FREMONT, California Tesla has announced discounted prices for two of its Model Y variants, but the offer is only valid until the end of February. The base Rear Wheel Drive Model Y is reduced by $1,000 to $42,990, while the All Wheel Drive Model Y is now priced at $47,990 after a similar discount. The Model Y Performance, however, remains unchanged at $52,490. These prices do not include federal tax credits of $7,500.
While the discounts are set to expire after February 29, Tesla may consider extending or making them permanent, as the company often increases incentives at the end of a quarter. Additionally, with high Model Y inventories in the U.S., Tesla has already applied discounts to the inventory beyond the temporarily lowered list price. Furthermore, Tesla’s Austin plant is currently running below official capacity.
Earlier in January, Tesla made modest price cuts for certain Model Y variants in China and larger price cuts in Europe.
In contrast, the demand for electric vehicles (EV) is slowing down, with Rivian recently reducing prices for its R1T pickup and R1S SUV models by $3,100. As for the new Model 3, Tesla has not lowered prices in the U.S., and the production at the Fremont plant remains limited. In fact, Tesla raised the price of its Model 3 Long Range by $1,000 to $56,990 on February 4.
With the Model 3 no longer eligible for the $7,500 tax credit, the Model Y has become a more affordable option for buyers. This shift in pricing dynamics may also impact the demand for Tesla’s electric vehicle models.
In terms of stock performance, Tesla saw a 3% increase to 193.57 and Rivian’s stock rose by 6.9% to 16.68 last week.
For more stock market updates and information, follow Ed Carson on Threads at @edcarson1971 and on Twitter at @IBD_ECarson.
This article was compiled by taking information from various sources and analyzing the current dynamics of the electric vehicle market and its impact on Tesla’s pricing strategy.