Tesla has once again cut prices. As of Thursday, the automaker’s online configurator shows discounts on every model in its lineup.
The Model Y gets the biggest cut, around 20% across the entire lineup. Including the new, higher $1,390 destination fee, the base Model Y Long Range now starts at $54,380, while the Performance Model Y now starts at $58,380.
There could be good reason for the deeper cuts to the Model Y. Five-passenger versions of the Model Y are eligible for the same clean-car tax credit as passenger cars — meaning buyers can ask for $7,500 (possibly through March) if the vehicle’s MSRP is no more than $55,000. With buyers being able to claim that credit again, the Model Y’s effective price for many U.S. drivers will now drop below $47,000 once the tax credit is applied.
With the Model Y starting price of $68,390 as of yesterday, that’s actually a $20,000 discount.
Tesla Lineup 2022 (Courtesy of Tesla, Inc.)
The Model 3 currently starts at $45,380, while the Model 3 Performance’s base price is currently listed at $55,380. Those are 6% and 14% changes to base specs and Performance before target charging, respectively.
This comes after Tesla issued price cuts for the Model 3 and Model Y in December. The original automaker. $3,750 discountthen doubles to $7,500 for cars delivered December 21-31. That comes after a flurry Tesla price increaseincluding one in June pushed the Model Y’s starting price to $67,000.
2022 Tesla Model S Plaid
Tesla also reduced the base price of the Model S by about 10% to $96,380. The Model S Stripe Performance variant now starts at $116,380, 15% less than before, excluding destination. The price of the Model X has also been brought down to the same extent, with the base Model X now starting at $109,990 and the Model X Plaid now starting at $119,990.
These discounts help reverse multi-year price increases for Tesla vehicles and come as the used Tesla market calms down. Used Teslas often hold their value better than other electric cars, but a recent report suggests that price has dropped fast. The report shows that the average price of a used Tesla peaked in July 2022 at $67,297 but fell 17% in November 2022, compared with a 4% drop in the auto market. through general use.
The cuts come after a record year for Tesla. According to Automotive News Data Center estimates, the brand has sold 491,000 cars in the US by 2022, making it the best-selling luxury car brand in the country. Tesla doesn’t disclose sales by country or region, but estimates Tesla is ahead of BMW by about 158,000 vehicles.
However, Tesla is also facing more competition in the electric vehicle market, and many other brands are planning new electric vehicles in the future.
