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Tesla has managed to cut the price of its electric cars in half over five years, and it might do it again with its next-generation vehicle platform.

Much has been said of Tesla’s prices lately.

Despite its high prices, Tesla has attracted some non-luxury buyers over the years who have been willing to pay a premium to go electric, but it remains a luxury brand.

As a premium brand, the automaker competes primarily with other luxury brands like BMW, Mercedes-Benz, Audi, and Lexus.

But it has been gradually going down market over the years – albeit for massive price increases over the last two years that put even its entry models out of reach of most buyers.

Last month, Tesla implemented some significant price cuts across its entire EV lineup that made its vehicles more affordable, but they still all sit firmly in premium categories.

As we previously reported, the price drop might have started a new EV price war, and Tesla is in a great position to win that war thanks to its industry-leading gross margin.

The automaker has managed to cut its average sale price by half since 2017 while improving its operating margin from negative 15% to now more than 15% in the black:

That’s despite prices going slightly up in 2022, breaking the trend for the first time.

However, prices are expected to go down significantly in 2023 with the big price cuts to start the year.

But it’s most exciting to look into the future as there’s potential to see Tesla’s prices cut in half, or close to it, again over the next five years – thanks to its next-generation vehicle platform about to be unveiled.

Tesla third-generation platform

The Model S and Model X were based on Tesla’s first-generation vehicle platform. Model 3 and Model Y were based on the second generation – even though Model Y ended up featuring many improvements over Model 3.

Now Tesla is getting ready to unveil its third-generation vehicle platform at its Investor Day on March 1.

There are not many details available about Tesla’s new platform, but it is expected to focus on reducing cost and improving manufacturability to achieve a new level of scale.

More specifically, the new platform is expected to take advantage of Tesla’s 4680 battery cell, structural battery pack design, and its latest large casting technology to achieve a new level.

Today, Musk indicated that he will release Tesla’s Master Plan Part 3 at the event, and he has made clear on many occasions that the plan will be about how the automaker plans to scale to 20 million vehicles per year.

The plan is expected to include Tesla’s deeper involvement through the entire battery material supply chain, including more factories to refine minerals like lithium and nickel, as well as more vehicle and battery factories.

This supply chain and manufacturing plan along with the new vehicle platform is likely to enable Tesla to produce vehicles in new categories – even potentially an eventual $25,000 compact vehicle that would increase Tesla’s scale and greatly reduce its average sale price.

Electrek’s Take

It’s hard for people to imagine Tesla ramping up to 20 million vehicles per year, but it was also hard for most people to imagine Tesla ramping up to 1 million units.

The company not only did that, but it now sits at a capacity to produce 2 million cars per year.

It won’t be easy to 10x that capacity in seven years, but I think it’s doable.

However, production is just one side of things. Tesla also needs cheaper offerings in order to have the demand for anything near 20 million vehicles per year.

If the automaker achieves self-driving capability, it would certainly be an easier sale, but putting that aside, Tesla is likely limited to about 3 million potential sales per year with its current lineup.

Electric pickups, like the Cybertruck, could bring that up to 5 million units without having to average down the sale price, but everything else will likely have to come from new segments lower than $40,000.

That’s why all eyes should be on that presentation on March 1 since it should give us a better idea of how Tesla plans to deliver on those ~15 million vehicles per year that are hard to imagine right now.

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Podcast: new Tesla Cybertruck, tariff mayhem, Lucid buys Nikola, and more

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Podcast: new Tesla Cybertruck, tariff mayhem, Lucid buys Nikola, and more

In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss the new Tesla Cybertruck RWD, more tariff mayhem, Lucid buying Nikola, and more.

The show is live every Friday at 4 p.m. ET on Electrek’s YouTube channel.

As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.

After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:

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We now have a Patreon if you want to help us avoid more ads and invest more in our content. We have some awesome gifts for our Patreons and more coming.

Here are a few of the articles that we will discuss during the podcast:

Here’s the live stream for today’s episode starting at 4:00 p.m. ET (or the video after 5 p.m. ET):

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Get your EV questions answered at Drive Electric Earth Month events, all April

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Get your EV questions answered at Drive Electric Earth Month events, all April

It’s that time of year again, time for events across the country to show off electric vehicles at Drive Electric Earth Month.

Drive Electric Earth Month is an offshoot of Drive Electric Week, a long-running annual tradition hosting meetups mostly in the US, but also occasionally in other countries. It started as Drive Electric Earth Day, but since not every event can happen on the same day, they went ahead and extended it to encompass “Earth Month” events that happen across the month of April. It’s all organized by Plug In America, the Sierra Club, the Electric Vehicle Association, EV Hybrid Noire, and Drive Electric USA.

Events consist of general Earth Day-style community celebrations, EV Ride & Drives where you can test drive several EVs in one place, and opportunities to talk to EV owners and ask them questions about what it’s like to live with an EV, away from the pressure of a dealership.

This month, there are currently 152 events registered across the US and 1 in Mexico (including one online webinar about things to consider when purchasing an EV).

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Events have already started, with a smattering happening over the last week. One really neat one was the Asheville event, which showcased the resiliency of EVs in an area devastated by Hurricane Helene, which was made more severe by climate change. That event was attended by the Rivian R1T which famously got dragged 100 feet submerged in mud and came out running fine.

But the bulk of the events are coming up on the weekends of April 19-20th, and even moreso, the weekend of the 26-27th.

There are plenty of events in the big cities where you’d expect, but Plug In America wanted to highlight a few of the events in smaller places around the country. Here’s a sampling of upcoming events:

  • Space Coast Drive Electric Earth Month Event at the American Muscle Car Museum in Melbourne, FL on April 19, 10am-2pm – EVs are the new muscle car of the 21st century, and this event has been one of the biggest ones nationally in previous years (with 47 vehicles registered already). The event is free, but the museum has a required donation for entry.
  • EV Mississippi Spring Drive Electric Earth Day Event in Hattiesburg, MS on April 19, 10am-2pm – This one is happening at a PetSmart near a Tesla Supercharger, and is a combined EV/pet adoption event with food, pets, raffle prizes, test drives, and activities for all ages.
  • Big Island EV – Cruise and Picnic in Waimea, HI on April 26, 10am-1pm – EV drivers will congregate in various places around the Big Island (Kona, Waimea, Waikoloa and Hilo), then drive up Saddle Road to the Gil Kahele Recreation Area on Mauna Kea for a potluck and a chance to talk about the experience of owning EVs on the Big Island.
  • Santa Barbara Earth Day 2025 and Green Car Show in Santa Barbara, CA on April 26-27, 11am-8pm – This is part of Santa Barbara’s Earth Day celebration, which routinely attracts 30,000 participants and is one of the longest-running Earth Day celebrations on the planet. The Green Car Show includes ride & drives and an “Owners Corner” where owners can showcase their EVs and attendees can check them out and ask questions.
  • Earth Day’25 – EV’s role in a sustainable future in Queretaro City, Mexico on April 26, 9am-4pm – The sole Mexican event, this is a combined in-person/online seminar at the Querétaro Institute of Technology.
  • Norman Earth Day Festival in Norman, OK on April 27, 12-5pm – Another municipal Earth Day festival, with hands-on activities for kids to learn about the environment. A portion of the parking lot reserved for an EV car show for EV owners who pre-register to show off their vehicles.
  • Oregon Electric Vehicle Association Test Drive & Information Expo in Portland, OR on April 27, 10am-4pm – This one is at Daimler Truck’s North American HQ, and will have several EVs for test drives, owner displays (including DIY gas-to-EV conversions), and keynote presentations by EV experts. They’ll even have a 1914 Detroit Electric EV available for test rides!
  • And, we at Electrek want to give a shoutout to Rove’s EV Drive Days in Santa Ana 10am-3pm April 28 – ROVE is the company behind the “full-service” EV charging concept that we’ve talked about several times here on Electrek, and we like what they’re doing for EV charging. They’ve hosted a few community events, and this is their contribution to Earth Month.

Each event has a different assortment of activities (e.g. test drives won’t be available at every event, generally just the larger ones attended by local dealerships), so be sure to check the events page to see what the plan is for your local event.

These events have offered a great way to connect with owners and see the newest electric vehicle tech, and even get a chance to do test rides and drives in person. Attendees got to hear unfiltered information from actual owners about the benefits and trials of owning EVs, allowing for longer and more genuine (and often more knowledgeable) conversations than one might normally encounter at a dealership.

And if you’re an owner – you can show off your car and answer those questions for interested onlookers.

If you can’t make it to any of the physical events, there are also a few virtual events (go here and click “online events” at the top) including a webinar about programs to help you charge your EV at work, a virtual show and tell about EVs in middle America and an information session about potential career pathways related to e-mobility in Virginia.

To view all the events and see what’s happening in your area, you can check out the list of events or the events map. You can also sign up to volunteer at your local events, and if you plan to show off your electric car, you can RSVP on each event page and list the vehicle that you plan to show (or see what other vehicles have already registered).


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Tesla’s US sales are worse than what is reported, here’s more accurate data

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Tesla's US sales are worse than what is reported, here's more accurate data

Tesla’s electric vehicle sales in the US are worse than what the media is reporting right now. That’s partly because Tesla is hiding its sales.

Here’s more accurate data.

Today, you might see many headlines about Tesla’s US sales based on Cox Automotive’s Q1 2025 US electric vehicle sales report.

The main problem with this report is that it is a complete estimate when it comes to Tesla, the biggest EV manufacturer in the US.

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Of all the major automakers, Tesla is the only one that doesn’t break down sales by region or even model.

For comparison, here’s a Ford US sales report vs a Tesla global sales report (its only delivery report):

Because Tesla is so opaque with its sales, analysts often rely on reports like Cox’s, which are also estimates.

The Cox report cited in the media today claims that Tesla delivered 128,100 vehicles in the US in Q1 2025 – down 8.6% compared to Q1 2024.

That’s despite EV sales being up 10% overall in the first quarter.

Here’s the report:

Brand Q1 2025 Sales Q1 2024 Sales YOY % Change
Acura 4,813
Audi 5,905 5,714 3.3%
BMW 13,538 10,712 26.4%
Cadillac 7,972 5,800 37.4%
Chevrolet 19,186 8,957 114.2%
Dodge 1,947
Ford 22,550 20,223 11.5%
Genesis 1,496 992 50.8%
GMC 4,728 1,668 183.5%
Honda 9,561
Hyundai 12,843 12,218 5.1%
Jaguar 381 256 48.8%
Jeep 2,595
Kia 8,656 11,401 -24.1%
Lexus 1,453 1,603 -9.4%
Mercedes 3,472 8,336 -58.3%
Mini 696 824 -15.5%
Nissan 6,471 5,284 22.5%
Porsche 4,358 1,247 249.5%
Rivian 8,553 13,588 -37.1%
Subaru 1,154 1,147 0.6%
Tesla 128,100 140,187 -8.6%
Toyota 5,610 1,897 195.7%
Volvo 2,718 996 172.9%
VW 9,564 6,167 55.1%
Additional EV Models 5,930 6,764 -12.3%
Total (Estimates) 294,250 265,981 10.6%

Cox’s estimate looks quite high. The best way to figure out Tesla deliveries in the US is to take deliveries based on registration data in all other markets where Tesla sells vehicles in the world, which are quite accurate, and subtract that number from Tesla’s reported global deliveries.

For the first quarter, Tesla reported 336,681 deliveries globally, and Tesla registrations in all markets except the US and Canada totaled 212,024 vehicles (via TroyTeslike).

This would mean Tesla delivered about 124,657 vehicles in the US and Canada in Q1 2025.

That’s already about 3,500 fewer deliveries than Cox’s estimate, but it includes Canadian deliveries, which are also hard to estimate in the first quarter. It’s safe to assume that they are at about 5,000 units.

This means that Tesla is down closer to 15% than 8% in the US in Q1 2025.

Electrek’s Take

Yes, the Model Y changeover certainly affected Tesla’s performance in the US, but it’s clearly not the only factor at play.

Tesla ended the quarter with record inventory not seen in years. The automaker has no backlog of orders for the new Model Y. You can get one today in many regions of the US.

I think there are good reasons to worry about Tesla’s demand in the US. The main reason is the brand damage caused by Elon Musk, which mostly occurred in the second half of the first quarter.

The lack of backlogs for new Model Y orders is concerning.

I believe deliveries will be up from Q1 this quarter, but they will be down from Q2 2024, and it is more likely that Tesla’s deliveries will be down for the full year 2025 despite most analysts still believing Tesla will still grow this year.

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