Tesla has reduced the prices of its electric vehicles for the sixth time this year, with the latest price cut bringing the Model 3 rear-wheel drive variant’s starting price to $39,990. This represents a $2,000 reduction compared to the price just a few weeks ago. Earlier this year, Tesla drastically cut prices across its lineup, with some models experiencing price drops of up to 20%.
However, the rear-wheel drive Model 3 now qualifies for only $3,750 in tax credits, following new government guidelines related to the US cutting off China as an approved trading partner. Tesla’s other vehicles, including the Model Y, are still eligible for the full $7,500 tax credits.
The base, Long Range, and Performance Model Y vehicles now cost $3,000 less than before, with new prices set at $46,990, $49,990, and $53,990, respectively. Tesla’s first-quarter deliveries this year have reportedly been the lowest since 2021.
The company may have implemented these price cuts to sell existing inventory and stimulate demand.