Tesla Slashes Model Y Prices In Last-Ditch 2025 Sales Attempt

Tesla is one of the most innovative automakers on the market today. However, thanks to models like the Cybertruck, which isn't the best off-road vehicle, they're also one of the most criticized. But while some critics will never be happy with Tesla, the company is pulling out all the stops with its Model Y Standard, currently listed at a starting price of $39,990 (plus a $1,390 destination fee). This rear-wheel drive mid-size SUV had a previous price of around $44,990. Tesla's also offering 0 percent APR for up to 72 months.

Plus, buyers may get free upgrades on select Model Ys, including premium paint, a tow hitch, and upgraded wheels. Drivers looking to lease the Model Y can do so with no down payment, and anyone wanting to take advantage of Tesla's discounted pricing only has until December 26, 2025, to do so. That's when the promotional rate ends. Also, delivery for the vehicle must be completed by December 31, 2025. However, Tesla does specify in the fine print that pricing is subject to change, which means current numbers could go down even further.

Buyers trading in a vehicle also get 2,000 miles of free Supercharging, which isn't quite the same as using a third-party ChargePoint. But this perk isn't specific to the Model Y promotion, as it actually applies with a trade-in toward the purchase of any Tesla vehicle. For more information on this program or the Model Y Standard promotional offer, visit Tesla's website.

Tesla's new promotional pricing strategy for the Model Y Standard, which may not be the company's most reliable vehicle in 2025, is an aggressive one. It likely stems from the company's disappointing results in the fall of 2025. In November of that year, Tesla shipped just under 40,000 vehicles, down from around 51,500 just one year before. But this wasn't just a drop from 2023 to 2024. It was actually the lowest monthly total of cars Tesla has delivered since early 2022.

But the warning signs were actually there earlier in 2025, when Tesla's U.S. market share began slipping, even as its competition was growing. By August, the company's portion of all EV sales in the U.S. was 38%. This was Tesla's lowest share since October 2017. But instead of immediately responding to the problem with a special promotion, Tesla instead focused on robotaxis and other non-vehicle ventures. Meanwhile, the competition was introducing new EV models and offering big incentives.

As of this writing, Tesla's other two Model Ys are both listed at the regular price. The Model Y Premium rear-wheel drive sells for $44,990, and the Performance all-wheel drive is listed at $57,490. There are no major incentives, free offers, or complimentary upgrades available for either model. However, it's possible that Tesla could adjust the pricing or offer a special promotion on either model before the end of 2025.