It is no longer news that Tesla has implemented significant price cuts across its models globally. However, the move is paying off as automobile websites are witnessing more than usual traffic as shoppers try to learn more about Tesla cars.
According to analyst firm Edmunds, “On-site shopper consideration of Tesla vehicle pages on Edmunds jumped to 4 percent of all researched brands compared to 1.9 percent the week prior. The Tesla Model Y became the second-most researched vehicle on Edmunds, behind the Honda CR-V, up from 70th place the week prior.”
In the US, the Model Y got a price cut of $13,000 to $54,630. Apart from making the electric crossover more affordable, the new price now allows it to qualify for up to $7,500 in the new federal EV tax credit. This means buyers can save up to $20,500.
The three-row Model Y also qualifies for the incentives as it is under the $80,000 cap.
The entry-level Model 3 got a $3,000 price cut, to sell for $45,630. The Performance variant was reduced by $9,000 in price to $55,630. Both of them qualify for the full EV tax credit.
Not to be forgotten, Tesla also cut the price of the Model 3 RWD in Canada to below the threshold for the $5,000 federal rebate.
Edmunds admitted the price cuts led to a surge in interest in the cars on its website. The volume of appraisal of Tesla cars more than tripled and accounted for 3.1% of all vehicles on the website, compared to 0.8% the day before.
“These price cuts, as well as inventory on the ground, will win Tesla market share and help consumers overlook the brand’s aging lineup. Lower prices and immediate availability undeniably resonate with the American consumer,” said Jessica Caldwell, Edmunds’ executive director of insights.
Meanwhile, people who bought the cars before the discount would be upset to see the residual values of their vehicle drop. Edmunds reported the value drop had been instant.