After missing sales targets Tesla cuts price of Model 3 and Model Y in the US

06 October 2023

As autumn leaves drop in the US, so do the prices of Tesla's Model 3 and Model Y. Tesla's response to missing its delivery target in Q3 it to discount its two most sought-after models in its home market.

The Model 3 now flaunts a starting price of $38,990 for its Rear-Wheel Drive (RWD) variant - a drop from its earlier price of $40,240. Those itching for the extra zest of the Model 3 Long Range can now secure it for $45,990, down from its initial $47,240 tag. The Model 3 Performance now stands at $50,990, while it previously called for $53,240.

The Model Y Long Range, so far priced at $50,490, now starts at a lower $48,490. Meanwhile, the Model Y Performance underwent a price revision from $54,490 to a slightly more affordable $52,490.

Still, the Model Y RWD only appeared three days ago, so it sticks with its price of $43,990.

Both models qualify for the Inflation Reduction Act's $7,500 federal tax credit. And when you factor in state-specific incentives like those in Colorado, the price can drop even further.

The Model 3 got a new version in international markets, but the revamped "Highland" Model 3 won't grace the US shores until the following year, so these price adjustments may be Tesla's way of enticing potential customers who are otherwise inclined to postpone their purchase.

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