Tesla has just cut the purchase price for the Model 3 and Model Y in the United States by quite a significant margin. Some variants are up to 20 percent cheaper to buy than before and while it may be a bitter pill to swallow if you just took delivery of Model 3 or Y, it will certainly help spur demand.
The EV manufacturer had a good 2022 with a solid fourth quarter, but its delivery numbers in the US didn’t quite live up to analysts’ predictions. This lowering of prices for its entry level offerings could be a sign that Tesla wants to make sure it bolsters demand in order to meet its sales target for the year, reassure investors and stop its stock prices from falling further.
For the Model 3 RWD, Tesla has cut the price by $3,000, from $46,990 to $43,990, marking a 6.5 percent reduction. For the Model 3 Performance, Tesla applied a 14.2 percent price drop of $9,000, bringing the price down from $62,990 to $53,990.
For the Model Y, prices have been lowered by even more. The Model Y Long Range is now 20 percent cheaper than before, now costing $52,990 compared to $65,990 – that’s $13,000 less, making the five-seater model again eligible for the $7,500 federal tax credit. The Model Y Performance is around 19 percent cheaper, now costing $13,000 less than before. Its price therefore drops from $69,990 to $56,990.
Tesla also made the larger Model S and Model X cheaper. For the Model S, the price has dropped by $10,000 (around 10 percent), from $104,990 to $94,990, while for the Plaid it’s even more significant – 15 percent, or around $21,000, bringing its price down to $114,990 from $135,990. The Model S Plaid gets the biggest price reduction of the entire lineup.
The Model X is also cheaper, by 9 percent or $11,000, now costing from $109,990 instead of $120,990. The Plaid variant is 14 percent cheaper too, taking $19,000 off its previous price of $138,990 and bringing it down to $119,990.
Keep in mind, though, that these big price cuts come after a year of price increases, that brought all models’ prices to never-before-seen levels. The manufacturer hopes that this will allow its vehicles to remain America’s most popular EVs in the face of ever more talented rivals being launched.