Tesla has significantly reduced it across its lineup in the US and Europe, in an apparent effort to boost sales, after steadily increasing prices over the past two years, according to an engadget report.
The price of the least expensive EV, the Model 3 RWD, dropped from $46,990 to $43,990, while the long-range 5-seat Model Y dropped 20% from $65,990 to $52,990. That means the latter model is now eligible for a $7,500 federal tax credit. dollars, so the final price drop will be $20,500 – more than 30%.
All other models, including the Model S, Model X (both regular and trim versions), and performance versions of the Model 3 and Model Y saw price cuts.
However, the price of the 7-seat option on the Model Y has increased by $1,000 to $4,000. While that puts the price at more than $55,000, it still qualifies for the tax credit because it’s considered an SUV, and in Germany it’s been lowered. Prices for the Model 3 and Y decreased by 1 to 17%, also down in Austria, Switzerland and France.
To receive the full $7,500 discount, customers will have to order before mid-March, when it is expected to be cut in half.
The tax rebates apply to SUVs under $80,000 and cars under $55,000, and the Model Y falls into both classes, depending on the number of seats, which meant some five-seater models weren’t eligible — which triggered It’s CEO Elon Musk “tinkering around,” and now it appears all Model Y EVs except the Performance Edition are eligible.
Late last year, it was reported that Tesla stock was piling up after years of strong sales, first with reports in China, then the US. Tesla recently cut prices in China and later refused any compensation to customers who complained. The Model 3 now starts at 229,900 yuan. ($33,425) she has.
Neither Tesla nor CEO Elon Musk intervened in the price cuts, but potential buyers will undoubtedly be pleased (and new buyers not).
The Model 3 was originally supposed to cost $35,000 and shipped in this configuration for a short time, but has seen steady increases to the $46,990 price announced in March 2022. Last month, Musk said “dramatic changes in interest rates” had affected on the affordability of the car and that Tesla could lower prices.