Tesla slashes prices on Model 3 and Model Y — here’s how much you can save

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Shubham Sawarkar is a technology journalist at GadgetBond, covering Apple, AI, consumer technology, software, gadgets, and product launches. His work explores emerging technologies, industry developments, product...

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Oct 8, 2023, 7:13 AM EDT

Tesla, the pioneering electric vehicle (EV) manufacturer, has once again dropped the prices of its popular Model 3 and Model Y vehicles, making electric mobility more accessible to consumers.

Model 3 Price Reductions

The entry-level Tesla Model 3, now available in its Rear-Wheel Drive (RWD) version, starts at $38,990, marking a $1,250 decrease from its previous price of $40,240. The Long Range variant of the Model 3 sees a price reduction as well, now priced at $45,990, down from $47,240. If you’re looking for more performance, the Model 3 Performance version is now available for $50,990, down from $53,240.

Model Y Updates

While the RWD Model Y maintains its starting price at $43,990, the Long Range and Performance variants have become more affordable. The Long Range Model Y is now priced at $48,490, down from $50,490, and the Model Y Performance is available for $52,490, down from $54,490.

Both the Model 3 and Model Y are eligible for federal EV tax credits and potential state incentives, which can significantly reduce the overall cost, depending on your location.

Tesla’s Promise and Market Impact

It’s important to remember that Tesla’s CEO, Elon Musk, originally promised the Model 3 would be a $35,000 car. While a version briefly met that target, it was challenging to obtain. Now, with the inclusion of tax incentives, owning a Model 3 is possible for less than $30,000.

While the price reductions may not be earth-shattering, they are significant because Tesla has been steadily making its vehicles more affordable throughout the year. These moves are likely to put pressure on competitors in the EV market. Both the Model 3 and Model Y have consistently ranked among the top-selling electric cars in the U.S. Tesla recently announced the delivery of 419,074 Model 3 and Model Y vehicles in the third quarter of 2023, reflecting a 29 percent year-over-year increase.

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