Tesla, under the leadership of Elon Musk, has announced a price cut of $1,000 for its Model Y rear-wheel drive and long-range vehicles in the U.S. This reduction, which will be in effect until the end of February, is allegedly due to the seasonal variance in consumer demand.
According to Musk, "Tesla is offering a $1000 discount to encourage purchases during winter, a period characterized by lower car sales. The nature of manufacturing requires consistent production to maintain efficiency, yet consumer demand tends to fluctuate with the seasons."
Post-discount, the Model Y rear-wheel drive and long-range are listed at $42,990 and $47,990 respectively, while the Model Y Performance maintains its previous price of $52,490. The company forewarns that prices may rise by $1,000 or more from the beginning of March.
Previously, Tesla reduced the prices of its Model Y and Model S cars in China, then introduced more significant price cuts for the Model Y in Germany. The price cuts followed production suspension in its Berlin factory due to component shortages, which resulted from shipping disruptions caused by Red Sea attacks.
In January, Tesla announced that it had delivered 485,000 cars in the final quarter of the previous year. However, profits were offset by a drop in demand, higher costs associated with artificial intelligence-related projects, and multiple price cuts. The company also warned of a significant drop in vehicle delivery growth rates in 2024 compared to the previous year.
Decreased demands for electric vehicles (EV) have led other companies to also reduce prices. Just last week, Rivian reduced the prices of its R1T pickup and R1S SUV by $3,100, making the new prices $71,700 and $76,700 respectively.
