A New Tesla Just Got Cheaper Again

If you have been holding off on buying a new Tesla EV for the past few months, you definitely made a solid decision in hindsight. The EV automaker has been on a price cut spree since the beginning of 2023, and has silently updated the prices of its cars yet again to make them cheaper, Reuters reports

This is the fifth price cut for Tesla vehicles in the U.S. since the start of the year. The timing of these price cuts is also interesting, given that the United States is set to reduce — and in some cases remove — tax credits on select zero-emission vehicles due to stricter guidelines.

Tesla seems to be pushing ahead with these price cuts despite analysts predicting that further price cuts will almost certainly affect Tesla's industry-leading profit margins. These new price cuts also come in the backdrop of Tesla's first-quarter results, in which the company confirmed a 4% increase in overall vehicle deliveries.

Tesla is estimated to have shopped more than 423,000 vehicles in the first quarter of 2023, and hopes to sell more than 1.8 million cars by the end of 2023. While Tesla continues to focus on the U.S. market, the company has been witnessing increased demand from other potential high-growth markets like China, Europe, and the rest of Asia.

How much are the new Tesla models?

Tesla's cheapest offering, the Tesla Model 3 (in RWD configuration) now starts at $41,990 (as opposed to the older $42,990 MSRP). The AWD model is now listed at $52,990, compared to $53,990 previously. The Tesla Model Y Long Range model now starts at $52,990, compared to $54,990 — making it $2000 cheaper. The Tesla Model Y Performance model also gets $2000 off and is down to $56,990 from its older price tag of $58,990.

Next up, the Tesla Model S, in its dual-motor AWD configuration, sees a significant price drop of $5000. This model now starts at $84,990 instead of $89,990. Similarly, the tri-motor AWD variant of the Model S went from $109,990 to $104,990, also making it $5000 cheaper. 

Tesla has also reduced prices of the Model X lineup, with the dual-motor AWD variant of that model now costing $94,990 (instead of $99,990 earlier). The Model X Plaid also gets the same price cut as the Model S Plaid, and is now down to $104,990 — compared to $109,990 before.

While the average consumer may be delighted with these price cuts, it remains to be seen whether this move forces Tesla's competitors to follow suit — potentially beginning an industry-wide price cut spree as EV options expand.