News
Tesla lowers Model S, Model 3, and Model X pricing in eve of coming battery milestones
Tesla has implemented a series of price adjustments for the Model S, Model 3, and Model X. Based on observations from the Tesla community, several variants of the three vehicles have seen their prices drop by as much as $5,000, on the eve of Tesla’s speculated rollout of its next-generation batteries.
Recent reports indicate that in North America, Tesla had reduced the price of the Model S and Model X by $5,000. The Model S Long Range now starts at $74,990 while the Performance Model S starts at $94,990. The Model X, on the other hand, has adopted the Raven Model S’ previous pricing, starting at $79,990 for the Long Range version and $99,990 for the Performance variant.
The Model 3’s adjustments were more subtle, with both the Dual Motor AWD and Performance version seeing a price reduction of $2,000. But the biggest update here lies in the price adjustment of the Standard Range Plus Model 3, which now starts at $37,990. This lowers the entry point to Tesla’s premium EVs, while closing the gap between the SR+ and the $35,000 Standard Range Model 3 further.
Price adjustments have been adopted for the Model S and X in China as well, with the flagship vehicles seeing a reduction in cost by RMB29,000 or about US$4,000. These reductions did come at a cost, however, as Tesla China’s Model S and Model X no longer have Free Unlimited Supercharging bundled in. Tesla China’s locally made Model 3 that are produced in Gigafactory Shanghai did not receive a price adjustment.
With such a widespread change in its vehicle pricing, speculations have emerged from the Tesla community about the reason behind the company’s recent adjustments. While some news outlets have noted that the reductions were likely implemented to boost wavering demand, a significant portion of the electric vehicle community are speculating that Tesla may have simply reached a point where its operations have become more efficient, and its production costs have gotten more optimized.
Interestingly, such a scenario was mentioned by the company in its first quarter earnings call, when Chief Finance Officer Zachary Kirkhorn mentioned that the Gigafactory Shanghai produced Model 3 still has a lot of potential for further price reductions. This, of course, becomes particularly notable when one considers Tesla’s battery innovations.
The Silicon Valley-based carmaker was expected to hold a Battery Day event this month, but the event was postponed partly due to the onset of the coronavirus. Speculations are abounding about what Battery Day is poised to reveal, with many in the EV community estimating that Tesla will be announcing several milestones, such as a million-mile battery and a system that allows the company to produce cells at around $100/kWh or cheaper. If Tesla is indeed close to these milestones, then a reduction to its vehicles’s prices may definitely be warranted.
After all, Tesla’s mission is to usher in sustainability by offering vehicles that are preferable alternatives to those that are equipped with an internal combustion engine. To achieve this, Tesla must make sure that its cars are within reach of the mainstream auto market. Price reductions are a great way to step towards this goal.
News
Tesla seeks approval to test FSD Supervised in new Swedish city
Tesla has applied to conduct local Full Self-Driving (Supervised) testing in the city of Jönköping, Sweden.
Tesla has applied to conduct local Full Self-Driving (Supervised) testing in the city of Jönköping, Sweden.
As per local outlet Jönköpings-Posten, Tesla has contacted the municipality with a request to begin FSD (Supervised) tests in the city. The company has already received approval to test its Full Self-Driving (Supervised) software in several Swedish municipalities, as well as on the national road network.
Sofia Bennerstål, Tesla’s Head of Public Policy for Northern Europe, confirmed that an application has been submitted for FSD’s potential tests in Jönköping.
“I can confirm that we have submitted an application, but I cannot say much more about it,” Bennerstål told the news outlet. She also stated that Tesla is “satisfied with the tests” in the region so far.
The planned tests in Jönköping would involve a limited number of Tesla-owned vehicles. Trained Tesla safety drivers would remain behind the wheel and be prepared to intervene if necessary.
Tesla previously began testing in Nacka municipality after receiving local approval. At the time, the company stated that cooperation between authorities, municipalities, and industry enables technological progress and helps integrate future transport systems into real-world traffic conditions, as noted in an Allt Om Elbil report.
If approved, Jönköping would become the latest Swedish municipality to allow local Full Self-Driving (Supervised) testing.
Tesla’s Swedish testing program is part of the company’s efforts to validate its supervised autonomous driving software in everyday traffic environments. Municipal approvals allow Tesla to gather data in urban settings that include roundabouts, complex intersections, and mixed traffic conditions.
Sweden has become an increasingly active testing ground for Tesla’s driver-assistance software in Europe, with regulatory coordination between local authorities and national agencies enabling structured pilot programs.
Elon Musk
Microsoft partners with Starlink to expand rural internet access worldwide
The update was shared ahead of Mobile World Congress.
Microsoft has announced a new collaboration with Starlink as part of its expanding digital access strategy, following the company’s claim that it has extended internet connectivity coverage to more than 299 million people worldwide.
The update was shared ahead of Mobile World Congress, where Microsoft detailed how it surpassed its original goal of bringing internet access to 250 million people by the end of 2025.
In a blog post, Microsoft confirmed that it is now working with Starlink to expand connectivity in rural and hard-to-reach regions.
“Through our collaboration with Starlink, Microsoft is combining low-Earth orbit satellite connectivity with community-based deployment models and local ecosystem partnerships,” the company wrote.
The partnership is designed to complement Microsoft’s existing work with local internet providers and infrastructure companies across Africa, Latin America, and India, among other areas. Microsoft noted that traditional infrastructure alone cannot meet demand in some regions, making low-Earth orbit satellite connectivity an important addition.
Kenya was cited as an early example. Working with Starlink and local provider Mawingu Networks, Microsoft is supporting connectivity for 450 community hubs in rural and underserved areas. These hubs include farmer cooperatives, aggregation centers, and digital access facilities intended to support agricultural productivity and AI-enabled services.
Microsoft stated that 2.2 billion people globally remain offline, and that connectivity gaps risk widening as AI adoption accelerates.
Starlink’s expanding constellation, now numbering more than 9,700 satellites in orbit, provides near-global coverage, making it one of the few systems capable of delivering broadband to remote regions without relying on terrestrial infrastructure.
Starlink is expected to grow even more in the coming years as well, especially as SpaceX transitions its fleet to Starship, which is capable of carrying significantly larger payloads compared to its current workhorse, the Falcon 9.
Elon Musk
Tesla expands US LFP battery supply with LG Energy Solution deal: report
The report was initially published by TheElec, citing industry sources.
LG Energy Solution (LGES) will manufacture lithium iron phosphate (LFP) energy storage system (ESS) batteries for Tesla at its Lansing, Michigan facility.
The report was initially published by TheElec, citing industry sources.
LG Energy Solution’s Lansing plant, formerly known as Ultium Cells 3, was previously operated as a joint venture with General Motors. LGES acquired GM’s stake in May 2025 and now fully owns the site. With a production capacity of 50 GWh per year, it is one of the company’s largest facilities in North America.
LG Energy Solution is converting part of the Lansing factory to produce LFP batteries for energy storage systems. Equipment orders for the new lines have already been placed, and mass production is reportedly expected to begin in the second half of next year.
Last July, LG Energy Solution disclosed a 5.94 trillion won battery supply agreement running from August 2027 to July 2030. While the company did not name the customer, industry sources pointed to Tesla as the buyer.
Tesla has primarily used CATL’s prismatic batteries for its Megapack systems. The move to source prismatic LFP cells from LG Energy Solution’s U.S. plant could then be seen as part of Tesla’s efforts to bolster its North American supply base for its energy storage business.
For the Lansing conversion, LG Energy Solution reportedly plans to use electrode equipment originally ordered under its Ultium Cells venture with General Motors. Suppliers reportedly include CIS and Hirano Tecseed for electrode systems, TSI for mixing equipment, CK Solution for heat exhaust systems, A-Pro for formation equipment, and Shinjin Mtech for assembly kits.
Tesla currently manufactures energy storage products at facilities in California and Shanghai, though another Megafactory that produces the Megapack is also expected to be built in Texas. As per recent reports, the Texas Megafactory recently advanced with a major property sale.
Tesla seeks approval to test FSD Supervised in new Swedish city
Microsoft partners with Starlink to expand rural internet access worldwide
