Tesla Just Cut Prices on the Model 3 and Y
Tesla has drastically reduced prices in the U.S. on January 12, 2023 by the following:
• Model 3 RWD: $43,990 (from $46,990, a 6.4% drop)
• Model 3 P: $53,990 ($62,990, 14.2% drop)
• Model Y Long Range: $52,990 (from $65,990, a 20% drop)
• Model Y P: $56,990 (from $69,990, a 23% drop)
The rest is from an older article from December, 2022:
Tesla has just cut prices on the Model 3 and Model Y and this is why they did it.
Tesla has cut prices on the Model 3 and Model Y and this is in the United States and not in China. You might be wondering how this is possible because if you go on the Tesla website, the price of the Model 3 RWD is still the same and the price of the Model Y long range is still the same.
The price cut comes in the form of a delivery credit for December, 2022 for existing Tesla vehicles available for purchase and not custom orders. I believe these are vehicles that were made, but then customers cancelled their orders.
This allows you to get a Model 3 or Model Y from Tesla's existing inventory for a cheaper cost than it would otherwise be. Here's an example using a Model 3 performance with the discount.
You get the following:
Vehicle Price: $64,400
Destination fee: $1,200
Order fee: $250
December 2022 Delivery Credit: $3,750
Final Cost: $62,100
This does not include taxes and fees.
This means you can get a 2023 Model 3 RWD for a base price of anywhere between $45,000 to $46,190, depending on the wheels you get on the vehicle.
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Will Price Cuts Like This Continue?
I don't think price cuts like this are going to continue into next year. I think this discount for December is a way for Tesla to have an epic Q4, 2022 and the reason for these discounts is because people are waiting until next year to order their Tesla.
Why are people waiting until next year to order their Tesla? Because of the IRA - the inflation reduction act in the United States. This will provide a discount of about $7,500 for a Model 3 RWD or a Model 3 long range. In fact, I expect that Tesla will bring back the Tesla Model 3 long range and it will be about $54,990.
This will make it under the $55,000 that is required for a sedan to qualify for the IRA tax credit. $7,500 is a lot of money and a big deal. This would put the base cost of the Model 3 long range at about $47,500, which puts it close to the existing price of the Model 3 RWD. It then puts the cost of the Model 3 RWD at about $39,500, which is a really good deal for what you get for that car.
The discount is so much that I'm thinking about buying a 2023 Model 3 RWD or long range and just trading in my existing Tesla because of the $7,500 tax credit. It's like getting free money and I think it will be a good decision. I'll see what the final statistics are for the tax credit when the time comes.
What do you think about Tesla cutting prices for its vehicles in December, 2022? Is this so Tesla can have a good Q4, 2022 before the IRA comes into action?
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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.