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Tesla Price Cuts Push Model 3 Under $40K

And the Model Y Long Range dropped below $50,000.

Tesla Model 3 parked in a lot
Hannah Stryker / Review Geek

Tesla just initiated another round of price cuts across several of its vehicles, the sixth reduction this year, and now select EVs are finally available for under $40,000.

Overnight, Tesla lowered its pricing on the Model 3 and Model Y, which is a bit of a surprise as we saw something similar happen less than two weeks ago. We’re unsure if this is due to supply and demand, or maybe things are finally starting to balance out after watching the prices skyrocket over the last 24-36 months.

More specifically, on Wednesday, Tesla added a nice $3,000 discount to the Model Y Long Range and Performance models and a $2,000 discount to the base Model 3 RWD. As a result, the most affordable Model 3 is now $39,990.

Last year we argued that the Model 3 and Y weren’t affordable anymore, and at the time, that was a pretty accurate statement. However, prices are slowly coming down in 2023 to attainable levels.

It’s worth noting that thanks to the newly revised Federal EV tax credit, the Model 3 RWD only qualifies for a partial discount. This price cut could be Tesla trying to ease that pain. However, eagle-eyed viewers will also notice that all variants of the Model Y qualify. Technically, along with today’s new MSRP and qualifying for the full $7,500 EV tax credit, the base Model Y AWD could also be yours for under $40,000.

More importantly, for those not keeping track, the Model Y Long Range is now over $16,000 cheaper than it was at the end of 2022. Now might be a good time to pull the trigger if you’ve considered buying a new electric vehicle.

via Autoblog

Cory Gunther Cory Gunther
Cory Gunther has been writing about phones, Android, cars, and technology in general for over a decade. He's a staff writer for Review Geek covering roundups, EVs, and news. He's previously written for GottaBeMobile, SlashGear, AndroidCentral, and InputMag, and he's written over 9,000 articles. Read Full Bio »