Tesla drops prices up to 20 percent in attempt to drive sales

At a time when all other automakers are struggling to produce enough electric vehicles to meet demand, Tesla seems to have the opposite problem. The Texas-based automaker has slashed the prices of some models by thousands of dollars overnight to stimulate demand. Earlier this month, when Tesla announced it missed its annual production target by 20%, the company’s stock, which had already fallen 70% in 2022, was even more affected.

The cheapest Tesla Model 3 RWD you can buy today has dropped to $43,990, saving you $3,000 compared to 2022 prices. The Model 3 Long Range is no longer available, but the Model 3 Performance is $9,000 cheaper than before at $53,990.

The Model Y Long Range will still be available from Tesla. The five-passenger configuration is $53,990, $12,000 less than yesterday. There’s an even bigger discount on the Model Y Performance, and now he’s $13,000 cheaper, at $56,990. Adding his third row of seats to any of these Teslas would cost a $4,000 premium.

The larger, more expensive Model S and Model X are also a bit cheaper now. The dual-motor, all-wheel-drive Model S was $104,990 as of September 2022. It’s yours today for $94,990. And the blazingly fast Model S Plaid, which uses three electric motors, is now $21,000 cheaper, at $114,990. It’s even possible to order one of these models with an actual round steering wheel instead of the yoke Tesla has so far insisted on customers.

For those in need of a larger electric SUV, the Model X now starts at $109,990 and the plaid version starts at $119,990.

As a result of the price cuts, more Tesla vehicles are now eligible for the revised clean vehicle tax credit. The January rule change means many EVs will only qualify if the suggested retail price is below $55,000. So the 5-seater Model Y Long Range wasn’t eligible yesterday, but today, at least until March, he’s eligible for the full $7,500. When the U.S. Treasury Department begins enforcing domestic battery content requirements. (We are all in the dark as to which EVs qualify until the Treasury Department issues guidance on how to determine that.)