Tesla (TSLA) turns positive after price drop as crowds flock to stores, but they are actually protesters
After starting the day deep in the red due to a price cut being announced in China, Tesla (TSLA) turned positive after crowds were reportedly flocking to stores to buy cars.
The only problem is that they were not there to buy but to protest.
Earlier today, we reported on Tesla slashing prices in China, which raised demand concerns for the automaker in the important EV market.
The price drops on some Model 3 and Model Y trims were significant, and while it will have a negative effect on the company’s gross margin, we expected that it would be successful in increasing sales.
The company’s stock (TSLA) was significantly down in premarket trading following the news.
Now Tesla investors and fans are sharing stories that buyers are crowding Tesla’s stores in China to buy following the price drops:
Tesla’s stock has since turned positive and recovered from the drop that followed the price adjustment in China.
However, Electrek learned that most crowds going to Tesla stores are there actually to protest the price drops.
Several groups of recent Tesla buyers announced on Weibo that they were organizing protests at Tesla stores across the country. The protesters are sharing videos on China’s Weibo, and some of those videos are being shared in the US as customers rushing to buy following the price drop.
Tesla customers in China have a history of protesting following price drops. They first did so back in 2019 following a rare price drop from Tesla and then again in October 2022 following a price drop.
The company famously has a policy of having consistent pricing with no discount, but it has moved away from that strategy lately.
While reports of a price reduction were coming from China at the end of 2022, Tesla officials strongly denied them, but the company specifically mentioned that no further price increase would come in 2022.
Now, a few days after the end of the year, Tesla significantly dropped the price, and many customers who bought at the end of 2022 are frustrated.
Grace Tao, vice president of Tesla China, posted on Weibo today claiming that the price drop is actually linked to “engineering innovations” (translated from Chinese):
Behind Tesla’s price adjustments, h ere are countless engineering innovations, which are essentially unique and excellent laws of cost control: including not limited to vehicle integration design, production line design, supply chain management, and even millisecond-level optimization of robotic arm coordination Route… Start from “first principles” and insist on cost pricing. Respond to the country’s call with practical actions to promote economic development and release consumption potential. 2023 Let’s welcome a better life together.
However, many people are not buying this explanation. Historically, Tesla has increased gross margins with cost improvements and only adjusted pricing when needed to create demand.
Electrek’s Take
Normally, I wouldn’t get behind those protesters since they bought those vehicles for a price they agreed on, but it’s true that Tesla has been sending mixed messages to buyers in China.
Also, is anyone really buying Tao’s explanation? I see a lot of Tesla blogs running with it without questioning it, but that hasn’t been Tesla’s MO.
Why would you reduce pricing if people are buying at those prices? That has been Tesla’s way for the last two years.
Featured Image: Picture of a Tesla protester in China from 2021.
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Kilito Chan | Moment | Getty Images
Electricity prices are rising quickly for U.S. households, even as overall inflation has cooled.
Electricity prices rose 4.5% in the past year, according to the consumer price index for May 2025 — nearly double the inflation rate for all goods and services.
The U.S. Energy Information Administration estimated in May that retail electricity prices would outpace inflation through 2026. Prices have already risen faster than the broad inflation rate since 2022, it said.
“It’s a pretty simple story: It’s a story of supply and demand,” said David Hill, executive vice president of energy at the Bipartisan Policy Center and former general counsel at the U.S. Energy Department.
There are many contributing factors, economists and energy experts said.
At a high level, the growth in electricity demand and deactivation of power-generating facilities are outstripping the pace at which new electricity generation is being added to the electric grid, Hill said.
Prices are regional
U.S. consumers spent an average of about $1,760 on electricity in 2023, according to the EIA, which cited federal data from the Bureau of Labor Statistics.
Of course, cost can vary widely based on where consumers live and their electricity consumption. The average U.S. household paid about 17 cents per kilowatt-hour of electricity in March 2025 — but ranged from a low of about 11 cents per kWh in North Dakota to about 41 cents per kWh in Hawaii, according to EIA data.
Households in certain geographies will see their electric bills rise faster than those in others, experts said.
Residential electricity prices in the Pacific, Middle Atlantic and New England regions — areas where consumers already pay much more per kilowatt-hour for electricity — could increase more than the national average, according to the EIA.
“Electricity prices are regionally determined, not globally determined like oil prices,” said Joe Seydl, a senior markets economist at J.P. Morgan Private Bank.
The EIA expects average retail electricity prices to increase 13% from 2022 through 2025.
That means the average household’s annual electricity bill could rise about $219 in 2025 relative to 2022, to about $1,902 from $1,683, according to a CNBC analysis of federal data. That assumes their usage is unchanged.
But prices for Pacific area households will rise 26% over that period, to more than 21 cents per kilowatt-hour, EIA estimates. Meanwhile, households in the West North Central region will see prices increase 8% in that period, to almost 11 cents per kWh.
However, certain electricity trends are happening nationwide, not just regionally, experts said.
Data centers are ‘energy hungry’
The QTS data center complex under development in Fayetteville, Georgia, on Oct. 17, 2024.
Elijah Nouvelage | Bloomberg | Getty Images
Electricity demand growth was “minimal” in recent decades due to increases in energy efficiency, according to Jennifer Curran, senior vice president of planning and operations at Midcontinent Independent System Operator, who testified at a House energy hearing in March. (MISO, a regional electric-grid operator, serves 45 million people across 15 states.)
Meanwhile, U.S. “electrification” swelled via use of electronic devices, smart-home products and electric vehicles, Curran said.
Now, demand is poised to surge in coming years, and data centers are a major contributor, experts said.
Data centers are vast warehouses of computer servers and other IT equipment that power cloud computing, artificial intelligence and other tech applications.
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Data center electricity use tripled to 176 Terawatt-hours in the decade through 2023, according to the U.S. Energy Department. Use is projected to double or triple by 2028, the agency said.
Data centers are expected to consume up to 12% of total U.S. electricity by 2028, up from 4.4% in 2023, the Energy Department said.
They’re “energy hungry,” Curran said. Demand growth has been “unexpected” and largely due to support for artificial intelligence, she said.
The U.S. economy is set to consume more electricity in 2030 for processing data than for manufacturing all energy-intensive goods combined, including aluminum, steel, cement and chemicals, according to the International Energy Agency.
Continued electrification among businesses and households is expected to raise electricity demand, too, experts said.
The U.S. has moved away from fossil fuels like coal, oil and natural gas to reduce planet-warming greenhouse-gas emissions.
For example, more households may use electric vehicles rather than gasoline-powered cars or electric heat pumps versus a gas furnace — which are more efficient technologies but raise overall demand on the electric grid, experts said.
Population growth and cryptocurrency mining, another power-intensive activity, are also contributors, said BPC’s Hill.
‘All about infrastructure’
Thianchai Sitthikongsak | Moment | Getty Images
As electricity demand is rising, the U.S. is also having problems relative to transmission and distribution of power, said Seydl of J.P. Morgan.
Rising electricity prices are “all about infrastructure at this point,” he said. “The grid is aged.”
For example, transmission line growth is “stuck in a rut” and “way below” Energy Department targets for 2030 and 2035, Michael Cembalest, chairman of market and investment Strategy for J.P. Morgan Asset & Wealth Management, wrote in a March energy report.
Shortages of transformer equipment — which step voltages up and down across the U.S. grid — pose another obstacle, Cembalest wrote. Delivery times are about two to three years, up from about four to six weeks in 2019, he wrote.
“Half of all US transformers are near the end of their useful lives and will need replacing, along with replacements in areas affected by hurricanes, floods and wildfires,” Cembalest wrote.
Transformers and other transmission equipment have experienced the second highest inflation rate among all wholesale goods in the US since 2018, he wrote.
Meanwhile, certain facilities like old fossil-fuel powered plants have been decommissioned and new energy capacity to replace it has been relatively slow to come online, said BPC’s Hill. There has also been inflation in prices for equipment and labor, so it costs more to build facilities, he said.
In a high-tech move that we can all get behind and isn’t dystopian at all, the City of Barcelona is feeding camera data from its city buses into an advanced AI, but they swear they’re not using the footage to to issue tickets to bad drivers. Yet.
Barcelona and its Ring Roads Low Emission Zone have earned lots of fans by limiting ICE traffic in the city’s core. The city’s latest idea to promote mass transit is the deployment of an artificial intelligence system developed by Hayden AI for automatic enforcement of reserved lanes and stops to improve bus circulation – but while it seems to be working as intended, it’s raising entirely different questions.
“Bus lanes are designed to help deliver reliable, fast, and convenient public transport service. But private vehicles illegally using bus lanes make this impossible,” explains Laia Bonet, First Deputy Mayor, Area for Urban Planning, Ecological Transition, Urban Services and Housing at the Ajuntament de Barcelona. “We are excited to partner with Hayden AI to learn where these problems occur and how they are impacting our public transport service.”
Currently operating as a pilot program on the city’s H12 and D20 bus lines, the system uses cameras installed on the city’s electric buses to detect vehicles that commit static violations in the bus lanes and stops (read: stopping or parking where you shouldn’t). The Hayden AI system then analyses that data and provides statistical information on what it captures while the bus is driving along on its daily route.
Hayden AI says that, while it photographs and records video sequences and collects contextual information of the violation, its cameras do not record license plates or people and no penalties are being issued to drivers or owners of the vehicles.
So far so good, right? But it’s what happens once the six mont pilot is over that seems like it should be setting off alarm bells.
Big Brother Bus is watching
The footage is manually reviewed by a Transports Metropolitans de Barcelona (TMB) officer, who reportedly reviewed some 2,500 violations identified by AI in May alone. But, while the system isn’t being used to issue violations during the pilot program, it easily could.
And, in fact, it already has … and the AI f@#ked up royally.
AI writes thousands of bad tickets
When AI was given the ability to issue citations in New York City earlier this year, it wrote more than 290,000 tickets (that’s right: two-hundred and ninety thousand) in just three months, generating nearly $21 million in revenue for the city. The was just one problem: thousands of those drivers weren’t doing anything wrong.
What’s more, the photos generated by the AI powered cameras were supposed to be approved only after being verified by a human, but either that didn’t happen, or it did happen and the human operator in question wasn’t paying attention, or (maybe the worst possibility) the violations were mistakes or hallucinations, and the human checker couldn’t tell the difference.
In OpenAI’s tests of its newest o3 and o4-mini reasoning models, the company found the o3 model hallucinated 33% of the time during its PersonQA tests, in which the bot is asked questions about public figures. When asked short fact-based questions in the company’s SimpleQA tests, OpenAI said o3 hallucinated 51% of the time. The o4-mini model fared even worse: It hallucinated 41% of the time during the PersonQA test and 79% of the time in the SimpleQA test, though OpenAI said its worse performance was expected as it is a smaller model designed to be faster. OpenAI’s latest update to ChatGPT, GPT-4.5, hallucinates less than its o3 and o4-mini models. The company said when GPT-4.5 was released in February the model has a hallucination rate of 37.1% for its SimpleQA test.
I don’t know about you guys, but if we had a local traffic cop that got it wrong 33% of the time (at best), I’d be surprised if they kept their job for very long. But AI? AI has a multibillion dollar hype train and armies of undereducated believers talking about singularities and building themselves blonde robots with boobs. And once the AI starts issuing tickets to the AI that’s driving your robotaxi, it can just call its buddy AI the bank to send over your money. No human necessary, at any point, and the economy keeps on humming.
But, like – I’m sure that’s fine. Embrace the future and all that … right?
SOURCES: Hayden AI, via Forbes, Motorpasión.
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A new report from global energy think tank Ember says batteries have officially hit the price point that lets solar power deliver affordable electricity almost every hour of the year in the sunniest parts of the world.
The study looked at hourly solar data from 12 cities and found that in sun-soaked places like Las Vegas, you could pair 6 gigawatts (GW) of solar panels with 17 gigawatt-hours (GWh) of batteries and get a steady 1 GW of power nearly 24/7. The cost? Just $104 per megawatt-hour (MWh) based on average global prices for solar and batteries in 2024. That’s a 22% drop in a year and cheaper than new coal ($118/MWh) and nuclear ($182/MWh) in many regions.
Ember calls it “24/365 solar generation,” and it’s not just a theoretical model. Cities like Muscat, Oman, and Las Vegas can hit that steady power mark for up to 99% of the hours in a year. Hyderabad, Madrid, and Buenos Aires can reach 80–95% of the way there using that same solar-plus-storage setup with some cloud cover. And even cloudier cities like Birmingham in the UK can cover about 62% of hours annually.
“This is a turning point in the clean energy transition,” said Kostantsa Rangelova, global electricity analyst at Ember. “Around-the-clock solar is no longer a distant dream; it’s an economic reality of the world. It unlocks game-changing opportunities for energy-hungry industries like data centres and manufacturing.”
This is an enormous opportunity for sunny regions in Africa and Latin America. Manufacturers and data centers could also tap into solar-plus-storage and skip long waits (and big bills) for new grid connections.
It’s not a silver bullet for grid-wide reliability, but it lets solar carry much more of the load, especially where sunshine is abundant. Batteries also help avoid costly grid expansions by allowing up to five times more solar to plug into existing connections.
In 2024 alone, global battery prices dropped 40%, which helped drive down solar-plus-storage costs by 22%. Record-low tenders from countries like Saudi Arabia point to even cheaper options coming soon.
Real-world projects are already online: The UAE built the world’s first gigawatt-scale 24-hour solar facility. Arizona is already home to solar-powered data centers. And as battery tech keeps improving, round-the-clock solar could become the backbone of clean energy systems in the world’s sunniest places.
Read more: This solar canopy cools wastewater and powers a city utility
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