Elon Musk recently announced a temporary discount on Tesla’s Model Y, saying that the company will cut some Model Y prices by $1,000 – but only until the end of the month. Tesla has cut prices several times in the past year as EV demand cools.
Musk said the price cut is being offered because “people don’t love to buy cars in the middle of winter.” The discount will apply to the Model Y rear-wheel drive and long-range versions sold in the US, with prices of $42,990 and $47,990 respectively. However, the performance variant will not see a price reduction. Model Y prices will rise again on March 1.
The Model Y, which Tesla first unveiled in 2019, is the company’s most popular model and accounted for around one-third of all EV sales in the US last year, per data from Kelley Blue Book. The latest price cut comes as Tesla is attempting to fend off competitors and faces the threat of competition from Chinese automaker BYD.
Elon Musk warned investors of a sales slowdown last month, and the company is preparing to ramp up production of an affordable mass-market EV codenamed “Redwood.” The push to make its cars cheaper also comes as Tesla faces the threat of competition from Chinese automaker BYD. The Warren Buffett-backed company overtook Tesla as the world’s top seller of electric vehicles at the start of the year and is now eyeing expansion into Europe, one of Tesla’s key markets.