Tesla Reduces Prices On Model 3 and Model Y Again: Model 3 RWD Under $40,000

Tesla Reduces Prices Again

Tesla has reduced the prices of its vehicles once again. Here are the latest changes:

Model 3:

* RWD: Now $39,990 (from $41,990)
* Performance: Unchanged

Model Y:

* AWD: Now $46,990 (from $49,990)
* Long Range: Now $49,990 (from $52,990)
* Performance: Now $53,990 (from $56,990)

Tesla has dropped the price of the Model Y long range by nearly 25% in just the last 3 months.

It appears that the Model S and Model X vehicles are unchanged in pricing.

This move was not a surprise because Tesla is going to continue to cut the prices of their vehicles as much as they possibly can to make them affordable to the masses. The end game for Tesla is a fleet of autonomous vehicles. All roads lead to FSD.

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Will Price Drops Continue?

With these latest price cuts, one may wonder if they are going to continue. I think they are going to continue. The price of Lithium has fallen dramatically, by almost 70%. The battery is the most expensive part of an EV, and having Lithium drop in price means less cost to build an EV for Tesla (or anyone else for that matter).

Elon Musk has said that the Model Y will be a world-wide best-selling vehicle and with even more price drops, this is going to accelerate.

I would expect to see continued price cuts around the world for Tesla vehicles. The U.S. is in a slower economic state right now, and I see that lasting probably until 2024 some time. That means lower prices for Tesla vehicles.

The only way for the prices to go up on these vehicles is if Tesla can't keep up with demand. Tesla is creating more and more demand for the Model 3 RWD and Model Y long range, especially with these price cuts.

I expect the Model 3 RWD to go down to around $37,000 and to bottom out there and the Model Y long range to bottom out around $47,000.

Do you agree with these price cuts from Tesla? Will prices keep going down?

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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.

Image Credit, Tesla, Screenshot