Tesla EVs Are Like 'iPhones On Wheels,' Says Elon Musk's Brother: 'We Don't Function The Way Car Companies Function'

Elon Musk‘s brother and a member of Tesla Inc‘s board of directors Kimbal Musk on Sunday compared the EV company to iPhone maker Apple Inc.

What Happened: According to Kimbal, Tesla’s cheapest offering— the Model 3— was transformative for the company given its lower price point. “It’s a great car. It’s even a better model 3 now than it was five years ago,” Kimbal said in an interview with Lex Fridman published on Sunday.

Though the Model 3 was introduced in 2017, Tesla launched its refreshed version earlier this year in the U.S. The refreshed version has slight changes to both the vehicle’s interiors and exteriors.

Tesla keeps updating its products to make them better such as with the Model 3, Kimbal said. “We don’t function the way car companies function. We function more like how iPhone company Apple works,” he said while also terming Tesla vehicles “iPhones with wheels.”

Why It Matters: Tesla currently has two Model 3 versions listed on its U.S. website, namely the rear-wheel drive and the long-range, starting at $38,990 and $47,740, respectively.

However, the Model 3 is not eligible for a federal EV tax credit of $7,500, unlike Tesla’s best-selling Model Y SUV. The tax credit brings the effective price for eligible buyers of the Model Y lower than Model 3 to $36,490.

Further, contrary to Kimbal’s claim, Tesla has yet to bring in major design changes to any of its other vehicles besides the Model 3.

Ross Gerber, the president and CEO of Gerber Kawasaki Wealth and Investment Management and a Tesla bull and investor, wrote on X, “The new model 3 is sweet – upgrades are great. Now do the same with the model Y. What a great vehicle line up…”

However, all Tesla vehicles do receive software updates aimed at vehicle improvement.

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Read More: Elon Musk’s Brother Kimbal Says He Wasn’t Happy With GM Killing Its ‘Ugly As Sin’ Electric Car