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Tesla Model 3, Model Y gets $1k price increase & new free paint option

(Credit: Tesla)

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Tesla has raised the price of the Model 3 and Model Y by $1,000 in a fresh round of price adjustments. The company also updated its free paint options for its two best-selling vehicles. 

With the recent round of price increases in place, the Model 3 RWD (previously the Model 3 Standard Range Plus) is now priced at $44,990 before options. The Model 3 Long Range and Model 3 Performance now cost $50,990 and $58,990 before options, respectively. 

On the Model Y’s side, the Long Range variant’s price also received a $1,000 increase, with the vehicle now priced at $57,990 before options. Finally, the Model Y Performance is now priced at $62,990 before options.

The Model 3 and Model Y’s price increase suggest that Tesla may still be facing supply challenges. During the 2021 Annual Shareholders Meeting, Elon Musk explained that the price increases were caused by supply chain challenges that have affected many industries. 

“Our goal really is to make the cars as affordable as possible. We are seeing significant cost pressure in our supply chain, and so we’ve had to increase—at least temporarily,” said Elon Musk. “But we do hope to actually reduce the prices over time and make them more affordable.”

He mentioned that flying parts around the world alone was costly for Tesla. At the Q3 earnings call, Tesla CFO Zach Kirkhorn stated that moving parts and sourcing parts contributed to the increased demand for service. 

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“There may have been some demand for service during 2020 or in the early parts of 2021 that customers put off, and so there’s a bit of a catch-up that’s occurring,” Kirkhorn said. “That has increased demand for service. At the same time, in the macro-environment here, logistics, moving parts, sourcing parts has become increasingly more difficult, which is a well-known issue in the world right now, as well as challenges in the labor market.”

Besides the $1,000 price increase, Tesla also added another free color option. Now, Model 3 and Model Y reservation holders can choose between Midnight Silver Metallic or Pearl White Multi-coat as free color options. The new free color option shows Elon Musk’s ability to quickly implement changes at Tesla. 

Musk first talked about changing Tesla’s free color option last month. A Tesla owner suggested changing the default free color because there were already too many white Model 3s and Model Ys on the road. Later that month, Giga Berlin’s three color options were revealed in the source code of the Tesla App. The three color options for Giga Berlin were Deep Crimson Multicoat, Abyss Blue Multicoat, and Mercury Silver Metallic. 

The silver paint color will probably be the free option for Giga Berlin reservation holders. Tesla may have taken a cue from that and chose to make Midnight Silver Metallic a free color option in North America as well. Giga Shanghai’s free paint option is Pure Black.

The Teslarati team would appreciate hearing from you. If you have any tips, reach out to me at maria@teslarati.com or via Twitter @Writer_01001101.

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Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

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Elon Musk

Elon Musk reveals date of Tesla Robotaxi’s first rides open to public

Tesla CEO Elon Musk continues to roll out new details regarding the Robotaxi launch that is expected to happen soon.

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Credit: Tesla

Tesla Robotaxi is set to launch in the coming days, but the first rides will be confined to those who receive invitations that the company sends out. However, CEO Elon Musk revealed the date that Tesla is aiming for when anyone in the general public will be able to call for a Robotaxi.

There has been quite a bit of information today about what appears to be an imminent launch of the Robotaxi platform. The first video of a Robotaxi was captured on a public road in Austin today, just one day after Tesla was added to the City of Austin’s list of licensed autonomous vehicle operators.

First Tesla driverless robotaxi spotted in the wild in Austin, TX

In the coming days, it is expected that Tesla will launch the Robotaxi platform in Austin to a select few. For now, Tesla is taking this ultra-conservative approach as it pertains to the rollout, citing safety precautions. It will be the first time Tesla has done this in public and offered it to people outside of the company.

It did launch a small, limited version of it to employees last month in Austin and the San Francisco Bay Area, but there was someone in the driver’s seat. Today’s video only had an occupant in the passenger seat.

People are eager to know: when will they be able to fetch a driverless Tesla Model Y Robotaxi in Austin for themselves? Musk finally answered the long-awaited question with a tentative date of June 22:

Musk cited that Tesla’s utmost priority is still safety and not necessarily the speed of rollout. The current plan seems to be to deploy it in a controlled and slow fashion until confidence is at an extremely high level. Musk seems to believe the rollout will go smoothly, as the date comes less than two weeks after the initial launch.

Anyone who has experienced Full Self-Driving for themselves knows what the cars are capable of. However, Tesla, at this point in time, still requires drivers to pay attention and remain ready to take over the wheel in case of an emergency. This will be a major step in the right direction for Tesla as it prepares to launch Robotaxi in Austin and slowly expand to surrounding areas.

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Elon Musk

Elon Musk says Tesla Robotaxi launch will force companies to license Full Self-Driving

“The automakers keep being told that this isn’t real or that just buying some hardware from Nvidia will solve it. As Tesla robotaxis become widespread and their other solutions don’t work, they will naturally turn to us.”

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Tesla CEO Elon Musk says the automaker’s Robotaxi platform launch later this month will essentially force other companies to license Full Self-Driving to achieve their own goals of achieving autonomy.

Musk’s statement comes as a video captured today showed the first Tesla Robotaxi test mules on public streets in Austin, Texas, just one day after the City officially listed the company as an autonomous vehicle operator.

A prediction by investing YouTube and Tesla community member Dave Lee stated that “at least one automaker by end of year” will license Full Self-Driving from the Musk-led company, as it will give rivals the confidence to use the software to run their own self-driving operations.

Lee detailed his theory by stating that the company that chooses to commit to FSD licensing will not be able to integrate the hardware and sell those units immediately. Instead, it will take two years or so to solve the engineering and design applications.

First Tesla driverless robotaxi spotted in the wild in Austin, TX

Musk revealed his true thoughts on other automakers’ attempts at vehicle autonomy, and said many are being told that Robotaxi is not real or that they can solve their problems with hardware orders to Nvidia.

He went on to say that companies will be forced to turn to Tesla at some point or another, because Robotaxi will be widespread and their solutions to figuring out an effective deployment will prove to be failures:

“The automakers keep being told that this isn’t real or that just buying some hardware from Nvidia will solve it. As Tesla robotaxis become widespread and their other solutions don’t work, they will naturally turn to us.”

Musk has not been shy to respond to speculation regarding the video of the Robotaxi, which was shared on X earlier today. This is perhaps one of the more fiery things he revealed. He seems ultra-confident in what Tesla will prove and achieve in the near future with the launch of the Robotaxi platform.

Many believe it will be rolled out this month. Bloomberg reported recently that Tesla was internally aiming for June 12. The company has not directly responded to these rumors.

Tesla has discussed on several occasions that it is in talks with an automaker about licensing Full Self-Driving, but it has never revealed who. The company first revealed discussions with another automaker in early 2024 when Elon Musk said:

“We’re in conversations with one major automaker regarding licensing FSD. It really just becomes a case of having them use the same cameras and inference computer and licensing our software. Once it becomes obvious that if you don’t have this (FSD) in a car, nobody wants your car. It’s a smart car… The people don’t understand all cars will need to be smart cars, or you will not sell, or nobody would buy it. Once that becomes obvious, I think licensing becomes not optional.”

Tesla confirms it is in talks with major automaker for potential FSD licensing

Many, including us, suspected that Ford was the company that Tesla was speaking of due to Musk’s relationship with Jim Farley, which resulted in the legacy automaker being the first major car company to adopt Tesla’s North American Charging Standard (NACS), which gave them access to the Supercharging Network.

This catalyzed an onslaught of companies choosing to make the same move as Tesla had truly set itself apart in terms of charging infrastructure.

Companies may be forced to make a similar decision if it can make the same type of statement with the rollout of Robotaxi.

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Elon Musk

Tesla CEO Elon Musk reveals new details about Robotaxi rollout

The first Tesla Robotaxi unit was spotted in Austin earlier today, and CEO Elon Musk is revealing some cool new details.

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Tesla CEO Elon Musk has revealed new details about the company’s relatively imminent rollout of the Robotaxi platform as the suspected launch date of June 12 continues to near.

Earlier today, the first video showing the first driverless Tesla Robotaxi in Austin was shared on X, just a day after the City officially listed the company as an autonomous vehicle operator on its website. Tesla is listed as a company in the “Testing” phase.

The initial details of the Robotaxi are being revealed by Musk, who is carefully releasing small tidbits that seem to show the capabilities of the entire Tesla fleet, and not necessarily just the vehicles that will be involved in the initial rollout in Austin.

First Tesla driverless robotaxi spotted in the wild in Austin, TX

His first tidbit is one that many Tesla owners and fans will already know: many Teslas are capable of this driveless performance, but Full Self-Driving is not yet refined to the point where the software is quite ready to handle it. Current versions are robust, but not prepared for driverless navigation. The hardware, however, will enable Teslas to be Robotaxis, even if they’re already purchased by owners:

This is one of the biggest advantages Tesla has over other vehicle makers. Simply put, the Over-the-Air software updates that will roll out to FSD users will eventually make their cars into Robotaxis as well.

However, Musk shed some details on the version of FSD that is being run in these new Robotaxis that were spotted. Musk said that the version these Robotaxis are running is a new version, but will soon “merge to main branch.”

There is also an even newer version that has four times the parameters as this newer version that the test-stage Robotaxis are using, but Musk admits that this needs significant refinement before it is released to the public.

As of now, Tesla is simply teasing the actual launch date of the Robotaxi program, but Bloomberg reported earlier this month that it will occur on June 12.

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