In both the United States and Europe, Tesla has significantly reduced the prices of its vehicles. Without an official statement from Tesla or CEO Elon Musk, the price cuts went live on the Tesla website on Thursday.
At this time, the base price of a Tesla Model 3 is $43,990, down from $46,990 just a few days ago. The base price of a Tesla Model Y has been reduced to $52,990 from the previous base price of $65,990.
The $7,500 federal tax credit that buyers in the United States can get is now available for both cars. Because it was so expensive, the Model Y was previously ineligible for credit. A Tesla Model Y is now available for $45,490, a savings of $20,500 from its previous price two days ago.
The price of Tesla’s luxury vehicles has dropped as well. The base price for a Tesla Model S is now $94,990, while the base price for a Model X is $109,990.
On the continent of Europe, prices have dropped drastically. The base price of a Tesla Model 3 in the UK has dropped from £45,990 ($58,511) to £42,990 ($52,511), a savings of £5,500 ($6,713). The base price for a Tesla Model 3 in Germany has dropped from €50,000 ($47,596) to €43,990 ($47,596), a decrease of €6,000 ($6,492). Other European markets have seen similar price reductions.
There was a time when Tesla kept raising prices, even though there was so much demand that people had to wait months or even years for some models. Relatively shorter wait times in November 2022 and price cuts on some new models in December 2022 are the first warning signs of a possible economic downturn. If Tesla is trying to increase sales, the most recent cuts make sense. More layoffs and a freeze on new hires are anticipated for the first three months of 2023 at the company.