Tesla is once again lowering the prices of its vehicles in the US, making them even more affordable. Despite a difficult economic environment, Tesla is looking to create the conditions for the further spread of electric vehicles.
Tesla launched another round of price cuts for its entire line of vehicles in the United States on April 6. Recent price cuts range from 2 to 6 percent depending on model and configuration. Tesla Model 3 received the smallest price cut, while Model S and Model X received the most significant.
Tesla Model Y is the manufacturer's best-selling model. Now a new, base variant of the car has been introduced, starting at $51,630 (including a $1,390 shipping cost). These are vehicles manufactured at Giga Texas with a dual-motor AWD powertrain powered by 4680 battery cells. The vehicle offers an EPA-estimated range of 279 miles. That is just 50 miles less compared to 330 miles for Model Y Long Range. This sounds like a great deal, especially since these are vehicles with a new design, new technology of production, and a structural battery pack.
In addition to introducing the new variant, Tesla has cut prices on Model Y Long Range and Performance versions by $2,000 each. Long Range now starts at $54,630, and Performance starts at $58,630 (both including a $1,390 shipping cost). In addition to these price cuts, Tesla also reminded consumers on its website that all Model Y variants are eligible for up to $7,500 in federal tax credits under the new IRS rules. This means that Model Y customers who qualify for benefits can get an even better deal.
The base Tesla Model 3, powered by LFP batteries, will lose half of the current $7,500 federal tax credit starting April 18. However, the manufacturer reduced its price by $1,000. The base Model 3 RWD now starts at $43,630 and Model 3 Performance starts at $54,630 (both including a $1,390 shipping cost). Model 3 Performance is eligible for the full $7,500.
Tesla has also implemented even more significant price cuts on its Model S and Model X vehicles. The price of the base Model S has been reduced by $5,000 and now starts at $86,630. The base Model X is also $5,000 off and starts at $96,630 (both include a $1,390 shipping cost).
During the Q4 2022 Earnings Call, Elon Musk explained that reducing the price of the company’s cars is important because there are a huge number of people who want to buy a Tesla car but cannot afford it. Thus, the price changes the company has applied really matter to the average consumer. Tesla's goal has always been to make electric vehicles available to as many people as possible, so Musk is glad his company is finally able to do this.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.