
US: Tesla Reduced Model 3/Model Y Prices Again By $2,000-$3,000 - InsideEVs
- by Inside EVs
- Apr 19, 2023
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For the second time this month, Tesla applied price reductions on some of its electric cars in the United States, bringing Model 3 and Model Y prices to an even lower level.
According to the company's website, the entry-level Tesla Model 3 RWD is now $2,000 less expensive and starts at $39,990 (down 4.8 percent from $41,990), without including the destination charge and order fee. There is no price change for the Performance version, while the Long Range AWD remains unavailable (but expected to be re-introduced later in 2023).
In the case of the Tesla Model Y, all three versions of the car (AWD with 4680-type battery cells, Long Range AWD and Performance) received a $3,000 price reduction. The Model Y AWD now starts at $46,990 (down 6.0 percent from $49,990), without including the destination charge and order fee.
Here are the changes: AWD: $46,990 (-$3,000 or -6.0% from $49,990)
(Made-in-Texas, with 4680-type battery cells and 279 miles of range)
Long Range AWD: $49,990 (-$3,000 or -5.7% from $52,990)
Performance: $53,990 (-$3,000 or -5.3% from $56,990)
* Tesla adds a Destination fee (DST) of $1,390 and an Order Fee of $250 to all its models ($1,640 total).
** Tesla Model 3 and Model Y are eligible for the $7,500 federal tax credit, aside from the Model 3 RWD version, which is eligible only for $3,750.
Tesla Prices Vs. Federal Tax Credit
It's worth noting that from April 18, the Tesla Model 3 RWD (LFP-powered) is eligible only for a $3,750 federal tax credit (because of the new federal guidance on the critical minerals and battery component requirements), compared to $7,500 in the case of other Model 3 and Model Y cars. This means that the Model 3 RWD's effective price remains basically the same as a month ago (the price was reduced by $1,000 and $2,000 this month for a total of $3,000).
However, the Tesla Model Y is now very interesting, because it's eligible for the full $7,500 federal tax credit. This means a starting point of $41,130 (with obligatory costs).
If we would have to guess, we would expect that the Tesla Model 3 Long Range AWD will be reintroduced soon, because, with the $7,500 federal tax credit, it might be a serious competitor to the RWD version.
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