Tesla has announced another round of price cuts, which marks the sixth time that it has done so this year.
On Tuesday, Tesla website displayed the new lower pricing in advance of the company’s first quarter earnings announcement on Wednesday. One of the reductions has brought down the base price of the Model 3 to $41,380, accompanying the mandatory $1,390 destination charge which is $2,000 less than the previous base price disclosed earlier this month.
2023 Tesla Model 3
With the new base price, the entry-level rear-wheel drive Model 3 is now priced below $40,000 when including the base version’s $3,750 EV tax credit amount, provided that the customer meets the income requirements. This amount is half of the potential $7,500 provided by the federal government, and is determined by new regulations launched on Tuesday that account for the minerals and battery components sourcing.
While the Model 3 Performance seems to have remained unchanged in price, the entire Model Y lineup has been reduced by $3,000. The new base price for the Model Y now starts at $48,380 with destination, and the Long Range and Performance versions start at $51,380 and $55,380, correspondingly. According to recent reports, the Model Y is now priced competitively with offerings from other brands, both electric and non-electric.
2023 Tesla Model 3
The significant turn occurred in January when Tesla reduced prices by up to 20% after a series of price hikes. Later, in March, the company lowered prices on the Model S and Model X models by up to $10,000. In April, Tesla dropped prices for both models again, taking the Model S’s base price down to $86,380 and the Model X’s starting price to $96,380.
With falling demand compared to supply and the price drops of the past few months, used electric vehicle values have dropped, with the Model 3 leading the way. Tesla’s earning update later today may discuss the concerns regarding production against distribution and possibly suggest further price cuts.
I have been a Tesla owner for over 3 years now, and have seen the company go through many ups and downs. I remember when the Model S first came out, it was priced at over $100,000. Tesla has since then cut the price of the Model S six times, and it is now priced at just over $75,000. I think that Tesla is doing a great job of making its products more affordable for the average person, and I hope that they continue to do so in the future.
I have been following Tesla closely ever since I learned about their mission to accelerate the world’s transition to sustainable energy. I think it’s amazing that they are constantly finding ways to make their products more affordable, and I’m really excited to see what they do next.
I have been following Tesla’s price cuts closely this year, as I am in the market for an electric car. I was originally looking at the Model 3, but after the latest round of price cuts, I am now considering the Model S. I think it’s great that Tesla is constantly reducing prices, as it makes their cars more accessible to a wider range of people.