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Tesla China’s entry-level Model 3 is now cheaper than its US-made counterpart

(Credit: Tesla China)

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Tesla seems determined to start the fourth quarter strong in China, with the electric car maker rolling out price adjustments for the Model 3 on October 1. With these changes, the Model 3 Standard Range Plus produced in Gigafactory Shanghai has now become more affordable than its Fremont-made counterpart. And it comes with longer range too.

The updates to Tesla China’s Model 3 pricing were rolled out amidst reports that the company is about to start equipping the Standard Range Plus variant of the all-electric sedan with cobalt-free lithium iron phosphate (LFP) batteries. LFP batteries, while not as energy-dense as the nickel-manganese-cobalt (NMC) cells used by the company, are lower-cost and cobalt-free. In true Tesla fashion, it appears that the electric car maker has now passed over these cost savings to consumers.

With their updated pricing, the Tesla Model 3 Standard Range Plus from Gigafactory Shanghai could now be purchased for CN¥249,900 (about $36,800). That’s about CN¥21,650 less than its previous price. This effectively makes the vehicle more affordable than its American-made, NMC battery-equipped counterpart from the Fremont Factory, which starts at $37,990. China’s Model 3 Long Range RWD also received a price cut with the most recent update, with the vehicle now starting at CY¥309,900 (about $45,600). That’s CN¥34,150 less than its previous price.

What is rather interesting is that Tesla has also updated the range of the China-made Model 3 Standard Range Plus. Previously, the vehicle was listed with a range of 445 km (about 276 miles) under the NEDC cycle, and following today’s price adjustment, the entry-level Model 3 is now listed with an NEDC range of 468 km (about 290 miles). This is despite the vehicle using LPF batteries, which are less energy-dense than the NMC cells utilized by the company.

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With such changes rolled out, it would not be surprising if the Model 3 from China ends up seeing much more demand than before. Even with its previous pricing, after all, the Made-in-China Model 3 was already one of the country’s best-selling electric cars. The Standard Range Plus Model 3’s lower price point could effectively bring the vehicle within reach of more buyers, which, of course, could benefit the company’s numbers this fourth quarter.

What is rather exciting is the fact that Gigafactory Shanghai is still ramping its operations. The Phase 2 zone, which hosts the Model Y production area, is yet to start its vehicle production activities. Elon Musk has remarked that Tesla China could produce about 1 million vehicles per year. This hints that Gigafactory Shanghai still has a lot of room to grow, especially with regards to its production of the Model 3.

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 looks to upgrade Matrix Headlights with new features

According to the update, Tesla will work on improving the headlights when coming into contact with highly reflective objects, including road signs, traffic signs, and street lights. Additionally, pixel-level dimming will happen in two stages, whereas it currently performs with just one, meaning on or off.

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Credit: @jojje167 on X

Tesla is looking to upgrade its Matrix Headlights, a unique and high-tech feature that is available on several of its vehicles. The headlights aim to maximize visibility for Tesla drivers while being considerate of oncoming traffic.

The Matrix Headlights Tesla offers utilize dimming of individual light pixels to ensure that visibility stays high for those behind the wheel, while also being considerate of other cars by decreasing the brightness in areas where other cars are traveling.

Here’s what they look like in action:

As you can see, the Matrix headlight system intentionally dims the area where oncoming cars would be impacted by high beams. This keeps visibility at a maximum for everyone on the road, including those who could be hit with bright lights in their eyes.

There are still a handful of complaints from owners, however, but Tesla appears to be looking to resolve these with the coming updates in a Software Version that is currently labeled 2026.2.xxx. The coding was spotted by X user BERKANT:

According to the update, Tesla will work on improving the headlights when coming into contact with highly reflective objects, including road signs, traffic signs, and street lights. Additionally, pixel-level dimming will happen in two stages, whereas it currently performs with just one, meaning on or off.

Finally, the new system will prevent the high beams from glaring back at the driver. The system is made to dim when it recognizes oncoming cars, but not necessarily objects that could produce glaring issues back at the driver.

Tesla’s revolutionary Matrix headlights are coming to the U.S.

This upgrade is software-focused, so there will not need to be any physical changes or upgrades made to Tesla vehicles that utilize the Matrix headlights currently.

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xAI’s Grok approved for Pentagon classified systems: report

Under the agreement, Grok can be deployed in systems handling classified intelligence analysis, weapons development, and battlefield operations. 

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Credit: xAI

Elon Musk’s xAI has signed an agreement with the United States Department of Defense (DoD) to allow Grok to be used in classified military systems.

Previously, Anthropic’s Claude had been the only AI system approved for the most sensitive military work, but a dispute over usage safeguards has reportedly prompted the Pentagon to broaden its options, as noted in a report from Axios.

Under the agreement, Grok can be deployed in systems handling classified intelligence analysis, weapons development, and battlefield operations. 

The publication reported that xAI agreed to the Pentagon’s requirement that its technology be usable for “all lawful purposes,” a standard Anthropic has reportedly resisted due to alleged ethical restrictions tied to mass surveillance and autonomous weapons use.

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Defense Secretary Pete Hegseth is scheduled to meet with Anthropic CEO Dario Amodei in what sources expect to be a tense meeting, with the publication hinting that the Pentagon could designate Anthropic a “supply chain risk” if the company does not lift its safeguards. 

Axios stated that replacing Claude fully might be technically challenging even if xAI or other alternative AI systems take its place. That being said, other AI systems are already in use by the DoD. 

Grok already operates in the Pentagon’s unclassified systems alongside Google’s Gemini and OpenAI’s ChatGPT. Google is reportedly close to an agreement that will result in Gemini being used for classified use, while OpenAI’s progress toward classified deployment is described as slower but still feasible. 

The publication noted that the Pentagon continues talks with several AI companies as it prepares for potential changes in classified AI sourcing.

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Elon Musk denies Starlink’s price cuts are due to Amazon Kuiper

“This has nothing to do with Kuiper, we’re just trying to make Starlink more affordable to a broader audience,” Musk wrote in a post on X.

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Credit: Starlink

Elon Musk has pushed back on claims that Starlink’s recent price reductions are tied to Amazon’s Kuiper project.

In a post on X, Musk responded directly to a report suggesting that Starlink was cutting prices and offering free hardware to partners ahead of a planned IPO and increased competition from Kuiper.

“This has nothing to do with Kuiper, we’re just trying to make Starlink more affordable to a broader audience,” Musk wrote in a post on X. “The lower the cost, the more Starlink can be used by people who don’t have much money, especially in the developing world.”

The speculation originated from a post summarizing a report from The Information, which ran with the headline “SpaceX’s Starlink Makes Land Grab as Amazon Threat Looms.” The report stated that SpaceX is aggressively cutting prices and giving free hardware to distribution partners, which was interpreted as a reaction to Amazon’s Kuiper’s upcoming rollout and possible IPO.

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In a way, Musk’s comments could be quite accurate considering Starlink’s current scale. The constellation currently has more than 9,700 satellites in operation today, making it by far the largest satellite broadband network in operation. It has also managed to grow its user base to 10 million active customers across more than 150 countries worldwide. 

Amazon’s Kuiper, by comparison, has launched approximately 211 satellites to date, as per data from SatelliteMap.Space, some of which were launched by SpaceX’s Falcon 9 rocket. Starlink surpassed that number in early January 2020, during the early buildout of its first-generation network.

Lower pricing also aligns with Starlink’s broader expansion strategy. SpaceX continues to deploy satellites at a rapid pace using Falcon 9, and future launches aboard Starship are expected to significantly accelerate the constellation’s growth. A larger network improves capacity and global coverage, which can support a broader customer base.

In that context, price reductions can be viewed as a way to match expanding supply with growing demand. Musk’s companies have historically used aggressive pricing strategies to drive adoption at scale, particularly when vertical integration allows costs to decline over time.

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