Home » Latest News » Green & EV » Model 3, Y Price Cut Again: Is an EV Price War Imminent?

Model 3, Y Price Cut Again: Is an EV Price War Imminent?

Model 3, Y Price Cut Again: Is an EV Price War Imminent?

Tesla’s customer website shows that it cut the prices of its Model 3 and Model Y even more on Thursday night. These new electric vehicles are now the cheapest they’ve ever been.

The move, which takes up to $2,250 off these models based on the version, comes right after news earlier this week that Tesla deliveries around the world fell short of what was expected in the third quarter. If you look at them as a single quarter, they might not be on track to meet the company’s 2023 goal of 1.8 million vehicles.

Battle Approved Motors. Invest Today!!
Get a $250 Amazon Gift Card. Apply Today!

Tesla also just released a base Model Y with rear-wheel drive. This means that the Model Y is now much cheaper to buy than it was a few weeks ago. It now starts at $45,380, which includes getting there. The actual price is only $37,880 if you can get the $7,500 EV tax credit. And before the discount, the Long Range was already less than $50,000.

At the moment, the Model 3 Standard Range is the most expensive model in the line-up. It costs $40,380. Even less if you get the $7,500 EV tax credit. That’s only $32,880, and some state benefits will make that even less.

Read More: Battle Approved Motors — a New Hidden Gem on WeFunder, Opens Funding Round to Existing Investors

Tesla Cuts Model X Price to Qualify for New EV Tax Credit

The price cut is the latest in a series that began late last year. The biggest adjustment was Tesla’s 20% price decrease in January 2023. In 2023, Tesla brought back the Standard Range Model S and Model X and cut their pricing by tens of thousands of dollars. The Model X now qualifies for the new SUV EV tax credit of $80,000. This is because its price dropped recently.

A new version of the Tesla Model 3 called Highland is being rolled out to Europe, China, and other areas right now, but it hasn’t come out yet in the U.S. That ramp may be part of the reason why Tesla isn’t delivering as quickly around the world as it should, but the fact that prices are lower in the U.S. suggests that it’s not the only reason.

Based on how many cars were delivered last year, more than 40% of Tesla’s worldwide sales came from the U.S. It sold about 536,000 cars in the U.S. in 2022 and shipped 1.31 million vehicles around the world.

The Model 3 and Model Y were cheaper than the average new car in April, whether electric or not. This was because of price cuts in the first few months of the year.

Does Tesla’s constant price cuts mean that there will be a price war for EVs? So far, the only thing that comes close is Ford lowering the price of the F-150 Lightning by almost $10,000. But other automakers haven’t gotten involved yet. Instead of lowering the price, they’ve chosen to offer a variety of rewards. However, if even one company besides Tesla cuts it this much, things could get very interesting.

About Antonia Read

Antonia Read is a seasoned author specializing in the world of startups. With a keen interest in entrepreneurship and innovation, she has become a prominent voice in the field. Antonia's insightful writings offer valuable insights into the challenges and successes of startup ventures. Her expertise and dedication to the subject have earned her a reputation as a go-to resource for aspiring entrepreneurs and business enthusiasts alike.