Tesla Massively Reduces Prices. Here Are the New Prices and Why They Did It

Tesla makes their vehicles more affordable in regions around the world

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Tesla dropped prices on all models in several countries, which should not be surprising. It's unlikely it has anything to do with the company's plummeting value on the stock market, a perceived lower demand, or an effort to qualify for tax credits. Tesla's entire price drop game plan was forecast just a few days ago by a Tesla executive in China.

Tesla does not have a communications department. All the company information comes from its website, social media accounts or Elon Musk's Twitter account. That's why it was worth finding a translation of a rare interview a Tesla vice president gave to the media in China on January 9, 2023.

When Tesla Executives Speak, You Should Listen

Tao Lin spoke to reporters just days after Tesla dropped the prices in China. Her answers provided reasons behind the lower prices, not only in China but worldwide. "Some media said that we lowered the price because we couldn't sell anymore. I think it's really nonsense," Lin said. "I personally think that the price adjustment reflects our better planning for the supply chain in a sense, and what level the vehicle cost will be, and then we make such adjustments according to this estimate."

Lin then explained, "The price adjustment of a product is actually a forecast of the company's cost changes in the next period of time. The biggest difference between 2023 and last year is that the epidemic has basically passed. We believe that the supply chain has returned to normal to a large extent, and there will be no such unpredictable shortages of materials as in previous years, which brought cost uncertainty."

Tesla Supply Chain Certainty Indicated in Q3

During the third quarter earnings call, Musk spoke about supply chain issues that had hampered production during the pandemic. But he also discussed how the company had advanced in other areas and was optimistic about future production. "What we are seeing is practical improvements as we redesign the whole supply chain and all of the elements that go into a battery cell. We're figuring out dramatic efficiencies."

Zachary Kirkhorn, Tesla's Chief Financial Officer, answered a question about the Inflation Reduction Act during that same earnings call. There were not many details available at that time. Still, he stated, "it's difficult to fully determine the eligibility criteria, but we believe Tesla is very well-positioned to capture a significant share of that for solar storage and also electric vehicles."

Tesla's Transparency is the Problem

Some customers in China who bought a Tesla just before the price cut were furious. That's likely to be the case in other countries as well. However, consumers need to remember that Tesla is a direct sales model. How quickly everyone forgets auto dealers have been changing prices for decades.

Lin gave this example, "for a traditional car, everyone buys it at a different price at a dealer, so you don't really know whether the price you bought is the lowest or not, and you don't know what price other people are buying. Is it fair to consumers?"

Tesla has not only changed the automotive industry by making electric vehicles a viable product, but it also changed how people buy cars. "We adopted some relatively new concepts, such as the direct sales model, such as price adjustment strategies, and we hope to gradually make everyone feel that these concepts are feasible. Under the direct sales model, the prices are completely open and transparent, without discounts or price increases, and everyone is the same at the same time."

Price Reductions in the U.S.

We suspected these price cuts were coming as the EV tax credit in the US listed all Model 3s and Model Ys as qualifying for the tax credit. All variations of the Model Y now qualify for the $7,500 tax credit in the US.

The price cuts also affect many countries around the world such as Spain, France and Portugal. Although the reduced pricing of the Model S and Model X appears to be limited.

Below is a list of the new and previous prices of all Teslas models in the US and the percentage changed.

Tesla Launches 'TeslaVision' Contest With Big Prizes — See Last Year’s Winner [VIDEO]

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Tesla’s marketing has always been relatively unconventional, relying on word-of-mouth rather than traditional advertising. The passion of the owner’s community is always massive, but it is especially high now with the launch of the Robotaxi network just around the corner.

Tesla is now tapping into that spring of fan creativity and announced the TeslaVision video contest, with some seriously impressive prizes up for grabs.

Announcing the TeslaVision fan video showcase

Tesla owners & supporters have always been able to see our products & mission for what they truly are.

Your word of mouth has made Tesla what it is today.

The OGs will remember that in 2017, we held our first video contest. 8 years… pic.twitter.com/6pPpkqmqOH

— Tesla (@Tesla) June 10, 2025

The Contest

The core of the contest is simple. Create a video that shows how your Tesla gives you more in life. Tesla is looking for submissions that highlight themes of freedom, safety, fun, and convenience.

Prizes

The prizes definitely make this contest worth entering if you’re good with a camera and have some basic video editing abilities.

For North America, the prizes include a brand new Model Y AWD Long Range, alongside an all-expenses-paid trip to Austin for a tour of Giga Texas. The grand prize winner will also be able to custom order their Model Y, allowing them to select their preferred wheels and color.

The two runners-up won’t get a Model Y, but they’ll also enjoy an all-expenses-paid trip to Giga Texas for a tour of the factory.

The travel and tour include lodging in Austin for 2 nights, as well as economy-class round-trip tickets from anywhere in North America. Tesla will also provide a vehicle for use during the trip.

Hopefully, these winners will also have the opportunity to experience the Robotaxi network while they’re in Austin, as it’s expected to be opened to the public later this month.

Project Loveday

For long-time followers of Tesla, this contest may feel familiar. The contest is a direct throwback to the 2017 Project Loveday contest, which was inspired by a letter to Tesla from a 10-year-old aspiring marketer. That contest was won by MKBHD, with his submission below:

How to Enter

If you’re ready to start filming, here are the key pieces of information you’ll need to know:

• Video must be 90 seconds or less

• Video must be uploaded to YouTube with a public URL

• Make a post on X and Instagram tagging “@Tesla” and include the words “TeslaVision contest” in the post.

• Provide links to both social media posts in your submission to Tesla’s form

• Provide your personal details in the form

• You have until July 17th, 2025, or until Tesla receives 10,000 entries, whichever comes first.

You can find the official submission form and all region-specific details on Tesla's website.

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Tesla Officially Unveils New Model S and Model X: All the Changes [Photos]

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After numerous sightings and weeks of anticipation, Tesla has finally unveiled the refreshed Model S and Model X. While we knew what to expect, Tesla managed to sneak in a few additional improvements, such as increasing the range for these vehicles.

While not a ground-up redesign, this update introduces a front bumper camera, ambient lighting, new wheels, colors, and more.

Let’s go through all the changes.

Longer Range

Tesla is increasing the range of these vehicles, with the Model X seeing the biggest improvements. These changes are likely the result of improved aerodynamic efficiency from the new wheel designs and other smaller improvements.

The biggest gain comes from the Model X Long Range, which increases its range from 329 miles to 352 miles, an improvement of 23 miles or about 7%.

Below is a table with the new and old ranges for these vehicles.

New Bumpers

The most noticeable exterior change is reserved for the Model S and X Plaid, which are both receiving an updated front fascia with a new, sportier bumper. While the change looks subtle, the new lower spoiler lip gives both vehicles a slightly more aggressive look while also improving aerodynamics, according to Tesla.

New Grill

The new Model S

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Tesla has also updated the grill on these vehicles slightly. The Long Range model now has the entire grill area, including the Tesla logo in matte black instead of chrome. The Plaid versions receive a carbon fiber accent in the grill, which helps the Plaid models stand out.

Front Bumper Camera

Same Headlights, but still slick in the new Frost Blue.

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Putting the stylistic changes aside, embedded in that front bumper is a new front-facing bumper camera with this refresh. This finally brings the Model S and Model X on par with the Cybertruck and refreshed Model Y - and leaves the refreshed Model 3 as the last of Tesla’s vehicles without a bumper camera.

While Tesla isn’t using the new camera for low-speed maneuvering just yet, we think that they will require it for both Unsupervised FSD, as well as Banish, and future versions of Smart Summon. The front bumper camera also includes a washer, similar to the Cybertruck and new Model Y.

New Wheels

The new wheels with the Aero Covers removed.

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Tesla is introducing four new sets of wheels with new specifications for these updated models. The Perihelix wheels are standard on the Model X and the Magnetite wheels are standard on the Model S. Velarium wheels are a $4.5k premium for the Model S, while the Machina wheels on the X cost an additional $5,500.

However, as you can see in the table below, the optional wheels also reduce the range of these vehicles.

*The Plaid’s 200mph top speed requires the updated Track Pack, which is currently not available.

New Colors

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Joining the color palette for this refresh are two new colors. Frost Blue Metallic is a new light blue multi-coat paint option. Tesla is also introducing Diamond Black for both its flagship vehicles. The previous colors, Stealth Grey (Standard), Pearl White Multi-Coat, Ultra Red, and Lunar Silver, remain available as well.

Frost Blue will be a premium paint option for $2,500 USD, while Diamond Black will cost $1,500 USD.

New Animated Ambient Lighting

The updated interior.

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Inside, the refresh introduces a feature that has become a standard for the rest of Tesla’s lineup: multi-color ambient lighting. The configurable light strip wraps around the cabin, similar to the rest of Tesla’s vehicles, and offers owners some additional personalization. The light strip extends from the dashboard to both sides of the center console and through the front and rear doors.

Unlike the Model 3 and Model Y, the ambient lighting isn’t just on the dash and doors. Tesla also added it to the sides of the center console, which helps differentiate it slightly from the Model 3 and Y while also illuminating the cabin a little more.

Even more so, this ambient lighting can now be animated, allowing lights to transition to different colors so that the entire strip doesn’t need to be the same color.

A lot has been worked on. The outer changes kinda hide the changes underneath. The team looked at the Palladium Cars and worked though a ton of small improvements. Thermals, NVH, Chassis,... everything.

All of these improvements across the car lead to a greater efficiency,…

— Fjutcha (@fjutcha) June 13, 2025

LED Footwell Lights

SawyerMerritt/X

The LED footwell lights and door pocket lights are now also color-selectable, which is a new feature that’s exclusive to the Model S and X. The footwell and pocket lights can be controlled independently or synced to the light strip lighting. While these little touches are a nice addition, they don’t do much to set these vehicles apart from the Model 3 and Y.

New Startup Animation

The new startup animation for the updated Model S and X.

This animation is tied to the new animated ambient lighting, which allows the lights to transition to other colors instead of being all one color.

Everything included in the redesign:https://t.co/Op2CYU07sC pic.twitter.com/mDk1SJiDTI

— Not a Tesla App (@NotATeslaApp) June 13, 2025

Tesla has also added a new entry animation that plays when the driver or front passenger doors are opened, which is synced across the dash and door trim lighting. This is similar to the new Model Y Launch Series animation, but Tesla takes it to a new level here by incorporating the ambient lighting.

The animation begins on the center display, zooming out on a red-glowing Tesla logo. The red light then spreads to the instrument cluster and is then carried throughout the cabin via the ambient lighting. It’s a nice touch.

Improved Noise Isolation

The Model S and Model X have always been quiet compared to the Model 3 and Model Y, but Tesla says they’ve made it even quieter in this refresh. They reduced wind and road noise and improved their Active Noise Cancellation feature.

While it’s unclear how much quieter they are, these new vehicles are heavier than the version they replaced, so additional sound-dampening material was likely added.

Improved Suspension

In Tesla’s post on X, they say these models also have a smoother ride thanks to new bushings and an updated suspension design. Although Tesla likely didn’t update these vehicles to use the newer suspension in the Cybertruck, it’s good to know there are some improvements here as well.

Improved Third Row and Cargo Space

The Model X also gets a boost in practicality, with some additional room in the third row. Before anyone gets too excited about this, it’s important to understand that the frame of the vehicle hasn’t changed, so the improvements here are likely minor.

When we compare the cargo room information provided by Tesla for the previous vehicle to this new one, the total cargo space increases from 92 cubic feet to 94.5 cubic feet, representing a 2.5 cubic foot improvement. Although this appears significant, it’s unclear where the changes are coming from.

It’s possible they redesigned the bottom trunk area to expose more room that was available underneath the cabin, or they may have improved the third-row seats to expose the area underneath them, but unfortunately, we just don’t have enough information to know for sure.

Yoke Steering Wheel

While there are no changes to the steering wheel in these vehicles, Tesla is now making the optional yoke steering wheel only available on the Plaid models.

These vehicles initially launched with the yoke steering wheel, but Tesla later added an option to choose between the yoke or standard steering wheel option. Soon after, Tesla made the yoke steering wheel a $1,000 option and the standard wheel became the default option. Now, the yoke steering wheel is only available as an optional upgrade for the Model S and Model X Plaid variants.

Same FSD and MCU Hardware

While the interior and exterior have received some light touch-ups, the actual hardware that powers the infotainment unit and FSD has not been upgraded.

While Tesla is already working on HW5, it’s not due out until sometime next year. These vehicles, just like the Model 3 and Y, will include FSD HW4 and the AMD Ryzen (MCU3) powered infotainment unit.

Price Increase

Tesla has updated the pricing on both the Model S and Model X, increasing the price by $5k across the various trim levels.

While the refreshed models included a few surprises, many were hoping for larger changes and potentially even some of the Cybertruck’s innovative features, such as Powershare or the 800V architecture that Tesla said would be coming to future models.

The absence of these features and the price increase leave some wondering whether these vehicles may be worth the price, especially since so many features were brought over to the new Model 3 and Model Y.

In February, Tesla had already increased the price of these vehicles by $5k, bringing the Model S Long Range from $75k to $80k and now $85k.

Production, Shipping, Discounts

Given that the changes to the design are relatively minimal, Tesla likely has only a few minor tooling updates to make. Over on the website, new orders have an estimated delivery window of approximately 3 to 5 weeks.

Tesla will likely begin reaching out to customers who’ve previously ordered a new Model S or Model X and note that the vehicle they receive will be the refreshed variant instead. Those customers previously had a 2-4 week wait before their orders were ready.

It seems likely that over the next few weeks, Model S and Model X inventory vehicles will begin to receive some light discounts to get any leftover vehicles moving. In general, Tesla keeps a relatively low inventory of its two flagships, so if you spot an older S or X and are in the market for a discount, this will likely be your chance.

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