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Tesla significantly drops prices on EV models in US and Europe

New prices now qualify for the full Federal Tax credit.

tesla self-driving
Image: Pexels

After years of increasing prices regularly, Tesla is reducing its EV prices across the United States and Europe.

Several models recently saw a significant price drop (h/t Engadget). Even the most affordable option, the Model 3 saw its price reduced from $46,990 to $43,990 in the US.

The Model S and Model X are also cheaper, but the most significant change came to the Model Y.

The Tesla Model Y Long Range option decreased by 20 percent from $65,990 to $52,990.

Additionally, that price cut means the Model Y Long Range now qualifies for the $7,500 Federal Tax credit, which applies to EVs costing less than $55,000.

tesla model y price january 2023
Image: KnowTechie

However, the 7-seater Model Y increases the price past the $55,000 threshold. Fortunately, the seven seats classify it as an SUV, which means it still qualifies for the credit.

In addition to price decreases in the United States, Tesla has also taken the savings to Europe. Tesla prices in Germany were slashed by up to 17 percent.

And prices also came down in Austria, Switzerland, and France. It looks like Tesla’s looking to move some of its inventory quickly.

ModelBase PriceRange (EPA est.)Seating Up toCargo CapacityDrive
Model S$94,990405 miles5 seats28 cu ftAWD Dual Motor
Model Y Long Range$52,990330 miles7 seats76 cu ftAWD Dual Motor
Model 3 Rear-Wheel Drive$43,990272 miles5 seats23 cu ftRWD

The major benefit here, especially for US buyers, is recapturing that Federal Tax credit. The credit will remain at $7,500 until March, when it will likely be reduced to half that.

So if you want to take full advantage of the credit, you’ll need to order your new Tesla before March.

With the latest price decreases and full tax credit, you can save up to 30 percent off the original price of a new Tesla.

Judging by the public’s reaction, it seems it won’t be long before buyers can get a new Tesla delivered.

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