Tesla has begun dropping prices in the U.S. and Europe to boost sales and make vehicles eligible for tax credits.
- Tesla has begun dramatically dropping prices lowering its Model 3 RWD from $46,990 to $43,990 and its 5-seat Model Y from $65,990 to $52,990.
- Other models, including the Model S, Model X, and versions of the Model 3 and Model Y, also saw significant price cuts.
- Cutting prices makes the electric vehicles (EVs) more affordable to the masses and makes most of the models eligible for the $7,500 tax credit, thus boosting sales.
Why it’s news
Many Americans are wanting to make the switch to electric vehicles, but one of the biggest things holding them back—the high price tag.
Tesla understands this and has begun dramatically lowering vehicle prices to make the cars more affordable for U.S. buyers. Not only this, but reducing the prices allows more vehicles to be eligible for the $7,500 tax credit, which lowers the price even more, bringing in more customers.
Tesla dropped the price of its 5-seat Model Y Long Range from $65,990 to $52,990, which allows the vehicle to be eligible for the $7,500 tax credit dropping the price $20,500, a 30% price reduction.
The company also dropped its least expensive model, the Model 3 RWD, from $46,990 to $43,990. Other models have also seen significant price drops.
The $7,500 tax credit applies to SUVs priced below $80,000 and cars under $55,000 and is expected to be cut by 50% in March, so buyers wanting to receive the full amount need to purchase before then.
Some of the Tesla models didn’t initially fall into the price points to qualify for the tax rebate, but after the significant drop in price, nearly all fit in some form and will receive the credit.