Tesla Inc (TSLA:US) has reduced the driving-range estimates for various models in its lineup, including the Model X, S, Y, and 3. This comes as a response to new U.S. government regulations aimed at ensuring accurate real-world performance representation.
Tesla has an infamous history of providing range estimates on its cars that exaggerate the actual performance capabilities of its vehicles. In a report previously published in July ’23, Tesla had an assembled team whose main task was to thwart any customer bringing in their Tesla for a service or any complaint regarding a car performing below its said driving range. According to sources, managers informed employees that each canceled appointment was contributing approximately $1,000 in savings for the manufacturer.
Tesla's website updated its Model Y Long Range to go 310 miles. For the performance variant of the Model Y, Tesla reduced the range from 303 miles to 285 miles. The new rules also make it mandatory for automakers to test electric vehicles in their default driving mode. This aids in determining the accurate range and fuel efficiency assessments.
In turn, these regulations appear to be less turbulent for Tesla’s competitors. After TSLA, Ford Motor Co (F:US), General Motors Co (GM:US), and Hyundai Motor rank as the top sellers of electric cars in the country. Ford and GM's representatives confirmed that their models wouldn't need readjustments in their given range estimates as per regulations. GM stated that its testing procedures complied with the new rules even before the announcement, while Hyundai has yet to respond to the matter.
Aside from being the top seller of EVs in the U.S., Tesla is also one of the most popularly traded stocks by Congress members. In the last reported trade of TSLA stock in 2023, Rep. Ro Khanna’s child sold up to $15,000 worth of shares. Other politicians who loaded off the stock in the year included Senator Tommy Tuberville and Rep. Josh Gottheimer. The investments in the EV stock outweighed though, with Senator Sheldon Whitehouse and Rep. Michael Guest’s spouse buying TSLA in addition to Tuberville, Gottheimer, and Khanna.