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

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

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.

Sweet Move: Tesla Shifts from Creating EVs to Making Candy

By Karan Singh
Not a Tesla App

Tesla has filed four new trademarks recently, according to the US Patent and Trademark Office. These trademarks aren’t exactly what you’d expect from Tesla – they’re not for cars, not for batteries, and not for any cool new software features.

They’re for sweet, sweet, candy!

Candy Trademarks

Tesla has filed 4 distinct trademarks in its filings with the USPTO, for the following four names.

  • Supercharged Gummy

  • Cyberberry

  • Mango Bolt

  • Dog Mode Chill

The trademarks don’t come with any particular logos, art, or renderings, or it doesn’t reveal anything besides the names of the candy or candy-like items. Tesla filed these trademarks last month on June 25th.

While we’re not quite sure exactly what type of candies these will be, there is one thing we can knock off the bat – given how premium Tesla’s food products have been, these will likely include high-quality ingredients with a matching price point.

Elon Musk previously hinted that he wanted to start a candy company, and claimed he was super serious. Given his usual 2-week timeline, starting it 7-years later under Tesla seems fairly fitting. Jokes aside, we hope that the candies will launch sometime before the Tesla van, otherwise you can expect some more jokes on that front.

Tesla is well known for designing and selling non-vehicle merchandise. In the past, they’ve sold a glass decal that makes your window look like it was shattered with a metal bearing, Tesla Tequila, the Cybertruck whistle and many others.

Maybe we’ll hear more about Elon’s candy ambitions during Tesla’s upcoming earnings call, which will be taking place this coming Tuesday, July 23rd.

Tesla Looking to Hire 800 New Employees After Recent Layoffs, Large Focus on Energy

By Karan Singh
Not a Tesla App

Just three months after Elon Musk fired the entire Supercharger team, and laid off many employees at Tesla, the company is now looking to hire 800 new employees.

This comes after many members of the Supercharger team were hired back after their initial layoffs.

New Hirings

Tesla’s careers page now has more than 800 open positions today, and positions go from anywhere between engineers for artificial intelligence or batteries, ADAS testers in local communities, or service and desk employees for service centers.

Most of the new jobs focus on engineering positions, and many positions in Legal Affairs, Business Support, and vehicle software positions have not been posted or renewed. Those sections remain empty, at least in North America.

Tesla Energy Focus

Interestingly, quite a few of the new positions focus on Telsa Energy and its role in the company. There are several positions for supporting the deployments of Powerwall and Megapack, as well as doing further engineering work on these types of stationary battery systems.

Just recently, Tesla secured a $375 million Megapack contract in Australia – to build one of the biggest 4-hour battery banks in the world. This comes just days after the announcement of a $256 million Megapack contract to expand a different Australian facility.

We’re expecting Tesla to bank more towards its energy business – which has really just started getting off the ground with recent factory expansions and new business. Tesla Powerwall also recently hit some spectacular milestones – 100MW in California delivered to the grid, and 200,000 hours of backup power after Hurricane Beryl in Texas.

Powerwall and Megapack are going to be defining features of Tesla’s business – and we hope to see Tesla Solar – both Solar Panels and Tesla’s Solar Roof, also become more available to the mass market, just like Powerwall is today.

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