This prompted Tesla to increase the price of the Long Range Model Y by $500 to $53,500. Soon after the price cuts, we saw delivery times for the Model Y in the US being pushed from 4 to 8 weeks to 8 to 16 weeks. However, in addition to Elon Musk’s words, we were also able to first-hand witness the spur in demand caused by the price adjustments. Musk put to rest this rumor by stating, following the price cuts that Tesla was seeing twice as many orders for its vehicles than there is production. This sentiment was so prevalent, the issue of demand for Tesla vehicles was the first question asked at Tesla’s last earnings call on January 26. The drastic nature of the price cuts had started rumors that Tesla was facing slowing demand for its vehicles. Related News: Elon Musk Says Tesla FSD Beta V11 Coming End Of Week, Attributes Delay To Major Architectural Rewrite The 20% price cut making the Model Y qualify for the US Tax rebate, and the tax incentive decreasing the price by a further 10%, has meant Tesla had effectively cut the price of the Model Y by 30%. And, taking into account the incentive, Tesla had brought down starting price for the Model Y in the US to as low as $45,500 down from $66,000 a week prior. The $55,000 price point was particularly important so that the vehicle would qualify for the $7,500 US Federal EV tax incentive. The largest of the price cuts occurred in the US where some variants of Tesla’s vehicles like the Long Range Model Y saw price cuts as high as 20%.Īt the time, the price cuts lowered the starting price for the Long Range Model Y below $55,000 or more precisely to $53,000. Tesla’s first price cut happened on January 6 in China where the EV maker lowered the price of the Model 3 by 13.5% to $33,500 and the cost of the Model Y by 10% to $38,000.Īnd on January 12, Tesla followed up by cutting prices worldwide including in North America, Europe, and the rest of Asia. Tesla recently implemented a steep price cut across the company’s vehicle lineup and covering all geographical regions.
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