Tesla has cut prices for some of its Model Y and Model 3 vehicles in the U.S., the sixth time the company has made such a move this year as it looks to spur demand even at the cost of its industry-leading profit margins. The cuts came ahead of the electric-vehicle maker’s first-quarter earnings due on April 19.
Tesla’s website showed late on Tuesday that it cut prices of its Model Y ‘Long Range’ and ‘Performance’ vehicles by US$3,000 each; and of its Model 3 ‘Rear-wheel Drive’ by US$2,000, to US$39,990.
[Prices for the Model Y and Model 3 did not change in Canada; the last change to prices on this side of the border happened in early April, when the Model S sedan saw its MSRP drop by $6,000, to $116,990 for a base trim, and to $143,990 for a Plaid; and the Model X’s MSRP fell by a roughly similar amount, to $130,990 for a base trim, and to $143,990 for a Plaid. In Canada, the Model 3 RWD starts at $54,990; and the Model Y Long Range at $69,990. —Ed.]
Learn more about the cars
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2023 Tesla Model 3
MSRP $54,990 to $72,990
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2023 Tesla Model Y
MSRP $69,990 to $75,990
The company has cut U.S. prices of its base Model 3 by 11 per cent so far this year, and that of its base Model Y by 20 per cent – moves that come as the United States, its largest market, prepares to introduce tougher standards that will limit EV tax credits. It also recently lowered prices in Europe, Israel, and Singapore, as well as in Japan, Australia, and South Korea, expanding a discount drive it started in China in January.
Still, Tesla reported a sequential rise of just 4 per cent in its first-quarter deliveries, much less than the 17.8-per-cent sequential climb in the prior quarter. That has prompted several analysts to predict more price cuts as competition rises at home from rivals such as Ford; and as Tesla plays catch-up with BYD in China, its second-largest market.
Keyword: Tesla cuts U.S. prices for sixth time this year