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.
“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.
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Tesla Robotaxi just got a big benefit from the U.S. government
The NHTSA is looking to help streamline the application process for companies developing driverless vehicles.

Tesla Robotaxi just got a big benefit from the U.S. Government, as the National Highway Traffic Safety Administration (NHTSA) is looking to ease some rules and streamline the application process that could hinder the development and licensing of autonomous vehicles.
Tesla is set to launch its Robotaxi platform in the coming days or weeks, but regulation on autonomous vehicles is incredibly slim, so automakers are left in a strange limbo as permissions to operate are usually up to local jurisdictions.
The NHTSA still has the ultimate say, but it is now adopting a new strategy that will see companies gain an exemption from federal safety standards and streamline the entire application process.
The agency is authorized to grant exemptions to permit manufacturers to produce vehicles over a two or three-year period that might not comply with certain Federal Motor Vehicle Safety Standards (FMVSS). Robotaxi, for example, will eventually not have a steering wheel or pedals, through the Cybercab that Tesla unveiled last October.
The exemption program the NHTSA announced today would be possible through Part 555 of the National Traffic and Motor Vehicle Safety Act:
“NHTSA may grant a Part 555 exemption if at least one of four bases listed in the statute is met and NHTSA determines that the exemption is consistent with the public interest and the Safety Act. The statute also authorizes NHTSA to subject an exemption to terms the agency deems appropriate and requires that NHTSA publish notice of the application and provide an opportunity to comment.”
The rapid and non-stop innovation that is being performed is tough to keep up with from a legal standpoint. The NHTSA recognizes this and says current legislation is appropriate for traditional vehicles, but not for the self-driving cars companies are producing now:
“The current Part 555 process was designed for traditional vehicles. As currently applied, this process is not well suited for processing exemptions involving ADS-equipped vehicles in a timely manner or overseeing the unique complexities involving their operations. This has resulted in long processing times for applications for ADS-equipped vehicles. NHTSA must improve its Part 555 processing times substantially to keep pace with the rapid innovation of the ADS industry and to ensure that exemptions remain effective tools for nurturing groundbreaking safety technologies.”
Now, the NHTSA will be “enhancing application instructions” to help manufacturers understand the requirements involved in the application process. This will streamline the entire process by “reducing the need for NHTSA to request additional information from the manufacturer,” the agency says.
First Tesla driverless robotaxi spotted in the wild in Austin, TX
Next, the NHTSA is going to have a more flexible approach to evaluating exemptions for ADS-equipped vehicles:
“To build flexibility into the Part 555 process while also accounting for the unique aspects of those exemptions, NHTSA intends to develop terms that could be included in Part 555 exemption grants, when appropriate, to condition operations of exempted ADS-equipped vehicles on enhanced and continuing oversight from NHTSA. NHTSA would expect to administer this enhanced oversight through letters, which could be updated over time, mirroring real-world ADS development. This will enable NHTSA to focus its initial review during the application stage and align the Part 555 oversight approach more closely to exemptions administered under NHTSA’s Automated Vehicle Exemption Program (AVEP), which have proven effective for ADS.”
This will benefit any company making autonomous vehicles, but it will especially benefit Tesla in the short-term as it is readying for the launch of Robotaxi.
Tesla is trading up 1.89 percent at the time of publication.
Part 555 Letter June 2025 by Joey Klender on Scribd
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SpaceX produces its 10 millionth Starlink kit
The first 5 million Starlink kits took nearly four years to build.

SpaceX has achieved a major milestone, producing its 10 millionth Starlink kit. The accomplishment was celebrated across the company’s Hawthorne, California, and Bastrop, Texas, facilities.
The milestone was shared in social media by Sujay Soman, Senior Facilities Engineer, in a LinkedIn post, which has since been deleted.
Starlink Production Ramp
Soman noted in his LinkedIn post that the first 5 million Starlink kits took nearly four years to build, but the next 5 million kits were completed in just 11 months. This underscores SpaceX’s intense efforts to ramp up the satellite internet system’s production, and it reflects the private space company’s manufacturing prowess.
The SpaceX Senior Facilities Engineer shared a couple of photos of the Machine Maintenance and Facilities team in Bastrop to commemorate the event.
“Today, Starlink Product teams across our Hawthorne and Bastrop sites produced the 10th Million Starlink Kit! It took almost 4 years to build our first 5 million kits, and we doubled that in about 11 months. Monumental accomplishment!” Soman wrote in his post.

World-Changing Technology
The Starlink kits, featuring dish hardware and supporting equipment, enable users to connect to the company’s growing constellation of low Earth orbit satellites. With over 6,000 satellites launched to date, Starlink now provides fast and reliable internet connectivity to over 6 million customers worldwide. This was a significant increase from the 5 million customers that the company reported in February 2025.
SpaceX has not detailed its next production targets, but the production of Starlink’s 10 millionth kit milestone signals the company’s readiness to scale further. Being an Elon Musk-led company, SpaceX is arguably the best in the business when it comes to efficient and cost-effective manufacturing. It would then be unsurprising if SpaceX announces another Starlink production milestone soon.
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Tesla retires yoke steering wheel in base Model S and X
Tesla’s controversial steering yoke is now exclusive to the Model S and Model X Plaid.

Tesla has closed a chapter in the saga of the Model S and Model X’s controversial steering yoke. Following the announcement of the new iterations of the flagship vehicles, Tesla promptly removed the steering option for the vehicles’ base variants.
This means that if drivers wish to experience the Model S or Model X with a yoke, they would have to go Plaid.
The new Model S and Model X
The refresh of the Model S and Model X were quite minor, with the two vehicles featuring a new front camera, a new color, and a handful of other small changes like new exterior styling for the Model S Plaid. Tesla also noted on its website that the two vehicles now have a much smoother and quieter ride.
The changes were quite polarizing, with some appreciating the subtle improvements made to the two flagship cars and others arguing that Tesla should have done more. Others, however, noted that the level of improvements implemented on the Model S and Model X would already be considered major refresh for a tech company like Apple.
No More Yoke Unless Plaid
When Tesla refreshed the Model S and Model X in 2021, the vehicles were released with a steering yoke as standard. The yoke was controversial, with critics stating that it was unsafe and fans stating that it made driving the Model S and Model X fun. Tesla later introduced a round steering wheel option for the Model S and Model X, which later became standard on the two flagship vehicles.
This remains true today, with the most recent versions of the Model S and Model X still being released with a round steering wheel as standard. Those who wish to experience the Model S and Model X Plaid as envisioned by the company and its CEO, Elon Musk, however, might find it a good idea to spend the extra $1,000 for the vehicles’ yoke steering wheel.
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