Tesla cuts prices, new cars under $40K

Tesla has reduced prices for Model 3 and Model Y vehicles twice this month, making them more affordable. The company is now lowering prices in 2023 to maintain demand, after continuously increasing prices over the past two years.

In early January, Tesla initiated a significant reduction in prices, followed by smaller adjustments in February for the Model 3 and Model Y, and for the Model S and Model X in the preceding month. Despite these price cuts, Tesla astonished the industry by further lowering prices for its entire lineup earlier this month. Now, after only a few weeks, Tesla has made another price reduction on the Model 3 and Model Y for customers in the United States.

Tesla Model 3

At a price of $39,990, the Model 3 Standard Range RWD has become Tesla’s least expensive car, down from its previous cost of $41,990. This is noteworthy because it’s been a while since Tesla has provided an electric vehicle with a starting price below $40,000.

It’s worth mentioning that the federal tax credit for this specific model has been reduced from $7,500 to $3,750, citing battery source requirements. In light of this reduction, Tesla has taken the initiative to directly decrease the price to account for the reduced incentive. The price of the Model 3 Performance remains unchanged, and the Model 3 Long Range is still not available in the United States.

Tesla Model Y

Each variant of the Model Y lineup has undergone a significant price reduction of $3,000 overnight. As a result, the Model Y AWD is now available for $46,990, which is a decrease from $49,990. The Model Y Long Range’s new price is $49,990, down from $52,990, and the Model Y Performance costs $53,990, down from $56,990.

It’s noteworthy that all new Model Y vehicles are eligible for the full $7,500 tax credit, which is not the case for the Model 3. Moreover, in certain regions where state incentives apply, it’s feasible to purchase a brand-new Model Y for about $35,000.

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