If you’ve been shopping Tesla for a little while but haven’t yet pulled the trigger, you’ll know most of its models are subject to frequent and abrupt price changes. Take their “Full Self Driving” capability, for example: The FSD software upgrade now costs $7,000, and it’s set to actually get more expensive from there. However, there was good news on the pricing front overnight as Tesla dropped prices across most of its lineup. Our friends over at Electrek point out that the Model 3, Model S and Model X all start thousands of dollars cheaper than they did before, but the relatively new Model Y hasn’t received any price cuts yet.
The Model 3 Standard Range now starts from $37,990
Taking a look at Tesla’s most popular car, the Model 3’s price now starts $2,000 cheaper than before. The rear-wheel drive Standard Range Plus model (which is the base version you arrive on using Tesla’s configurator) starts at $37,990 as far as a cash price goes. Tesla will then advertise a price “after potential savings”, which can lower the actual price of the car to under $30,000 once you factor in federal and state tax credits.
As before, though, Tesla still has an “off-menu” version of the Standard Range that is available at around $35,000, which is technically still the cheapest Tesla you can buy.
The Model S and Model X are less expensive still
Then there’s the Tesla Model S. Despite it getting a bit long in the tooth by now, Tesla has kept it up to snuff through a restyling and multiple software updates. It’s the company’s longest-range vehicle, offering nearly 400 miles on a single charge with the Long Range Plus model — a figure no other current EV can touch. Pricing here has gone down by $5,000 overnight, now starting at just $74,990. The Performance gets the same price cut, with its price now going down to $94,990.
Both the Long Range Plus and Performance versions of the Model X crossover also get the same substantial $5,000 price cut. Now, the least expensive Model X starts at $79,990, while the Performance is $99,990.
So why did Tesla cut prices? Given the times we’re living in, its not difficult to imaging the company, like any other automaker, are having issues shifting units at the moment. As nearly 40 million Americans lost their jobs in the wake of the coronavirus pandemic, most people aren’t looking to buy new cars in their immediate future. We’re still on the road toward a rebound, and for now it could be a wiser move for Tesla to incentivize buyers into the brand’s current models while taking a hit on the sales, and have the revenue on hand to push its new product launches and work through its backlog of Model Y orders.