Tesla drops Model 3 and Model Y prices in the US to new lows

One week into the final quarter of the year and Tesla has lowered prices of the Model 3 and Model Y in the US, making their two most popular electric vehicles (EVs) more affordable than ever. The price drops impact all Model 3 variants, and the Model Y Long Range (LR) and Performance variants, with the newly introduced Model Y Rear-Wheel Drive (RWD) being the lone exception. There were no similar price changes in Canada.

Model 3 Price Changes

For the entry-level Model 3, the RWD variant, it now starts at $38,990, a price drop of $1,250. Add in the federal tax credit of $7,500, and the newly lowered $250 referral discount, and you can now purchase a Model 3 RWD for $31,240, not including any additional state level incentives.

The Model 3 LR also saw $1,250 price drop, to now start at $45,990, while the Performance variant was the recipient of the biggest price drop of the night, down $2,250 to start at $50,990.

model 3 prices
Credit: Tesla

Model Y Price Changes

For the Model Y, both the LR and Performance variants saw $2,000 price drops, to now start at $48,490 and $52,490 respectively.

model y prices
Credit: Tesla

With these new prices the most expensive Model Y, the Performance variant, now starts just above $50,000. Not only is this a price point never before seen for the electric SUV, it is $17,500, or some 25% cheaper than it was earlier this year after it reached an all-time high of $69,990 in June 2022, a price that carried through to January of this year, when it was slashed to $56,990.

This is a good sign for Cybertruck reservation holders. The company has yet to announce how much the Cybertruck will cost, but is expected that a dual motor variant will be the first to launch, and based on the current Model Y pricing, it would not be surprising to see the Cybertruck come in at the mid-$50K range when it is released, which should hopefully be within the next month.

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