Late last night Tesla cut the price of the Model 3 & Y by as much as $2,250. The new price cuts mark the lowest starting price for some Tesla variants and have reignited questions about demand for Tesla vehicles.
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Tesla recently posted the company’s production and delivery numbers for the third quarter of the year. In the announcement, Tesla said the company produced and delivered 330,000 and 335,000 vehicles respectively.
This is a 10% production decrease quarter over quarter. There are several reasons to account for Tesla’s subpar Q3 performance including the launch of the refreshed Model 3 in China & Europe and the closure of Tesla’s Texas facility for scheduled upgrades.
Although Tesla has shared the reasons behind the decreased quarterly production and delivery numbers, the higher-than-expected decrease has nonetheless reignited questions of demand for Tesla vehicles.
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And today, further fueling the demand questions, Tesla has once again cut prices for two of the company’s highest-volume-selling vehicles. The new Model 3 and Model Y price cuts see the vehicles’ starting prices fall to historical lows.
Tesla cut the price of the Model 3 RWD and Performance by $1,250. The Model 3 RWD now starts at $39,000 down from $40,250 a day earlier. The Model 3 Long Range saw its prices fall from $47,250 to $46,000.
The Model 3 Performance on the other hand saw the largest price decrease with price cuts of $2,250. Model 3 Performance now starts at $51,000, down from $53,250.
Including the $7,500 tax incentive and the new price cuts, it means it is now possible to buy a brand new Model 3 for $31,500 and a Model 3 Long Range for under $40,000.
This is wonderful and marks the lowest price the Model 3 can be purchased in years. This is certainly exciting for customers however, what’s even more impressive is Tesla’s price cuts for the Model Y.
The Model Y Long Range & Performance saw their prices cut by $2,000 and following a string of price cuts throughout the year, this is the lowest the Long Range & Performance variants of the Model Y have ever cost.
The Model Y Long Range now starts at $48,500 down from $50,500 and Model Y Performance is now $52,500 down from $54,500 a day earlier. The newly introduced RWD Model Y on the other hand stayed the same at a starting price of $44,000.
Including the the $7,500 tax incentive it means a Model Y now starts for only $36,500 and the Model Y Long Range now costs below $41,000. Just to put these prices into perspective, back in March 2021, which is when the Model Y Long Range had its lowest starting price, it used to cost $49,000.
Since March 2021, Tesla has made several improvements to the Model Y Long Range which now costs even cheaper. This means you can now buy a better product at a lower price. It’s not exactly clear how these price cuts will affect Tesla’s bottom line however, this is certainly a win for the consumer.
Currently, this is all the information we’ve regarding Tesla’s price cuts. However, we’ll be sure to keep you posted if we learn more about Tesla’s plans. Until then, make sure to visit our site torquenews.com/Tesla regularly for the latest updates.
So what do you think? Excited to see further price cuts to the Model 3 and Model Y? What do you think the price cuts mean about demand for Tesla vehicles? Let me know your thoughts in the comments below.
Image: Courtesy of Tesla, Inc.
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Tinsae Aregay has been following Tesla and The evolution of the EV space on a daily basis for several years. He covers everything about Tesla from the cars to Elon Musk, the energy business, and autonomy. Follow Tinsae on Twitter at @TinsaeAregay for daily Tesla news.
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