Tesla's Model 3 now costs less than the average new car
Tesla
For years, auto investors have placed bets on when electric cars would reach price parity with their combustion counterparts. With Tesla's recent price cuts and government incentives, the company has now achieved this milestone for the Model 3. A Model 3 is now less than the average price of a new car, making it a more affordable alternative for drivers looking to transition to electric or upgrade their vehicle.
The Price Gap Between EVs and Gas Cars
According to Bloomberg's analysis, the price gap between the Model 3 and the average new vehicle sold in the US has never been wider. A Model 3 is now $4,930 less than the average price of a new car. Without credits or fuel savings, the sticker price ($42,999 USD) now sits $800 below the cheapest BMW 3 Series, one of its closest competitors.
While Tesla is reducing the price tag, the cost of gasoline-fueled cars has gone in the opposite direction. The average cost of a new vehicle has risen more than $10,000 since the beginning of the pandemic, reaching $47,920 in January. This rise is driven by a shortage of computer chips, raw material inflation, and car manufacturers' decisions to keep inventories low and prices high while investing heavily in developing electric cars.
Expanding EV Market
Tesla's price cuts have sparked a ripple effect among other automakers. Ford has slashed the price of its electric Mustang Mach-E, while Lucid Group offered $7,500 discounts, and Rivian Automotive announced layoffs. In addition, General Motors is slated to launch electric versions of its Chevrolet Blazer and Equinox SUVs later this year, right in the middle of America's first-ever EV price war. Meanwhile, the Model Y has also seen a substantial price cut of $13,000 earlier this year, making it the third-best-selling SUV in the US, behind the Toyota RAV4 and Honda CR-V.
Affordability Driving EV Adoption
That price tag may decrease even further when the refreshed Model 3 appears. Reuters reported that Project Highland would go into production in Shanghai in September. The goal of the refreshed Model 3 is to increase efficiency and cut production costs. We already know Tesla is eliminating the wood trim in the updated version, a cost-saving and environmentally friendly move. While the changes could bring the price down, it is worth noting that when Tesla refreshed the Model S and Model X, the prices jumped by 12% and 15%.
The increasing affordability of Tesla's vehicles may drive the adoption of electric cars and contribute to the growth of the EV market. If Tesla can continue to offer price cuts, it could attract more new buyers as the company ramps up production at its new plants in Austin, Texas, and near Berlin, while expanding capacity in Shanghai. There's never been a better time to buy a Tesla.
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Tesla has begun rolling out some map updates, including a brand new geographic area. These updates include two regional map updates, with one confirming Tesla’s entry into India and the other improving the maps in Europe.
Indian Launch
The biggest addition is a new map region for India, which was discovered by Tesla hacker Greentheonly. This move, while seemingly minor, is a prerequisite for Tesla launching vehicles in the region.
For years, discussions about Tesla’s arrival in India have focused on manufacturing plans, import duties, and retail store plans. However, the vehicles themselves must all be technically ready for the region.
This is more than just data entry; it involves integrating local points of interest, Tesla’s internal routing logic, and displaying regional road information correctly. In past market entries, Tesla has activated the necessary navigation regions in its software shortly before officially launching in a country, and just this morning, news broke that Tesla will open its first showroom in India.
On July 15th, Tesla will open its first showroom in Mumbai, marking its entry into the Indian market.
For those who have imported Tesla vehicles in advance of the official market entry, this means they will finally receive official maps and navigation support, and will likely begin receiving official software updates in the near future.
European Maps Update
In addition to the India map update, Tesla has also starting roll out a map update for Europe. The new map update for Europe is version EU-2025.14, bringing users up from EU-2025.2.
You’ll need to connect to WiFi in order to download map updates and similar to software updats, Tesla will roll them out gradually. If you want to learn more about map updates, be sure to check out our Tesla maps and navigaiton guide.
This map update will likely be fairly minor, but it should include newer roads, speed limits and more details. It could also include additional information that’s required for launching FSD in Europe.
While map updates aren’t as exciting as FSD updates or major software updates like the upcoming Grok AI update, they’re especially useful for Tesla owners who travel on new roads that may not be in Tesla’s current map version.
Tesla has officially scheduled its 2025 Annual Shareholder Meeting for Thursday, November 6, 2025. The date was confirmed in an 8-K form filed with the US Securities and Exchange Commission this week. Shareholders can expect to begin receiving official notifications by email or letter this week.
While we don’t know what, if anything, is up for vote this year, shareholders should ensure their investment accounts are linked up at ir.tesla.com if they plan to vote on upcoming proposals.
While these meetings cover standard corporate governance, they’ve also become a key venue for Tesla to share updates on its future projects.
Let’s take a look back at Tesla’s 2024 shareholder meeting to see what we can expect for 2025.
A Look Back: Shareholder Meeting 2024
The 2024 Shareholder Meeting was packed with news and updates. Some of the highlights included details on Cybercab, the first mentions of AI5, and the move of Tesla’s incorporation to Texas following the re-ratification of Elon’s 2018 compensation plan.
The 2025 meeting may provide progress updates on several key items.
First up is the final status of Elon Musk’s pay package. While it was successfully re-ratified following the 2024 Meeting, the Court of Delaware ruled against it, creating a legal situation that resulted in Tesla amending its letter of incorporation and moving to Texas.
While the messy legal situation hasn’t been completely sorted out yet, there’s a chance we could see more on this at the 2025 Meeting.
Next up is a status update on the Robotaxi Network pilot, as well as progress for Tesla’s Cybercab program. We’ve seen early prototype castings for the Cybercab outside Giga Texas, and they recently provided an updated timeline in their 2024 Impact Report. This is going to be the next big step for Tesla’s growth as it starts its Robotaxi service business.
The Tesla Semi and Tesla Energy are also two massive programs undergoing upgrades and revamps. The volume production of Semi is supposed to begin by the end of 2025, and Tesla is constantly working on expanding Tesla Energy’s manufacturing footprint to meet the never-ending demand for Megapack and Powerwall. We’re anticipating some major updates here, along with some updates on Tesla’s next-generation battery tech, including the Gen 3 Cybercell that includes dry-cathode manufacturing.
There’s a lot to be excited about - and November 6th is the day we may find out a lot about Tesla’s future products. The meeting will be a big event that we’ll cover in detail, so don’t worry, even if you miss it. We’ll have a full set of recap notes and longer in-depth articles following the event, as usual.
