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Tesla Model 3 becomes more affordable by $1100 as Referral Program ends

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On the heels of the end of Tesla’s long-running referral program, the electric car maker has lowered the price of the Model 3 by $1,100. The price adjustment affects all versions of the electric sedan, with the Mid Range RWD variant costing $42,900 before savings; the Dual Motor AWD costing $49,900 before savings, and Performance variant costing $60,900 before savings.

The recent price adjustments are a way to help Tesla keep the Model 3’s price at a competitive level despite the lowered federal tax credit, which was adjusted to $3,750 since January. With the phaseout period of the federal credits in mind, it is pertinent for the company to keep its vehicles priced competitively, at least until it can start manufacturing the lower-priced versions of the electric sedan.

These price adjustments are made possible by the optimizations that Tesla has adopted for the vehicle’s production over the past months. The phaseout of the long-running referral program, which Elon Musk notes has been costing the company a lot of money, also helped. This was highlighted by a Tesla spokesperson amidst the Model 3’s recent $1,100 price adjustments, who stated that the changes were made possible primarily as a result of the referral program’s end. This statement echoes one of Elon Musk’s tweets, where he noted that the referral program was “adding too much cost to the cars, especially Model 3.”

The timing of the Model 3’s recent price adjustment appears to be strategic, as the lower costs of the vehicle could result in a boost for sales in the United States. Such timing plays well with Tesla’s sales trends during the first quarter, as mentioned by Elon Musk during the recently held fourth-quarter earnings call. During the Q&A session, Musk remarked that he remains confident about the Model 3’s demand, particularly as sales pick up around early to mid-March.

“There’s a lot of seasonality to automotive purchases. First of all, (people) do not buy a new car in the middle of a blizzard. So January and February tend to be seasonally low and then picks up significantly around (the) early to the mid-March time frame. In the U.S., we obviously have a pull forward of demand from the tax credit. And yes, there’s — so there’s all those factors. But I feel very confident about Model 3 demand,” Musk said.

While Tesla is yet to begin the production of the Model 3’s standard Range variants, credit must be given to the company for making headways in lowering the cost of its vehicles. With its current price of $49,900 before savings, for one, the Long Range AWD version is already close to the starting cost of the Long Range RWD Model 3, the first version of the vehicle released by Tesla that was priced at $49,000 before options.

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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’s new Holiday perk is timed perfectly to make FSD a household name

Tesla AI4 owners get FSD (Supervised) through Christmas, New Year’s Eve and well into the post-holiday travel season.

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Credit: Grok Imagine

Tesla quietly rolled out a free Full Self-Driving (Supervised) trial for roughly 1.5 million HW4 owners in North America who never bought the package, and the timing could very well be genius. 

As it turns out, the trial doesn’t end after 30 days. Instead, it expires January 8, 2026, meaning owners get FSD (Supervised) through Christmas, New Year’s Eve and well into the post-holiday travel season. This extended window positions the feature for maximum word-of-mouth exposure.

A clever holiday gift

Tesla watcher Sawyer Merritt first spotted the detail after multiple owners shared screenshots showing the trial expiring on January 8. He confirmed with affected users that none had active FSD subscriptions before the rollout. He also observed that Tesla never called the promotion a “30-day trial,” as the in-car message simply reads “You’re Getting FSD (Supervised) For the Holidays,” which technically runs until after the new year.

The roughly 40-day period covers peak family travel and gatherings, giving owners ample opportunity to showcase the latest FSD V14’s capabilities on highway trips, crowded parking lots and neighborhood drives. With relatives riding along, hands-off highway driving and automatic lane changes could become instant conversation starters.

Rave reviews for FSD V14 highlight demo potential

FSD has been receiving positive reviews from users as of late. Following the release of FSD v14.2.1, numerous owners praised the update for its smoothness and reliability. Tesla owner @LactoseLunatic called it a “huge leap forward from version 14.1.4,” praising extreme smoothness, snappy lane changes and assertive yet safe behavior that allows relaxed monitoring. 

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Another Tesla owner, @DevinOlsenn, drove 600 km without disengagements, noting his wife now defaults to FSD for daily use due to its refined feel. Sawyer Merritt also tested FSD V14.2.1 in snow on unplowed New Hampshire roads, and the system stayed extra cautious without hesitation. Longtime FSD tester Chuck Cook highlighted improved sign recognition in school zones, showing better dynamic awareness. These reports of fewer interventions and a more “sentient” drive could turn family passengers into advocates, fueling subscriptions come January.

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Elon Musk predicts AI and robotics could make work “optional” within 20 years

Speaking on entrepreneur Nikhil Kamath’s podcast, Musk predicted that machines will soon handle most forms of labor, leaving humans to work only if they choose to.

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Gage Skidmore, CC BY-SA 4.0 , via Wikimedia Commons

Elon Musk stated that rapid advances in artificial intelligence and robotics could make traditional work unnecessary within two decades. 

Speaking on entrepreneur Nikhil Kamath’s podcast, Musk predicted that machines will soon handle most forms of labor, leaving humans to work only if they choose to.

Work as a “hobby”

During the discussion, Musk said the accelerating capability of AI systems and general-purpose robots will eventually cover all essential tasks, making human labor a choice rather than an economic requirement. “In less than 20 years, working will be optional. Working at all will be optional. Like a hobby,” Musk said.

When Kamath asked whether this future is driven by massive productivity growth, Musk agreed, noting that people will still be free to work if they enjoy the routine or the challenge. He compared future employment to home gardening, as it is something people can still do for personal satisfaction even if buying food from a store is far easier

“Optional” work in the future

Elon Musk acknowledged the boldness of his claim and joked that people might look back in 20 years and say he was wrong. That being said, the CEO noted that such a scenario could even happen sooner than his prediction, at least if one were to consider the pace of the advancements in AI and robotics. 

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“Obviously people can play this back in 20 years and say, ‘Look, Elon made this ridiculous prediction and it’s not true,’ but I think it will turn out to be true, that in less than 20 years, maybe even as little as ten or 15 years, the advancements in AI and robotics will bring us to the point where working is optional,” Musk said. 

Elon Musk’s comments echo his previous sentiments at Tesla’s 2025 Annual Shareholder Meeting, where he noted that Optimus could ultimately eliminate poverty. He also noted that robots like Optimus could eventually provide people worldwide with the best medical care.

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Elon Musk reiterates why Tesla will never make an electric motorcycle

Tesla CEO Elon Musk preemptively shut down speculations about a Tesla road bike once more.

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Tesla CEO Elon Musk preemptively shut down speculations about a Tesla road bike once more, highlighting that the electric vehicle maker has no plans to enter the electric motorcycle market.  

Musk posted his clarification in a post on X.

Musk’s reply to a fun AI video

X user @Moandbhr posted an AI video featuring the Tesla CEO on the social media platform, captioning it with “Mr. Elon Musk Just Revealed the Game-Changing Tesla Motorcycle.” The short clip depicted Musk approaching a sleek, single-wheeled vehicle, stepping onto it, and gliding off into the distance amid cheers. The fun video received a lot of traction on X, gaining 3.1 million views as of writing. 

Musk replied to the post, stating that a Tesla motorcycle is not going to happen. “Never happening, as we can’t make motorcycles safe. For Community Notes, my near death experience was on a road bike. Dirt bikes are safe if you ride carefully, as you can’t be smashed by a truck,” Musk wrote in his reply. 

Musk’s Past Comments on Two-Wheelers

Musk also detailed his reservations about motorcycles in a December 2019 X post while responding to questions about Tesla’s potential ATV. At the time, he responded positively to an electric ATV, though he also opposed the idea of a Tesla road-going motorcycle. Musk did state that electric dirt bikes might be cool, since they do not operate in areas where large vehicles like Class 8 trucks are present. 

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“Electric dirt bikes would be cool too. We won’t do road bikes, as too dangerous. I was hit by a truck & almost died on one when I was 17,” Musk wrote in his post. 

Considering Musk’s comments about dirt bikes, however, perhaps Tesla would eventually offer a road bike as a recreational vehicle. Such a two-wheeler would be a good fit for the Cybertruck, as well as future products like the Robovan, which could be converted into an RV.

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