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.
SpaceX employees, including its CEO Elon Musk, shaded American Airlines on social media this past weekend due to the company’s reported talks with Amazon’s Starlink rival, Leo.
Starlink has been adopted by several airlines, including United Airlines, Qatar Airways, Hawaiian Airlines, WestJet, Air France, airBaltic, and others. It has gained notoriety as an extremely solid, dependable, and reliable option for airline travel, as traditional options frequently cause users to lose connection to the internet.
Many airlines have made the switch, while others continue to mull the options available to them. American Airlines is one of them.
A report from Bloomberg indicates the airline is thinking of going with a Starlink rival owned by Amazon, called Leo. It was previously referred to as Project Kuiper.
American CEO Robert Isom said (via Bloomberg):
“While there’s Starlink, there are other low-Earth-orbit satellite opportunities that we can look at. We’re making sure that American is going to have what our customers need.”
Isom also said American has been in touch with Amazon about installing Leo on its aircraft, but he would not reveal the status of any discussions with the company.
The report caught the attention of Michael Nicolls, the Vice President of Starlink Engineering at SpaceX, who said:
“Only fly on airlines with good connectivity… and only one source of good connectivity at the moment…”
CEO Elon Musk replied to Nicolls by stating that American Airlines risks losing “a lot of customers if their connectivity solution fails.”
American Airlines will lose a lot of customers if their connectivity solution fails
— Elon Musk (@elonmusk) December 14, 2025
There are over 8,000 Starlink satellites in orbit currently, offering internet coverage in over 150 countries and territories globally. SpaceX expands its array of satellites nearly every week with launches from California and Florida, aiming to offer internet access to everyone across the globe.
Currently, the company is focusing on expanding into new markets, such as Africa and Asia.
News
Tesla Model Y Standard stuns in new range test, besting its Premium siblings
Tesla’s newer vehicles have continued to meet or exceed their EPA estimates. This is a drastic change, as every 2018-2023 model year Tesla that Edmunds assessed did not meet its range estimates.
The Tesla Model Y Standard stunned in a new range test performed by automotive media outlet Edmunds, besting all of its Premium siblings that are more expensive and more luxurious in terms of features.
Testing showed the Model Y Standard exceeded its EPA-estimated range rating of 321 miles, as Edmunds said it is the “longest-range Model Y that we’ve ever put on our loop.” In the past, some vehicles have come up short in comparison with EPA ranges; for example, the Model Y’s previous generation vehicle had an EPA-estimated range of 330 miles, but only drove 310.
Additionally, the Launch Series Model Y, the first configuration to be built in the “Juniper” program, landed perfectly on the EPA’s range estimates at 327 miles.
It was also more efficient than Premium offerings, as it utilized just 22.8 kWh to go 100 miles. The Launch Series used 26.8 kWh to travel the same distance.
It is tested using Edmunds’ traditional EV range testing procedure, which follows a strict route of 60 percent city and 40 percent highway driving. The average speed throughout the trip is 40 MPH, and the car is required to stay within 5 MPH of all posted speed limits.
Each car is also put in its most efficient drive setting, and the climate is kept on auto at 72 degrees.
“All of this most accurately represents the real-world driving that owners do day to day,” the publication says.
With this procedure, testing is as consistent as it can get. Of course, there are other factors, like temperature and traffic density. However, one thing is important to note: Tesla’s newer vehicles have continued to meet or exceed their EPA estimates. This is a drastic change, as every 2018-2023 model year Tesla that Edmunds assessed did not meet its range estimates.
Tesla Model Y Standard vs. Tesla Model Y Premium
Tesla’s two Model Y levels both offer a great option for whichever fits your budget. However, when you sit in both cars, you will notice distinct differences between them.
The Premium definitely has a more luxurious feel, while the Standard is stripped of many of the more premium features, like Vegan Leather Interior, acoustic-lined glass, and a better sound system.
You can read our full review of the Model Y Standard below:
Tesla Model Y Standard Full Review: Is it worth the lower price?
News
Xpeng CEO: Tesla FSD 14.2 has developed “near-Level 4” performance
While acknowledging that imperfections remain, the Xpeng CEO said FSD’s current iteration significantly surpasses last year’s capabilities.
Xpeng CEO He Xiaopeng has offered fresh praise for Tesla’s Full Self-Driving (FSD) system after revisiting Silicon Valley more than a year after his first hands-on experience.
Following extended test drives of Tesla vehicles running the latest FSD software, He stated that the system has made major strides, reinforcing his view that Tesla’s approach to autonomy is indeed the proper path towards autonomy.
Tesla FSD closing in on Level 4 driving
During his visit, He test-drove a Tesla equipped with FSD V14.2. He also rode in a Tesla Robotaxi. Over roughly five hours of driving across Silicon Valley and San Francisco, He said both vehicles delivered consistent and reassuring performance, a notable improvement from his experience a year earlier.
According to He, Tesla’s FSD has evolved from a smooth Level 2 advanced driver assistance system into what he described as a “near-Level 4” experience in terms of capabilities. While acknowledging that imperfections remain, the Xpeng CEO said FSD’s current iteration significantly surpasses last year’s capabilities. He also reiterated his belief that Tesla’s strategy of using the same autonomous software and hardware architecture across private vehicles and robotaxis is the right long-term approach, allowing users to bypass intermediate autonomy stages and move closer to Level 4 functionality.
He previously tested Tesla’s FSD V12.3.6 and Waymo vehicles in California in mid-2024, noting at the time that Waymo performed better in dense urban environments like San Francisco, while Tesla excelled in Silicon Valley and on highways.
Xpeng’s ambitious autonomy roadmap and internal challenge
The Silicon Valley visit also served as a benchmark for Xpeng’s own autonomy ambitions. He stated that Xpeng is looking to improve its VLA autonomous driving system to match the performance of Tesla’s FSD V14.2 within China by August 30, 2026. Xpeng is poised to release its VLA 2.0 smart driving software next quarter, though He cautioned that the initial version will not be able to match FSD V14.2’s capabilities, as noted in a CNEV Post report.
He also added a personal twist to the goal, publicly challenging Xpeng’s autonomous driving team. If the performance target is met by the 2026 deadline, the CEO stated that he will approve the creation of a Chinese-style cafeteria for Xpeng’s Silicon Valley team. If not, Liu Xianming, head of Xpeng’s autonomous driving unit, has pledged to run naked across the Golden Gate Bridge, He noted.
SpaceX shades airline for seeking contract with Amazon’s Starlink rival
Tesla Model Y Standard stuns in new range test, besting its Premium siblings
