Tesla’s pricing strategy this year seems inspired by a classic roller coaster. It’s gone up, and down, and repeated that cycle a few times already. Now, pricing for the two mainstream models is falling again and at least one is $3k cheaper.
Prices on the Model Y were already discounted a bit during the latter half of May after an increase at the start of the same month. Now, they’ve been reduced further. The Model Y Dual-Motor Long-Range AWD costs $55,430 or $560 less than it did previously.
The Model 3 Rear Wheel Drive has a $3,210 discount taking it to just $39,530, reports Teslarati. Tesla points out on its site that the same model is eligible for up to $3,750 in federal tax credits. Notably, the automaker cites delivery dates between this month and July on all custom Model 3 and Model Y orders.
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There’s no consensus on exactly what drove Tesla to make this pricing change. Nearing the end of the second quarter it’s possible that the automaker simply wants to boost its sales and delivery figures. Strong quarterly results are becoming a hallmark of Tesla. Despite a big lead over the rest of its competition, there’s little doubt that keeping such a lead is vital.
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It’s plausible too that Tesla might be in the process of doing all it can to eliminate inventory as it prepares the introduction of updated models. Reports suggest that Tesla is working on an updated version of the Model Y codenamed Juniper. It’s evidently going to go on sale in 2024.
Rumors are still swirling about the imminent release of a new Model 3 update codenamed Highland. Selling through current inventory could make for an easier transition for Tesla. Ultimately, the price changes could simply be associated with some internal strategy at Tesla.
Elon Musk did say that the brand would try its hand at advertising recently. Increasing demand for its two most affordable models could be key as Musk predicts a difficult year ahead for the global economy.
