Tesla’s four models have seen price increases over the previous several years, sometimes significantly. However, this winter, anyone interested in buying a Tesla would be easy to do so for a significantly lower price than they may have a few days ago. A basic Model three is now in eyeshot of that fabled $35,000 amount that Elon projected more than 5 years ago thanks to Tesla’s current $7500 reduction on the Model 3 & Model Y.
As a consequence, the Model 3 has a beginning price of $40,690, whilst Model Y now has a starting price of $59,690, finally falling under the $60,000 threshold. Both discounts seem sizable—a testament to how much more competition Tesla today faces than it had 2 years ago, even for its most affordable (but out-of-date) model. The Austin-based manufacturer is already facing competition from many automakers for the Model 3 & Model Y, as well as the diversity is only expected to grow in 2023.
However, these reductions also occur right before an update to the EV taxation credit program, which was announced by the Biden admin months ago amid considerable commotion and misunderstanding. The $7500 credit that certain automobile buyers of EVs may be very able to receive under the Inflation Control Act may not apply to Tesla vehicles, although they should be liable for some of it.
Therefore, Tesla’s offer aims to outperform that new structure for customers. Expect a range of responses from Tesla customers since sudden price changes haven’t been well-received by those who made the orders days before. The price reductions also coincide with rumors of waning interest in both new and then-used Teslas in the second quarter of 2022, but industry watchers have not identified a single factor as the culprit.
Due to the opening of two new Gigafactories in Texas and Germany, the maker is still anticipated to have one of its best production as well as delivery years ever, despite a sharp decline in stock prices that is probably related to Musk’s $44 billion purchase made of Twitter this year & the subsequent dispute over the new strategy of the platform. Tesla started delivering this Semi earlier in the month, but anyone shopping for a lesser truck would have to at least wait until this period next year when it gets to serving out completely new versions. After several setbacks and controversies, the Cybertrucks are anticipated to be in production in Gigafactory Austin by that time.
