#Tesla price drops full#

It almost reversed the price increases over the last few years entirely.Īs we recently reported, the price drop has been working in the US where it also arrives at the same time as the new $7,500 tax credit for electric vehicles.

Tesla has implemented some significant price cuts across its entire lineup and in all markets. On top of that, the average price of electric vehicles has been steadily increasing over the last two years thanks to high demand, supply chain issues, and general inflation.īut now things are starting to get interesting for the first time on the EV pricing front. However, a higher sticker price remains an important psychological barrier for many buyers even after considering the total cost of ownership. I always counter it by asking them how much they spend on gas and with those savings, the cost of ownership is often cheaper than a gasoline vehicle. The number one thing I hear from people that are interested in buying an electric car is that the price is high. We will find out tomorrow at the Q1 2023 earnings call how much the price cuts since then have cut into their margins, but we won’t see the impact of tonight’s price cuts until the Q2 2023 report, and going by Tesla’s track record so far this year, who knows how many more price adjustments there will be by then.Tesla has just started what could become a major EV price war, and it could change the landscape as the automaker is in a great position to win that war. During the Q4 2022 earnings call, and after the first round of massive price cuts in January, CFO Zachary Kirkhorn said Tesla’s margins were still above 20%. This big question is how these successive price cuts have impacted Tesla’s industry-leading margins. Add in state-level incentives, like those available in California and a brand new Model Y can now be purchased for as little as $37,490 in Tesla’s biggest market in the US.

#Tesla price drops full#

The newly added Model Y AWD with 4680 cells now starts at $46,990, while the Long Range and Performance variants now start at $49,990 and $53,990 respectively.Īll of these prices are before incentives, and unlike the Model 3 RWD, all Model Y variants qualify for the full $7,500 tax credit. The Model Y price cuts apply to all variants, and they are all the same at $3,000.

Performance: $53,990 (no change) Model Y Price Changes.

There was no price change to the Performance variant, and the Long Range is still unavailable to order. Add in the now reduced $3,750 US tax credit effective as of today and the Model 3 could be purchased for $36,240. The entry-level Rear-Wheel Drive (RWD) variant of the Model 3 now starts at $39,990, down from $41,990. Unfortunately there have been no similar price drops in Canada. The price drop has brought the entry-level Model 3 to below $40,000 USD, before incentives.Īfter cutting prices earlier this month across their entire lineup in the US, Tesla is now lowering the price on the Model 3 and Model Y by as much as $3,000. Tesla has implemented another round of price cuts in the US, less than 24 hours before the automaker announces its Q1 2023 financial results.