Daily Tech Headlines Tesla's New "Affordable" Model Y And 3 Face Skepticism Due To High Costs - DTH
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Oct 8, 2025 Tesla's latest 'affordable' Model Y and Model 3 are met with skepticism over their high prices and loss of tax credits. Microsoft's planned price increase for Xbox Game Pass Ultimate has hit pause in certain markets. Google unveils its Gemini 2.5 model, enhancing AI agents' abilities to interact with user interfaces. Additionally, Amazon is set to pilot prescription drug kiosks in Los Angeles, while Mozilla introduces a new profile management feature for better privacy. In the backdrop, China intensifies its campaign against online pessimism.
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Pricing Undercuts The Affordable Claim
- Tesla marketed new Model YN3 and 3 as "affordable" but priced them near $37k–$40k.
- That pricing undercuts the "sub-$30k" expectation and spurred skepticism and a 4.5% stock drop.
Range Alone Doesn’t Justify Price
- The new trims offer 300+ miles but remove premium features and are only about $5,000 cheaper than higher trims.
- That makes them costlier than earlier cheapest models when a $7,500 tax credit applied, reducing perceived value.
Keep Auto-Renew To Maintain Current Price
- Microsoft will apply Game Pass Ultimate price increases initially only to new purchases in some markets.
- Existing subscribers in designated countries keep current rates if they keep auto-renew enabled and will get advanced notice of future changes.