Tesla reduces their prices in China by 5 to 10 percent.
Tesla
Tesla has reversed its most recent price hikes across the board in China — cutting the cost of some models by 5 to 10 percent.
Just last month the company started offering incentives to those who bought Tesla’s insurance. Observers speculate this could signal the beginning of the price war in the country as numerous electric vehicle makers are jousting for the top spot. The implications could be far-reaching as more companies are building EVs, and a recession is looming. Price will be the number one factor for many considering an EV.
Reuters reports Tesla stated, “it was adjusting prices in line with costs. Capacity utilization at its Shanghai Gigafactory has improved, while the supply chain remains stable despite the impact on the economy of China's stringent zero-COVID restrictions, leading to lower costs.” However, the report also claims that retail sales numbers are down, and electric car demand has also slowed.
Interestingly, the slash in prices was reported by The Paper, a Chinese digital newspaper, a month ago. But the media outlet later reported that Tesla China responded to their story, saying “Rumors, false news,” and that customer service “has not received relevant notices.” The drop in prices was remarkably close to the decreases that were rumored a month ago.
There’s been no speculation of a price cut in North America; in fact, the demand remains high with long waiting lists. Elon Musk said during the third quarter earnings call that he doesn’t see that slowing down. He said every vehicle they make would be sold. However, Elon did comment on Twitter back in July of this year saying that Tesla can lower its prices if 'inflation calms down.' We'll have to wait and see if Tesla reduces their prices in any other regions.
However, he did discuss creating a new vehicle that many believe could be the Model 2. This Model is expected to be less expensive, therefore being more competitive with companies who are offering EVs at cheaper prices.
Price Reductions in China
Model 3 RWD: reduced by $1,400 USD
Model 3 Performance: reduced by $2,500 USD
Model Y RWD: reduced by $2,400 USD
Model Y Long Range: reduced by $5,100 USD
Model Y Performance: reduced by $2,700 USD
While Tesla is the EV giant in North America, and much of the world, it is third place in China. BYD Motor and SAIC-GM-Wuling are the leaders in that country, but Tesla is gaining. The Shanghai factory is producing 22,000 units per week, a jump of nearly 5,000 since June. The company delivered more than 83,000 vehicles last month, the highest output since the factory open in 2019.
China Merchants Bank International (CMBI) told Reuters the price reductions highlight the looming recession and the industry-wide slowdown that is expected in the EV industry in China. Shi Ji, an analyst with CMBI said, "The price cuts underscore the possible price war, which we have been emphasizing since August." Some Twitter users are posting screenshots of wait lists developing in China just hours after the prices were dropped.
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Tesla has begun to reach out to customers in the United States and is offering demo drives of the Cybertruck on an invite-only basis. @brandonhd on X shared the first invite image, and it looks like it's going out quite quickly to multiple locations that have Cybertrucks on display.
Up until now, display vehicles have been for just that – looking, but no touching. Some Tesla delivery centers and showrooms have also allowed viewers to take a seat inside and open it up, but most are still locked away behind the velvet rope.
It’s exciting to see that Tesla has begun to demo them – and it can only be so long until demo drives open up to everyone.
Advisor-led Demo
This Demo Drive is led by a Tesla Advisor – while you’re driving, the advisor will be in the passenger seat, walking you through the experience. They’ll explain steer-by-wire, off-road controls, and will introduce new-to-Tesla buyers to all the features that are currently available.
The list of locations so far for demo drives appears to be fairly limited, but we will hopefully see demo drives roll out throughout the United States, and eventually Canada too. Here is the current list of city/state locations that have seen demo drive invites.
Actually Smart Summon, the successor to Tesla’s Smart Summon feature, has been confirmed to be coming as soon as next month as per Elon Musk. Colloquially known as “ASS”, Actually Smart Summon is supposed to improve on the regular Smart Summon capabilities, which have historically used ultrasonic sensors (USS) to navigate parking lots.
We’re looking forward to Actually Smart Summon, and we’re quite excited about what other features will be unlocked once it finally shows up at our doorstep.
Vision-based Improvements
ASS is supposed to bring Smart Summon to vehicles that don’t have USS – using Tesla Vision. Most recently, Tesla has brought Autopark to vehicles without USS, and Vision-based Autopark has been a huge success. It is faster, more reliable, and smoother than the older USS-based solution. It can also park and maneuver in tighter locations.
Today, Smart Summon is sometimes useful at best, usually a party trick, or downright dangerous at worst. It’s excellent and best used in straight lines, where you have a clear line of sight of the vehicle, and can stop it if doesn’t see an obstacle.
I used Smart Summon today, just before writing this article – my 2022 Model Y (with USS) – did manage to show up just fine – in a straight-line location from where I was parked, after exiting the parking spot fairly cleanly. However, I’ve previously used Smart Summon and have had the vehicle turn towards obstacles, such as cart returns or curbs. Overall, it’s a sometimes-useful feature that has a lot of drawbacks right now.
Smart Summon is also restricted to a certain distance – and it's pretty small. The max distance is shorter than most parking lots, being only about 215 ft (65m). If you’re lucky enough to park close, it's very useful to bring your car right to you.
Actually Smart Summon
ASS will bring FSD V12-like capabilities to Smart Summon – the vehicle will primarily use Vision to drive toward you (or the location you’ve indicated). ASS has been supposed to be coming since about September 2022 and has seen many delays – we’re almost at the 2-year point today.
We’re looking forward to Actually Smart Summon being able to bring the vehicle – safely – right to you. ASS is also one of the key steps towards bringing some other cool features that Elon Musk has previously mentioned – Park Seek and Banish Autopark.
We’re also hopeful that Actually Smart Summon will increase the maximum range a vehicle can be summoned, because the current range is fairly small. Alongside Park Seek and Banish Autopark, we’re closing in on a Robotaxi-based future.
Park Seek and Banish Autopark
When the FSD v12.4 showed up, Elon also mentioned that going forward, vehicles would automatically park themselves when arriving in a parking lot – Park Seek – and that if you got out of the car at the entrance to a business, you could get it to automatically park itself in the parking lot – Banish Autopark. These are two features that are needed for Robotaxi to work – which itself is delayed to October 10th of this year. We’re looking quite forward to them – as in combination with Actually Smart Summon, Tesla has reached the cusp of vehicle autonomy.
A vehicle that arrives, driverless, at the location you’re at, then drives somewhere, parks itself there, and waits for you – is the definition of a Robotaxi.
While we’re likely to have to wait for Banish Autopark and Park Seek just a bit longer, Actually Smart Summon being around the corner is exciting! Gone will be the days of having to run out to your car when you forgot your umbrella – your car will just come right to you instead.
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