Tesla lowering prices again.
Tesla just lowered the prices on their Model Y and Model 3 today. Again…
The hugely popular Model Y now starts at $47 000. This is for the new “regular” Model Y with a shorter range of 279 miles, which was $50 000 just yesterday. Similar cuts can also be seen on the Long Range Model Y now at $50 000. The federal tax rebate is available for these models which could bring down the actual base price to $39 500 for the base Model Y. And that is still before any local incentives. Which basically now brings down the price of a Tesla Model Y to a Honda CR-V Sport Touring Hybrid. Quite an amazing turn of events since about 3 months ago it was competing with models from Mercedes and BMW.
The Model 3 sedan now starts at $40 000. After incentives that put it right against cars like a loaded Honda Civic. Again, quite a change from just a few months ago.
In other countries, Tesla does offer a RWD version of the Model Y. Something like this n the US would probably bring the Model Y base price to around $44 000. That move would have the potential to improve sales by a lot, something Tesla might not even be ready for yet.
To put the new pricing in perspective, since the Model Y $47 000 is AWD only in the US, let’s compare it to other AWD EVs. (Keeping in mind the Tesla is still loaded, including a glass roof, heated seats, a fantastic Sound System, etc…
- The base Kia EV6 Wind AWD starts at $52 600.
- The base Hyundai Ioniq 5 SE AWD starts at $50 335.
- The base Toyota Bz4X AWD starts at $44 080.
- The cheapest AWD version of the VW ID.4 starts at $47 795.
- The Mustang eAWD Select starts at $48 995.
As you can see, Tesla is now actually the cheapest choice among its competitors. Only the base Toyota offers AWD for less. But you get a range of just 228 miles and zero options. None of the cars above can match the Model Y’s standard equipment and range.
I have to admit that I still do not believe Elon Musk’s claim about the Model Y becoming the best-selling car in the world. For so many reasons. It is much more expensive than the current world best-seller, the Toyota Corolla. It is an EV, something many people around the world still don’t want or just aren’t ready for. Yet, despite all the reasons in the world, it seems the Model Y might be getting there sooner than later.
While the drops in prices are amazing, we all know there is a revised Model 3 coming out pretty soon. And soon after, similar improvements will come to the Model Y. It will be interesting to see if these revisions will bring new increased prices as well. Or if Tesla decides to offer the new models for even less money.
The huge worldwide success of the Model Y defies all logic to me. Since it has been that successful while the base price was $66 000, I cannot imagine how popular it will be starting at $47 000…
Conversation 4 comments
Vince said: “This is for the new “regular” Model 3 with a shorter range of 279 miles, which was $0 000 just yesterday.” So the Model 3 is free now?
A steal of a deal for the Model 3. I would hate to see what that does for the depreciation of current preowned Model Y’s and 3’s. If I was a current owner, that might piss me off a little tbh.
Why? Cars drop and raise in price all the time.
It does make me a bit warm the price drop of more than $10k of what I brought the Model 3 for last year. But with dropping the price I haven’t heard from Tesla anything about the quality staying the same. I feel it is gonna get cheap.