Tesla cuts prices again - Model S now $5,000 cheaper

08 April 2023

Tesla decided that Easter is a perfect time to introduce some more price reductions. Every model in Tesla’s range on its US website had its prices updated overnight and we expected the global sites to follow soon.

The company started reducing prices in January with a drop that took the world by surprise and caused protests at its showrooms. Undeterred, the company pressed on and cut the prices again in February. The last time Tesla changed prices was in March when it offered more savings for Model S and Model X buyers.

First out of the gate today is the Model 3 which now starts at $41,990 or $1,000 less than it was yesterday. The company is trying to keep the entry-level model competitive since it no longer qualifies for the full EV tax credit due to its LFP battery being made in China. The Performance trim gets the $1,000 discount as well and now it starts at $52,990.

Tesla Model Y gets an even bigger price cut. The Long Range version now starts at $52,990 which is exactly $2,000 less than it was costing yesterday. The new version Model Y AWD is introduced for the first time at $49,990 and the Performance model starts now at $56,990 which again, is $2,000 less.

Both Tesla Model S and Model X get the biggest discount. Prices of the two luxury models are now $5,000 lower than they were last night. Model S starts now at $84,990 which thanks to this latest cut, is the cheapest it has been - last year its starting price was $120,000. Model S Plaid starts now at $104,990 which is $25,010 less than it was last year. Bargain.

Model X dropped down to $94,990 and Model X Plaid starts now at $104,990 which is exactly the same price as the Model S Plaid. There will be some tough choices to be made.

What is driving those price cuts? Despite Tesla having the best first quarter on record, the company has the highest unsold inventory ever as well. Tesla did try to claim its inventory was higher because of transfer delays and some vehicles in the transfer being counted as in stock but this price cut tells a different story. The market is cooling off, customers have more choices and Tesla simply cannot move all the cars as quickly as it would like to. This is new territory for the company whose cars were always in demand.

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