Tesla Breaks Out the Scissors Again, Cuts Prices on Model 3, Model Y

Just one week after cutting prices on nearly its entire lineup of electric vehicles, Tesla is back at it again. This time, the EV manufacturer has snipped the price tags on only its two most popular vehicles — the Model 3 sedan and Model Y SUV. The base Model 3 is down $2,000, while the starting price for the Model Y’s new base variant, along with the Long Range and Performance trims, falls by $3,000.

Related: Tesla’s Price-Cutting Streak Continues, New Base Model Y Added

The latest price cuts come ahead of Tesla’s first-quarter earnings announcement on Wednesday, where the company is expected to address how its pricing adjustments impact profits, according to Automotive News. The string of price cuts in recent months comes as the automaker aims to stir up demand after failing to meet its sales targets despite seeing an increase in deliveries.

It’s also likely that the recent update to the federal EV tax credit rules played a role in the Model 3’s pricing. The price cut only applies to the base rear-wheel-drive variant, while the dual-motor Performance model’s price is untouched. After the new battery sourcing guidelines for tax credit eligibility took effect on Tuesday, the base model only qualifies for up to $3,750 instead of the $7,500 credit; meanwhile, the Performance is still eligible for the full credit.

The price tags for the more expensive Model S sedan and Model X SUV remain unchanged from last week, and neither model qualifies for the federal tax credit. Below are the starting prices (including $1,390 destination fee) for all Tesla models as observed on April 19.

• Model 3 Base: $41,380 (down $2,000)
• Model 3 Performance: $54,380
• Model Y Base: $48,380 (down $3,000)
• Model Y Long Range: $51,380 (down $3,000)
• Model Y Performance: $55,380 (down $3,000)
• Model S Dual Motor: $86,380
• Model S Plaid: $106,380
• Model X Dual Motor: $96,380
• Model X Plaid: $106,380

More From Cars.com:

• Tesla Slashes Prices as Much as 20% Across Lineup
• Almost Every Tesla Is More Expensive Now
• 2021 Tesla Model Y Review: Have Your Cake and Eat It, Too
• Tesla Hits Shoppers With Another Price Hike
• Tesla SUV Buying Guide

Related Video:

Cars.com’s Editorial department is your source for automotive news and reviews. In line with Cars.com’s long-standing ethics policy, editors and reviewers don’t accept gifts or free trips from automakers. The Editorial department is independent of Cars.com’s advertising, sales and sponsored content departments.