One major automotive outlet says Tesla is no longer just a luxury brand, in part due to its unique pricing strategy over the past few years.
In a column shared on Friday, Automotive News Executive Editor Jamie Butters laid out an update to a 2022 piece that had initially called Tesla a luxury brand. Now, he says, the automaker is more than a luxury brand, generally competing in a lower-priced market than back then—and especially as the Model Y seemingly became the world’s best-selling model last year.
In part, Butters notes, the shift from being a luxury brand to a household name comes from Tesla’s price cuts made last year, and as Tesla prepares to produce an ever higher-volume, lower-priced “Model 2” vehhicle next year. While the cuts indicated an interesting shift to a more dynamic pricing strategy, the move to eventually produce an even cheaper electric vehicle (EV) is all according to CEO Elon Musk’s first “Master Plan.”
It’s worth noting that while the Model S and Model X are still considered luxury vehicles, joining the newly-launched Cybertruck at the higher end of the price spectrum, the Model 3 sedan and Model Y SUV are generally competing with vehicles in more affordable segments—though Butters is keen to point out that distinguishing brand segments is not an exact science.
Tesla price cuts push EV market toward affordability with broader influence
In 2022, Tesla’s prices were higher and were competing with companies such as Mercedes-Benz, Aston Martin and Lexus. About a year since Tesla made major price reductions, Butters says the outlet will now instead compare Tesla to companies like Toyota and Ford than to the aforementioned luxury brands.
Tesla price cuts in 2023, current Model Y incentives
Throughout much of the beginning of last year, Tesla launched sweeping price cuts across its lineup, that crucially brought its Model Y price down near the U.S. average car price. The move also sent the emerging EV industry into a frenzy, as many struggled to push as
Over the weekend, Tesla also announced a new wave of Model Y price increases in the U.S. and Europe, with prices set to increase by $1,000 and €2,000, respectively, in the weeks to come. While the Model 3 starts at $31,490 after the federal tax incentive in the U.S., and at €42,990 in Germany, the automaker is currently offering the Model Y at the following prices before prices are increased:
Tesla Model Y in the U.S. (until March 31)
- Model Y RWD: $36,490 (with federal tax credit, before local credits)
- Model Y AWD Long Range: $41,490 (with federal tax credit, before local credits)
- Model Y AWD Performance: $44,990 (with federal tax credit, before local credits)
Tesla Model Y in Germany (until March 22)
- Model Y RWD: €44,990
- Model Y AWD Long Range: €52,490
- Model Y AWD Performance: €58,490
Tesla Master Plan, Part One
Musk penned the first Tesla Master Plan in 2006, with the post laying out a pretty simple objective that fits right in with the automaker’s gradual decrease in pricing as it works toward affordability and EV adoption:
- Build sports car
- Use that money to build an affordable car
- Use that money to build an even more affordable car
- While doing above, also provide zero emission electric power generation options
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.
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Tesla ships out update that brings massive change to two big features
“This change only updates the name of certain features and text in your vehicle,” the company wrote in Release Notes for the update, “and does not change the way your features behave.”
Tesla has shipped out an update for its vehicles that was caused specifically by a California lawsuit that threatened the company’s ability to sell cars because of how it named its driver assistance suite.
Tesla shipped out Software Update 2026.2.9 starting last week; we received it already, and it only brings a few minor changes, mostly related to how things are referenced.
“This change only updates the name of certain features and text in your vehicle,” the company wrote in Release Notes for the update, “and does not change the way your features behave.”
The following changes came to Tesla vehicles in the update:
- Navigate on Autopilot has now been renamed to Navigate on Autosteer
- FSD Computer has been renamed to AI Computer
Tesla faced a 30-day sales suspension in California after the state’s Department of Motor Vehicles stated the company had to come into compliance regarding the marketing of its automated driving features.
The agency confirmed on February 18 that it had taken a “corrective action” to resolve the issue. That corrective action was renaming certain parts of its ADAS.
Tesla discontinued its standalone Autopilot offering in January and ramped up the marketing of Full Self-Driving Supervised. Tesla had said on X that the issue with naming “was a ‘consumer protection’ order about the use of the term ‘Autopilot’ in a case where not one single customer came forward to say there’s a problem.”
This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.
Sales in California will continue uninterrupted.
— Tesla North America (@tesla_na) December 17, 2025
It is now compliant with the wishes of the California DMV, and we’re all dealing with it now.
This was the first primary dispute over the terminology of Full Self-Driving, but it has undergone some scrutiny at the federal level, as some government officials have claimed the suite has “deceptive” names. Previous Transportation Secretary Pete Buttigieg was one of those federal-level employees who had an issue with the names “Autopilot” and “Full Self-Driving.”
Tesla sued the California DMV over the ruling last week.
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Tesla workers push back against Giga Berlin unionization
“IG Metall did not succeed in Giga Berlin‘s works council election earlier today. The union share was reduced from nearly 40% in 2024 to 31% in 2026! This is a clear message by the Giga Berlin team towards an independent co-determination! The list called Giga United, led by the current chairwoman, Michaela Schmitz, received the most votes with more than 40%! Good news for Giga Berlin!”
Tesla workers pushed back against unionization efforts at Gigafactory Berlin, and over the past few years, there has been a dramatic decrease in interest to unionize at the German plant.
Gigafactory Berlin Plant Manager André Thierig announced on Wednesday that IG Metall, the European union group, saw its share reduce from 40 to 31 percent in 2026 as employees eligible to vote on the issue. Instead, the Giga Berlin team, known as Giga United, received the most votes with more than 40 percent.
BREAKING! 🚨
IG Metall did not succeed in Giga Berlin‘s works council election earlier today. The union share was reduced from nearly 40% in 2024 to 31% in 2026!
This is a clear message by theGiga Berlin team towards an independent co-determination!
The list called Giga…
— André Thierig (@AndrThie) March 4, 2026
Thierig gave specific details in a post on X:
“IG Metall did not succeed in Giga Berlin‘s works council election earlier today. The union share was reduced from nearly 40% in 2024 to 31% in 2026! This is a clear message by the Giga Berlin team towards an independent co-determination! The list called Giga United, led by the current chairwoman, Michaela Schmitz, received the most votes with more than 40%! Good news for Giga Berlin!”
There were over 10,700 total employees who were eligible to vote, with 87 percent of them turning out to cast what they wanted. There were three key outcomes: Giga United, IG Metall, and other notable groups, with the most popular being the Polish Initiative.
The 37-seat council remains dominated by non-unionized representatives, preserving Giga Berlin as Germany’s only major auto plant without a collective bargaining agreement.
Thierig and Tesla framed the outcome as employee support for an “independent, flexible, and unbureaucratic” future, enabling acceleration on projects like potential expansions or new models. IG Metall expressed disappointment, accusing management of intimidation tactics and an “unfair” campaign.
The first election of this nature happened back in 2022. In 2024, IG Metall emerged as the largest single faction with 39.4 percent, but non-union lists coalesced for a majority.
But this year was different. There was some extra tension at Giga Berlin this year, as just two weeks ago, an IG Metall rep was accused by Tesla of secretly recording a council meeting. The group countersued for defamation.
Tesla Giga Berlin plant manager faces defamation probe after IG Metall union complaint
This result from the 2026 vote reinforced Tesla’s model of direct employee-management alignment over traditional German union structures, amid ongoing debates about working conditions. IG Metall views it as a setback but continues advocacy. Tesla sees it as validation of its approach in a competitive EV market.
This outcome may influence future labor dynamics at Giga Berlin, including any revival of expansion plans or product lines, which Musk has talked about recently.
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SpaceX President Gwynne Shotwell details xAI power pledge at White House event
The commitment was announced during an event with United States President Donald Trump.
SpaceX President Gwynne Shotwell stated that xAI will develop 1.2 gigawatts of power at its Memphis-area AI supercomputer site as part of the White House’s new “Ratepayer Protection Pledge.”
The commitment was announced during an event with United States President Donald Trump.
During the White House event, Shotwell stated that xAI’s AI data center near Memphis would include a major energy installation designed to support the facility’s power needs.
“As you know, xAI builds huge supercomputers and data centers and we build them fast. Currently, we’re building one on the Tennessee-Mississippi state line. As part of today’s commitment, we will take extensive additional steps to continue to reduce the costs of electricity for our neighbors…
“xAI will therefore commit to develop 1.2 GW of power as our supercomputer’s primary power source. That will be for every additional data center as well. We will expand what is already the largest global Megapack power installation in the world,” Shotwell said.
She added that the system would provide significant backup power capacity.
“The installation will provide enough backup power to power the city of Memphis, and more than sufficient energy to power the town of Southaven, Mississippi where the data center resides. We will build new substations and invest in electrical infrastructure to provide stability to the area’s grid.”
Shotwell also noted that xAI will be supporting the area’s water supply as well.
“We haven’t talked about it yet, but this is actually quite important. We will build state-of-the-art water recycling plants that will protect approximately 4.7 billion gallons of water from the Memphis aquifer each year. And we will employ thousands of American workers from around the city of Memphis on both sides of the TN-MS border,” she noted.
The Ratepayer Protection Pledge was introduced as part of the federal government’s effort to address concerns about rising electricity costs tied to large AI data centers, as noted in an Insider report. Under the agreement, companies developing major AI infrastructure projects committed to covering their own power generation needs and avoiding additional costs for local ratepayers.
Tesla ships out update that brings massive change to two big features
Tesla workers push back against Giga Berlin unionization
