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Tesla offers new $3,000 discount or free Supercharging with trade-ins, slashing prices further

(Credit: Tesla)

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Update: Tesla has confirmed the Model 3 and Model Y are not included in this promotion. Paragraph 7 reflects this, as well as confirmation from Tesla.

2/2 4:10 PM: Additional details added in paragraph 3 and 7.

Tesla is now offering additional discounts or free Supercharging incentives with the purchase of new Model S and Model X vehicles, but the automaker is requiring owners to trade in an existing car.

Tesla has gotten off to a fast start in 2023 with substantial price cuts that, when coupled with government incentives, can discount vehicles by roughly $20,000 on qualifying vehicles. As we reported yesterday, Tesla seems focused on pushing sales figures up earlier in the quarter, opting for an earlier strategy as opposed to the end-of-quarter pushes that it has utilized in the past.

Now Tesla is taking it a step further, as the company is reaching out to some current owners, attempting to woo them to purchase a new vehicle with a $3,000 discount or three years of free Supercharging, as long as they trade in their Tesla. Tesla is only offering this discount to owners it reaches out to in an “invite-only” style of promotion.

Several owners who recently inquired with Tesla to purchase new vehicles through trade-in value requests or test drives have received follow-up phone calls from an Ownership Loyalty Team member offering either a discount or free Supercharging.

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These discounts are being offered on top of the recent price cuts, which have decreased prices by as much as $13,000. In an email to a customer, Tesla reps said, “the options of $3k credit of a new Tesla or 3 years of free supercharger miles (whichever you prefer)” are available on trade-ins as long as the order is placed soon. It expires “in February,” but Tesla didn’t specify the exact date.

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Credit: Tesla

The rep also stated it was an opportunity to upgrade to a new vehicle while renewing its warranty. Owners offered the promotion were told they were required to trade in an existing vehicle.

Teslarati received confirmation of the offer by a member of Tesla’s Ownership Loyalty Program team. Tesla is not including the Model 3 and Model Y in this promotion, the company confirmed. Tesla showrooms were not made aware of the promotion.

The promotion is being called an “Ownership Loyalty Offer,” which could hint that Tesla is trying to keep current owners with the company instead of testing other EV options.

Tesla delivered over 1.3 million vehicles last year but narrowly missed its delivery growth targets. In 2023, the company is aiming for 1.8 million deliveries, but CEO Elon Musk said the company is capable of delivering 2 million units this year.

Tesla is evidently attempting to push more vehicles out the door at a pace quicker than ever before, and it is offering additional discounts to convince buyers to do so. The price cuts in early January were the automaker’s first move to trigger sales, and it has ignited a price war between EV manufacturers as the companies fight for market share. The offer of Free Supercharging has also been used in the past by Tesla to encourage sales of new vehicles.

In response to Tesla’s price cuts, Ford announced discounts of up to $5,900 on Mustang Mach-E trims this morning.

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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 Semi catches fire in California: what we know

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Credit: KTVU

A Tesla Semi caught fire in Hayward, California, which caused both directions of traffic to shut down for hours before being completely reopened early on Wednesday, the California Highway Patrol said.

The fire occurred just after 5:30 local time in Hayward on Tuesday, as the Semi caught fire in the southbound lanes of I-880 before CHP officials made the decision to shut down both lanes of traffic due to potential risks from hazardous chemical smoke.

There were no injuries reported.

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The cause of the fire is currently unknown, as neither Tesla nor the CHP have not determined a cause.

However, some images taken before the Semi was completely destroyed by the fire seem to indicate this might have been an older unit, as it appears to be one of the designs that Tesla shipped as part of its pilot program, before revising it and starting mass production just a month ago.

At the time of publication, CHP had not returned our request for a comment for additional details, including the Semi involved and any potential collaboration on an investigation between the CHP and Tesla. We will update this story when we hear back from them.

The southbound lanes were reopened at 3:30 a.m. on Wednesday, with the northbound lanes opening last night a few hours after the fire began. The CHP did state that the lithium batteries were “incredibly difficult to extinguish,” according to NBC Bay Area.

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The truck’s driver said that the Semi caught fire, but he did not have an explanation.

An estimated 5,000 to 7,000 semi-truck and large commercial vehicle fires occur on U.S. roadways every year.

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Tesla’s ‘Emergency Drive Away’ function gets its first use in the real world

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Credit: Tesla

Tesla’s launch of the “Emergency Drive Away” function a few months back offered owners a safe option to evacuate an area if they were in reasonable danger. The function finally got its first use in the real world, but it appears it was by mistake.

A video shared by u/Joshalander in the r/TeslaLounge subreddit recorded the instance from his vehicle and said the incident took place in Austin this past weekend during the city’s F1 Race.

“Was charging around 6 AM this past Sunday in Austin before heading to the F1 race and heard a pop. Looked over and saw the new emergency drive-away feature in action. Genuinely felt bad for the dude when he got out and realized what happened, since he looked exhausted and only seemed to half-read the prompts.”

Emergency Drive Away unlatches the Supercharger connector from the vehicle, but still causes damage to both the car and the Supercharger. Tesla has said that it will cost up to $25,000 in repairs to have everything fixed back to normal.

Additionally, the company said that if it were not used in an emergency situation, the driver of the vehicle who activated the Emergency Drive Away feature would be responsible for all repair costs.

Tesla constitutes the following situations as reasonable justifications for activating the feature:

  • You face an immediate threat to your life or personal safety.
  • You must leave the area immediately.
  • Exiting the vehicle is unsafe.
  • Unplugging the charge connector would unreasonably delay your departure or expose you to a risk to your personal safety.

After using the feature, Tesla requires the driver to schedule Service so the car can be inspected.

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Tesla’s Cybercab battery design could make robotaxis even cheaper

Tesla built the Cybercab’s battery pack with spare room for a future switch to LFP.

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Tesla built the Cybercab’s battery pack with empty space inside it on purpose, and the reason points to a cheaper robotaxi down the road.

Robert Sumpf, Tesla’s director of mechanical design engineering for battery modules and packs, said the extra room beside and beneath the Cybercab’s modules was left there so the company can move to lithium iron phosphate cells later. “So, we protected this pack to go to an even lower energy dense chemistry as we scale and need to bring LFP into the platform,” Sumpf said in a Cybercab deep dive with Munro Live.

The Cybercab runs on Tesla’s own 4680 cells with a nickel chemistry today. LFP cells store less energy for their size, so a straight swap would cut range. The reserved space lets Tesla add more LFP cells to make up the difference. In return, Tesla would get cells that cost less, run cooler and survive more charge cycles. LFP became the most used EV battery chemistry in the world last year.

Not all of that room was planned for a chemistry change. Lars Moravy, Tesla’s Vice President of Vehicle Engineering, said part of it exists because “we didn’t need as many batteries as we thought we did.” Tesla told Sandy Munro in early 2025 that it was targeting a Cybercab pack under 50 kWh with close to 300 miles of range.

The pack also breaks from the structural design Tesla used in some Model Y and Cybertruck builds. Instead of potting hundreds of cells into one block, the Cybercab uses four separate, individually sealed modules, so a bad module can be replaced without scrapping the whole pack. Sumpf was blunt about the older approach, giving the Model Y structural battery “a grade D” because it was hard to build and nearly impossible to repair. He estimated a fully structural pack gains about 10% more cell volume, but said “the issue is the service cost.”

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That cost matters more for a car that rarely sits parked. Cybercab chief engineer Eric Earley said replacing an entire pack “before half a million miles is a killer on cost,” which is why remanufacturing and serviceability were built into the design from the start.

The same Munro Live tour produced Moravy’s admission that the Cybercab line at Giga Texas is now outpacing Robotaxi deployments, along with a look at the robotaxi’s unorthodox paint process. Tesla is aiming to deliver the first Cybercabs to outside customers by the end of 2026, though Elon Musk has said the vast majority will stay owned by Tesla and run as a transport service.

Sumpf did not give a date for an LFP version, name a cell supplier or say how a chemistry change would affect range. For now, the 4680 cars keep piling up: Texas DMV records from Tuesday list 544 Cybercabs authorized for Tesla’s Robotaxi fleet, more than the 507 Model Ys on the same roster for the first time.

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