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Tesla reduces the prices of the Model 3 and Y again to drive up the demand

It seems demand isn't high enough for these Tesla cars

Front end angle of the Tesla Model Y parked in the woods with green hills in the back.
Tesla / Tesla

Earlier this year, the Tesla Model Y became the best-selling car in the world, beating the Toyota Corolla. The Tesla Model 3 is not too far behind since it makes the list of the top ten best-selling cars globally. Despite Tesla having its worst year ever, the Model Y and Model 3 have been selling like hotcakes.

According to Reuters, Tesla plans to sell 1.8 million electric cars before the end of the year, and it’s short of that target by only 476,000 vehicles. However, as other automakers like Ford, General Motors, and Hyundai are introducing more EVs for consumers, Tesla’s market share in the EV segment has reduced from 62% to 50% — as reported by Cox Automotive. This means that if the demand for Tesla vehicles keeps falling, Tesla may not achieve its yearly target.

In an effort to maintain its dominance over the EV market, Tesla has reduced the price of the Model 3 and Model Y again to increase the demand and meet its target. The RWD Tesla Model 3 price is $38,990, down from $40,240, while the Model Y Long Range starts at $48,490 after a $2,000 price cut.

tesla model 3
Tesla / Tesla

The Tesla Model 3 Long Range is also priced at $45,990 after a price reduction from $47,240, and the Model 3 Performance trim, which was going for $53,240, is now listed at $50,990. In addition, the Model Y Performance is now available at $52,490 after a price reduction of $2,000.

But that’s not all; Tesla has introduced a cheaper RWD Model Y SUV trim with a range of 260 miles at $43,990. According to Bloomberg, the entry Model Y cost is $3,700 cheaper than the average price of a car in the U.S. at $48,000. Similarly, the Tesla Model 3, which is priced at $38,990, is $8,700 less expensive than the average gas-powered vehicle. Of course, both the Model Y and Model 3 could be way cheaper if you qualify for the full $7,500 EV tax credit.

Tesla is also offering vinyl wraps in seven different colors for the Model Y and Model 3. However, it will cost you $7,500 or $8,000 to wrap your Tesla Model 3 or Model Y with a vinyl.

From the looks of things, Tesla could have a tighter grip on the EV market now that it has made the Model Y and Model 3 cheaper than ever. In fact, a recent study revealed that most people who are trading in gas-powered vehicles like the Toyota Tacoma and Honda Civic for an EV are buying a Tesla.  

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James Dolan
James Dolan is an automotive writer with extensive work experience having been published on The Drive, Hot Cars, Green…
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