Tesla Reduces Prices in the U.S. Again; Model 3 Now Starts Below $40K

In a surprising move, Tesla lowers Model 3 and Model Y prices in the U.S. again

Tesla

Stop me if you've heard this one before, Tesla is lowering prices. I know you have, but I'll tell you about the latest surprising move. The new set of price reductions for its popular Model 3 and Model Y vehicles in the United States happen just one day before its Q1 2023 financial results release.

This decision marks the second round of price cuts in April, further enhancing the affordability of Tesla's electric vehicles for consumers. Tesla's aggressive pricing strategy is expected to increase market share and demand for its vehicles, putting pressure on its competitors.

Model 3 Becomes More Affordable

The base Model 3 Rear-Wheel Drive (RWD) now has a starting price of $39,990, down from its previous $41,990. Considering the recently reduced $3,750 US tax credit, the Model 3's effective price could be as low as $36,240. There has been no change to the Performance variant's price, and the Long Range version remains unavailable for order.

Model Y Prices Adjusted Across All Variants

All Model Y versions have seen a $3,000 price reduction, making them more accessible for potential buyers. The newly introduced Model Y AWD with 4680 cells now has a starting price of $46,990, while the Long Range and Performance versions begin at $49,990 and $53,990, respectively.

Each Model Y variant qualifies for the full $7,500 tax credit, and when combined with state-level incentives like those in California, a new Model Y can be purchased for as low as $37,490 in Tesla's largest US market.

Assessing the Impact of Price Cuts on Tesla's Margins

As Tesla continues implementing price cuts, questions arise regarding the potential impact on the company's industry-leading margins. However, Elon Musk forecasted these reductions a while back. On July 15, 2022, he tweeted: if inflation calms down. we can lower prices for cars. The inflation rate is under 5%, down from 6% last month and 8.5% at this time last year. The Q1 2023 earnings call will provide further insights into the effects of subsequent price cuts on Tesla's margins.

A Bold Global Pricing Strategy Pushes Competitors to Adapt

Tesla has also recently reduced prices for its vehicles in Europe, Israel, and Singapore, in addition to its price cuts in the United States. This strategic move puts considerable pressure on Tesla's competitors while making electric vehicles more accessible to consumers. As Tesla expands its global production facilities and enhances manufacturing capacity for its Model 3 and Model Y vehicles, the market can expect more price adjustments and heightened competition within the electric vehicle industry.

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Elon Musk Promises 'Super Good' Autowiper Performance With Latest Iteration

Musk believes owners will see a big improvement in Tesla's latest auto-sensing wiper updates

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On the heels of last week's wiper news about Tesla's auto-sensing feature, CEO Elon Musk has proclaimed that "wipers will be super good." This declaration seems to center on the recent rollout of the Autowiper v4 system, indicating a shift away from the previously hyped 'Deep Rain' concept.

Retracing the Path to Autowiper v4

While Tesla's auto wiper system had shortcomings, the company has taken note of user feedback to refine and upgrade the technology. Musk's tweet today brings attention to this effort, sparking speculation and excitement among Tesla owners.

The Autowiper v4 is a testament to Tesla's commitment to improving its driver experience, promising to deliver more precise and responsive wiper control in various weather conditions. This development represents the company's commitment to pushing the boundaries of innovation and customer experience.

Pausing the 'Deep Rain' Concept

Musk's tweet also coincides with reports that Tesla may be stepping back from its 'Deep Rain' neural net. Once touted as the definitive solution to wiper sensitivity issues, the 'Deep Rain' feature can now be disabled internally in the new FSD Beta 11.4.2 release according to Tesla hacker, GreenTheOnly.

This unexpected turn of events has caused a buzz in the Tesla community. While some express disappointment, others see it as a strategic move to streamline the auto wiper system, shifting focus to the promising Autowiper v4.

Harnessing Surround Video for Enhanced Rain Detection

Musk apologized for the past performance of Tesla's auto wipers and revealed a key update in the tweet. Tesla is transitioning from a single camera, single frame neural net to a surround video system. This means the company is compiling video from all onboard cameras into a 360-degree view, which the neural net will then analyze.

Notably, this upgrade reflects Musk's vision of fully autonomous vehicles and how they may transform car ownership. The system can gain a comprehensive understanding of its surroundings by utilizing multiple camera feeds. This move promises improved rain detection and signifies a step toward Tesla's self-driving goals.

Embracing the Future: The Role of Autowiper v4

As Tesla continues to innovate, the Autowiper v4 system could play a key role in overcoming the challenges previously faced by the auto wiper system. Integrating all onboard cameras promises a better understanding of weather conditions, potentially increasing the system's efficiency and accuracy.

While in its early days, the Autowiper v4 represents an exciting advancement in Tesla's technological capabilities. It shows that Tesla is listening to its user base and remains committed to delivering improvements and upgrades that directly address the needs and concerns of its drivers.

What the Future Holds

The shelving of the 'Deep Rain' concept and the introduction of the Autowiper v4 system marks a critical juncture for Tesla's auto wiper technology. The shift to a surround video system demonstrates Tesla's unwavering commitment to innovation and user experience improvement.

While these developments have caused a stir in the Tesla community, the real test will come when Tesla enables v4 and lets drivers experience the new system. As the anticipation grows, the spotlight remains on Tesla as we wait to see if these updates deliver on their promise. The story of Tesla's Autowiper system is far from over, and it will be fascinating to watch it unfold.

Tesla Finds Genius Way To Open Stores Despite Direct Sales Bans

Tesla has found an interesting loophole to get around direct sale laws

Tesla

Tesla has engineered a brilliant workaround to tackle the direct sales ban instituted in several US states. This ingenious move involves partnering with Native American tribes to establish showrooms on tribal land, allowing Tesla to navigate prohibitive sales laws.

Partnering with Native American Tribes

Spearheading this innovative strategy, Tesla has announced plans to open a spacious 25,000-square-foot showroom on land owned by the Oneida Indian Nation in Madison County, New York. Set to be operational by 2025, this will be Tesla’s first direct sales facility outside the New York City area, offering a new hub for customers in upstate New York.

This savvy approach isn't new for the company. In 2021, Tesla made similar arrangements with the Nambe Pueblo tribe in New Mexico, opening a showroom and service center on tribal land to sidestep the state's restrictive sales law. This partnership benefited Tesla and provided an economic boost for the tribe.

Benefiting Both Parties

The collaboration with the Oneida Indian Nation offers mutual advantages. The agreement will facilitate Tesla's expansion, whilst the Nation will benefit from the showroom’s construction and ongoing operations, offering employment opportunities to local tribal members and residents. Tesla's committed to fostering local talent via its workforce development programs, providing members of the Oneida Indian Nation with potential career paths within the company.

Tesla's strategic move is more than just an inventive legal sidestep�"it's a powerful statement in favor of sustainable transportation. Through the partnership, the company aims to increase access to electric vehicles and charging infrastructure for Nation Members and residents of Upstate New York, contributing to broader environmental objectives.

Tesla’s Stance on Direct Sales

Tesla's CEO, Elon Musk, has made it clear that the company prefers to sell directly to consumers, bypassing third-party dealerships. However, many states, including New York, have stringent laws that compel vehicle manufacturers to sell via dealerships. Tesla's partnership with Native American tribes serves as a compelling workaround, demonstrating the company's determination to bring its electric vehicles to as many customers as possible.

While this strategy may not be applicable everywhere, it demonstrates Tesla's ability to identify and exploit legal loopholes that work in its favor. It’s a testament to the company's relentless drive for growth, even in the face of regulatory challenges. This move sets a precedent for other manufacturers facing similar obstacles, offering a novel approach to tackle such constraints.