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Volkswagen ID.4 becomes Top 3 most affordable U.S. EV, but there’s a catch
Volkswagen’s ID.4 will be the third most affordable electric vehicle offering in the United States, but the German automaker will nerf performance to reach the price point.
VW now realizes just how competitive the electric SUV space has become, and the company hopes to become more competitive with a recent price cut in the U.S. This is thanks to VW’s move to bring ID.4 manufacturing to their Chattanooga, Tennessee plant and accompanying performance cuts to the vehicle. The vehicle will now have a starting price of $37,495 instead of $39,995 and, with federal tax credits, will be just under a $30,000 vehicle at the base model.
The ID.4 now exists in a competitive market of electric SUVs. It must compete with Tesla’s Model Y, the Ford Mustang Mach-E, the Chevy Bolt EUV, the Hyundai Ioniq 5 and Kona EV, the Kia EV6 and Niro EV, and eventually the Rivian R1S. The ID.4 becomes the third cheapest offering behind the Bolt EUV ($33,500) and Hyundai Kona EV ($34,000).
Comparison of EV SUV starting prices Q3 2022 (Credit: Teslarati)
The ID.4 refresh comes with a design change, some new colors, and a couple of other changes, a few of them listed on VW’s website. While VW’s consumer site lacks basic information about range and power, its press site does list a few of these numbers. The base model will now only have roughly 200 miles of range instead of 260 miles on its previous base model.
In terms of charging, VW has been unclear. In their press release, they state that “Plug&Charge functionality is now standard on the ID.4, enabling owners to make even better use of their three years of included 30-minute DC fast charging sessions at Electrify America stations.” However, the consumer VW website shows that the base model now lists 170kW DC fast charging as optional. It is unclear what charging speed the base model would have access to.
In terms of power, the base model will retain the 201 horsepower going to the rear wheels. However, torque is not listed.
Overall, VW has done a lot to bring down the price of the ID.4, but it is unclear if the vehicle will remain competitive in an ever more crowded segment. The vehicle has the same power as the Kona EV, the Niro EV, and the Bolt EUV and is roughly price competitive with each of them, yet each of the other offerings has far more range. At the same time, according to VW’s consumer site, the lack of standard 170kW DC fast charging could make the vehicle highly uncompetitive with vehicles at the same price that could charge far faster.
What do you think of the article? Do you have any comments, questions, or concerns? Shoot me an email at william@teslarati.com. You can also reach me on Twitter @WilliamWritin. If you have news tips, email us at tips@teslarati.com!
Tesla (NASDAQ: TSLA) reported its earnings for the first quarter of 2026 on Wednesday afternoon. Here’s what the company reported compared to what Wall Street analysts expected.
The earnings results come after Tesla reported a massive beat on vehicle deliveries for the second quarter, delivering 489,126 vehicles and building 451,758 cars during the three-month span.
This was a major shock for those on Wall Street as they anticipated somewhere around 400,000 deliveries for the quarter, and showed Tesla still has plenty of demand for its vehicles around the world and in the U.S. despite losing the $7,500 EV Tax Credit last year.
Tesla Q2 2026 Earnings Results
- Non-GAAP EPS – $0.33 reported vs. $0.53 expected
- Revenues – $28.236 billion reported vs. $26.4 billion expected
- Free Cash Flow- -$1.092B
- Profit -$ 4.751B
Tesla (beat/missed) analyst expectations, so the market response to the company’s quarter is what we will look for next.
Tesla shares closed today down just over 1 percent, trading at $374.01.
In the past, it has been anyone’s guess with what Tesla shares will do after they report earnings. Strong quarters have resulted in sharp drops, while lackluster quarters have seen the stock shoot up considerably.
Tesla will hold its Q2 2026 Earnings Call in about 90 minutes at 5:30 p.m. on the East Coast. Remarks will be made by CEO Elon Musk and other executives, who will shed some light on the investor questions that we covered earlier this week.
You can stream it below. Additionally, we will be doing our Live Blog on X and Facebook.
Q2 2026 Earnings Call https://t.co/zZS6ii2TWK
— Tesla (@Tesla) July 22, 2026
Tesla is about to make parking in busy parking lots at businesses and other points of interest less stressful than ever by allowing drivers more control over where they park and how, CEO Elon Musk confirmed on X.
Tesla has been working to improve the parking performance of vehicles utilizing the Full Self-Driving suite, but now it is looking to add more customization, allowing drivers to choose the specific space they park in, but also potentially the orientation the car pulls into the spot:
It’s coming soon
— Elon Musk (@elonmusk) July 21, 2026
Musk has reiterated on X twice over the past several weeks that Tesla is working to make things with the FSD suite based more on the driver’s specific preferences and behaviors that were seen in past drives.
Essentially, it sounds like if you tend to park away from a business to avoid other vehicles, Tesla FSD will soon recognize that preference of yours and start parking further away as well. Additionally, the prospect of assigned parking spaces has been something many owners have voiced concerns about.
Living in a community with assigned parking spaces makes using FSD incredibly difficult as it will rarely park in the correct spot when there are so many to choose from. This is also pertinent in work settings where there are sometimes assigned parking spaces.
The updates to Tesla’s Full Self-Driving suite in terms of listening to driver preferences with parking are also extending to routing. Tesla announced yesterday that with the release of its 2026 Summer Update, it was adding Automatic Navigation and Preferred Routes:
Tesla reveals 2026 Summer Update with crazy fixes to Nav and more
Tesla has always maintained the idea that any human input is bad input, and that, ideally, Tesla Full Self-Driving will always make the right decision. Of course, this is all in theory, but the issue is that so many of Tesla’s interventions have come because it does something that is not necessarily wrong, but perhaps not what the driver would prefer.
Taking these preferences into account will help Tesla alleviate some of the potentially unnecessary interventions that drivers perform.
Tesla is starting to prepare for the launch of the Optimus robot in its smartphone app, new coding strings show. Elon Musk has referred to Optimus as what will be the greatest-selling product of any kind of all time, and now, Tesla is getting ready for its launch.
Tesla’s smartphone app had several first-time mentions of the Optimus program, according to Tesla App Updates, who intially reported on the appearance. Here’s what they found:
A Dedicated “Robot” Phone Key Authentication
Tesla is working on a Bluetooth Low Energy, or BLE, authentication that is specifically for robots. This does not only apply to Optimus, though, as Robotaxi, which is Tesla’s autonomous ride-hailing platform, might also identify vehicles within the fleet as robots as well.
Tesla shows rapid teardown of Model S and X lines, paving the way for Optimus at Fremont
Essentially, pairing your phone as a key to anything Tesla identifies as a robot to a “whitelist” of authorized devices. Optimus, Robotaxi, or other products that fall into this category will only respond if the device trying to communicate with it is authorized.
This is a great security feature that will eliminate at least face-value and low-level threats.
Home Data Collection and System Alerts
This appears to be somewhat of a neural network for Optimus within your house. There will be a dedicated screen that asks for consent to collect both video and spatial data while Optimus performs in-home tasks. Everything from vacuuming, washing dishes, dusting, and other activities will be tracked.
There will also be a comprehensive alert system that will track everything from low battery to mechanical issues.
Other Changes
Most of the changes tracked in this particular app update are related to Tesla’s 2026 Summer Update, and include things such as image assets for new features, a preview of the new custom wraps feature, and other unique features.
You can check out our coverage on what is included with the 2026 Summer Update here:
Tesla reveals 2026 Summer Update with crazy fixes to Nav and more
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla is about to make parking in busy lots less stressful than ever
