Connect with us
tesla tesla

News

Tesla lowers Model S, Model 3, and Model X pricing in eve of coming battery milestones

The Tesla Model S, Model X, and Model 3.

Published

on

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.

Advertisement
-->

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.

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.

Advertisement
Comments

Elon Musk

Tesla AI5 chip nears completion, Elon Musk teases 9-month development cadence

The Tesla CEO shared his recent insights in a post on social media platform X.

Published

on

Credit: Tesla

Tesla’s next-generation AI5 chip is nearly complete, and work on its successor is already underway, as per a recent update from Elon Musk. 

The Tesla CEO shared his recent insights in a post on social media platform X.

Musk details AI chip roadmap

In his post, Elon Musk stated that Tesla’s AI5 chip design is “almost done,” while AI6 has already entered early development. Musk added that Tesla plans to continue iterating rapidly, with AI7, AI8, AI9, and future generations targeting a nine-month design cycle. 

He also noted that Tesla’s in-house chips could become the highest-volume AI processors in the world. Musk framed his update as a recruiting message, encouraging engineers to join Tesla’s AI and chip development teams.

Tesla community member Herbert Ong highlighted the strategic importance of the timeline, noting that faster chip cycles enable quicker learning, faster iteration, and a compounding advantage in AI and autonomy that becomes increasingly difficult for competitors to close.

Advertisement
-->

AI5 manufacturing takes shape

Musk’s comments align with earlier reporting on AI5’s production plans. In December, it was reported that Samsung is preparing to manufacture Tesla’s AI5 chip, accelerating hiring for experienced engineers to support U.S. production and address complex foundry challenges.

Samsung is one of two suppliers selected for AI5, alongside TSMC. The companies are expected to produce different versions of the AI5 chip, with TSMC reportedly using a 3nm process and Samsung using a 2nm process.

Musk has previously stated that while different foundries translate chip designs into physical silicon in different ways, the goal is for both versions of the Tesla AI5 chip to operate identically. AI5 will succeed Tesla’s current AI4 hardware, formerly known as Hardware 4, and is expected to support the company’s Full Self-Driving system as well as other AI-driven efforts, including Optimus.

Continue Reading

News

Tesla Model Y and Model 3 named safest vehicles tested by ANCAP in 2025

According to ANCAP in a press release, the Tesla Model Y achieved the highest overall weighted score of any vehicle assessed in 2025.

Published

on

Credit: ANCAP

The Tesla Model Y recorded the highest overall safety score of any vehicle tested by ANCAP in 2025. The Tesla Model 3 also delivered strong results, reinforcing the automaker’s safety leadership in Australia and New Zealand.

According to ANCAP in a press release, the Tesla Model Y achieved the highest overall weighted score of any vehicle assessed in 2025. ANCAP’s 2025 tests evaluated vehicles across four key pillars: Adult Occupant Protection, Child Occupant Protection, Vulnerable Road User Protection, and Safety Assist technologies.

The Model Y posted consistently strong results in all four categories, distinguishing itself through a system-based safety approach that combines structural crash protection with advanced driver-assistance features such as autonomous emergency braking, lane support, and driver monitoring. 

This marked the second time the Model Y has topped ANCAP’s annual safety rankings. The Model Y’s previous version was also ANCAP’s top performer in 2022.

The Tesla Model 3 also delivered a strong performance in ANCAP’s 2025 tests, contributing to Tesla’s broader safety presence across segments. Similar to the Model Y, the Model 3 also earned impressive scores across the ANCAP’s four pillars. This made the vehicle the top performer in the Medium Car category.  

ANCAP Chief Executive Officer Carla Hoorweg stated that the results highlight a growing industry shift toward integrated safety design, with improvements in technologies such as autonomous emergency braking and lane support translating into meaningful real-world protection.

Advertisement
-->

“ANCAP’s testing continues to reinforce a clear message: the safest vehicles are those designed with safety as a system, not a checklist. The top performers this year delivered consistent results across physical crash protection, crash avoidance and vulnerable road user safety, rather than relying on strength in a single area.

“We are also seeing increasing alignment between ANCAP’s test requirements and the safety technologies that genuinely matter on Australian and New Zealand roads. Improvements in autonomous emergency braking, lane support, and driver monitoring systems are translating into more robust protection,” Hoorweg said.

Continue Reading

News

Tesla Sweden uses Megapack battery to bypass unions’ Supercharger blockade

Just before Christmas, Tesla went live with a new charging station in Arlandastad, outside Stockholm, by powering it with a Tesla Megapack battery.

Published

on

Credit: Tesla Charging/X

Tesla Sweden has successfully launched a new Supercharger station despite an ongoing blockade by Swedish unions, using on-site Megapack batteries instead of traditional grid connections. The workaround has allowed the Supercharger to operate without direct access to Sweden’s electricity network, which has been effectively frozen by labor action.

Tesla has experienced notable challenges connecting its new charging stations to Sweden’s power grid due to industrial action led by Seko, a major Swedish trade union, which has blocked all new electrical connections for new Superchargers. On paper, this made the opening of new Supercharger sites almost impossible.

Despite the blockade, Tesla has continued to bring stations online. In Malmö and Södertälje, new Supercharger locations opened after grid operators E.ON and Telge Nät activated the sites. The operators later stated that the connections had been made in error. 

More recently, however, Tesla adopted a different strategy altogether. Just before Christmas, Tesla went live with a new charging station in Arlandastad, outside Stockholm, by powering it with a Tesla Megapack battery, as noted in a Dagens Arbete (DA) report. 

Because the Supercharger station does not rely on a permanent grid connection, Tesla was able to bypass the blocked application process, as noted by Swedish car journalist and YouTuber Peter Esse. He noted that the Arlandastad Supercharger is likely dependent on nearby companies to recharge the batteries, likely through private arrangements.

Advertisement
-->

Eight new charging stalls have been launched in the Arlandastad site so far, which is a fraction of the originally planned 40 chargers for the location. Still, the fact that Tesla Sweden was able to work around the unions’ efforts once more is impressive, especially since Superchargers are used even by non-Tesla EVs.

Esse noted that Tesla’s Megapack workaround is not as easily replicated in other locations. Arlandastad is unique because neighboring operators already have access to grid power, making it possible for Tesla to source electricity indirectly. Still, Esse noted that the unions’ blockades have not affected sales as much.

“Many want Tesla to lose sales due to the union blockades. But you have to remember that sales are falling from 2024, when Tesla sold a record number of cars in Sweden. That year, the unions also had blockades against Tesla. So for Tesla as a charging operator, it is devastating. But for Tesla as a car company, it does not matter in terms of sales volumes. People charge their cars where there is an opportunity, usually at home,” Esse noted. 

Advertisement
-->
Continue Reading