Tesla Model Y Sees $3,000 Price Drop

By

Automotive Editor

Based out of the Washington, D.C. area, Joel Patel is an automotive journalist that hails from Northern Virginia. His work has been featured on various automotive outlets, including Autoweek, Digital Trends, and Autoblog. When not writing about cars, Joel enjoys trying new foods, wrenching on his car, and watching horror movies. 

Follow On: Twitter

, Automotive Editor - July 14, 2020

Tesla does a lot of things without rhyme or reason. Unlike nearly every other automaker that waits until a new model year to announce differences in pricing, Tesla makes changes whenever it wants. CEO Elon Musk took to Twitter to announce its latest price change – a $3,000 cut for the Tesla Model Y.

“We have reduced pricing on Model Y LR dual motor & will offer a LR single motor Y in a few months, which improves affordability, while still keeping the product excellent,” said Musk in a tweet on July 12.

The price decrease now sees the Model Y start at $51,190 including destination for the Long Range trim. Pricing for the Model Y Performance has also gone down, but by a more modest $1,000. The trim now starts at $61,190. Tesla, though, has added the previously optional Performance Package as standard. It brings a 155-mph speed limit, upgraded brakes, 21-inch wheels, aluminum alloy pedals, and lowered suspension. Range for the Performance trim drops from 315 miles to 291 miles.

The changes to the Model Y’s pricing sees the electric crossover inch closer to the Model 3 sedan. That vehicle starts at $48,190 for the Long Range trim and $56,190 for the Performance trim.

Tesla Model Y

While Tesla does have a habit of changing prices for its vehicles on a whim, this move is surprising. The Model Y is the automaker’s latest offering and has only been on the market for a few months now. Because of the pandemic, other automakers have seen sales tank. Tesla, on the other hand, has done incredibly well. In the first quarter of 2020, Tesla claimed it delivered 88,400 electric vehicles. Deliveries were even better in the second quarter, as Tesla delivered a total of 90,650 EVs. The automaker groups the Model 3 and Model Y together, so all we know is that 80,050 units of those two vehicles were delivered during the second quarter of 2020.

As far as we can see, there was no reason for the automaker to lower the price of the Model Y. It could be that Tesla’s economies of scale has improved with the vehicle or that it wants more consumers to purchase the Model Y while the COVID-19 pandemic hangs around. The last time Tesla cut prices for its lineup of electric vehicles was this May. At the time, the Tesla Model 3 went down by $2,000 to $39,190, the Model S’s price decreased by $5,000 to $76,190, and the Model X’s starting price went down by $5,000 to $81,190. The Model Y was the only EV that saw its price stay the same at that time.

Whatever the reason, the Model Y’s drop in pricing is another reason why consumers shouldn’t be one of the first to purchase a new Tesla. Between recent reports of the Model Y suffering from quality issues and the decrease in price, consumers that wait for Tesla to ramp up production can take advantage of vehicles that are not only better put together, but are also cheaper.

Build & Price Your Model Y »

, Automotive Editor

Based out of the Washington, D.C. area, Joel Patel is an automotive journalist that hails from Northern Virginia. His work has been featured on various automotive outlets, including Autoweek, Digital Trends, and Autoblog. When not writing about cars, Joel enjoys trying new foods, wrenching on his car, and watching horror movies. 

Follow On: Twitter

Privacy Policy|Do Not Sell My Personal Information|Terms of Use|Cookie Policy|Disclaimer
COPYRIGHT 1999-2020 MH Sub I, LLC dba CarsDirect.com