Tesla has slashed prices on its two least expensive models, the Model 3 sedan and Model Y SUV.
Tesla doesn’t operate a public relations department or answer reporters’ questions, so the only source we have on pricing is to watch the manufacturer’s retail website. But both models began reflecting discounts late last week.
The base and Long Range variants of the Model 3 have seen price cuts of $1,250. The Long Range and Performance variants of the Model Y saw a $2,000 price drop. The base version of the Model Y didn’t get a price change, but it’s practically brand new — just reintroduced to the lineup last week.
Both are eligible for the full $7,500 federal EV tax credit for qualifying buyers.
The price of the average electric car has fallen by nearly 20% in 2023, driven partly by aggressive price cutting from Tesla. CEO Elon Musk has told investors on several occasions that the company is more interested in putting as many Tesla cars on the road as possible than in making maximum profit from each sale. The company is building a large pool of potential buyers for software downloads.
“It’s better to ship a large number of cars at a lower margin and subsequently harvest that margin in the future as we perfect autonomy,” Musk told investors in April.
2024 Tesla Model 3, Model Y Pricing
Tesla also charges a mandatory $1,390 destination fee on all vehicles.
| Model | MSRP |
| Model 3 | $38,990 |
| Model 3 Long Range | $45,990 |
| Model 3 Performance | $50,990 |
| Model Y | $43,990 |
| Model Y Long Range | $48,490 |
| Model Y Performance | $52,490 |
