New Tesla Model Y vehicles in the United States are currently eligible for discounts of up to $3,000.
Tesla has yet to announce when the promotion will end. However, industry watchers expect it to last until at least the end of December.
These discounts are on top of the $7,500 federal EV tax credit that’s available to all Model Y vehicles.
The Model Y is Tesla’s top-selling car. The base trim starts at $43,990 before the federal tax credit. The Model Y Long Range trim begins at $48,990, while the Performance trim starts at $52,490.
During Tesla’s third-quarter earnings call, CEO Elon Musk expressed anxiety about rising interest rates. Rising interest rates are increasing the cost of EVs and reducing demand.
Despite price reductions, the monthly payments for customers have not seen significant changes. Savings in upfront costs are offset by the rising interest rates.
Tesla is also offering discounts on the Model Y in Canada, albeit not to the same extent. According to Drive Tesla Canada, the largest Canadian discount is currently $2,260 CA ($1,649 US).
The $3,000 discounts appear to be part of a year-end sales push. Tesla has successfully delivered 1,324,074 cars during the initial three quarters of the year. The company’s 2023 sales target is 1.8 million.
The 1.8 million figure is still highly attainable. Tesla needs to sell 475,926 cars in Q4 to hit its target, which is only slightly more than the 435,059 cars it sold in Q3. Moreover, Tesla’s Q4 sales totals are expected to rise due to increased manufacturing at recently upgraded factories.
However, cutting prices to offset rising interest rates may not be a viable strategy if interest rates continue to rise. Price cuts caused Tesla’s year-over-year profits to decline by 44% in Q3.
Image Source: Sydney EV
