Just four months after going on sale.
After going on sale only four months ago, Tesla has just reduced the price for its Model Y crossover. Now priced from $51,190 including the $1,200 destination fee, the Tesla Model Y previously cost at least $54,190. Do the math and that's an incredible $3,000 price cut from one month to the next. It's also not without precedent.
In late May, the Tesla Model S and Model X each had a $5,000 price cut while the Model 3 had $2,000 taken off. Tesla did not explain why it suddenly cut the Model Y's price though Electrek quickly caught spotted it, which you can see it for yourself on the official website. Those who've already bought a Model Y, well, in hindsight it would have been best to wait a little longer.
It's also worth pointing out that Tesla's latest move also reduces the value of all early Model Ys. But why is Tesla doing this in the first place? Again, no explanation was provided though a good guess would be expected decreased demand as a result of the coronavirus pandemic. People simply either have less money to spend right now and/or might feel a bit uneasy making a big purchase.
Tesla's price cut could tempt customers to take the plunge as the deal certainly won't last forever. The effort to prevent decreased sales could also help Tesla retain its market momentum.
Earlier this month, it overtook Toyota as the world's most valuable automaker with a market value of $209.47 billion. That's about $4 billion more than Toyota even though it sold approximately 30 times more vehicles last year. Another impressive accomplishment happened in April when Tesla CEO Elon Musk announced the Model Y was already profitable, the first time one of the company's vehicles did so in the first quarter of going on sale.
At some point, the new Model Y price will increase again and, chances are, Tesla will do with so without any announcement.