Tesla cut prices again this morning, and competitors, who have decided to either take the same strategy by slashing prices themselves or have chosen not to play into Elon Musk’s game, are in a weird and awkward position.
Tesla Model S and Model X units were the most recent vehicles in the automaker’s lineup to receive price cuts. While these vehicles only make up roughly 5 percent of Tesla’s overall sales volume based on last year’s sales figures, the price cuts give automakers with competing models another thing to think about.
Tesla Model X and Model S get price reduction in the United States
For startups, there are few that can even think about cutting costs at this point. Companies like Rivian, Lucid, and Lordstown are unable to shave prices currently and at the drop of a hat like Tesla. Every dollar and every sale right now counts, and there is not much wiggle room.
For traditional companies, the wiggle room on pricing for EVs is also extremely small. Ford, for example, while announcing plans to increase production of popular EV models this weekend, is still struggling with availability.
If you went to a Ford, GM, or other legacy dealership right now and tried to order a car, it might be extremely difficult, and people who just bought cars don’t want to see that their vehicle was just subjected to a price cut of thousands of dollars. When Ford cut Mustang Mach-E prices earlier this year, owners who took delivery just before the decreases were not pleased, and the automaker couldn’t do much to appease them.
Tesla’s strengths are plentiful, and they expand across nearly every part of its business. Its charging infrastructure is strong, the company can get you a car in a matter of a few weeks, and its pricing can be adjusted at any moment.
If it needs to adjust prices to make margins a little more appealing to investors and analysts, it can. If it needs to spike demand with a dramatic cut like it did this morning, it can do that too. It’s not a perfect company, though. Service and Customer Communications for Tesla are incredibly weak; it is one of the most publicly-criticized portions of the company. Despite that, people continue to buy Teslas in droves.
With another Tesla price cut, companies are in a serious pickle. Tesla could decide in a week to cut prices again, making consumers more prone to choose their product over another. The advantages go past price, but what that number says is the first thing consumers look at when considering a vehicle. The lower they get, the more attractive they become to consumers.
Why Tesla dropped the prices of the Model S and Model X is unknown, but Gary Black seems to believe the move is to encourage more sales of the flagship vehicles, which, as previously mentioned, do not contribute to the company’s overall sales volume very much.
.@Tesla is cutting prices for the second time this year. But investor @garyblack00 tells @SaraEisen that he’s not worried about demand, explaining that they’re trying to adjust prices to encourage growth for the Model S & X vehicles. pic.twitter.com/zOobHZDRJE
— Squawk on the Street (@SquawkStreet) March 6, 2023
However, there are other things: Model X vehicles are being equipped with the new Hardware 4 computer, Tesla has tried to get Free Supercharging-equipped cars off the roads, and it could be another way to push sales upward.
Whatever the reasoning is, Tesla put competitors in another weird spot. With the constant price changes that occurred earlier this year, there was already doubt in place about what competitors could do to remain competitive. The most recent adjustment in prices makes things even more difficult and reminds everyone that Tesla is ultimately the king of the hill.
Disclosure: Joey Klender is a Tesla Shareholder.
I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.
Tesla is planning to improve one of the best features on its lineup of cars, a new patent shows. Tesla’s massive glass roof on its premium models is among the coolest additions to the all-electric vehicles, but the design certainly has its complaints, especially from those who live in even slightly warm climates.
Tesla has published a new patent that promises to transform cabin comfort in its electric vehicles, particularly those equipped with the expansive glass roofs.
The document, identified as US20260091643A1 and titled “Airflow Optimization for Cabin Comfort“, addresses that common complaint. Sunlight streaming through windshields and panoramic roofs creates localized hot air pockets near the dashboard and headliner. These pockets generate significant temperature gradients that conventional heating, ventilation, and air conditioning systems struggle to manage evenly.
The exposure to direct sunlight can make the cabin extremely warm, and even after cooling down the interior temperature, combating the continuous stream of sunlight and heat is a challenge. It uses precious energy that is especially pertinent to range and efficiency.
The patent explains how standard dashboard vents push cool air upward, only to entrain warmer air from these stagnant zones and distribute it throughout the occupied cabin space. This process forces the blower to operate at higher speeds, increasing energy consumption and reducing overall efficiency.
In electric vehicles, where every watt impacts driving range, such inefficiencies prove costly.
🚨 THE MODEL Y L IS THE MOST WATCHED EV LAUNCH OF 2026. ITS GLASS ROOF HAS ONE WEAKNESS — AND A PATENT PUBLISHED THIS WEEK SHOWS @TESLA BUILT THE FIX
The Model Y L launched in China and is now arriving in Korea, Japan, and across Asia-Pacific. It also has a glass roof. So does… https://t.co/wr6XnBn1Oc pic.twitter.com/5sYpniXJbU
— SETI Park (@seti_park) April 5, 2026
Research from AAA indicates that air conditioning can diminish range by up to 17 percent under hot conditions. Tesla’s innovation shifts the approach by extracting heat at its source rather than attempting to dilute it after mixing occurs.
Engineers describe a suction HVAC unit connected to dedicated intakes positioned strategically on the upper dashboard surface and within the headliner.
These intakes link to a hot air pocket extraction duct that channels the warmest air directly into the system’s plenum for conditioning. As the blower activates, it simultaneously draws recirculated cabin air and targeted hot pocket air through filters and cooling coils before redistributing conditioned airflow.
It seems somewhat reminiscent of the Tesla heat pump, which aims to combat colder temperatures.
Tesla highlights Model Y’s heat pump innovations in new promotional video
This method reduces entrainment, lowers peak temperatures, and achieves more uniform comfort levels. Testing data reveals that facial temperature gradients drop from 21 degrees Celsius, or 69.8 degrees Fahrenheit, in conventional setups to just 12 degrees Celsius (53.6 degrees F) with the new system. Blower speeds and compressor power requirements decrease appreciably as a result.
The design incorporates smart controls that monitor sunlight intensity and internal temperature distributions in real time. Suction activates selectively only where needed, optimizing energy use without constant high demand. Furthermore, the extraction duct serves a dual purpose.
In the summer months, it pulls hot air inward for cooling; in winter, it reverses to direct warm air outward for rapid windshield defrosting. This versatility allows the reuse of existing hardware with minimal modifications, potentially enabling retrofits in current Tesla fleets.
Lifestyle
Tesla saves its passengers again – This time after a 300-foot cliff fall in Malibu
A Tesla Model 3 fell 300 feet off a Malibu cliff and both passengers survived.
A Tesla Model 3 plunged roughly 300 feet off a cliff on Mulholland Highway in Malibu on Friday morning, May 29, 2026, and both occupants survived. The crash was reported at approximately 7:30 a.m. near the 2500 block of Mulholland Highway, triggering a multi-agency rescue operation involving Malibu Search and Rescue, the Los Angeles County Fire Department, the California Highway Patrol, and McCormick Ambulance.
When first responders arrived, the male driver was outside the vehicle shouting for help while the female passenger remained pinned inside the Tesla. Rescue crews rappelled down the cliffside on ropes to reach the wreckage. A flight medic was lowered by helicopter to begin treating both victims, and the driver was hoisted up to the roadway before crews used the Jaws of Life to free the trapped passenger. Both were airlifted to a local trauma center with moderate injuries despite a remarkable result for a fall that steep.
The outcome is not surprising, considering Model 3 earned an overall 5-star rating from NHTSA in every category and sub-category, and recorded the lowest probability of injury of any car ever evaluated by the U.S. New Car Assessment Program. The absence of a traditional engine in the front of the vehicle creates a longer crumple zone that absorbs impact energy before it reaches occupants, and the battery pack running along the floor gives the car an unusually low center of gravity that reinforces structural rigidity.
This is not the first time a Tesla has kept passengers alive after going off a cliff. A Tesla Model Y carrying a family of four survived a plunge off a cliff at Devil’s Slide near San Francisco in January 2023, with two adults and two children walking away from a 250-foot fall. That incident drew widespread attention to how the structural integrity of Tesla’s electric platform performs in extreme crash scenarios that most vehicles would not survive.
Tesla Model Y driver who drove off cliff with family attempts to avoid criminal conviction
Tesla Full Self-Driving (Supervised) has taken yet another significant step forward in Europe. On May 29, Estonia became the third European Union country to approve the advanced driver-assistance technology, following approvals in the Netherlands and Lithuania.
Tesla Europe announced the news on X, confirming the expansion has continued across the continent that, at one time, seemed to be taking its sweet old time giving any approval to the FSD suite.
FSD Supervised now approved in Estonia🇪🇪. Rollout will begin soon pic.twitter.com/y5a64qlp5m
— Tesla Europe, Middle East & Africa (@teslaeurope) May 29, 2026
Estonia’s Transport Administration (Transpordiamet) granted the approval by recognizing the type certification issued by the Dutch vehicle authority RDW. This mutual recognition mechanism, enabled by EU regulations, allows other member states to fast-track deployment without repeating extensive local testing.
The Estonian authority noted that Tesla’s FSD had undergone rigorous evaluation on European roads for approximately 18 months before the initial Dutch approval in April 2026.
FSD Supervised remains classified as a Level 2 advanced driver-assistance system (ADAS). Drivers must maintain full attention, keep their hands on the wheel, and stay ready to intervene at any moment.
The system assists with tasks such as automatic lane changes, navigation through city streets, and responding to traffic objects, but it does not constitute full autonomy. Estonian officials emphasized this distinction, underscoring that safety responsibility lies entirely with the driver.
The rapid progression across the Baltic region highlights Tesla’s strategic approach to European expansion. The Netherlands provided the foundational type approval in April, unlocking doors for neighboring countries.
Lithuania followed swiftly in mid-May, with rollout beginning shortly thereafter. Estonia’s decision, coming just days later, demonstrates how smaller, digitally progressive nations are accelerating adoption.
Tesla owners in Estonia can expect an over-the-air software update in the coming weeks, bringing the latest FSD capabilities to compatible vehicles
This expansion builds on Tesla’s global momentum. FSD Supervised is now available in 11 countries worldwide, including the United States, Canada, Australia, and South Korea. In Europe, the approvals signal growing regulatory confidence in Tesla’s vision-based AI approach, which relies on cameras and neural networks rather than lidar or radar-heavy alternatives used by some competitors.
For Tesla, these European milestones are more than symbolic. They validate years of data collection and software iteration while opening new revenue streams through FSD subscriptions and purchases.
As the company continues refining its AI models with real-world miles from diverse driving environments, including Estonia’s variable winter conditions, the dataset grows richer, potentially benefiting global users.
Tesla plans ingenious improvement to one of its best features
Tesla saves its passengers again – This time after a 300-foot cliff fall in Malibu
