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Tesla Model 3 becomes more affordable by $1100 as Referral Program ends
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.
SpaceX is gearing up for the 13th Starship integrated flight test, which is currently scheduled for Thursday, July 16, with the launch window opening up at 6:30 PM E.T. from Starbase in South Texas.
This mission, the second with the V3 Starship and Super Heavy vehicles, builds directly on the foundation of Flight 12 while introducing ambitious new objectives, including the debut deployment of next-generation Starlink V3 satellites.
The rapid iteration between flights underscores SpaceX’s “fail fast, learn faster” philosophy, with engineers addressing specific anomalies from the previous test to push reusability and payload capabilities further.
Starship’s thirteenth flight test is preparing to launch as early as Thursday, July 16 → https://t.co/Rp7VwBzpWx pic.twitter.com/jdpFlQUEpF
— SpaceX (@SpaceX) July 11, 2026
Flight 12 occurred earlier in 2026 and encountered notable challenges that became catalysts for Flight 13’s improvements. Issues included booster course deviations during the flip maneuver after stage separation, reusability problems with Super Heavy’s Raptor engine relights for the boostback burn, and an engine-out event on the Starship upper stage during its propulsion phase.
These hiccups, while they did not prevent overall mission success, highlighted areas needing refinement for more consistent performance and higher safety margins in future operational flights.
Elon Musk called it Epic: The full story of SpaceX’s Starship Flight 12
In response, SpaceX implemented a comprehensive suite of both hardware and software upgrades.
For the booster, engineers developed a more robust stage separation flip sequence to maintain stable orientation and prevent off-course rotation. Hardware modifications have enhanced Raptor re-light reliability during the boostback burn, complemented by updated engine alarms and abort logic tailored for multi-engine operations. On the Starship side, propulsion system changes directly tackle the Flight 12 engine-out scenario, improving redundancy and operational resilience.
Another major focus of SpaceX for Flight 13 was the advancements in the heat shield. New tile designs and attachment mechanisms, including tests of aft flaps and skirts, aim to boost durability.
Load-sensing tiles will measure real-time stresses during atmospheric entry, while white-painted tiles simulate missing ones as imaging targets. Six of the 20 Starlink V3 satellites carried aboard will feature specialized cameras to scan and transmit heat shield imagery back to ground teams, providing critical data for future return-to-launch-site attempts.
The mission profile also includes a higher dynamic pressure ascent to stress-test the thermal protection system and increase payload potential, alongside a planned in-space Raptor engine relight demonstration.
The V3 Starlink satellites themselves mark a leap forward, equipped with laser links, deployable solar arrays, and improved antennas to expand network capacity and speeds.
The company wrote:
“For the first time, Starship will carry V3 Starlink satellites to space, which aim to greatly expand the network’s capacity and user speeds. As part of this initial test, Starship is planned to deploy 20 satellites which will extend solar arrays and antennas and will attempt to connect with ground stations in South Africa and the larger Starlink constellation via high-capacity lasers. Six of the satellites have been modified with a suite of cameras to scan Starship’s heat shield and transmit imagery down to operators to continue testing methods of analyzing Starship’s heat shield readiness for return to launch site on future missions. Several tiles on Starship have been painted white to simulate missing tiles and serve as imaging targets in the test.”
This dual-purpose flight tests both vehicle reliability and satellite tech in one integrated operation.
These iterative changes, catalyzed by Flight 12’s data, position Starship closer to rapid reusability goals essential for ambitious programs like Artemis lunar missions and global Starlink coverage.
As SpaceX continues its aggressive test cadence, Flight 13 exemplifies how targeted engineering responses to real-flight anomalies accelerate progress toward fully operational, high-cadence launches. Success here could mark another milestone in the Starship program for SpaceX.
Tesla received a price target upgrade just on the heels of what was a crazy successful quarter for its automotive business, as the company reported a delivery beat of over 15 percent for Q2.
Jefferies analysts are upping Tesla’s price target (NASDAQ: TSLA) to $400 from $375, while maintaining their “Hold” rating on shares, and the strong automotive deliveries from Q2 is a big reason. However, there are some other catalysts that Jefferies believes position Tesla for a strong position in the second half of the year.
Strong Deliveries
Tesla reported 480,000 deliveries for Q2, while Wall Street was between 395,000 and 405,000, as an overall consensus. It was an incredibly strong quarter from a delivery perspective, and Tesla sold well more than it produced during the three months.
Tesla crushes Wall Street expectations, beats delivery estimates by over 15 percent
While vehicle deliveries are not necessarily looked at in the light that they used to be, Tesla still maintains a lot of advantages for keeping deliveries strong. With the loss of the $7,500 EV Tax Credit last year, Tesla still maintains a strong demand case for its EVs.
Robotaxi Performance
Tesla has been operating Robotaxi for over a year now, as it launched in Austin in mid-2025. That program has expanded to Houston and Dallas, the San Francisco Bay Area, and, most recently, Miami, Florida, the suite’s first appearance in the Sunshine State.
While the Robotaxi suite is still in its early phases and Tesla is working through things like fleet size and wait times, the company has been able to undercut the pricing of its competitors and has a great safety record.
Merger Speculation with Tesla and SpaceX
This is perhaps the biggest topic that many are speaking about with Tesla and SpaceX, and it is the one thing that seems to be on the mind of every investor.
Jefferies warns that growing talk of a Tesla-SpaceX merger could cause Tesla stock to trade more like a SpaceX proxy, which may disconnect it from underlying automotive fundamentals. SpaceX has a lot going for it, especially its compute deals that have been widely publicized as of late.
Profitability in New Projects Could Take Some Time
Tesla has a few long-term ventures in the pipeline, most notably the Optimus project and Robotaxi, which is launched but will take several years to expand to a meaningful level that resonates with everyday people.
This is something that investors need to be careful of. Tesla’s projects could take some time to round out, so Jefferies advises that these may carry initial losses, rather than immediate profit. Seasoned Tesla investors have echoed something like this for a long time; they knew going in it would not be an open-and-shut strategy. It was going to take time.
These new projects are no different.
News
Tesla readies its autonomous Cybercab and Robotaxi cleaning service
A Texas permit just confirmed Tesla’s cleaning robot is coming to service its Cybercab and Robotaxi fleet.
A routine Texas building permit may have quietly confirmed that Tesla’s robot vacuum and autonomous cleaning bot for the Robotaxi and Cybercab is coming. A state filing with the Texas Department of Licensing and Regulation, as first discovered by Tesla enthusiast Spencer and posted to X, that project number TABS2025022006, lists the scope of work at Tesla’s Austin Robotaxi hub at 5900 E Ben White Blvd to include a “Cleaning Robot” alongside Supercharger cabinets and an Equipment Inspection System.
Tesla first showed the cleaning robot publicly on January 31, 2025, posting a short video on X with the caption “This robot sucks,” showing a large robotic arm inside a Cybercab cabin switching between attachments to vacuum debris, pick up trash, and wipe down surfaces.
The operational case for this hardware comes down to mathematics. A robotaxi running rides across Austin needs to cycle passengers continuously to generate revenue. Every minute a vehicle sits waiting for a human cleaning crew is a minute it is not earning. A robotic arm that can fully clean a Cybercab cabin between rides in under two minutes removes one of the key bottlenecks in fleet utilization that no autonomous vehicle company has yet solved at scale.
This robot sucks pic.twitter.com/VUmGfCM5B3
— Tesla (@Tesla) January 31, 2025
The 5900 E Ben White Blvd address sits roughly 12 miles southwest of Gigafactory Texas, where Tesla has been mass producing its Cybercab. The Ben White facility is expected to functions as Tesla’s Austin Robotaxi Hub, the physical base of operations where fleet vehicles return between rides to charge, get cleaned, and undergo inspection before being dispatched again – and all autonomously. One can imagine a Cybercab dropping off a passenger, routes itself back to Ben White, pulls into the cleaning station, charges on one of the Supercharger cabinets listed in the same permit, passes the equipment inspection system, and returns to service, all without a human making a single decision.
The sighting activity around both locations has accelerated in parallel with production. By mid-March 2026, Cybercabs were spotted regularly on public roads across Austin and Silicon Valley. Tesla’s Robotaxi operations in Texas has expanded to cover the entire Austin metro area and has spread to Dallas, while autonomous Cybercab employee shuttle runs at Gigafactory Texas are also set to begin soon. What it represents is the physical infrastructure behind a fleet that Tesla intends to run without anyone cleaning, driving, or dispatching it by hand.
SpaceX comes with a slew of changes for Starship Flight 13
Tesla gets price target upgrade on heels of crazy successful auto quarter
