Tesla cuts the price of its base Model 3 and Model Y cars by as much as $2,000

Elon Musk
Tesla CEO Elon Musk. Odd Andersen/AFP via Getty Images
  • Tesla has cut the prices of its base Model 3 and Model Y cars.
  • The Model 3 standard range plus dropped by $US1,000 ($1,284), to $US36,990 ($47,502), and the Model Y standard range by $US2,000 ($2,568), to $US39,990 ($51,354).
  • The prices of Tesla’s Model 3 and Model Y upgraded performance vehicles rose, to $US55,990 ($71,901) and $US60,990 ($78,322) respectively.
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Tesla has cut the price of its Model 3 sedan by $US1,000 ($1,284) and its Model Y sports utility vehicle by $US2,000 ($2,568), the electric carmaker’s website showed.

The price cut only affects the base models of the cars. The price of its Model 3 standard range plus dropped to $US36,990 ($47,502), from $US37,990 ($48,786). Tesla cut the price of its Model Y standard range to $US39,990 ($51,354) from $US41,990 ($53,923), according to the website.

The prices of the Model 3 and Model Y long-range versions, which give owners more miles per charge, haven’t changed. The Model 3 performance version, which has a higher top speed, increased from $US54,990 ($70,617) to $US55,990 ($71,901), and the Model Y performance rose from $US59,990 ($77,038) to $US60,990 ($78,322). 

Tesla didn’t immediately respond to Insider’s request for comment

The standard range of the Model Y was launched in January with a starting price of $US41,990 ($53,923) – $US8,000 ($10,273) less than the long-range model. The car was only $US4,000 ($5,137) more than Tesla’s cheapest vehicle, the Model 3 standard range plus.

The price cuts come six months after Tesla CEO Elon Musk promised to make a $US25,000 ($32,104) electric car that was “fully autonomous” in about three years. 

President Tom Zhu, the head of Tesla in China, said February 9 that the research lab where Musk’s company plans to design the $US25,000 ($32,104) car would be up and running this year.

With the price drops, the cheaper Teslas have more potential to undercut other electric vehicles currently on the market, including the Nissan Leaf and Chevrolet Bolt, both priced at $US44,000 ($56,504).