Teslas in the US Just Got Less Expensive

There are sudden big price drops on Model 3, Model Y cars in US, Europe as demand slows
By Jenn Gidman,  Newser Staff
Posted Jan 13, 2023 4:10 PM CST
Teslas in the US Just Got Less Expensive
Photo of a 2023 Model Y.   (Tesla)

Last week, Tesla announced it was slashing the prices on all of its Model 3 and Model Y vehicles in China, in an attempt to keep up with a demand slowdown spurred by a slumping economy. Now, the US and Europe are getting a similar deal: Mashable reports the electric car manufacturer is applying a "significant" price cut to those two models in those regions as well. A Model Y, for example, which just a couple of days ago had a starting price of $65,990, is now showing that number as $52,990. And that's not counting a $7,500 federal tax credit, which it was too expensive to qualify for previously.

That means the Model Y that was starting at around $65,000 earlier this week could now be had for $45,490—a $20,000 or so savings. The Model 3 is showing a more modest price reduction, starting at $43,990 instead of $46,990. That model also qualifies for the $7,500 tax credit, though, which means a total savings of more than $10,000, bringing the price down to $36,490. Some of the company's higher-end vehicles, including the Model S and Model X, are also experiencing a price dip. Meanwhile, Germany and the UK are posting similar price slashes, with the starting Model 3 going for about $6,500 and $6,700 less, respectively. (The steep discounts may not bode well for the company.)

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