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Tesla cuts prices for entry-level Model 3 and Model Y

Tesla is determined to keep its sales strong and is using the established tactic of price cuts to ensure that this happens. As Reuters reports, Tesla has cut prices for basic Model 3 and Model Y electric cars. A Standard Range Plus Model 3 now starts at $ 36,990 (down from $ 37,990), while the Standard Range Model Y has dropped more sharply to $ 39,990 (previously $ 41,990). The company has just made the Model Y more accessible with the launch of the Standard Range in January, so a price cut soon comes as a surprise.

Not everything is good news. Tesla increased the prices of the performance variants for both cars. The fastest model 3 now costs $ 55,990 (up from $ 54,990), while Model Y gets a similar price increase to $ 60,990 (an increase of $ 59,990).

The automaker did not explain its strategy and should not comment when it effectively dissolved its public relations team. However, the strategy is quite easy to see – Tesla wants deliveries to keep growing, and lowering the base prices for its cheapest cars could lead to that goal. It helps that Tesla fell a bit short of its target of delivering 500,000 cars for the last quarter of 2020, and it probably doesn’t want to disappoint when 2021 starts.

Tesla can get additional help. InsideEVs notes that the Biden government’s GREEN Act (Growing Renewable Energy and Efficiency Now) could bring back federal incentives of up to $ 7,000 for a limited number of sales. It can be relatively trivial to own a Tesla, at least as long as the EV charging infrastructure is robust where you live.

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