The base, Long Range and the Performance Model Y vehicles have been trimmed by $3,000 and now cost $46,990, $49,990 and $53,990, respectively. Credits for the Model 3 have been slashed to $3,750, but all other Tesla models will still be eligible for the full $7,500 credit as mandated by the Inflation Reduction Act.Īccording to Engadget, Tesla also cut the price on the consumer favorite Model Y. Treasury which went into effect April 18. Unfortunately for existing and future Model 3 owners, the price cuts, which were announced prior to the company’s first-quarter earnings report of April 19, coincide with the reductions in EV credits imposed by the U.S. More Bang for Your Buck: These 20 Cars Will Last You Twice as Long as the Average Vehicle Related: 9 Best Hybrid Cars Under $30K If You’re Unable To Go Fully Electric “We’ve taken a view that pushing for higher volumes and a larger fleet is the right choice here versus a lower volume and higher margins.” “While we reduced prices considerably in early Q1, it’s worth noting that our operating margin remains among the best in the industry,” Musk said. As CNN reported, the decision to lower prices and ensuing lower short-term profits was necessary, according to CEO Elon Musk. This is the sixth time Tesla has cut prices on its electric vehicles this year and second time this month. Back in February, when the Model 3 was priced at $42,990, Bloomberg reported that it was selling for $4,930 less than the average new American vehicle. The entry-level EV costs 13,000 less today than it was yesterday (a 20 percent drop. vehicles today, with the biggest drop affecting the base Model Y. However, the Model 3 is now less than the average price of a new car, making it a more affordable option for consumers looking to switch over to an electric vehicle. Tesla announced large price cuts for its U.S. This is true even though it is still more expensive than many hybrid plug-ins and 2023 EV models, like the Chevy Bolt EUV, the Mazda MX-30, the Hyundai Kona Electric and the Kia Nero EV, per Edmunds rankings.

As reported by CNBC, it currently sits at 13th place in 2022 vehicle sales at 211,641 units, per Motor Intelligence data.Ĭutting $2,000 off the Model 3, it has a base cost of $39,990, making it a relative “bargain” among EVs. The Model 3 - a four-door sedan with rear-wheel drive - is already popular and is the least expensive model in Tesla’s line. New Car Market: Ford, Tesla Drop Prices by Up to 20% Thanks to Millions of Unwanted EVsįind Out: How To Get Cash Back on Your Everyday Purchases

Tesla slashed prices