Tesla has initiated price cuts on Model Y SUVs sitting in existing inventory across the US. As of writing, there are no similar discounts for inventory Model Ys in Canada.
Tesla’s decision to cut prices comes after its latest quarterly report, which revealed a production surplus. In the first three months of the year the company built 433,371 vehicles, but managed to sell only 386,810 of those. This discrepancy resulted in over 46,000 cars being added to inventory, adding to what was already a large surplus as this was the seventh time in the last eight quarters that Tesla has produced more vehicles than it has sold.
The discounts are varied, with Long Range (LR) and Performance models now available for as much as US$5,350 less than a custom configuration. The Rear-Wheel Drive (RWD) variants have seen the largest discounts, with some units being offered at US$7,200 off.
Add in the potential $7,500 federal tax credit on some vehicles, and you can now get a new Model Y for just over US$30,000. The current list price for a custom built Model Y RWD is US$44,990.
This surplus was not unexpected however. In January, Tesla had already signaled a cautious outlook for 2024, projecting that sales growth could be “notably lower” than in previous years, as the company was noted as being between two major growth waves.
To entice potential buyers and boost sales in Q1, Tesla announced several incentives, including temporary price cuts, Full Self-Driving (FSD) transfers, and more.
