Electric vehicle maker Tesla announced significant price cuts on its Model 3 and Model Y vehicles in the United States on Friday, October 6, 2023. The price reductions, ranging from 2.7% to 4.2%, bring the starting prices of Tesla’s most popular models down by several thousand dollars.
The new base prices for the Model 3 and Model Y are as follows:
- Model 3 Standard Range: $38,990, down from $40,240
- Model 3 Long Range: $45,990, down from $47,240
- Model 3 Performance: $50,990, down from $53,240
- Model Y Long Range: $48,490, down from $50,490
- Model Y Performance: $52,490, down from $54,490
Tesla did not give an official reason for the surprise price cuts. However, analysts speculate the company is aiming to boost sales in the face of rising competition from other electric vehicle makers such as Ford and BYD.
The discounts come on the heels of Tesla’s recent third quarter delivery numbers, which fell short of market expectations. Tesla delivered 435,059 vehicles globally in Q3, down from 446,610 vehicles in Q2.
Industry experts say Tesla’s price reductions will likely spark a pricing war among EV manufacturers. Lower prices could drive increased consumer demand, but shrink profit margins across the still-nascent electric vehicle market.
For now, consumers are set to benefit from the price cuts. Tesla’s more affordable Model 3 and Model Y just got even more accessible to mainstream buyers looking to go electric.
