All Tesla Model Ys Now Qualify for Tax Credit; Tesla Adjusts Prices

Tesla adjusts prices for Model Y and Model 3, again

Tesla

Tesla has been changing its vehicle prices in the United States to maintain its profit margins while making its vehicles more accessible to buyers. It recently announced further changes, marking the third price adjustment to some cars this year alone, and we are only in February.

Tax Credit Changes

The Model Y is now eligible for the $7,500 US tax credit, thanks to the Internal Revenue Service's latest update of electric vehicles eligible for the program. The tax credit is now available on all Model Y variants, resulting in a price hike for the Model Y Long Range and Performance trims. However, the automaker has also lowered the price of the entry-level Model 3, making it more affordable for buyers.

Price Changes for Model Y

The Model Y Long Range saw a $1,500 increase from $53,490 to $54,990. Meanwhile, the Model Y Performance variant also experienced a price increase of $1,000, going from $56,990 to $57,990. This move is the third time that the Model Y has undergone a price change in the past month, with Tesla having originally decreased the price across its lineup in early January.

Price Changes for Model 3

The entry-level Model 3 Rear-Wheel Drive variant experienced a $500 price decrease, going from $43,990 to $43,490. However, there has been no change to the price of the Model 3 Performance, which remains at $53,990.

While this seems erratic to some, consumers should remember the days before Tesla when the price of vehicles was a mystery. Remember the days of buying from legacy brands inside a dealership with a salesperson who had to run the numbers past his manager? The cost of cars was changing daily or hourly, and the public wasn't aware.

Tesla Has Room to Adjust

An infographic courtesy of the Visual Capitalist made the rounds on Twitter, showing Tesla's healthy profit margin. Using Reuters and 2022 third-quarter information, Tesla's net profit for a vehicle is $9,574, while Ford is losing $762 per EV sold. The numbers show that Tesla has a lot of room to make further price adjustments if dictated by the market.

Based on Q3 2022 data, Tesla has a healthy profit margin, allowing them to make large adjustments to prices

Visual Capitalist

Tesla's recent price changes are helping with its profit per vehicle while also making its cars more accessible to a broader range of consumers. Despite the slight price increases for the Model Y, it remains eligible for the US tax credit, making it an attractive option for those looking for an electric vehicle. Meanwhile, the lower price for the Model 3 Rear-Wheel Drive makes it a more affordable option for those looking to switch to an electric car.

Tesla Increases Price of Model S; Starts Offering Free Lifetime Supercharging

Not a Tesla App

For the first time in quite a while, Tesla has increased the price of one of its vehicle offerings. The Model S Long Range and the Model S Plaid have both received a hefty price increase. However, not all is bad - as Tesla also added a new benefit for buyers.

Price Increase

The price increase for the Model S is $5,000 - currently only in the United States. This price increase will likely impact other markets, including Canada, in the coming days.

The Model S Long Range now starts at $79,990, while the Model S Plaid now starts at $94,990. The Model S and Model X now have the same starting price. Interestingly, that’s also the same pricing point for the Cybertruck AWD and Cyberbeast Trimotor non-Foundation Series. 

The vehicle configuration does not appear to have changed, so the new pricing is simply an increase rather than the addition or removal of features. Tesla previously cut the price of the Model S and Model X by 15% in 2023, so this could simply be an adjustment to ensure that the vehicle pricing stays in line with inflation and other factors.

Free Lifetime Supercharging

For those on the fence about ordering a Model S, Tesla has brought back Free Lifetime Supercharging when you order a new Model S on or after December 13, 2024. As always, Free Lifetime Supercharging is restricted to the buyer’s Tesla account and to that specific vehicle. It cannot be transferred to another vehicle or another owner after ownership transfer. It’s worth noting, that it also doesn’t exclude the owner from receiving Supercharger idle fees or congestion fees. There is currently no end date for this promotion.

There are currently no changes to the Model X, neither a price increase nor the addition of Lifetime Superchargering. However, when Tesla makes changes to one of their premium vehicles, it usually affects the other one as well. So be on the lookout for potential changes to the Model X offering in the coming days.

We’ve seen Tesla value Lifetime Supercharging at $5,000, so this falls in line with the price increase we’re seeing. It’s possible that Tesla will begin to bring back Lifetime Supercharging as a perk for buying into their more premium Model S and Model X cars, or this could be another temporary promotion to get buyers who are on the fence to go ahead and make their purchase while this promotion lasts.

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Tesla’s Optimus Robot Learns to Walk Without Vision [VIDEO]

Optimus Falls - but catches itself!

Not a Tesla App

Tesla recently showed off a demo of Optimus, its humanoid robot, walking around in moderately challenging terrain—not on a flat surface but on dirt and slopes. These things can be difficult for a humanoid robot, especially during the training cycle.

Daily walks help clear your mind pic.twitter.com/dUsW58trS6

— Tesla Optimus (@Tesla_Optimus) December 9, 2024

A Look Behind the Curtain

Most interestingly, Milan Kovac, VP of Engineering for Optimus, clarified what it takes to get Optimus to this stage. Let’s break down what he said.

Optimus is Blind

Optimus is getting seriously good at walking now - it can keep its balance over uneven ground - even while walking blind. Tesla is currently using just the sensors, all powered by a neural net running on the embedded computer. 

Essentially, Tesla is building Optimus from the ground up, relying on as much additional data as possible while it trains vision. This is similar to how they train FSD on vehicles, using LiDAR rigs to validate the vision system’s accuracy. While Optimus doesn’t have LiDAR, it relies on all those other sensors on board, many of which will likely become simplified as vision takes over as the primary sensor.

Today, Optimus is walking blind, but it’s able to react almost instantly to changes in the terrain underneath it, even if it falls or slips. 

What’s Next?

Next up, Tesla AI will be adding vision to Optimus - helping complete the neural net. Remember, Optimus runs on the same overall AI stack as FSD - in fact, Optimus uses an FSD computer and an offshoot of the FSD stack for vision-based tasks.

Milan mentions they’re planning on adding vision to help the robot plan ahead and improve its walking gait. While the zombie shuffle is iconic and a little bit amusing, getting humanoid robots to walk like humans is actually difficult.

There’s plenty more, too - including better responsiveness to velocity and direction commands and learning to fall and stand back up. Falling while protecting yourself to minimize damage is something natural to humans - but not exactly natural to something like a robot. Training it to do so is essential in keeping the robot, the environment around it, and the people it is interacting with safe.

We’re excited to see what’s coming with Optimus next because it is already getting started in some fashion in Tesla’s factories.

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