- Mar 9
- 5 min read

Tesla's Big Weekend: Model Y Prices, FSD Transferability, and More!

Tesla's Recent Updates: Model Y Price Reduction, Full Self-Driving Transferability, and Strategic Market Management

Questions to inspire discussion:

❓ What significant news about Tesla happened over the weekend?

Several significant news about Tesla happened over the weekend. These include Giga Berlin reaching the ability to build 6,000 Model Ys per week, price cuts for Model Y in Canada, a price increase for the Model 3 long range in the US, and the option to transfer full self-driving with the purchase of a new Tesla Model X or Y by the end of March in the US, Canada, and Mexico.

💬 How many Model Y price cuts were announced in Canada?

One Model Y price cut was announced in Canada.

🤨 What offer did Tesla announce regarding full self-driving in the US, Canada, and Mexico?

Tesla announced that you can transfer full self-driving in the US, Canada, and Mexico if you buy a new Tesla Model X, S, or Y by the end of March.

💬 How does Jeff Lutz view the potential impact of price cuts on Tesla's demand?

Jeff Lutz views the potential impact of price cuts on Tesla's demand as a mixture of things. He mentions that even though there were small movements in pricing, there is a Pavlovian response to price cuts regardless of the amount. For example, in Canada, a $4,000 Canadian dollar price cut resulted in a 1% impact on the aggregate volume in the quarter.

🤨 Why did Tesla change the pricing by $1,000 in Canada according to Jeff Lutz?

Tesla changed the pricing by $1,000 in Canada because they encountered a short-term supply issue, not a long-term one.

❓ What competitive advantage has Tesla grown over their peers?

Tesla has grown a competitive advantage over their peers by leveraging their fixed assets, particularly in the areas of supercharging network and FSD transfer.

💬 Why do some analysts make assumptions about price cuts without considering all factors?

Some analysts make assumptions about price cuts without considering all factors because they may focus solely on immediate changes without taking into account future developments, such as new product releases or changes in market dynamics. This narrow perspective can lead to inaccurate predictions and adjustments in earnings forecasts.

🤨 How does Tesla's FSD transfer work and what was the experience like for the speaker?

Tesla's FSD transfer allows customers to take advantage of the Full Self-Driving feature by purchasing a new Tesla Model SX or Y by March 31st. The transfer process involves automatically moving the feature from the old car to the new one, without the need to sell the old car. The Model 3 now qualifies for the free lifetime supercharging transfer as well. The speaker mentioned that the FSD transfer process was very seamless when he did it on his Model X last year, indicating that Tesla did a great job with it.

❓ What suggestion does Omar have for Tesla regarding the pricing and availability of the FSD package?

Omar suggests that Tesla should lower the FSD package price to $5,000, offer a transferable FSD package for $10,000, reduce the FSD subscription price to $99 per month, and make the FSD transferable to another car anytime.

Key Highlights:

Tesla's recent developments include production milestone, pricing changes, and transferability offers for new vehicle purchases.
Discussion on Tesla's margins, cost of goods, and scaling at gigafactories.
Tesla made small movements in pricing, including price cuts and increases, along with updates on FSD and supercharger.
Tesla's update on Model Y pricing and production ramp, addressing potential price increase and supply issues.
Discussion on Tesla's pricing strategies, transferability of FSD, and analysts' reactions to price cuts and future earnings.
Tesla introduces FSD transferability at a reduced price, making it more accessible to customers.
Tesla's meticulous planning and coordination for new product launch and production adjustments.

Clips

00:00 🚀 Tesla achieves milestone in Giga Berlin production, announces price changes, and offers transferability of FSD and free lifetime supercharging.

Giga Berlin reaches 6,000 Model Y per week, aiming for 10,000
Price cuts for Model Y in Canada, price increase for Model 3 long range in the US
Transferability of full self-driving and free lifetime supercharging for new Tesla purchases
Impact of Giga Berlin production on cost of goods and inventory
Challenges of supply-driven shutdown and potential for cost reduction in Giga factories
Expectation of continued improvement in cost of goods for Tesla
Continuous process innovation and labor capital investment for cost reduction

03:55 🚀 Insights on Tesla's cost efficiency, margins, and future plans for scaling and innovation.

Tesla's ability to reduce cost of goods and improve margins
Scaling of gigafactories for cost reduction
Innovation in inbound commodity costs and logistics
Continued focus on efficiency and leverage with suppliers
Impact of production volume on cogs efficiency
Sequential improvement in gross margins despite headwinds
Importance of considering all factors in context for each quarter

08:33 🚀Discussion on recent Tesla price changes and FSD transferability, addressing market reactions and potential reasons behind the price adjustments.

Small movements in pricing observed over the weekend, including price cuts and increases.
Market reaction to price changes may not align with the actual impact on cost reductions and pricing.
Model 3 long range in the US experienced a small price increase, potentially due to higher than anticipated demand.
Potential reasons for raising prices include managing inbound order book load and addressing long-term supply issues.
Belief that short-term supply issues are not the primary reason for price adjustments, with focus on production ramp curve.

13:53 🚀 Tesla's recent moves in pricing, supercharging, and FSD transfer are strategic and aimed at managing demand and leveraging their competitive advantage.

Tesla is making small movements in pricing to manage supply and demand.
They are leveraging their charging Network and FSD transfer to incentivize consumers.
Q1 is seasonably a softer quarter for many companies.
There are a lot of unknowns when it comes to Tesla's inventory and production.
Analysts need to consider the differences before jumping to conclusions about price cuts.
Tesla's recent moves are strategic and aimed at managing demand and leveraging their competitive advantage.

17:20 🚀 Tesla made significant changes over the weekend, including price cuts for Model Y, FSD transferability, and more.

Tesla slashed Model Y prices in Canada, boosting rebate eligibility to $12,000 in Quebec.
Model Y long range now qualifies for a combined $12,000 in rebates in Quebec.
Model 3 long range price increased by $1,000.
Tesla officially allowed free FSD transfers for new Model S, X, and Y purchases.
FSD package price lowered to $5,000 and announced availability of transferable FSD for $10,000.

21:30 🚀 Tesla's recent updates include FSD subscription price cut, transferable supercharging, and potential per-mile FSD plan, impacting production planning and revenue potential.