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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On October 26, Tesla’s VP of AI, Ashok Elluswamy, announced that the company would soon release a fix for multiple warnings when FSD is degraded due to obstructed cameras. This update, part of FSD 12.5.6.2, addresses feedback from Tesla drivers, like X user TGWoodsy, who pointed out that these repeated alerts can be distracting, especially during bad weather.
FSD 12.5.6.2 started rolling out to employees on November 5th and was soon replaced with another update, version 12.5.6.3, a few days later. With FSD 12.5.6.3 now rolling out widely to AI4 vehicles, we have our first look at Tesla’s improved warning system.
Tesla went the extra mile here; they didn’t just reduce the FSD warnings but introduced a whole new interface that offers clearer, more specific information on which cameras are obstructed and actionable steps to improve visibility.
Warning
In previous versions, Tesla’s FSD would occasionally display a generic “degraded” warning whenever camera visibility was impacted, especially by rain, snow, or dirt. These warnings could trigger multiple alerts in quick succession, leading to audible notifications that were more distracting than helpful.
In FSD 12.5.6.3, Tesla has revamped this approach. Instead of repeatedly notifying drivers of degraded visibility, the system now provides a similar warning message that shows which camera’s visibility is limited and states that Autopilot features may be limited.
New Alert with Tips
@juztenough
In addition to the warning message, Tesla now displays an alert in the bottom left corner of the UI for Model 3 and Model Y owners that could be swiped away.
This notification gives you some additional information on why Autopilot may be degraded. It looks like Tesla stopped using the term FSD in these alerts and is now using “Autopilot,” hinting that this feature will also be available for regular Autopilot use. This new notification gives you a tip on how to improve camera clarity and even displays a thumbnail of the camera that’s obstructed.
This notification also has a View button that can be tapped to display more information about the camera or cameras that are obstructed.
Detailed View
Tesla has also added an option to view more in-depth information on the obstruction, allowing users to identify which specific camera is impacted and exactly where it’s located on the vehicle. By tapping “View,” drivers can open a detailed modal next to the FSD visualization. This pop-up displays a diagram of the vehicle and highlights the obstructed camera in question. This can be especially useful if it’s one of the front-facing cameras.
Tesla vehicles with Hardware 3 (HW3) have three front-facing cameras, while those with Hardware 4 (HW4) include two. The detailed view outlines the location of the obstructed cameras and shows a larger view of the obstructed camera, giving users a better idea of why it may be obstructed.
The Cybertruck has now celebrated its first Halloween, and owners did not disappoint in coming up with clever and unique decorations for their stainless steel trunk. Make sure you’ve got whatever is left of your candy nearby cause we’re going in.
Aliens
Up in the hero image to get us started - the Cybertruck is really a piece of alien technology. At least, that’s how it appears when it first arrives in town. So, why not celebrate the alien-ness of the Cybertruck to North American roads? We love it.
Spooky
@jayvee10x over on X put together this fantastic display for Halloween and included their Cybertruck! The Cybertruck would definitely be a good vehicle of choice to take on zombies and walking skeletons.
By @jayvee10x.
@jayvee10x
Halo
TeslaKen over on the Cybertruck Owner’s Club forums put together this outstanding Cosplay of Master Chief from Halo, and wrapped up his Cybertruck to look like a Warthog. Probably one of the coolest costumes we’ve seen so far.
By TeslaKen on the CT Owners Club
TeslaKen
Jaws
Sometimes, all you need to do to get a scare is to show some nice sharp teeth. The smoke machine just completes the look with the red glow.
Fangs!
Not a Tesla App
More Aliens
Terry Stach and Robert Martin captured some aliens in their trucks. Best to keep an eye on these ones, lest they whisk you away in their Cyber-UFO. Just watch out though, because @brandtsla over on X is being chased by that UFO!
The Cyberbeast’s logo is the three-headed hound that guards the gates of hell - Cereberus. Turns out that S.E. Robinson let the dogs out. Our favorite, all things said. Maybe a smoke machine and some red lights to complete the look though! Oh wait, he’s got that too!
The Cybertruck makes an incredible canvas for Halloween decorations, and we’re eager to see even more creative ideas emerge as it heads into its second Halloween season next year.