Tesla significantly drops prices on EV models in US and Europe

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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.

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.

Model	Base Price	Range (EPA est.)	Seating Up to	Cargo Capacity	Drive
Model S	$94,990	405 miles	5 seats	28 cu ft	AWD Dual Motor
Model Y Long Range	$52,990	330 miles	7 seats	76 cu ft	AWD Dual Motor
Model 3 Rear-Wheel Drive	$43,990	272 miles	5 seats	23 cu ft	RWD

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.

Is Tesla done? Prices drops of close to $20k on some models. I bought shares in 2015 based on Tesla's early mover advantage on range & charging network, have leased a Tesla since 2018. As of Nov '22, I've sold 90% of my shares, and I'm definitely not leasing another Tesla. Sad.

— David Pakman (@dpakman) January 13, 2023

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