Tesla Model Y is now $20,000 cheaper

In an unexpected move, Tesla has just announced major price drops across their entire lineup. Some models, like the Tesla Model Y Long Range All-Wheel Drive is now $20,000 cheaper than the previous price. The price was dropped $13,000 to $52,990 so Model Y now qualifies for the $7,500 tax rebate as well. However, there is one significant price hike – the seven-seat option on the Model Y is now $4,000, rather than the $3,000 it used to be.

Tesla also cut the Model 3 base version by $3,000 to $43,990, according to its website. The Tesla Model 3 Performance variant saw a price cut of $9,000 to $53,990. Reuters reported that in Germany, Tesla cut prices on the Model 3 and the Model Y from 1% to around 17%, depending on the configuration. The Model Y will now sell for 44,890 euros ($48,499), down 9,100 euros.

Other configurations, including Performance models, have also received price cuts. The Tesla Model S Plaid has the largest price reduction – $21,000 (15%) reduction. However, there is one significant price hike – the seven-seat option on the Model Y is now $4,000, a $1,000 more than before.

Earlier this month, Tesla angered customers in China by slashing prices on its Model 3 and Model Y cars there after many had agreed to take delivery at higher prices before December 31. But according to a price sheet we reviewed, customers in the United States who placed an order in December 2022 have now received a revised price sheet. Of course, they have yet to take delivery of their cars.