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Tesla’s Standard Range strategy for Model S, X puts pressure on Lucid

(Credit: Tesla Photographer/Instagram, Lucid Motors)

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Tesla’s Standard Range strategy with its flagship Model S and Model X is going to put pressure on the automakers that are emphasizing performance with their vehicles, especially Lucid Group, which has targeted Tesla’s two luxury vehicles with its lineup of Air sedan configurations.

Last night, Tesla officially added Standard Range versions of the S and X to its Design Studio, offering its luxury, high-performance vehicles to customers for a hefty discount. The performance metrics remained the same, the only difference was a reduction in range — 310 miles for the Model S, and 269 miles for the Model X.

Tesla Model S and Model X now more affordable with Standard Range variants

These two new configuration options from Tesla will have those on the ropes between Elon Musk’s company and Lucid, run by former Model S team member Peter Rawlinson, at a crossroads. However, the decision may be easier than ever before.

But the consequences Lucid might feel from Tesla’s new, cheaper configurations are more explicit than ever before. Tesla’s Long Range and Plaid configurations of the S and X were priced relatively similar to Lucid’s top-of-the-line offerings in the Air sedan.

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The Model S Plaid comes in at $108,490 before options, and the Lucid Air Grand Touring, the most comparable to the Model S Plaid (within the same price range), is $125,600.

The Model S Plaid has a 1.99-second 0-60 MPH rate, while Lucid’s Air GT will get you there in 2.6 seconds. It trumps the Model S in range, offering 516 miles, while Tesla’s option is still nothing to bat an eye at, with 396 miles.

But now, pricing comes into focus, and undercutting the Air’s Pure configuration that starts at $82,400 by pricing a new Model S at $78,490 may make things a little easier for consumers and a little more difficult for Lucid.

Lucid missed consensus estimates on vehicle deliveries in Q2, as 1,404 cars made their way to customers. FactSet expected 2,000 cars, and struggling with demand, the last thing it needed was an automaker like Tesla to undercut its products with something superior for less money.

In terms of range, the Air is the best that you can get. But it is about more than that, including the vehicle’s ability to function as a daily driver. Lucid customers have reported issues with software in their vehicles, and as it has been a pain point for many automakers in the early development of EVs, it is something people just don’t want to deal with.

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Tesla has its own issues, of course. People have recently come forth with claims that their cars get significantly lower range than they are rated for, and, depending on the person, Elon Musk is a touchy subject.

However, some people don’t give a damn about what the CEO does, they just want a car that works well and is priced reasonably. Lucid may have taken a drastic step back with Tesla’s new Model S and Model X trims. Pressure is being applied to rivals of Tesla through the company’s various price cuts in nearly every market.

In the U.S., Tesla put everyone in the hot seat early this year with massive price cuts, and it was up to the manufacturers to play ball or take their chances. Ford followed with price cuts of its own, and Lucid did, too.

Lucid introduces new $7,500 discount as EV price war heats up

However, their strategy did not translate to an overwhelming number of sales, and Lucid cut its delivery expectations to just 10,000 units in Q1, despite having over 28,000 reservations for its cars.

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Tesla’s new rollout could be a true gut punch to Lucid as its Model S and Model X Standard Range offerings will give consumers one more reason to pick the unequivocal leader in EVs.

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 FSD V14 gets tentative release date

The update will feature a 10X higher parameter count, among other improvements.

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Credit: Whole Mars Catalog/YouTube

Tesla is not releasing Unsupervised FSD to regular customers yet, but the company seems to be preparing something special for its FSD users nonetheless. 

This was, at least, according to Elon Musk in a recent post on X.

Tesla FSD V14

Tesla’s FSD program has been deemed by Elon Musk as one of the key factors that would determine the company’s long term success. Over the past months, however, Tesla has mostly been focusing on the rollout and ramp of its Robotaxi program in Austin and the Bay Area. Tesla’s Robotaxi service uses Unsupervised FSD, which is not yet released to customers.

However, in a post on X, Musk stated that Tesla is preparing its next big update for its consumer-grade FSD system—V14. Musk did not provide a lot of details about FSD V14’s capabilities, but the CEO did state that the update will feature a 10X higher parameter count, among other improvements.

“The FSD release in about 6 weeks will be a dramatic gain with a 10X higher parameter count and many other improvements. It’s going through training & testing now. Once we confirm real-world safety of FSD 14, which we think will be amazing, the car will nag you much less,” Musk wrote in his post.

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Tesla Unsupervised FSD Rollout

During the second quarter earnings call, Tesla executives were asked for a timeline on the rollout of Unsupervised FSD to consumer vehicles. In his reply, Musk stated that he believes Unsupervised FSD will be available for consumers in certain geographies. He did explain that Tesla will be extra careful with the system’s release. 

“We are getting there. I think it will be available for unsupervised personal use by the end of this year in certain geographies. We are just being very careful about it. This is not something we should rush,” Musk said, adding that “I am confident that by this year, within a number of cities in the US, it will be available to end users.

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Elon Musk reaffirms Tesla Semi mass production in 2026

The Tesla Semi factory near Giga Nevada is expected to be capable of producing 50,000 units of the Class 8 all-electric truck per year.

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Credit: Tesla Semi/X

Elon Musk has reaffirmed the Tesla Semi’s mass production date. He mentioned the update in a post on social media platform X during the weekend.

Tesla Semi Factory

The Tesla Semi was initially unveiled in late 2017, and its first deliveries were held in December 2022. Since then, Tesla has only been delivering the Semi to a handful of customers while it builds a dedicated factory for the Class 8 all-electric truck near its Giga Nevada facility.

Drone flyovers of the Tesla Semi factory over the past months have suggested that progress in the construction of the facility has been steady. More recent flyovers have even suggested that Tesla is now busy outfitting the facility with the necessary equipment for the mass production of the Semi.

Elon Musk’s Recent Comments

In a recent comment on X, Elon Musk reiterated the idea that the Semi was indeed expected to be mass produced in 2026. Musk shared his update as a response to a Tesla bull who recalled that Bill Gates did not believe that the Semi was feasible due to the limitations of battery technology. In his response, Musk posted a laughing emoji together with “Tesla Semi will be in volume production next year.” 

The Tesla Semi factory near Giga Nevada is expected to be capable of producing 50,000 units of the Class 8 all-electric truck per year. While this number may not be attained by the facility right out of the gate, it would only be a matter of time before the factory manages to hit an optimal production rate.

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In a video posted on social media earlier this year, Dan Priestley, who leads the Semi program at Tesla stated that the company is preparing for volume production over the coming quarters. With such a pace, the factory should be able to mass produce the Semi in 2026. 

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Elon Musk confirms Tesla AI6 chip is Project Dojo’s successor

Tesla’s AI5 and AI6 chips are expected to be rolled out to the company’s consumer products.

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tesla-supercomputer-pre-dojo
Credit: Tim Zaman/Twitter

Earlier this week, reports emerged stating that Tesla has stepped back from its Project Dojo initiative. While the reports were initially framed as a negative development for the electric vehicle maker’s autonomous driving efforts, CEO Elon Musk later noted on X that Tesla was indeed halting its Dojo initiative.

Elon Musk’s Confirmation

As per Musk, Tesla was shuttering Project Dojo because it does not make sense for the company to divide its resources and scale two different AI chip designs. Dojo, after all, is designed to train the company’s autonomous driving program, and thus, it would not be rolled out to Tesla’s consumer products.

In a series of posts on X, Musk stated that it would make sense to just use Tesla’s AI5/AI6 to train its FSD and Autopilot systems. “In a supercomputer cluster, it would make sense to put many AI5/AI6 chips on a board, whether for inference or training, simply to reduce network cabling complexity & cost by a few orders of magnitude,” Musk said.

Tesla’s AI5 and AI6 chips are expected to be rolled out to the company’s consumer products, from Optimus to the Cybercab to the next-generation Roadster.

AI6 is Dojo’s Successor

What was particularly interesting about Musk’s comment was his mention of using AI5/AI6 chips for training. As per Musk, this strategy could be seen as “Dojo 3” in a way, since the performance of Tesla’s AI5 and AI6 chips is already notable. Musk’s comment about using AI6 chips for training caught the eye of many, including Apple and Rivian alumnus Phil Beisel, who noted that “AI6 is now Dojo.”

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“Dojo is Tesla’s AI training supercomputer, built around a custom chip known as the D1. The D1 and AI5/AI6 share many core design elements, particularly the math operations used in neural networks (e.g., matrix multiplication) and highly parallel processing.

“Dojo had a unique feature: chips arranged in a 5×5 grid using a system-on-wafer design, with etched interconnects enabling high-speed data transfer. In a sense, Dojo will live on as the generalized AI6. Going forward, all efforts will focus on AI6,” the tech veteran wrote in a post on X.

Elon Musk confirmed the Apple alumnus’ musings, with the CEO responding with a “bullseye” emoji. Musk is evidently excited for Tesla’s AI6 chip, which is expected to produced by Samsung’s upcoming Texas fabrication facility. In a post on X, Musk stated that he would personally be walking Samsung’s line to accelerate the output of Tesla’s AI6 computers.

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