Tesla CEO, Elon Musk settles the lawsuit with graduate student, Hothi
TED
Tesla has called out the Los Angeles Times for publishing a biased and misleading article on the recent settlement between CEO Elon Musk and graduate student Randeep Hothi. In response to the article, Tesla tweeted that Hothi had accepted a "998" offer under California law, which is used to shift litigation costs to the losing party. The company claimed that the settlement was an admission of defeat by Hothi and his lawyers, not a victory.
Author's friendship with Hothi raises questions of impartiality
The lawsuit stemmed from an email in which Musk claimed that Hothi "almost killed" a Tesla security guard in the company's parking lot without any basis in fact. Hothi's lawyers argued that Musk's statement defamed their client. The recent settlement saw Hothi accepting $10,000 from Musk. In a tweet, Hothi stated that he felt vindicated and chose to accommodate Musk for a modest sum, highlighting Musk's alleged "public meltdown."
The LA Times article, penned by Russ Mitchell, has been criticized for its biased tone and portrayal of the settlement as a defeat for Musk. The "journalist" called Musk pugnacious and said Tesla cried, Uncle. Whole Mars Catalog claimed on Twitter that Mitchell is friends with Hothi, questioning his ability to report on the story impartially. Whole Mars Catalog tweeted: "Russ can not report on this story impartially as he is best friends with Hothi and TSLAQ!"
Randeep Hothi accepts "998" offer under California law
The article in question drew attention to a tweet from Musk last year, in which he promised not to settle an unjust case against Tesla, even if the company would probably lose. The article implied that Musk had gone back on his word, as he settled with Hothi for $10,000. However, Tesla's response highlights that the settlement was reached under California's "998" offer system, designed to shift the cost of litigation to the losing party.
Tesla's tweet emphasized that if Hothi had not accepted the offer, he could have been on the hook for significant legal costs when he eventually lost the case. The offer also expressly denied any liability by Musk. The company's response paints a different picture than the one presented in the LA Times article, suggesting that the story is biased.
This incident raises concerns about the impartiality of some journalists when reporting on high-profile cases, especially when personal connections may cloud their judgment. It serves as a reminder to readers to remain vigilant and critical when consuming news, as biases may exist even in the most reputable publications.
After canceling the in-house wrap program for the Cybertruck last month, Tesla has reintroduced the program with a lot of changes. Let’s take a look at the original program, then we’ll dive into what’s changed.
Tesla began the wrap program for the Model 3 and Model Y in the fall of 2023. With the arrival of the Cybertruck, Tesla launched Matte Black and Satin White options for the Cybertruck and later added 11 more colors.
These are high-quality PPF (Paint Protection Film) wraps, which protect the paint in addition to changing the color of the vehicle. PPF is thicker, lasts longer, and is far superior to traditional vinyl wraps, but unfortunately, the service is only available if your vehicle is brand new.
When the program shuttered last month, many people were disappointed about the closing as it allowed owners to bundle the cost of the wrap service into the vehicle’s financing.
New Wrap Prices
First things first - the price of the wraps has dropped considerably, and Tesla does not appear to be using a different material - it is still PPF, not vinyl. These new prices are a lot more comparable to third-party offerings that normally use vinyl wraps.
Vehicle
Original Cost
New Cost
Cybertruck
$8,000
$4,500
Model 3 / Model Y
$6,500
$4,000
Tesla initially offered 11 wrap colors, but that selection has now been reduced to eight per vehicle. Interestingly, the color options vary by model—Model 3 and Model Y owners have their own distinct palette. The Cybertruck also boasts its own unique set of colors, though unfortunately, the popular Satin White option is absent from its catalog.
Of course, the ever-popular Matte Black is still available, along with a fairly unique set of other vivid colors.
New Locations
Not a Tesla App
When the wrap program launched, it was limited to just three locations in California and one location in Texas. That meant that unless you were taking delivery at West Covina, Oceanside, Costa Mesa, or Santa Clara, you’d be unable to get a first-party wrap done by Tesla.
Now, under the new program, Tesla is offering wraps out of all the original locations and adding Seattle, Washington. What initially seemed like Tesla scaling back its wrap service has turned out to be to them making it more affordable and efficient.
New Purchases Only
For now, the wrap offers are still constrained to new vehicle purchases—you won’t be able to have Tesla wrap a vehicle that’s already been delivered. Paint damage and scuffs can impact the installation of PPF and require additional time to smooth out the vehicle surface.
Either way, with cheaper wrap options, Tesla is now directly competing against third-party wrap shops when it comes to wrapping vehicles in PPF. While it’s still a bit more expensive than you’d find elsewhere, it also comes with a level of care and precision from technicians intimately familiar with your vehicle.
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.