Tesla prices drop up to 20% amid increased competition

Tesla prices drop up to 20% amid increased competition


Tesla has lowered prices across its lineup, according to the automaker’s online configurator.

The Model Y got the biggest price cut, with the base Long Range now starting at $52,990, which is 20% lower than before. The starting price for the Model Y Performance was cut by 19% to $56,990. Model 3 prices were cut 6% for the base version to $43,990 and 9% for the Model 3 Performance, which now starts at $53,990.

2022 Tesla Model S Plaid

2022 Tesla Model S Plaid

Tesla in December also offered credits on the Model 3 and Model Y of $3,750 and later $7,500 for cars delivered before the end of the month. Instead of bargains, though, these policies merely reverse several recent Tesla price increases, including one in June 2022 that set the Model Y’s base price at $67,000.

Tesla’s larger models got price cuts as well. The base Model S now starts at $94,990, which is 10% lower than before, while the Model S Plaid performance variant got a 15% price decrease to $114,990. Model X starting prices are now $109,990 for the base version (a 9% cut) and $119,990 for the Model X Plaid (14%). Tesla also recently added a steering wheel option for the Model S and Model X as an alternative to the unorthodox steering yoke introduced during a recent refresh.

2020 Tesla Model X

2020 Tesla Model X

Tesla hasn’t offered an official explanation for the price cuts, but in addition to reversing price increases the market may no longer support, they come in the context of increased competition from other automakers. Legacy firms are now building larger numbers of luxury EVs that compete more directly with Tesla, and startups like Lucid and Rivian are starting to ramp up production. Still, the brand posted a record year in 2022, and with an estimated 491,000 vehicles sold in the U.S. (according to the Automotive News Data Center), claimed the throne as the country’s best-selling luxury brand.

The growing contingent of non-Tesla EV drivers may soon be able to use the Tesla Supercharger network to charge. The White House announced in July 2022 that Tesla was opening the Supercharger network to non-Tesla EVs, something the automaker has already trialed in Europe. Tesla previously proposed opening the U.S. Supercharger network to other EVs if it got some federal funds, which may be part of the deal.



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