Tesla isn’t done with their price cuts yet. After a series of price cuts in many markets around the world over the weekend, Tesla set their sights on the Australian market with substantial price cuts to the Model 3 and Model Y.
This is the second round of price reductions in Australia in less than a month, as the company responds to fluctuating international demand.
According to the Design Studio in Australia on Tuesday morning, the new Model 3 has seen AUD$3,000 (C$2,650/US$1,935) price reductions for both variants currently available for purchase. The Model 3 RWD is now available at AUD$58,900, while the Model 3 Long Range is now priced at AUD$67,900.
Similarly, the price for the Model Y Rear-Wheel Drive (RWD) has been lowered to AUD$60,900, also a drop of AUD$3,000. When combined with the previous price cut, this represents a decrease of AUD$4,500 from the price at the beginning of the month.
The Model Y Long Range now starts at AUD$69,900, also reduced by AUD$3,000. Meanwhile, the Performance variant maintains its price at AUD$82,900.
These price adjustments come after Tesla’s first reported year-on-year decline in quarterly global deliveries since 2020, and a series of price cuts in markets around the world. Unfortunately, one market that has yet to see any price reduction in the last few days is Canada.
Defending the price cuts, CEO Elon Musk said Tesla’s transparent pricing makes it seem like they adjust prices more than other automakers, but explained legacy automakers change prices “constantly and often by wide margins via dealer markups and manufacturer/dealer incentives.”
