Tesla, the leading electric vehicle (EV) manufacturer, has made a dramatic move to make their vehicles more accessible than ever before. In an apparent bid to increase sales, they have drastically reduced their prices in both the US and Europe.
The least expensive EV option in the lineup is now the Model 3 RWD, which had originally been priced at $46,990, but has since been reduced to only $43,990. The 5-seat Model Y Long Range saw an even larger price cut of 20 percent – falling from $65,990 to just $52,990 – making it eligible for the US Federal Tax Credit which amounts to a total discount of $20,500 or over 30 percent!
All other models also experienced cuts in their prices including both regular and plaid versions of the Model S and Model X as well as performance versions of the Model 3 and Model Y. However, the 7-seat option on the Model Y is now priced higher at between $4,000 and $5,000. Nonetheless, this still qualifies for the tax credit as it is considered an SUV.
In Germany, Austria, Switzerland, and France prices for the Model 3 and Y were reduced from 1 to 17 percent respectively. To be eligible for the full $7,500 rebate customers must order before mid-March when it is expected to be reduced in half. The tax rebates are applicable for SUVs priced below $80,000 and cars under $55,000 – depending on the number of seats – making all Model Y EVs (excluding Performance) qualify now. CEO Elon Musk called the previous setup “messed up” and lauded the current price cuts. Electric vehicles are becoming more accessible than ever before!
By dramatically lowering their prices, Tesla has made electric cars a much more viable option for consumers. With these new prices, it is now easier than ever to own an EV and enjoy the many advantages they offer. This move by Tesla is expected to have a major impact on the future of EVs in both the US and Europe.
At the end of 2022, news began to spread that Tesla inventory was rising, after years of outstanding sales records in both China and the United States. Tesla later responded by reducing prices in China and denying any form of reimbursement to customers who voiced their displeasure. The Model 3 is now available for 229,900 yuan ($33,425) in the country.
It is clear that Tesla has taken steps to ensure their products remain competitive and attractive to consumers. However, it is yet to be seen whether these strategies will have the desired outcome. Time will tell if Tesla’s efforts will result in increased sales and renewed customer satisfaction.
