Tesla has decreased the prices of some of its electric cars in the United States for the second time this month, resulting in even lower prices for the Model 3 and Model Y.

Tesla has recently made a second round of price reductions on its electric cars in the US, including the entry-level Model 3 RWD. As per the company’s website, the base model is now priced at $39,990, which is $2,000 lower than its previous cost of $41,990. However, the destination charge and order fee are not included in this price. The Performance version remains unchanged in terms of pricing, but the Long Range AWD is currently unavailable. The company plans to re-introduce this version later in 2023.

Tesla has recently announced a significant price reduction on all three versions of the Model Y in the US market. The AWD version with 4680-type battery cells, Long Range AWD, and Performance have all received a $3,000 discount. The entry-level Model Y AWD now starts at $46,990, which is 6.0% lower than its previous price of $49,990. It’s important to note that this price does not include the destination charge and order fee. This latest development is expected to make the Model Y an even more appealing choice for those in the market for a high-quality electric SUV.

Here are the changes:

• Tesla Model 3 RWD: $39,990 (-$2,000 or -4.8% from $41,990)
• Tesla Model Y AWD: $46,990 (-$3,000 or -6.0% from $49,990)
• Tesla Model Y Long Range AWD: $49,990 (-$3,000 or -5.7% from $52,990)
• Tesla Model Y Performance: $53,990 (-$3,000 or -5.3% from $56,990)

Tesla has implemented numerous price reductions this year, with the latest being the second one in April. This is in addition to the significant price cut across the board that was introduced in January 2023. Since then, there have been a few price adjustments as well.

However, some analysts are questioning whether this will affect Tesla’s high profit margins. The Q1 2023 financial report, which is due to be released soon, may provide more insights into this matter.

Below we gathered the prices for all Tesla cars.

Prices (*without DST and Order Fee): April 19, 2023

Tesla Model 3:

• RWD: $39,990 (-$2,000 or -4.8% from $41,990)
• Long Range AWD: not available (expected to be available again in 2023)
• Performance: $52,990 (no change)

Tesla Model S:

• Long Range AWD: $84,990 (no change)
• Plaid: $104,990 (no change)

Tesla Model X:

• Long Range AWD: $94,990 (no change)
• Performance: $104,990 (no change)

Tesla Model Y:

• 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

Starting April 18, the Tesla Model 3 RWD (LFP-powered) is now only eligible for a federal tax credit of $3,750 due to new federal guidance on critical minerals and battery component requirements. This is in contrast to other Model 3 and Model Y vehicles, which qualify for a $7,500 tax credit. As a result, the effective price of the Model 3 RWD remains unchanged from a month ago, despite the recent price reductions totaling $3,000.

The Tesla Model Y has become particularly appealing as it now qualifies for the full federal tax credit of $7,500. With mandatory expenses included, this amounts to a starting price of $41,130.

Our prediction is that the Tesla Model 3 Long Range AWD could make a comeback soon, as it has the potential to be a significant contender against the RWD version with the $7,500 federal tax credit.

Prices

Basic specs

* estimated/unofficial/rough values, ** EPA range according to Tesla website

See also