Tesla has announced its sixth round of price cuts this year. These new prices have been released in the lead-up to its first quarter earnings, which are set to be released later today. The Model 3 has been reduced to a starting price of $41,380, which is $2,000 lower than the previous rate that was introduced in April.
The Model Y now starts at $48,380, which is $3,000 less than before, while the Long Range and Performance grades have experienced $3,000 cuts as well, starting at $51,380 and $55,380 respectively.
In January of this year, Tesla embarked on price cuts of up to 20% for its lineup. This was followed by cuts in March, before introducing a further reduction in April, allowing the Model S to be purchased from $86,380 and the Model X from $96,380. All of these prices include a $1,390 destination charge.
While the majority of Tesla’s lineup is eligible for up to $7,500 in federal tax credits, the company declares that the Model 3 with rear-wheel drive is only eligible for $3,750 in credits, due to new regulations that consider the sourcing of critical minerals and battery components.
In Q1 2023, Tesla manufactured 422,875 vehicles, a 36% increase YoY and a 4% rise compared to the previous quarter, but the company produced more cars than it delivered to customers for the second successive quarter.
Despite predictions by some market analysts in February that an EV price war may be on the horizon, prices have primarily remained steady for the majority of the industry, apart from Tesla’s repeated price cuts. However, the Ford Mustang Mach-E saw price reductions of up to $5,900 in January, before Ford raised the prices of the F-150 Lightning pickup truck for the fourth time in recent years.
