Tesla Reduces FSD Price by $3k, Slashes Model S and Model X Prices by 15 Percent

By Kevin Armstrong
Tesla reduces its FSD package by $3,000
Tesla reduces its FSD package by $3,000
Not a Tesla App

Tesla sets many records, but it may have a new one - the quickest discontinuation of a model. Just two weeks ago, the company introduced the Standard Range Model S and Model X. Those have been dropped, but that is not the only thing that dropped. Instead of offering a less expensive version of the luxury models, Tesla drastically reduced the prices of the flagship vehicles.

New Pricing in the U.S. and Canada 

The Model S Long Range is now priced at $74,990 USD, down from $88,490, a 15% reduction. The Model X Long Range is now available for $79,990 USD, down from $98,490, an 18.7% reduction. Similarly, in Canada, the Model S Long Range now costs $99,990 CAD, down from $121,990 CAD, an 18% reduction, and the Model X Long Range is priced at $109,990 CAD, down from $135,990 CAD, a 19% reduction.

The price changes have important implications in both Canada and the U.S. Notably, the price of the Model S LR is now under the luxury tax threshold in Canada, and in the U.S., the Model X LR now qualifies for the full $7,500 federal tax credit.

Free Color Options for Model S and Model X

All colors for the Model S and Model X are now free, including the premium Ultra Red. Tesla may be trying to remain under the threshold for the federal tax credit and possibly a push to incentivize customers to opt for the more eye-catching colors, which are arguably more deserving of the Model S and Model X’s flagship status.

Full Self-Driving Package Price Reduction

In addition to vehicle prices, the cost of Tesla’s Full Self-Driving (FSD) package has also been reduced. In the U.S., the FSD package now costs $12,000 USD, down from $15,000; in Canada, it is available for $16,000 CAD, down from $19,500 CAD.

The reason for the FSD price drop is unclear, as the software package has not changed the listed features. The FSD Transfer offer is also still available until September 30.

The price changes were not limited to just North America; X.com lit up all night with different prices popping up worldwide.

The global price changes indicate a strategic move by Tesla, possibly to boost sales, clear inventory, or remain dominant in the EV market worldwide. The stock price has not indicated any problems with the company's previous trajectory.

Whatever the reason, it is a welcomed change by prospective buyers. As Tesla continues to lead the EV market, these price adjustments not only make their technology more accessible.

Tesla Vehicles Spotted With LiDAR: What Do They Use It For?

By Karan Singh
Not a Tesla App

Tesla recently hit the news for purchasing approximately $2M in LiDAR sensors from Luminar, one of Tesla’s long-term suppliers. You’ve probably seen photos of Tesla’s Semi and various Tesla models, including the Model 3 and Model Y sporting LIDAR equipment on the roof. These cars drive around with manufacturer plates scanning streets and highways.

However, many people confuse Tesla’s purpose in purchasing LiDAR equipment with using it for FSD versus testing. So, let’s look at what LiDAR is, and why Tesla uses it on its Fleet Validation Vehicles.

What is LiDAR?

LiDAR stands for Light Detecting and Ranging – essentially using lasers to measure distances. A laser pulse is sent out, and the time it takes to return is measured – providing extremely accurate distance measurements.

Some companies working on self-driving vehicles, including Waymo and BYD, use LiDAR as part of their self-driving suites, but Tesla is one of the few stand-outs that does not. Even Rimac’s “Verne” Robotaxi – which uses self-driving technology from Mobileye, also uses LiDAR.

While LiDAR can produce extremely accurate and high-quality 3D environments, it comes with its downsides as well. Not only is LiDAR costly and requires large gear strapped to a vehicle, but it also can not be used in bad weather and can have interference issues if there are other strong light sources present.

Why Does Tesla Use LiDAR?

A LiDAR rig mounted on a Tesla Semi for testing FSD.
A LiDAR rig mounted on a Tesla Semi for testing FSD.
Not a Tesla App

At Autonomy Day in 2019, Elon Musk mentioned that LiDAR isn’t the solution for self-driving cars – it's just a crutch. Thus, Tesla hasn’t used LiDAR for any production self-driving software.

Instead, Tesla uses it exactly how it's described – they use it to gather ground-truth data. This data is then used to feed Tesla’s Full Self Driving system – which helps validate its vision-only system's accuracy. LiDAR provides very accurate measurements to help ensure that FSD’s perception of space is accurate – and is only used by Tesla to ensure that its AI technology which is the brains of FSD is capable of accurately interpreting depth from just visual data.

Tesla’s vision-only system has been seen to be extremely accurate, with Vision-only Autopark being able to park in even narrower and tighter spaces faster than the previous version that relied on ultrasonic sensors.

We’ll likely continue to see Tesla purchase LiDAR systems, as well as use them for validation well into the future.

Tesla's Upcoming Robotaxi Event in August Delayed, According to Bloomberg

By Karan Singh
Sugar Design

In a report from Bloomberg, it is claimed that Tesla will be delaying its much-anticipated 8/8 Robotaxi event by two months to October 2024.

While sources other than Bloomberg haven't confirmed this report, Bloomberg has a positive track record of reporting on financial decisions. We’ll be sure to update the article if there is confirmation on X from Elon Musk or another Tesla senior official.

Tesla’s stock has dropped nearly 8.5% over the day, ending back-to-back gains over the last two weeks. It closed yesterday at $ 241 after hitting a peak of $270 earlier in the day before the news broke.

Why the Delay?

The delay – of approximately two months – has been communicated internally, but not publicly announced just yet. Bloomberg goes on to mention that the design team was told to rework certain elements of the Cybercab, necessitating the delay.

If Bloomberg’s report is correct, it sounds like Tesla’s unveil event will be largely focused on showing off the vehicle, instead of demoing how it will work. Of course, it could still be both, but given past events, Tesla has always shown off the vehicle years before it hits production.

Rimac recently showed off their version of robotaxi vehicle named Verne, and surprisingly, it could almost pass for Tesla’s own robotaxi. A lot of design cues in Rimac’s version are elements we have already seen or expect to see in Tesla’s autonomous taxi.

A recent Tesla patent revealed that Tesla is incorporating a sanitation system into their robotaxi that will be responsible for analyzing and cleaning the vehicle’s interior, although the delay itself is likely tied more to a physical feature rather than software.

Another element we know almost nothing about is how Tesla plans to charge these robotic taxis. Will they rely on the existing charge port and adapt a solution like the robotic charging arm (video below) we saw almost eight years ago, or will wireless charging or a dock finally become realized?

While the delay for Tesla’s event appears to be related to the vehicle’s design itself and not further development of FSD, Tesla is wasting no time in getting FSD working for the upcoming vehicle. Model 3 vehicles have already been spotted with camera locations that resemble a robotaxi.

Is the Delay Accurate?

We expect that this delay might actually be true – Elon Musk usually takes to X within hours of such news breaking if it's false to refute it and hasn’t done so yet.

Tesla has delayed several of their events in the past, and a delay of a couple of months seems plausible. We should hear from Musk himself soon on whether this report is accurate.

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