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Tesla’s huge price cuts are hitting the stock one way and its outlook in another

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Tesla (NASDAQ: TSLA) pushed huge price cuts on its vehicles in both the United States and China within the past few weeks, but the automaker’s decision is hitting the stock in one way and its outlook in another.

After the Austin-based automaker slashed prices by as much as $13,000 in the United States and 13.5 percent in China, speculation persisted that Tesla was making the move to combat demand declines. However, the moves, whether made by Tesla to spike demand or for other reasons, have provided a significant spike in the automaker’s registrations in China.

Additionally, Tesla’s inventory in the United States has more than halved since the company announced the price cuts on January 12.

The news of Tesla registrations in China, along with other potential catalysts, like what appears to be an imminent deal with Indonesia for an EV production plant, has the stock up nearly 5 percent on Tuesday morning. After a tough 2022, Tesla stock has rebounded 18.6 percent so far this year.

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However, the price cuts across several markets did not bode well for its outlook from many analysts.

Jefferies analyst Phillipe Houchois cut the firm’s price target on Tesla stock from $350 to $180, citing a potential regression in earnings potential. The analyst said rebasing earnings is “painful,” but the move shows Tesla has more levers to pull than other OEMs to trigger demand.

Tesla’s operating margin is currently third among all global automakers, trailing only Ferrari and BMW.

Additionally, Bank of America cut its price target to $130 from $135, citing increased competition and softening demand:

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“In our view, the rationale for lowering prices could reflect the following: 1) Increasing competition with a flood of new EV models; 2) Weakening auto demand amidst the difficult macro backdrop; 3) Strategy to crowd out completion as capacity is ramping up across the industry; 4) Effort to qualify vehicles for Inflation Reduction Act tax credits as base prices for the Model Y and Model 3 in the US are now below the required MSRP thresholds; 5) Opening up the lower end of the market to drive volume growth.”

More automakers are bringing more EVs to the market, and while Tesla is experiencing increased demand due to more EV models, it is still the tried-and-true leader of the sector. Tesla led several markets in EV sales by manufacturer, including the United States and Germany.

Despite the stock going one way and analyst sentiments going another, Tesla is set to deliver several new products in 2023, including the long-awaited Cybertruck. The company is also expected to shed more light on its next-generation platform during its 2023 Investor Day in March.

Tesla shares were trading at $129.39, up 5.71 percent, at 11:40 on the East Coast.

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Disclosure: Joey Klender is a TSLA Shareholder.

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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The Starship V3 static fire everyone was waiting for just happened

SpaceX fired all 33 Raptor 3 engines on Starship V3 today clearing the path for Flight 12.

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SpaceX Starship V3 from Starbase, Texas on April 14, 2026

SpaceX is that much closer to launching their next-gen Starship after completing today’s full duration static fire of all 33 Raptor 3 engines out of Starbase, Texas. This marks the most powerful rocket engine test ever conducted and a direct signal that Flight 12, the maiden voyage of Starship V3, is imminent. SpaceX confirmed the test on X, posting that the full duration firing was completed ahead of the vehicle’s next flight test.

The road to today started on March 16, when Booster 19 completed a shorter 10-engine static fire, also at the newly constructed Pad 2. That test ended early due to a ground systems issue but confirmed all installed Raptor 3 engines started cleanly. Booster 19 returned to the Mega Bay, received its remaining 23 engines for a full complement of 33, and rolled back out this week for the complete test campaign. Musk confirmed earlier this month that Flight 12 is now 4 to 6 weeks away.

Countdown: America is going back to the Moon and SpaceX holds the key to what comes after

The numbers behind today’s test are genuinely hard to put in context. Each Raptor 3 engine produces roughly 280 tons of thrust, and with all 33 firing simultaneously, this generates approximately 9,240 tons of combined thrust, more than any rocket in history. For context, that’s enough thrust to lift the entire Empire State Building, and then some. V3 stands 408 feet tall and can carry over 100 tons to low Earth orbit in a fully reusable configuration. The V2 generation topped out at around 35 tons.

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Historically, a successful full-duration static fire is the last major ground milestone before launch. SpaceX has followed this pattern with every Starship iteration since the program began in 2023.  Musk has been direct about the ambition behind all of it. “I am highly confident that the V3 design will achieve full reusability,” he wrote on X earlier this year. Full reusability of both stages is the foundation of SpaceX’s plan to make regular flights to the Moon and Mars economically viable. Today’s test brings that goal one significant step closer.


Starship V3 delivers on two most critical promises of full reusability and in-orbit refueling. The reusability case is straightforward, and one we have seen with Falcon 9 wherein the rocket can fly again within a day rather than building a new one for every mission. It’s the only economic model that makes frequent lunar cargo runs viable. The in-orbit refueling piece is less obvious but equally essential. To reach the Moon with enough payload, Starship requires roughly ten dedicated tanker flights to fuel up a propellant depot in low Earth orbit before it can even begin its journey to the lunar surface. That capability has never been demonstrated at scale, and Flight 12 is the first step toward proving it works. As Teslarati reported, NASA’s Artemis II crew completed a historic lunar flyby earlier this month, the first humans to travel beyond low Earth orbit since 1972, but getting astronauts to actually land and eventually supply a permanent Moon base requires a cargo pipeline that only a fully reusable, refuelable Starship V3 can deliver at the volume and cost NASA’s plans demand.

SpaceX Starship full duration static fire on April 14, 2026 from Starbase, Texas (Credit: SpaceX)

SpaceX Starship full duration static fire on April 14, 2026 from Starbase, Texas (Credit: SpaceX)

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Tesla Full Self-Driving shows stunning maneuver in Europe to silence skeptics

In a striking demonstration of autonomous driving prowess, Tesla’s Full Self-Driving (FSD) system recently showcased its capabilities on the narrow rural roads of the Netherlands. Captured in two in-car videos, the system encountered scenarios that would challenge even the most experienced human drivers.

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Credit: Tesla

Tesla Full Self-Driving, fresh on the heels of its approval for operation on European roads for the first time, showed off a stunning maneuver that will certainly silence any skeptics on the continent.

Fresh off its approval in the Netherlands, Full Self-Driving is working toward a significant expansion into more parts of Europe.

In a striking demonstration of autonomous driving prowess, Tesla’s Full Self-Driving (FSD) system recently showcased its capabilities on the narrow rural roads of the Netherlands. Captured in two in-car videos, the system encountered scenarios that would challenge even the most experienced human drivers.

In the first clip, a wide tractor occupied more than half the lane on a tight two-way road. Rather than braking abruptly or forcing a collision risk, FSD smoothly edged the vehicle onto the adjacent bike path—using the extra space with precision—before seamlessly returning to the lane once clear.

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The second clip was equally demanding: while overtaking a group of cyclists, an oncoming car approached at speed.

FSD maintained a safe, minimal buffer to the cyclists while timing the pass perfectly, avoiding any swerve or hesitation that could unsettle passengers or other road users.

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This maneuver highlights FSD’s advanced spatial reasoning and predictive planning. On roads often under three meters wide, with no room for error, the system calculated available clearance in real time, incorporated shoulder and path geometry, and executed a controlled deviation without compromising safety.

It treated the bike path as a legitimate extension of navigable space, something many drivers might hesitate to do, while respecting Dutch road norms and cyclist priority.

Such feats align closely with a growing library of impressive FSD maneuvers documented on camera worldwide.

In urban Amsterdam, for instance, FSD has navigated the world’s densest cyclist environments, weaving through hundreds of unpredictable bike movements on canal-side streets with tram tracks and pedestrians.

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One uncut drive showed it yielding smoothly at crossings, overtaking where needed, and even handling a near-perfect auto-park in a tight residential spot, demonstrating the same low-speed precision seen in the rural clips.

Teslas using FSD have tackled turbo roundabouts in the Netherlands, complex multi-lane circles notorious for geometry challenges, merging confidently while yielding to traffic. Similar clips depict smooth handling of construction zones, emergency vehicle pull-overs, and gated parking barriers, where the car stops precisely, waits for clearance, and proceeds without driver input.

Collectively, these examples illustrate FSD’s evolution toward handling the unpredictable.

The rural Netherlands maneuvers aren’t isolated. Instead, they reflect a pattern of spatial awareness, cyclist deference, and traffic anticipation seen from city streets to highways.

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As FSD continues refining through real-world data, videos like this one are certainly building a compelling case for its readiness on Europe’s varied roads.

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Tesla utilizes its ‘Rave Cave’ for new awesome safety feature

Part of the massive interior overhaul of both the Model 3 “Highland” and Model Y “Juniper” was the addition of interior accent lighting to help bring out the mood of the vehicle, increase the customization of the interior, and to create a unique listening experience.

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Credit: Tesla | X

Tesla is utilizing its ‘Rave Cave’ for an awesome new safety feature that will arrive with the upcoming Spring Update for 2026.

Part of the massive interior overhaul of both the Model 3 “Highland” and Model Y “Juniper” was the addition of interior accent lighting to help bring out the mood of the vehicle, increase the customization of the interior, and to create a unique listening experience.

Tesla added a Sync Lights feature that will strobe the accent strips with the beat of the music.

It is one of the most unique and one of the coolest non-functional features of a Tesla, as it does not improve the driving of the vehicle, but makes it a cool and personal addition to the interior.

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However, Tesla is going to take it one step further, as the Rave Cave lights will now be used for blind spot recognition. This feature will be added as the Spring 2026 Update starts to roll out.

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Tesla writes:

“Accent lights now turn red when an object is in your blind spot and your turn signal is engaged, or when an approaching object is detected while parked.”

This neat new safety feature will now increase the likelihood of a driver, who is operating their Tesla manually, of seeing the blind spot warnings that are currently available on the A pillar and on the center touchscreen.

These new alerts will now warn drivers of cross traffic as they back out of a parking space with little to no visibility of what is coming. It is a great new addition that will only increase the safety of the vehicles, while also utilizing something that is already installed in these specific Model 3 and Model Y units.

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The Model 3 and Model Y were the central focus of the Spring 2026 Update, especially considering the fact that the Model S and Model X are basically gone, with only a few hundred units left. Additionally, Tesla included new Immersive Sound and Car Visualization for the Model 3 and Model Y specifically in this new update.

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