Tesla has slashed car prices in both the US and Europe. The price cut was posted on Tesla’s website on Thursday, but there was no announcement from Tesla or its CEO Elon Musk.
The Tesla Model 3 currently starts at $43,990, down from $46,990 a few days ago. The Tesla Model Y has dropped in price from $65,990 to $52,990.
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Both vehicles are currently eligible for a $7,500 US federal tax credit. That means US buyers can also get a discount on that amount (the Model Y was previously too expensive to be deductible). This means you can buy a Tesla Model Y for just $45,490, making him $20,500 less than the price two days ago.
It’s a big price cut.
Credit: Tesla
Tesla’s high-end models are also cheaper. The Tesla Model S now starts at $94,990 and the Model X his $109,990.
Prices have fallen significantly in other European markets. In the UK, the cheapest Tesla Model 3 starts at £42,990 ($52,511) and drops by £5,500 ($6,713). In Germany, the Tesla Model 3 has a starting price of €43,990 ($47,596), slashed by €6,000 ($6,492). Other European markets have seen similar price reductions.
The price cuts come after a period of massive demand, where wait times for certain models ranged from months to years, and Tesla frequently increased the prices of its cars. Ahead of a possible recession, the first signs that the tide is turning were significantly reduced wait times in November 2022 and discounts on some new models in December 2022. The company plans to implement a hiring freeze in the first quarter of 2023 and lay off more employees.
