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Tesla starts promoting Model 3 and Model Y’s IRA-adjusted prices

Credit: Tesla

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Recent activities from Tesla suggest that the electric car maker is putting quite a bit of effort into marketing its vehicles to as many people as possible. As could be seen in the official web pages of the Model 3 and Model Y, Tesla is now highlighting the vehicles’ estimated costs with the incentives from the Inflation Reduction Act (IRA) applied. Similar efforts have been initiated on Twitter. 

A look at Tesla’s official pages for the Model 3 sedan and Model Y crossover shows that the electric vehicle maker is highlighting the fact that the electric cars are eligible for the IRA’s $7,500 tax credit. The prices emphasized on the Model 3 and Model Y’s pages also list the cost of the vehicles after the IRA’s tax credit has been applied. The prices listed in the vehicles’ order pages also do not include potential local incentives, so the cars could get even more affordable. 

Over on Twitter, Tesla is implementing a similar strategy. In a recent post from the official Tesla account, the company emphasized that the IRA’s full $7,500 federal tax credit applies to all new Model 3 sedans and Model Y crossovers. With the federal incentives in place, Tesla noted that the Model 3 starts at just $32,450. And if one were to factor in fuel and maintenance savings, the cost of the Model 3 would drop to “well below $30k,” the company noted. 

But this is not all, as customers who are eligible for state and local incentives could make the car even more affordable. “If eligible, state & local incentives can drop prices as low as $20k in certain states!” Tesla stated. 

It is pretty encouraging to see Tesla promoting its vehicles’ attainable prices. That being said, some members of the EV community have urged the electric car maker to promote the same points to people outside the social media and electric vehicle bubble. After all, a good number of everyday car buyers likely still perceive Teslas as extremely expensive cars that are only for the wealthy. And while that’s quite true for the Model S and Model X, the Model 3 and Model Y are very attainable cars. 

Tesla’s decision to promote its vehicles’ prices with the IRA’s incentives in place has received some negative reactions from longtime EV community members, with some stating that it’s still best to list the Model 3 and Model Y’s actual purchase price. Such a thing would be particularly useful as not every car buyer qualifies for federal and state incentives. 

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Elon Musk: Tesla Model Y is world’s best-selling car for 3rd year in a row

The Model Y has now established an impressive streak that would otherwise have been impossible before Tesla. 

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Credit: Grok Imagine

Elon Musk has announced that the Tesla Model Y has become the world’s best-selling car by volume for the third consecutive year, capping 2025 with another dominant performance. 

The Model Y has now established an impressive streak that would otherwise have been impossible before Tesla. 

Three years in a row

Musk posted on X: “Tesla Model Y is now officially the world’s best-selling car for the third year in a row!” The CEO’s comment echoed an update that Tesla included in its 2025 recap, which highlighted, among other things, the Model Y’s incredible streak. 

The Model Y has held the title since 2023, outperforming traditional leaders like the Toyota RAV4 and Corolla thanks to its bang-for-the-buck nature and its stellar combination of practicality, performance, and tech. The Model Y is also lauded as one of the safest vehicles on the road, making it an ideal choice for families in key markets such as China. 

An impressive 2025

The Model Y’s sales feat in 2025 is especially impressive considering the introduction of the vehicle’s new variant. Tesla’s changeover to the new Model Y across its global factories resulted in sales being paused for some time in the first quarter. As per Tesla’s Q1 2025 vehicle delivery and production report, “the changeover of Model Y lines across all four of our factories led to the loss of several weeks of production in Q1.” 

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This suggests that the Model Y’s sales remained strong in 2025 to the point where it could still claim the title of the world’s best-selling vehicle by volume, even with its sales being throttled during the first quarter of the year. It would then be interesting to see just how far the Model Y can go in 2026, especially considering the rollout of new variants like the six-seat extended wheelbase Model Y L, the affordable Model Y Standard, and the top-tier Model Y Performance. 

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Tesla shares epic 2025 recap video, confirms start of Cybercab production

The cinematic montage, posted by the official Tesla account on X, celebrated the company’s progress in EVs, energy, and Robotaxi development.

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Credit: Tesla

Tesla has released an epic year-in-review video for 2025, recapping some of its major achievements from refreshed models to autonomy breakthroughs and production ramps. 

The cinematic montage, posted by the official Tesla account on X, celebrated the company’s progress in EVs, energy, and Robotaxi development while looking ahead to an even bigger 2026.

Tesla’s 2025 highlights recap

Tesla has had a busy 2025, as highlighted in the recap video. The video opened with Elon Musk explaining the company’s pursuit of sustainable abundance. A number of milestones were then highlighted, such as the rollout of FSD v14, Optimus’ numerous demos, the opening of the Tesla Diner in Hollywood, LA, the completion of the world’s first autonomous car delivery, and the launch of the Robotaxi network in Austin and the San Francisco Bay Area.

Tesla also highlighted several of its accomplishments over the year. As per the company, the Model Y was the year’s best-selling vehicle globally again, and Teslas became more affordable than ever thanks to the Model 3 and Model Y Standard. Other key models were also rolled out, such as the refreshed Model S and X, as well as the new Model Y, the new Model Y Performance, and the six-seat, extended wheelbase Model Y L. 

The Megablock was also unveiled during the year, and the Supercharger Network grew by 18%. Over 1 million Powerwalls were also installed during the year, and the Cybertruck became the first EV truck to get both an IIHS Top Safety Pick+ award and an NHTSA 5-Star safety rating. 

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Cybercab production confirmed

Interestingly enough, Tesla also confirmed in its 2025 recap video that the production of the Cybercab has started. This bodes well for the vehicle, as it could result in the vehicle really being mass-produced in the first half of 2026. Elon Musk confirmed during the 2025 Annual Shareholder Meeting that Cybercab production should earnestly start around April 2026

Musk has also noted that the Cybercab will be Tesla’s highest-volume vehicle yet, with the company aiming for an annual production rate of about 2 million units. “If you’ve seen the design of the Cybercab line, it doesn’t look like a normal car manufacturing line,” Musk said earlier this year. “It looks like a really high-speed consumer electronics line. In fact, the line will move so fast that actually people can’t even get close to it.”

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Tesla Cybercab is changing the look of Austin’s roads, and it’s not even in production yet

Videos and photos showed the sleek, two-seat autonomous vehicles navigating traffic.

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Credit: @niccruzpatane/X

Even before entering production, Tesla’s Cybercab is already transforming the appearance of Austin’s streets, with multiple prototypes spotted testing in downtown areas recently. 

Videos and photos showed the sleek, two-seat autonomous vehicles navigating traffic. Interestingly enough, the vehicles were equipped with temporary steering wheels and human safety drivers.

Recent Cybercab sightings

Over the weekend, enthusiasts captured footage of two Cybercabs driving together in central Austin, their futuristic silhouettes standing out amid regular traffic. While the vehicles featured temporary steering wheels and side mirrors for now, they retained their futuristic, production-intent exterior design.

Industry watcher Sawyer Merritt shared one of the vehicles’ videos, noting the increasing frequency of the autonomous two-seater’s sightings.

Previewing the autonomous future

Sightings of the Cybercab have been ramping in several key areas across the United States in recent weeks. Sightings include units at Apple’s Visitor Center in California, the Fremont factory test track, and in Austin’s streets.

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The increased activity suggests that Tesla is in overdrive, validating the autonomous two-seater ahead of its planned volume production. Elon Musk confirmed at the 2025 Shareholder Meeting that manufacturing begins around April 2026 with ambitious targets, and during an All-Hands meeting earlier this year, Musk hinted that ultimately, Tesla’s factories should be able to produce one Cybercab every 10 seconds. 

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