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Tesla prices have decreased by more than one-fifth, EVs down 10% over the past year

(Credit: Tesla)

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Prices of Tesla electric vehicles have been slashed by more than one-fifth year-over-year, while the entire EV industry has slashed prices by over 10 percent.

Although the U.S. new vehicle market slowed down in terms of sales in January, prices are lower, and incentives are higher, meaning things should pick up as the year goes on.

For EVs, the average transaction price managed to drop 10.8 percent in January 2024 compared to the same month a year prior. At $55,353, it was a considerable drop but a slight increase from the $53,611 in December, which was the lowest point in the past 12 months.

Tesla’s massive price cuts have been the main trigger to the substantial drop in the EV sector overall, Mark Strand, Senior Director of Business Intelligence at Cox Automotive, said.

“First and foremost, the overall narrative is unchanged – EV prices have come down significantly in the U.S. in the past year, led by price cuts at Tesla. Our newly revised EV pricing data more accurately reflects the real-world pricing of electric vehicles in the U.S. With new EVs launching into the market seemingly every month, our pricing models have to be continually updated and revised to capture a clear picture of the market.”

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The Model Y’s price has dropped more than 21 percent in the past year, going from an average of $63,000 to $50,000.

Another trigger to lower average transaction prices has been incentives, which have more than tripled in the past year.

Cox uses the example of the Volkswagen ID.4, which carried an average incentive package of roughly 6 percent. However, last month, that jumped to nearly 17 percent per transaction.

According to the data table shared by Kelley Blue Book, Tesla’s average transaction price has gone from $62,350 to $49,518. Those prices represent January 2023 and January 2024, respectively.

Across the entire automotive industry, prices have dropped around $1,600 as a whole, roughly 3.5 percent.

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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.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla firmware shows new Model Y seat configuration is coming

Tesla could be adding another seating configuration beside the seven-seater to the Model Y lineup later this year.

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Credit: Tesla

Tesla firmware has been a great place for some to reveal what the company has in the pipeline, and a new seating configuration for the best-selling Model Y looks to be on the way.

Last week, we reported that Tesla was already hinting toward a 7-seater configuration of the Model Y in a promotional email it sent to those on its contact list.

However, firmware revealed by Tesla hacker greentheonly is showing that a new seating configuration is on the way — a six-seater:

Green says the configuration would not be available in China-only, and will be potentially for sale in other markets as well.

The six-seat and seven-seat configurations of the Model Y were available in the Legacy version of the vehicle, but were met with mixed reviews, as many complained about the lack of legroom in the third row.

This was something that was a real concern for many of those owners who needed something larger than the traditional five-seat variant, but did not want to buy the much more pricey Model X.

We’ve covered the size of that third row on several occasions.

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Some owners even took the idea of having a seven-seater into their own hands:

Tesla Model Y third row seat test explores options for a comfortable 7-seat setup

Tesla did not explicitly announce a six-seater configuration of the Model Y, but Lars Moravy, the company’s VP of Vehicle Engineering, said the seven-seater would come to production later in 2025.

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Tesla confirms massive hardware change for autonomy improvement

Tesla has confirmed that a recent change made to some of its recently refreshed vehicles is, in fact, a strategy it will use to improve its suite as it continues to work toward autonomy.

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Credit: Tesla

Tesla has confirmed that a recent change made to some of its recently refreshed vehicles is, in fact, a strategy it will use to improve its suite as it continues to work toward autonomy.

Tesla first introduced a front-facing camera on the front bumper with the Cybertruck.

Then, the Model Y “Juniper” received the hardware update. The Model S and Model X both received the front-facing camera with its latest update, which was officially revealed last week.

Tesla used new language with the release of the front-facing cameras on the Model S and Model X, confirming they will assist with several things, including “using Autopilot and Actually Smart Summon capabilities”:

“Enhanced visibility when parking or using Autopilot and Actually Smart Summon capabilities.”

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This tiny feature on the new Tesla Model Y is perhaps its biggest addition

This is the first time Tesla has used this sort of language, as it was a completely different description with the launch of the new Model Y in January.

When Tesla launched this vehicle, it said the front bumper camera “provides a wider field of view for automatic assisted driving and advanced Smart Summon.”

Tesla switched from using cameras and sensors to only cameras with the launch of Tesla Vision several years ago. The company’s utilization of cameras comes from Tesla’s belief that Ultrasonic Sensors (USS) are not needed for self-driving efforts:

“Along with the removal of USS, we simultaneously launched our vision-based occupancy network – currently used in Full Self-Driving (FSD) (Supervised) – to replace the inputs generated by USS. With today’s software, this approach gives Autopilot high-definition spatial positioning, longer range visibility and the ability to identify and differentiate between objects. As with many Tesla features, our occupancy network will continue to improve rapidly over time.”

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CEO Elon Musk has said that sensors were only a crutch and that self-driving would be solved through the use of cameras:

“When your vision works, it works better than the best human because it’s like having eight cameras, it’s like having eyes in the back of your head, beside your head, and has three eyes of different focal distances looking forward. This is — and processing it at a speed that is superhuman. There’s no question in my mind that with a pure vision solution, we can make a car that is dramatically safer than the average person.”

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Tesla features used to flunk 16-year-old’s driver license test

A license examiner in New Jersey confused one standard feature of Teslas as a way a 16-year-old excelled through his driver’s test. He failed him because of it.

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Credit: @JasemAsh via Tesla Owners Wisconsin/Twitter

In what is becoming a more common occurrence, a few Tesla features were used to flunk a 16-year-old who took his driver’s license test in New Jersey.

It is not the first time this has happened, as we have reported on several instances of this in the past, both in the U.S. and other countries in the world.

It is evidence that some officials are not caught up in the technology and innovation occurring in the automotive market, some of which is not necessarily exclusive to Tesla, but is included in each of its models, unlike other companies.

Lochlan Keefer, a New Jersey resident, showed up to his driver’s test with his dad, James, in their 2022 Tesla Model Y. However, the test did not go according to plan, according to the examiner who rode along for the test with Lochlan. They accused him of using parking and “stopping assistance” to go through the test.

The examiner cited the following as the reason for failure:

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“Had the parking and stopping assistance on never stepped on the brake to stop his self let the vehicle stop it self.”

James said to NJ.com that they do not subscribe to Tesla’s Full Self-Driving suite, which includes things like Autopark, Navigate on Autopilot, and Autosteer on City Streets. These are a few of the things that have been used as reasoning to fail drivers in tests. Lochlan’s was a case of regenerative braking, which is standard on all vehicles, and Autopark:

“The examiner accused my son of using driver assistance features simply because he parallel parked smoothly on the first try. He was specifically accused of using paid parking-assist and driving features, which we do not subscribe to.”

It sounds as if the examiner may have confused the braking mishap for Tesla’s regenerative braking, which slows the vehicle when the accelerator is not pressed. The energy is then stored back in the battery to help with range.

The examiner failed Lochlan, and James asked if he could take the test again if they disabled the regenerative braking for the exam. The examiner said Lochlan would have to wait two weeks. A supervisor came out and backed the examiner, but James said the policy the DMV claimed the Keefer’s violated was nowhere to be found:

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“I asked them to show me the policy they claimed we were violating. They couldn’t find it and they couldn’t cite it. When I showed them the policy, they refused to read it.”

The report states that drivers in California and Arizona have also been subjected to failures on their driving tests due to confusion over Teslas and their driver assistance features.

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