Tesla has begun providing different Model 3 and Model Y Long Range variants for its customers – dividing the two variants between those who are eligible for the $7,500 Federal EV Tax Credit, and those who are not eligible.
Eligible vs Non-Eligible Customers
Tesla is making two versions of their Long Range models of the Model 3 and Model Y available to customers in the U.S. One of them qualifies for the tax rebate, and the other doesn’t. However, there are some underlying differences between the two models customers should know.
Customers who claim they are eligible for the tax credit will be provided a VIN for a vehicle that qualifies for the EV Tax Credit. Vehicles that qualify for the Tax Credit have their battery and its cells manufactured in North America.
Customers who aren’t eligible or don’t opt to use the tax credit will get a VIN that doesn’t qualify for the federal credit. Customers who aren’t eligible for the federal rebate may still be eligible for local or state rebates, and these cars should be eligible for those specific rebates.
Panasonic vs LG Batteries
So what’s the difference between the two variants? It essentially comes down to the batteries and where they’re produced. The Model 3 and Model Y cars that are eligible for the tax credit will contain Panasonic batteries, which are produced in the U.S., while the cars not eligible for the rebate will include LG batteries.
They’re both non-LFP, 2170 cells, and while there isn’t a huge difference on the surface between the battery cells since they offer similar “regular” charging speeds and range, one does tend to be a little better. The LG batteries have been known to not charge as fast at level 3 chargers – which include Superchargers.
We recommend getting the vehicle that qualifies for the rebate that includes Panasonic batteries, even if you’re not planning to take advantage of the federal rebate. Besides getting a better battery, it leaves you open to receiving the tax rebate if circumstances change later in the year. It’s possible Tesla may offer a discount on the LG battery-powered model in the future, but at this time with them being the same cost, the Panasonic version makes more sense.
The Performance variant of the Model 3 and Model Y also comes with the Panasonic batteries. The LFP pack in the Rear-Wheel Drive variants of either vehicle also charge faster than the LG batteries.
The video below shows some of the speed differences between the battery packs.
How to View Cars
To view the vehicles with their specific battery packs, you’ll need to use Tesla’s inventory system. Simply go to the Inventory section of Tesla’s site, and then enable (Panasonic batteries) or disable (LG batteries) the Tax Credit Eligible Vehicles toggle on Tesla’s site.
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.
Tesla recently showed off a demo of Optimus, its humanoid robot, walking around in moderately challenging terrain—not on a flat surface but on dirt and slopes. These things can be difficult for a humanoid robot, especially during the training cycle.
Most interestingly, Milan Kovac, VP of Engineering for Optimus, clarified what it takes to get Optimus to this stage. Let’s break down what he said.
Optimus is Blind
Optimus is getting seriously good at walking now - it can keep its balance over uneven ground - even while walking blind. Tesla is currently using just the sensors, all powered by a neural net running on the embedded computer.
Essentially, Tesla is building Optimus from the ground up, relying on as much additional data as possible while it trains vision. This is similar to how they train FSD on vehicles, using LiDAR rigs to validate the vision system’s accuracy. While Optimus doesn’t have LiDAR, it relies on all those other sensors on board, many of which will likely become simplified as vision takes over as the primary sensor.
Today, Optimus is walking blind, but it’s able to react almost instantly to changes in the terrain underneath it, even if it falls or slips.
What’s Next?
Next up, Tesla AI will be adding vision to Optimus - helping complete the neural net. Remember, Optimus runs on the same overall AI stack as FSD - in fact, Optimus uses an FSD computer and an offshoot of the FSD stack for vision-based tasks.
Milan mentions they’re planning on adding vision to help the robot plan ahead and improve its walking gait. While the zombie shuffle is iconic and a little bit amusing, getting humanoid robots to walk like humans is actually difficult.
There’s plenty more, too - including better responsiveness to velocity and direction commands and learning to fall and stand back up. Falling while protecting yourself to minimize damage is something natural to humans - but not exactly natural to something like a robot. Training it to do so is essential in keeping the robot, the environment around it, and the people it is interacting with safe.
We’re excited to see what’s coming with Optimus next because it is already getting started in some fashion in Tesla’s factories.
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