Monday, July 15, 2024
NewsTesla Continues its Price Cuts in the United States

Tesla Continues its Price Cuts in the United States

Tesla cut the prices of its models yet again, by up to $5,000 on the Model S and X.

  • The Model S and Model X are now up to $5,000 cheaper than before.

  • A new version of the Model Y powered by LFP batteries starts at $51,630.

  • The RWD Model 3 will see its federal tax credit cut in half later this month.

Tesla cut the prices of all of its models again yesterday, removing up to $5,000 from the base price of the Model S and Model X.

The automaker started a price war in the EV segment in North America earlier this year when it announced significant price cuts to its models, including a reduction of $13,000 on certain versions of the Model Y.

Even with its competitors struggling to keep up by lowering their prices and increasing their production rates, Tesla continues to reduce the price of its vehicles in the U.S.

Yesterday, the automaker announced it will be reducing the price of some versions of each of its four models by an amount varying between 2% and 6%.

The most significant effect is seen on the Model S and Model X, the two most expensive vehicles in the Tesla lineup, since the entry-level version of both models is now $5,000 cheaper than it was a few days ago.

This means the Model S sedan now starts at $86,630 and the Model X SUV starts at $96,630 in the United States. Despite these latest price cuts, both models are still too expensive to qualify for federal clean vehicle tax credits, which only apply to vehicles with a base price of $55,000 or less for sedans or $80,000 or less for SUVs.

Speaking of these credits, the Model 3 compact sedan will see its credit halved to $3,750 for the entry-level RWD version starting on April 18 due to changes to the rules of the program. Interestingly, this will not affect the Performance model which will continue to be eligible for a $7,500 tax credit.

Both versions of the compact sedan saw their price reduced by $1,000 yesterday, giving a starting price of $43,630 for the Model 3 RWD and $54,630 for the Model 3 Performance.

The Model Y compact SUV also benefits from price cuts since a new entry-level version is added to the lineup. Indeed, this model called simply Model Y is built in Texas and fitted with the new 4680 structural battery pack which trades range for a lower price, starting at $51,630.

The other versions of the Model Y have also seen their price drop by $2,000 each, meaning the Model Y Long Range now starts at $54,630 while the Model Y Performance requires spending $58,630.

Every version of the Model Y also continues to be eligible to the full $7,500 tax credit, something that will help it continue to be the automaker’s best-selling model.

Source: Automotive News

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