Tesla's Week 40/2024 Highlights: Record-breaking Model 3 Range of 729 Miles, Disabled Spotify Integration, Increased China Tariffs, Cybertruck Recall
The European Union (EU) member states have agreed to impose tariffs on electric vehicles (EVs) from China, with Tesla's tariff set at 7.8 percent, according to a Bloomberg report. This move could potentially make imported Chinese EVs from Western manufacturers more expensive. Ten EU member states, including France, supported the commission's tariff proposal, five opposed it, and the rest abstained.
In other news, Tesla is introducing a new variant of the Model 3 with a large battery and rear-wheel drive in Europe, abbreviated LR RWD. The new Model 3 LR RWD is expected to have a WLTP range of 729 kilometers, marking a significant improvement in electric vehicle range. However, the price of this new model is not yet available and may change during October.
Tesla's CEO, Elon Musk, recently won a court case against shareholders who felt misled by his statements about Full Self-Driving (FSD) capabilities. The court ruling has classified Musk's statements about FSD as not to be taken seriously. Despite this, Musk announced on Twitter that FSD will soon exceed 10,000 miles between critical interventions, which is equivalent to a year of driving for most people.
The new Model 3 LR RWD comes at a time when Tesla has removed the rear-wheel-drive Model 3 with a small battery pack from its US lineup due to higher battery tariffs and ineligibility for US tax credits. This move is part of Tesla's strategy to comply with the changing regulatory environment.
In a setback for Tesla, a recall has been issued for the Cybertruck due to a software issue that may cause the rear camera image to take too long to appear on the screen. Tesla has claimed a production capacity of over 125,000 units per year for the Cybertruck since the end of 2023, but the total number produced may still be relatively low. The first Cybertruck owners have reported receiving the FSD software, with the designation now restricted in the US to include "supervised" in parentheses.
Tesla customers with their own paid Spotify subscription can continue using the premium service in their electric vehicle. However, Tesla is discontinuing free use of the Spotify Premium music service for its mobile plan customers as of December 1.
The Commission continues to work on an "alternative solution" to avoid Chinese retaliatory measures. If a negotiating solution is not found, additional tariffs could be imposed as early as November.
In a separate development, German Chancellor Olaf Scholz attempted to persuade other EU member states to vote against the commission's tariff proposal but had little success.
The Tesla Cybertruck is now orderable with the "Founder's Edition" package for $20,000, with prices starting from $79,990 for early reservations in the US. The National Highway Traffic Safety Administration (NHTSA) states that only 27,185 Cybertrucks were produced between mid-November 2023 and mid-September 2024.
In conclusion, Tesla is facing tariffs and a recall in Europe while ramping up production of the Cybertruck. The company is also making significant improvements in the range of its electric vehicles, but the price of the new Model 3 LR RWD remains to be seen. Meanwhile, Tesla's CEO, Elon Musk, has won a court case against shareholders who felt misled by his statements about Full Self-Driving capabilities, but his statements about this technology have been classified as not to be taken seriously.
