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Tesla top 5: Week in review, January 28
It’s been a week in which we’ve seen Wall Street traders sheepishly admitting that their doom-and-gloom forecasts about Tesla stocks were just a bit off. The Model 3, with its important new target audience, was highlighted as one of the key stories to watch for 2017. Elon’s been tweeting again, this time about his newest idea to build a tunnel beneath LA’s notorious traffic bottlenecks. Also, Musk’s endorsement of Tillerson for Secretary of State did cause a few raised eyebrows, but his rationale did make sense. And Tesla is back in the courts, this time to sue a former exec for allegedly stealing proprietary information.
Trump effect takes hold of Tesla’s (TSLA) stock price
Tesla stock has been on the rise, making gains since the Q4 earnings report came in. Morgan Stanley automotive analyst Adam Jonas upgraded Tesla’s target price, citing “overlapping interest” with Trump in creating technology and manufacturing jobs. We at Teslarati conceded the “Trump effect” but also credited Tesla’s vivacious performance and surplus cash on hand as making a difference in 2017 Tesla stock projections. So, too, is Tesla’s ability to sell carbon credits to other automakers as well as improvements in their automotive production.
Tesla’s Model 3 will be big news in 2017 and why you should care
All along, Elon Musk has reiterated that his plan for Tesla has only started with selling luxury cars like the Model S sedan and Model X SUV. Ultimately, the long term goal has been to draw upon resulting revenue to develop an upscale but much more affordable car. Enter the Model 3 at a starting price of $35,000. Its sale is more than just another model that will broaden Tesla’s appeal: selling the Model 3 will mean introducing sustainable transport to a larger segment of the population and slowing climate change through decentralized energy generation.
Elon Musk plans to dig a tunnel from SpaceX to likely LAX airport
In December, Musk tweeted that “traffic is driving me nuts.” The result? He announced that he intended to open “The Boring Company,” which would build a tunnel boring machine as part of a traffic deterrent alternative. This week, Musk said it’s on the verge of happening: he is serious about his tunnel, and “exciting progress” has been made on tunnel plans. His most recent update, announced via Twitter, were that there is a “plan to start digging in a month or so.” The tunnel is project to begin in Hawthorne, California at the intersection of Crenshaw and the 105 Freeway, five minutes from LAX— oh, yeah, and conveniently located, Musk adds, “across from my desk at SpaceX.”
Why Musk is supporting former Exxon Mobil CEO for Secretary of State
Controversial Rex Tillerson received narrow approval as Secretary of State this week. Musk’s response? “Rex is an exceptionally competent executive, understands geopolitics and knows how to win for his team. His team is now the USA. I share The Economist’s opinion that he should be given the benefit of the doubt unless his actions prove otherwise.” Musk rationalized his stance on Tillerson’s support for a carbon tax. “This is what is really needed to move the needle,” he added, because a carbon tax is the “best tool for fighting climate change.”
Ex-Tesla Director of Autopilot Software sued over accusations of stealing proprietary info
Tesla is in the courts again, with a recent series of court filings saying that a former employee who left to set up a rival business has stolen company secrets and lured away key staff. Sterling Anderson, who came on board with Tesla in 2014 as a senior product manager working on the Model X SUV and later became director of the Autopilot team, may have broken his contractual agreement with Tesla. Enticing staff moves away from Tesla and to Anderson’s new car company with working title “Aurora,” among other things, breaches a clause that prohibits any headhunting prior to a 12 month embargo.
News
Tesla rolls out most aggressive Model Y lease deal in the US yet
With the promotion in place, customers would be able to take home a Model Y at a very low cost.
Tesla has rolled out what could very well be its most aggressive promotion for Model Y leases in the United States yet. With the promotion in place, customers would be able to take home a Model Y at a very low cost.
Zero downpayment leases
The new Model Y lease promotion was initially reported on X, with industry watcher Sawyer Merritt stating that while the vehicles’ monthly payments are still similar to before, the cars can now be ordered with a $0 downpayment.
Tesla community members noted that this promotion would cut the full payment cost of Model Y leases by several thousand dollars, though prices were still a bit better when the $7,500 federal tax credit was still in effect. Despite this, a $0 downpayment would likely be appreciated by customers, as it lowers the entry point to the Tesla ecosystem by a notable margin.
Premium freebies included
Apart from a $0 downpayment, customers of Model Y leases are also provided one free upgrade for their vehicles. These upgrades could be premium paint, such as Pearl White Multi-Coat, Deep Blue Metallic, Diamond Black, Quicksilver or Ultra Red, or 20″ Helix 2.0 Wheels. Customers could also opt for a White Interior or a Tow Hitch free of charge.
A look at Tesla’s Model Y order page shows that the promotion is available for all the Model Y Premium Rear-Wheel Drive and the Model Y Premium All-Wheel Drive. The Model Y Standard and the Model Y Performance are not eligible for the $0 downpayment or free premium upgrade promotion as of writing.
@teslarati 🚨 Tesla Full Self-Driving v14.1.7 is here and here’s some things it did extremely well! #tesla #teslafsd #fullselfdriving ♬ You Have It – Marscott
News
Tesla is looking to phase out China-made parts at US factories: report
Tesla has reportedly swapped out several China-made components already, aiming to complete the transition within the next two years.
Tesla has reportedly started directing its suppliers to eliminate China-made components from vehicles built in the United States. This would make Tesla’s US-produced vehicles even more American-made.
The update was initially reported by The Wall Street Journal.
Accelerating North American sourcing
As per the WSJ report, the shift reportedly came amidst escalating tariff uncertainties between Washington and Beijing. Citing people reportedly familiar with the matter, the publication claimed that Tesla has already swapped out several China-made components, aiming to complete the transition within the next two years. The publication also claimed that Tesla has been reducing its reliance on China-based suppliers since the pandemic disrupted supply chains.
The company has quietly increased North American sourcing over the past two years as tariff concerns have intensified. If accurate, Tesla would likely end up with vehicles that are even more locally sourced than they are today. It would remain to be seen, however, if a change in suppliers for its US-made vehicles would result in price adjustments for cars like the Model 3 and Model Y.
Industry-wide reassessments
Tesla is not alone in reevaluating its dependence on China. Auto executives across the automotive industry have been in rapid-response mode amid shifting trade policies, chip supply anxiety, and concerns over rare-earth materials. Fluctuating tariffs between the United States and China during President Donald Trump’s current term have made pricing strategies quite unpredictable as well, as noted in a Reuters report.
General Motors this week issued a similar directive to thousands of suppliers, instructing them to remove China-origin components from their supply chains. The same is true for Stellantis, which also announced earlier this year that it was implementing several strategies to avoid tariffs that were placed by the Trump administration.
@teslarati 🚨 Tesla Full Self-Driving v14.1.7 is here and here’s some things it did extremely well! #tesla #teslafsd #fullselfdriving ♬ You Have It – Marscott
News
Tesla owners propose interesting theory about Apple CarPlay and EV tax credit
“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.
Tesla is reportedly bracing for the integration of Apple’s well-known iOS automotive platform, CarPlay, into its vehicles after the company had avoided it for years.
However, now that it’s here, owners are more than clear that they do not want it, and they have their theories about why it’s on its way. Some believe it might have to do with the EV tax credit, or rather, the loss of it.
Owners are more interested in why Tesla is doing this now, especially considering that so many have been outspoken about the fact that they would not use it in favor of the company’s user interface (UI), which is extremely well done.
After Bloomberg reported that Tesla was working on Apple CarPlay integration, the reactions immediately started pouring in. From my perspective, having used both Apple CarPlay in two previous vehicles and going to Tesla’s in-house UI in my Model Y, both platforms definitely have their advantages.
However, Tesla’s UI just works with its vehicles, as it is intuitive and well-engineered for its cars specifically. Apple CarPlay was always good, but it was buggy at times, which could be attributed to the vehicle and not the software, and not as user-friendly, but that is subjective.
Nevertheless, upon the release of Bloomberg’s report, people immediately challenged the need for it:
Everyone thinks they need it. I would think that too if I didn’t know how good Tesla’s interface was. CarPlay is a crappy layer on top of crappy info-navs, and people think it’s an imperative because it provides a level of consistency from car to car. They have no clue how much…
— Rich Stafford (@r26174_rich) November 14, 2025
How can it not be when the best engineers choose Tesla over Apple and Tesla’s core focus is auto vs Apple being mobile. It’s what Tesla does every day. It’s a side project for Apple. Still Apple is much better than any other auto OEM who attract lesser talent and make digital…
— Emu (@confessedemu) November 14, 2025
Some fans proposed an interesting point: What if Tesla is using CarPlay as a counter to losing the $7,500 EV tax credit? Perhaps it is an interesting way to attract customers who have not owned a Tesla before but are more interested in having a vehicle equipped with CarPlay?
“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.
Tesla has made a handful of moves to attract people to its cars after losing the tax credit. This could be a small but potentially mighty strategy that will pull some carbuyers to Tesla, especially now that the Apple CarPlay box is checked.
@teslarati :rotating_light: This is why you need to use off-peak rates at Tesla Superchargers! #tesla #evcharging #fyp ♬ Blue Moon – Muspace Lofi
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