Tesla cuts prices in the US and Europe by up to 20 percent

[Hamartia Antidote]

Tesla cuts prices in the US and Europe by up to 20 percent

Five-seater Model Ys now qualify for federal tax credits.

www.theverge.com

Tesla is cutting prices throughout Europe and in the US. Reuters reports that prices for a Model Y rear wheel drive have dropped by 17 percent in Germany, with cuts of 20 percent for the Model Y long range in the US. Tesla has also cut prices for its Model X and Model S in the US. The price cuts arrive less than a year after Tesla made multiple price hikes in 2022.

“At the end of a turbulent year with interruptions to the supply chain, we have achieved a partial normalization of cost inflation, which gives us the confidence to pass this relief onto our customers,” says a Tesla Germany spokesperson in a statement to Reuters.

Today’s changes put the prices of the Model 3 and Model Y below the listed price they were at before Tesla’s initial big price hikes almost a year ago. EV researcher Troy Teslike has compiled a list showing the price changes in the US, with the Model Y long range now $13,000 cheaper before the tax credit and $20,500 cheaper including the credit. That’s a 31 percent discount in total after the tax credit.

https://twitter.com/x/status/1613747950080909312

While some aspects of the EV tax credits will be delayed until March, the new rules mean EVs should be more affordable in the US depending on where cars are built, where batteries are assembled, and where materials for those batteries are sourced from.

The price cuts also mean that the five-seater version of the Model Y will now qualify for the $7,500 federal tax credit. Before the cut, the IRS released a list of vehicles that would qualify for the new incentive, and five-seater versions of Tesla’s popular Model Y weren’t eligible. Tesla CEO Elon Musk initially called the disqualification “messed up” in a tweet replying to a Tesla fan comparing a plug-in hybrid Jeep to the Model Y.

Tesla’s own discounts are clearly designed to push sales across Europe and in the US. Reuters reported earlier this month that Tesla’s quarterly deliveries fell short of market estimates, due to logistical issues and concerns around demand.

 

[lastofthepatriots]

If I got one for free, I’d sell it.

 

[Beast]

Don't buy Tesla now. The price may reduced further. Wait for rock bottom price in maybe another a year or 2. There is no value for Tesla car becos Tesla will cut and cut the price further.

Stick with car which protects buyer resale value if you really care about prices. And you know why Chinese Tesla customers protest...

 

[Sayfullah]

I want to buy a Tesla soon but I’m waiting for the provincial government to change here first. Before they use to give thousands in rebates for EV, now this government gives 0. Some provinces people can get up to $14 000 in rebates. If EV rebates are taken into account, a model 3 base model would cost around the same as a brand new Camry or Accord.

 

[Beast]

I want to buy a Tesla soon but I’m waiting for the provincial government to change here first. Before they use to give thousands in rebates for EV, now this government gives 0. Some provinces people can get up to $14 000 in rebates. If EV rebates are taken into account, a model 3 base model would cost around the same as a brand new Camry or Accord.

You get $14000 rebate now and Tesla will cut the price further by $14000 next year. And those who wait a year buy less for $28000.