I’m not saying Tesla created a standard range version of its Model S and Model X and launched it yesterday to distract from CEO Elon Musk’s cringeworthy attempt to fight Mark Zuckerburg, mostly because Elon Musk seems impervious to embarrassment, but it’s nice timing. Whatever the reason, the announcement of a cheaper Model S and Model X is good news for consumers and probably bad news for competing automakers.
While we’re at it, Lexus has a fancy version of its LC500, President Joe Biden makes a rare comment on the United Auto Workers contract negotiations, and U.S. Steel may have a new buyer.
The Tesla Model S and Model X Standard Range Are Cheaper… For Reasons
Tesla did its favorite thing, which is to announce news quietly overnight so that all of us can scramble to pull stories together. Honestly, as a newsman, it’s kind of fun. Who needs embargoes when you can just update your website and wait for Tesla watchers to notice?
Yesterday. Tesla modified its website to show a new ‘Standard Range’ trim level for Model S and Model X. For the Model S you get a vehicle capable of going a pretty good 320 miles on a charge for a price of $78,490, or exactly $10,000 off the old base Model S, which gets 405 miles of range. For the Model X, the same price drop gets you a $10,000 discount as well, dropping the price to $88,490. That gets you a less-good range of 269 miles. It’s unclear if the vehicles get a 100 kWh battery that’s been downgraded, a smaller battery, or if Tesla is swapping in a cheaper, lower-range LFP battery.
Why did they do this? Reasons abound. The company could have been doing it to distract from Musk’s weird Zuckerburg fight threats, but I doubt it. Reuters says this is the company “looking to increase sales as high borrowing costs hamper demand for expensive electric vehicles,” adding:
The Austin, Texas-based company has also offered other incentives to reduce inventory in a strategy that CEO Elon Musk said was part of Tesla’s recession playbook.
That’s probably true. Financing a $90,000 car with these higher rates is not fun, especially when you can get a Model Y for under $40k with over 300 miles of range. It’s not as nice as the Model S, but it’s also not as old.
Some of this feels also like a continuation of Tesla’s ongoing price war. This new sub-$80,000 Tesla Model S compares favorably to the $105,540 you’d spend for a Mercedes EQS 450+ that gets 350 miles of range or a base Taycan, which, for $90k delivers an EPA-estimated range under 220 miles. The Model X isn’t as good a deal, because $87,100 buys a BMW iX that goes over 300 miles and is a much newer (and arguably better) car.
It’ll be interesting to see if the LFP battery is actually being swapped in, because that would make for an attractive vehicle.
Biden Weighs In On UAW/Big Three Negotiations
In new statement, POTUS calls for “all sides to work together to forge a fair agreement” in UAW-Detroit 3 contract talks. “The UAW deserves a contract that sustains the middle class.” pic.twitter.com/lShvsse9in
— Riley Beggin (@rbeggin) August 14, 2023
Generally speaking, Presidents of the United States of America (not to be confused with The Presidents of the United States of America) do not weigh in on ongoing labor negotiations directly. The band probably does. As The Detroit News points out:
Presidential administrations have used economic spokespersons to comment on the potential economic impacts of bargaining, said Marick Masters, a labor expert and business professor at Wayne State University. But it’s uncommon for a president to weigh in on negotiations directly, “preferring instead to let the process work its will.”
As we have pointed out, this isn’t a normal negotiation and the new head of the United Auto Workers isn’t your typical union boss. Here are just some of the factors at play:
- EVs probably require fewer workers to create
- Tooling up for EVs is going to be expensive
- The Big Three are unionized, their competitors are not
- The union gave a ton of concessions to automakers during the Great Recession and hasn’t gotten most of them back
- The current contract still has a two-tier wage structure, which most unions are trying to do away with
- The new union leadership has promised no sweetheart deals
- Inflation
- The generally reliably Democratic-supporting UAW has not officially endorsed Biden yet, on purpose because of all the stuff going on right now
In the face of all that, Biden says he wants to make his intentions clear, stating:
I support a fair transition to a clean energy future. That means ensuring that Big Three auto jobs are good jobs that can support a family; that auto companies should honor the right to organize; take every possible step to avoid painful plant closings; and ensure that when transitions are needed, the transitions are fair and look to retool, reboot, and rehire in the same factories and communities at comparable wages, while giving existing workers the first shot to fill those jobs. The UAW helped create the American middle class and as we move forward in this transition to new technologies, the UAW deserves a contract that sustains the middle class.
That’s definitely a statement, but there’s nothing here particularly outrageous from the perspective of the mainstream Democratic view of labor. I think that’s about as far as Biden can reasonably go without rocking the boat too much.
U.S. Steel Might Get A New Owner
We’ve known for a while that U.S. Steel, one of the oldest and biggest producers of steel for the automotive industry, has been for sale. The expected buyers were expected to come forward and then, all of a sudden, a new challenger emerged.
Bloomberg has a play-by-play of all of the drama, which started with a big offer from rival Cleveland-Cliffs Inc.:
Here’s my favorite part of the story:
Commenting on the announcement, a U.S. Steel spokesperson said it was the first that the company had heard from Esmark. “We welcome them to join the multiple parties already in our previously announced strategic alternatives process.”
Bouchard said that his offer was motivated by a desire to ensure U.S. Steel remained American owned after the weekend’s announcements.
“They’ve made huge strides, but we have a lot of work to do and we can make U.S. Steel U.S. Steel again,” he said. “This needs to stay an American institution.”
What a fun bit of news if you are a U.S. Steel executive or shareholder. I’m assuming the swipe about “stay an American institution” is a reference to Cleveland-Cliffs, which is owned by various stakeholders in different parts of the world (the largest shareholder seems to be in Luxemborg), though it’s possible there are some Chinese or other firms in the mix as well.
Check Out This Fancy LC500
I’ve got a review of the new 2024 Lexus LC500 with the V8 coming out but, it’s not a secret: I think the thing is great. It’s also something I assume Lexus could never build a new generation of, so it’s good news they’re adding variants to the existing model.
The 2024 Lexus LC500 Inspiration Series is a V8 LC500 with some aerodynamic improvements, mostly notably the front bumper canards and a (coupe-only) carbon-fiber fixed rear wing. The $116,700 price for the coupe is high, but they’re only making 125 of these things, so act fast.
The Big Question
You’ve got $90,000 to spend on one electric vehicle. What are you buying?
Photos: Tesla, US Steel, Lexus
Nice cover Biden ruined tge economy, needs UAWs support for re-election. You can have affordable EVs or Union built EVs that suck. Really it is the 70s all over again. Big 3 building 12 month 12,000 mile warranty cars. The unions turning out cars that noone wants, and the asian competition turning out cheaper but better. The American tax payer footed the bill for management greed and union incompetence. I for one don’t want my tax dollars going to no show union jobs adding whatever todays equivalent of $5k a car is. Biden has spent billions on liberal programs. Shut the spigot off and put him in a rest home. NOW!
“ooo, you’re an angry little elf!”
There’s a good compromise to be found: cut the percentage of money going to the investors and the board of directors, and you can give the unions what they want without having to raise the price of vehicles. Only 1% of the people involved lose out on that deal. Why is that never an option?
Depends. If I get to pocket the difference a RC controlled Ride On Top kiddie car. Or maybe a rubber bb shooting RC model tank.
If not then whatever I can get for exactly $90k OTD with as little lost to dealer shenanigans as possible.
If I had $90,000, then it’s the ID.Buzz’s job to lose. That amount of money should just about cover the anticipated outrageous dealer markup. But I need a van, and the rules said it had to be an EV, so…
Not a Tesla, probably grab a sweet Changli though.
Porsche taycan. As someone who has daily driven an EV for a while and loves to go fast, it’s the closest to my ideal daily right now. I would’ve said a Rivian, but living in the midwest I hate how stuff gets trapped in the tailgate gap. That’s a recipe for rust.
I like the Lightning, but it’s too big to daily.
Can you get a Taycan for $90K? I thought even the base was generally a bit above that.
Kia EV6. Pocket the change.
>cheaper Tesla trims
This is as close as we are going to get, in the foreseeable future, to a cheaper Tesla model. Elmo can promise it all day long, but building a new assembly line has high costs and doesn’t make line go up.
>Biden on UAW/Big 3
With any luck, this will go differently than the rail strike. It’s a stupid meme, but Dark Brandon seems to play well with “middle america” and he needs to lean into that persona this time around.
>You’ve got $90,000 to spend on one electric vehicle. What are you buying?
1982 Cheverolet El Camino (SS Conquista Edition) – $16,000 (Black Tie Motors, New Jersey)
Electric conversion and assorted retrofitting – < $74,000
Is this cheating? I’m unironically looking at buying it or a similar one (82-84). My wife says no but my garage says yes.
I’m not the only person sick enough to dream of a 5th generation El Camino EV conversion!
For $90k I’d get a Bolt and put the rest in an index fund to pay for my next car too when the EV market has settled in a bit more.
Polestar 3 and the performance pack..
2017 Porsche Cayenne e-Hybrid and all the warranty coverage I can get.
With an average used price of under $50,000, I figure I can afford at least 3 years, maybe 4 of extended warranty.
I would be on the lookout for a CPO Porsche Taycan. $90k may not get me there sadly.
I just installed a Tesla J1772 or whatnot charger at my business. I don’t see myself owning an electric car for a long time if ever (outside of a very small zoom zoom grocery getter). I do however, hope to attract the folks that can spend 90-150k on these cars to my business. I can see us adding a few more, probably just straight tesla chargers since all the brands are switching over soon.
Out of curiosity, what type of business?
We host events. Things likes celebrations of life, weddings, retirement parties, community dances and balance class for the seniors in town among others, but basically whatever people want to do in our space. We also have a room for people to spend the night. I run the parking for all events and I have been noticing a steadily increasing stream of hybrid/EV’s over the past couple years. I live in the north east usa. I have a neighbor with a Rivian, and he stopped by today and tested it out for me, thought it was a smart move to add it in.
For people wondering, he loves the Rivian(SUV version). Has a family and does do road trips.
Very neat, do you get paid/charge or is it free?
free for now, if I notice a lot of folks stopping by during non-events and using it. Maybe I would try to cover those costs, but I’d like it to remain free to my guests, so I would need to see how easy it is to switch back and forth, or if it is even possible.
Seriously? I’m not buying an electric vehicle until it’s cheaper than the gas powered vehicle I’m purchasing.
So Tesla/Fisker/US car makers/Germans/Japanese/Thai….$34,000 is the target
till then…F___ off with the battery crap
Wondering if you’ve looked at the total (say 5year) cost of ownership of gas vs electric?
The only electric car I find particularly appealing is the Taycan Cross Turismo and that exceeds the $90k budget.
So make mine a Volvo V60 Polestar PHEV. Still got “EV” in there.
Based on this result from a few year ago I imagine $90,000 would buy a fairly decent Milburn:
https://rmsothebys.com/en/auctions/hf19/hershey/lots/r0061-1915-milburn-electric-model-15-light-coupe/759546
The quick-change battery pack in the later cars seems like it would be a useful feature:
http://www.milburn.us/history.htm
Why does the LC500 have dirty eyeliner smears on its cheeks?
She has been drinking with her car girlfriends and has overdone it and gotten emotional. She’s just about to call her ex, a 4th gen F150 that’s currently not working but she thinks is still very handsome.
For $90,000 I’m getting a Taycan, no question. Anyway I’m glad the LC500 is finally getting some love. It’s been an amazing car for a long time and it’s been tragically overlooked by both enthusiasts and Lexus themselves. That being said, I’m worried that it’s getting too much attention at this point. So CALM DOWN EVERYONE…sheesh. Do you want to pick one of these up post depreciation or not?
I’m going to wait until the IONIQ 5 N pricing is announced before deciding what I’d pull the trigger on…
Keep us (and me in particular since clearly I’m our resident N Dude) posted if you go that route. I don’t love all the fake sound and transmission stuff but I’d love to hear about how it drives.
Curious about the range, too. The EV6 GT range suffered a lot compared to the AWD Wind, but I wonder if the extra development time helped shrink the difference on the Hyundai version.
That one with the removable/upgrade-able battery modules, and standard gauges,and no connectivity.
for 90,000$, I will buy a sail boat with an electric motor.
$90K for one EV available right now? R1S easy.
I would get a Honda e, store it at my in-law’s place in Japan.
It’s not exactly a vehicle but I would totally get one of those tricked out to-the-nines robotic dogs from Boston Dynamics. Those things are sweet.
Until they rend you limb from limb like the Black Mirror episode. Are the dogs “Three Laws Safe”?
Ha! Either way that is the closest I’m getting to an EV because if it starts to catch on fire I can chuck it off the balcony and into the pool by its “neck”. No way am I putting any current (rim shot) EV in my garage. Not interested. 🙂
Hmm, BD should really offer a robotic horse as an alternative to EVs/e-bikes.
I have long dreamed of cruising the neighborhood in a chariot pulled by a pair of those. I wonder how hard it would be to get the tax credit.
For $90k: A Lucid Air Pure or maybe a Polestar 2 and use the extra to add a level 2 charger at home.
R1S
If it’s use-it or lose-it on a single vehicle, most likely the Taycan. Otherwise I’d go with a Lyriq and spend the remainder on some garage-mounted solar panels.
Solar panels is a great idea.