “Model 2” has been labeled a potential catalyst for Tesla. As such, TSLA investors and supporters have been itching for news about the new affordable vehicle. The main questions surrounding the “Model 2” revolve around its design and price. Based on Moravy’s statement, the “Model 2’s” design will heavily depend on Tesla’s current assembly lines and supply chain structures.
News
Tesla owner-investor stands ground after receiving Nazi-themed mail, welcomes new Model Y
The Tesla investor even made it a point to purchase the brightest shade available for her new Model Y.
A TSLA investor has decided to stand her ground after receiving a threatening, Nazi-themed card at her home.
The Tesla investor even welcomed a new Ultra Red Tesla Model Y to show her support for the company.
Responding with a New Tesla
As per 58-year-old Alexandra Merz, an investment analyst and immigration consultant who immigrated from Germany to the United States, she received mail from a Boston address to her home on April 17. Upon opening the letter, she was greeted by an image of the Tesla logo incorporated with a Nazi salute.
Inside the card was a handwritten message which read, “History has its eyes on you.” Merz promptly reported the message to the FBI. In a comment to the New York Post, she stated that she is now even more motivated to support Elon Musk and his ventures.
“This atrocious behavior motivates me even more to stand up for Tesla, Elon, and DOGE,” Merz noted. “I bought our fifth Tesla last Saturday, a beautiful red Model Y, the best car out there. And it drives itself.”
An Unfortunate Trend
In previous comments, Merz expressed her disdain for the ongoing attacks against Tesla and Musk. “Tesla is employing more than 140,000 employees worldwide, building the most American cars in the U.S., and building the European Model Ys in Berlin. I often wonder whether these protesters have thought through what they are doing,” she stated.
Elon Musk himself admitted to the disturbing trend during Tesla’s Q1 2025 earnings call, stating that “there’s been some blowback for the time that I’ve been spending in government with the Department of Government Efficiency or DOGE.” The CEO also stated that he would soon be stepping back from DOGE’s everyday operations and focusing more of his time on Tesla.
U.S. President Donald Trump also addressed the ongoing attacks on Teslas in a comment about Musk’s impeding step back from DOGE. As per Trump, people against Musk are taking out their frustrations on Tesla and its owners, which is unfair. He also described the people behind the attacks on Tesla as “sick.”
Tesla FSD ruins other intelligent driving systems for NIO Superfan influencer
Tesla hints at ‘Model 2’ & next-gen EV designs
Tesla owner-investor stands ground after receiving Nazi-themed mail, welcomes new Model Y
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