Tesla announces price cuts and new Model Y variant in latest update

Tesla made another announcement on Thursday that it would reduce its prices after the earlier price cuts failed to boost sales. Tesla’s website now reflects updated pricing in the U.S., with a $1,000 reduction for both Model 3 variants and reductions between 3.4% to 5.6% for the rest of the models.

A new and less expensive Model Y variant priced just under $50,000 was also added by the automaker. Eligible buyers of the new Model 3 and Model Y vehicles were confirmed by Tesla to qualify for a federal tax credit. Nevertheless, due to new guidance from the IRS, the credit for the Model 3 RWD variant will be reduced to $3,750 on April 18th.

Here are the updated prices for each of the models and variants:

Model 3

  • Model 3 Rear-wheel drive: $41,990, down 2.33% from $42,990
  • Model 3 Dual motor, all-wheel drive, Performance: $52,990, down 1.85% from $53,990

Model Y

  • Model Y Dual-motor, all-wheel drive: $49,990
  • Model Y Dual-motor, all-wheel drive, Long Range: $52,990, down 3.64% from $54,990
  • Model Y Dual motor, all-wheel drive, Performance: $56,990, down 3.39% from $58,990

Model S

  • Model S Dual-motor, all-wheel drive: $84,990, down 5.56% from $89,990
  • Model S Tri-motor, all-wheel drive, Plaid: $104,990, down 4.55% from $109,990

Model X

  • Model X Dual-motor, all-wheel drive: $94,990, down 5% from $99,990
  • Model X Tri-motor, all-wheel drive, Plaid: $104,990, down 4.55% from $109,990

Note that the Model 3 and Model Y prices listed do not incorporate the $7,500 credit they are eligible for.

The substantial price reductions of up to 19.7% announced in mid-January, and another modification made to the high-end models in March, succeeded in increasing sales volume in a challenging economic climate and amidst growing competition. Nonetheless, the advantages have been limited.

Earlier this month, the first-quarter deliveries report demonstrated that the results were approximately as anticipated, which led to a sell-off of the shares. Additionally, sales of the higher-end Model S and X vehicles have continued to be sluggish.

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