And the Model Y is massively cheaper, too, all in a bid to get more sales and get federal tax credits.
Tesla has slashed the prices of several models in the United States and Europe after doing the same in Asia, seemingly in an attempt to boost sales. After a series of substantial price increases in the USA in 2022, these price cuts will come as welcome news to consumers wanting to drive off in a new Tesla. It will also further boost Tesla's fortunes after it toppled BMW to become the best-selling luxury brand in the USA last year, despite the EV maker falling short of delivery expectations in the fourth quarter.
The price cuts range between 6% and 20% depending on the model, and combined with newly available tax credits on certain Teslas, the brand's cars have suddenly become a lot more affordable than they were.
Starting with the Model Y crossover, it now costs $52,990 for the Long Range, a significant drop from $65,990 a couple of days ago. At $56,990, the Model Y Performance now retails for less than the Long Range used to cost. Both Model Y trims now cost $13,000 less than before.
For the base Model Y, the effect of the $7,500 tax credit for which it now qualifies means that this specific variant could be around $20k cheaper than it was mere days ago. You'll now need to pay $4,000 for the Model Y seven-seat option, though, which is $1,000 more than before.
The Model 3 sedan remains the most affordable Tesla, and now even more so. In rear-wheel-drive form, it now costs $43,990 (down by $3,000), while the Model 3 Performance goes for $53,990 ($9,000 less). We did notice a small increase in Tesla's destination fee to $1,390, but that's easily canceled out by the lower vehicle prices.
The Tesla Model X and Model X Plaid now cost $109,990 and $119,990, decreases of $11,000 and $19,000, respectively. But the largest price drop is reserved for the Model S Plaid. At $114,990, it's a whopping $21,000 cheaper. The normal Model S has now slipped back below the six-figure mark and costs $94,990, down by $10,000.
For customers who knew nothing about these price cuts and recently purchased a new Tesla, it will be frustrating to see how much they could've saved had they waited a bit longer. In China, we've seen such customers who paid older, high prices for their EVs respond with protests. The price cuts follow another rare move from Tesla in December, where it offered tempting discounts of up to $7,500 if customers took delivery of Model 3 or Model Y cars before the end of the year. It's no secret that this was done to lure buyers away from rival manufacturers with access to a tax credit of the same value.