Tesla drops Model Y prices but only for limited time

12 February 2024

Tesla’s price cuts have become the monthly, or sometimes weekly, regulars. We are so used to them that for anyone buying a Tesla, it has become a gamble-like experience. It is almost a guarantee at this point that the car you bought last week will be even cheaper next month. A painful experience for anyone - who would have thought that lowering prices could be a bad thing?

After starting last year with a bang and price cuts left, right, and center, Tesla was a bit less festive this year. Not deterred by complaints from every corner of the internet, and rental companies pulling the plug on Tesla vehicles and selling entire fleets at a loss, the company just announced the latest round of cuts - with a twist.

If you are in the US and are in the market for a brand new Model Y, now’s the good time to make up your mind. Tesla is cutting prices for both RWD and Long Range AWD models by $1,000. Unfortunately, the Performance model’s price stays where it is. The catch? You have only until the end of February, with Tesla saying that after March 1, the prices will go up by at least $1,000.

With the Model Y RWD starting now at $42,990 with the new discount included, after adding the destination charge and the full $7,500 EV tax credit from Uncle Sam, we arrive at an effective price of $37,130. Not bad for an EV with 260 miles of EPA range and enough room for the entire family.

The Long Range AWD version now starts at $47,490 and just as the RWD, qualifies for the full $7,500 tax credit - the effective price with delivery charge works out at $42,130. For that money, you get an all-wheel-drive 514 hp EV that knocks out the 0 to 60 mph in just 4.8 seconds and goes on for 310 miles on a single charge - as long as you’re careful with the right foot.

It’s an interesting move by Tesla and an unusual one. If the company in fact is thinking about putting the prices up next month, it would please the shareholders but it won't meet the sales quota for the first quarter of this year. There’s no chance people will line up and buy Teslas just because the price is going up. Or will they?

While the US customers get a $1,000 discount, the German Model Y buyers can avail of the 0% interest finance offer. No, it isn’t as good as the direct discount but it ends up saving the buyers quite a bit anyway. Spanish buyers aren’t that lucky - their offer is a 3.99% interest rate on finance, but at least Tesla brought the prices of its vehicles down in line with most of Europe. In Belgium, Model Y qualifies for a €5,000 Flemish Government subsidy, and in the Netherlands, the RWD version qualifies for a €2,950 subsidy from the government.

Worth pointing out, that if you’re after a good deal on any Tesla vehicle, going through the existing inventory and checking out ex-demonstrators, can bag another discount. It may take some time to go through many vehicles, but an as-good-as-new Tesla, with a few hundred kilometers on the clock, can save you enough money for a couple of years of charging.

Via