[ad_1]
Tesla has once again lowered prices. On Thursday, the automaker’s online configurator showed discounted prices on every model in its lineup.
The Model Y received the biggest cut, around 20% across the range. Including the new higher destination cost of $1,390, the base Model Y Long Range now starts at $54,380, while the Model Y Performance now starts at $58,380.
There may be good reason for the deeper cut to the Model Y. The five-passenger Model Y version qualifies for the new net vehicle tax credit as a passenger car—meaning the buyer can claim $7,500 (likely through March) if the vehicle’s MSRP is no more than $55,000. With shoppers again able to claim that credit, the effective price for many US Model Y drivers will now be under $47,000 once the tax credit is applied.
With the Model Y’s starting price of $68,390 until yesterday, that’s effectively more than $20,000 in price cuts.
2022 Tesla lineup (Courtesy of Tesla, Inc.)
The Model 3 now starts at $45,380, while the Model 3 Performance base price is now listed at $55,380. That’s a 6% and 14% change to base specs and Performance, respectively, before destination cost.
This comes after Tesla issued discounts on the Model 3 and Model Y back in December. The automaker initially offered a $3,750 discount, then doubled that to $7,500 for cars shipped from December 21-31. That comes after a series of Tesla price hikes, including one in June that pushed the Model Y’s starting price past $67,000.
2022 Tesla Model S boxes
Tesla also slashed the base price of the Model S by about 10% to $96,380. The Model S Plaid Performance variant now starts at $116,380, 15% less than before, excluding destinations. Model X prices were reduced by the same amount, with the Base Model X now starting at $109,990 and the Model X Plaid now starting at $119,990.
The price cut helped reverse years of Tesla’s price hike, and comes at a time when the market for used Tesla vehicles is weak. Used Teslas are generally a better value than other electric cars, but a recent report found that prices are dropping fast. The average used Tesla price peaked in July 2022 at $67,297 but is down 17% in November 2022, compared to a 4% drop for the overall used car market, according to the report.
The cuts come after a record year for Tesla. According to estimates by the Automotive News Data Center, the brand will sell 491,000 cars in the US by 2022, making it the top-selling luxury brand in the country. Tesla doesn’t break down sales by country or region, but those estimates give Tesla a lead of about 158,000 cars over BMW.
However, Tesla is also facing more competition in the electric car market, and more brands are planning new electric vehicles moving forward.
[ad_2]
Source link
