Tesla Drops Prices of Model 3/Y and Model S/X By Up to $21,000 in U.S., Canada, Europe [Update]

Sarah Lee-Jones
1 year ago

model y tax credit hero

After dropping prices in China, South Korea, Japan and Australia, New Zealand and Singapore, Tesla has now significantly reduced prices in the U.S. and Canada.

Tesla’s website has been updated to note, “Until March 2023, certain new Model 3 and Model Y vehicles qualify for a $7,500 federal tax credit for eligible buyers.”

Price drops are up to $21,000 USD (yes, $21,000!) depending on the vehicle (via @MilMileBattery). Check out the price changes below, before tax credit:

Model 3

  • RWD: $43,990 (was $46,990; $3,000 drop, -6.4%)
  • Performance: $53,990 (was $62,990; $11,000 drop, -14%)

Model Y

  • Long Range: $52,990 (was $65,990; $13,000 drop, -20%)
  • Performance: $56,990 (was $69,990; $13,000 drop, -19%)
  • Standard Range AWD 4680 Existing Inventory: $50,990 (was $63,990; $13,000 drop, -20%)

Other changes for Model 3 and Model Y:

  • For Model 3 and Model Y, the color Midnight Silver Metallic is no longer free, as it’s $1,000 for the upgrade
  • The 7-seat option for Model Y has also increased by $1,000 to $4,000 (was $3,000)
  • Model 3 in Canada now starts at $54,990 CAD, and qualifies for $5,000 federal iZEV rebate ($55,000 CAD threshold)

Model S

  • Long Range: $94,990 (was $104,990; $10,000 drop, -9.5%)
  • Plaid: $114,990 (was $135,990; $21,000 drop, -15.4%)

Model X

  • Long Range: $109,990 (was $120,990; $11,000 drop, -9.1%)
  • Plaid: $119,990 (was $138,990; $20,000 drop, -13.7%)

Tesla says there are AGI Limitations:

  • $300,000 for married couples filing jointly
  • $225,000 for heads of households
  • $150,000 for all other filers

“The vehicle price includes optional equipment physically attached to the vehicle at the time of delivery and excludes software features, accessories, taxes and fees,” explains Tesla.

“The following models currently qualify for federal tax credits for eligible buyers who meet AGI limitations,” says the company:

  • Model 3: $55,000
  • Model Y with 5 seats: $55,000
  • Model Y with 7 seats: $80,000

Tesla CEO Elon Musk has said in the past the company’s price hikes were temporary, due to high demand, supply chain shortages and the global chip crisis. High costs of parts and supplies are also a result of these price increases.

Musk said Tesla’s goal is to lower pricing to make its cars more affordable, but when supply is low prices need to go up and won’t lower until the company is able to scale up production, which is what we’re seeing at Giga Berlin and Giga Texas.

Tesla Also Drops Prices in Canada

Here are the price changes in Canada, which now sees the Model 3 RWD qualify for the $5,000 CAD federal iZEV rebate again, as the price drops below the $55,000 CAD limit.

Model 3

  • RWD: $54,990 (was $61,980; $6,990 drop, -11.3%)
  • Performance: $72,990 (was $83,990; $11,000 drop, -13.1%)

Model Y

  • Long Range: $69,990 (was $86,990; $17,000 drop, -19.5%)
  • Performance: $75,990 (was $91,990; $16,000 drop, -17.4%)

Other changes for Model 3 and Model Y:

  • For Model 3 and Model Y, the color Midnight Silver Metallic is no longer free, as it’s $1,300 CAD for the upgrade
  • The 7-seat option for Model Y has also increased by $1,300 to $5,300 (was $4,000)
  • Model 3 in Canada now starts at $54,990 CAD, and qualifies for $5,000 federal iZEV rebate ($55,000 CAD threshold). Transport Canada updated its website on Friday, January 13 to confirm the change.

Model S

  • Long Range: $122,990 (was $136,990; $14,000 drop, -10.2%)
  • Plaid: $149,990 (was $178,590; $28,600 drop, -16%)

Model X

  • Long Range: $142,990 (was $157,990; $15,000 drop, -9.5%)
  • Plaid: $156,990 (was $185,590; $28,600 drop, -15.4%)

Tesla also has dropped prices in Europe, including Germany, Portugal, Spain, France, Denmark

…developing, refresh for updates

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