Tesla Model 3 and Model Y Just Got Cheaper... Again

by Chris Teague

Published: April 19th, 2023

tesla model 3 and model y just got cheaper again

Not that long ago, there was a time when Tesla vehicles seemed to defy the laws of depreciation, and some actually gained value on the used market. That’s changing, as the automaker has cut prices more than once in 2023, with the latest round of decreases landing this week.

Tesla cut prices for the base Model 3 by $2,000, bringing it below $40,000, but the Performance model didn’t see a reduction. The Model Y saw prices fall across the board by $3,000, bringing the base price to $46,990. Pricing for the Model S and Model X did not change.

Though it’s now cheaper to buy a new Tesla Model 3 or Model Y, some are eligible for federal tax credits, making them even more appealing. Some Model 3s are only eligible for half the credit because of battery materials sourcing rules, but the automaker’s domestic battery production efforts and large U.S. manufacturing footprint give the Model Y and some Model 3s eligibility.

Some Tesla rivals’ vehicles qualify for tax credits, but many do not. Changes in the rules have excluded vehicles from Hyundai and Kia, two major contenders for the top EV sales spot in the United States. Ford is gaining ground, and its EVs are eligible for tax credits, giving the Mustang Mach-E a strong starting point to compete with Tesla.

[Image: Tesla]

Become a TTAC insider. Get the latest news, features, TTAC takes, and everything else that gets to the truth about cars first by subscribing to our newsletter.

#Tesla #Teslapricecut

Chris Teague

Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.

More by Chris Teague

Comments

Join the conversation

15 of 59 comments

TheEndlessEnigma on Apr 19, 2023

Still doesn't ameliorate the cost associated with installing the charging station at you house.

2 Reply
- See 5 previous
- VoGhost on Apr 19, 2023
  
  Really? We're talking about a NEMA 14-50 and a line to your panel. Depending on where you live and the distance from your garage to the panel, we're talking maybe $800. You'll save more than that in fuel expenses over just the first year.
  
  1
- SCE to AUX on Apr 20, 2023
  
  I installed my own charger in 2012 for $800. It was $700 for the charger (half that now), and $100 for the double 40-Amp breaker and 25 feet of 8 AWG wire. It has served two EVs (2012-15, 2018-present) with no problems.
  It could be done professionally today for the same price.
  
  1
- Ras815 on Apr 20, 2023
  
  It's 2023 and you are still that ignorant about how this whole EV thing works? Everyone already has a charger at home: a 120V outlet. If you want faster charging, you hire an electrician and spend $1k for an investment that will easily pay for itself within a year or two. And a bunch of states offer incentives to do so. This isn't that complicated for the millions of EV drivers out there already...
  
  Like
- Daniel J on Apr 20, 2023
  
  I gotta figure out where y'all live. I live in a fairly cheap area and 4 years ago when I asked several electricians it was 1500 to 2500 and that didn't include the cost of the charger itself. That was 4 years ago.
  
  Like
- Tassos on Apr 20, 2023
  
  You sure do not HAVE to install anything in your house. I can charge my plug-in or BEV in my garage as I charge all my other battery operated gizmos AND have more than enough range to do all my daily and weekend chores and visits. EVEN with the smallest range Tesla (250 or so miles), and sure as hell with the 400+ Range EPA (that's REAL range, not the BS from Europe or Asia rules) Long Range Versions of the Model S.
  
  Like
- MaintenanceCosts on Apr 20, 2023
  
  I live in an expensive area and my total cost for my L2 charger was $800. L1 also works, albeit with less room for forgetting to plug in once in a while, unless you drive more than about 50 miles a day.
  
  Like
- EBFlex on Apr 20, 2023
  
  "Still doesn't ameliorate the cost associated with installing the charging station at you house."
  Very valid point.
  
  2
Kendahl on Apr 19, 2023

Irrelevant for me until Tesla resumes taking orders for the Long Range version of the Model 3. They stopped last fall and the website promises they will resume in 2023. Eight more months to go by which time I may have bought an ICE car. The Audi S3 and BMW M340i xDrive look pretty good.

1 Reply
- See 3 previous
- VoGhost on Apr 19, 2023
  
  You could get a Model 3 Performance for less $ than those ICE cars.
  
  1
- Ras815 on Apr 20, 2023
  
  Just curious but: why do you feel you need the Long Range version? How many times do those extra miles really matter, when Tesla has such an accessible and well-supported supercharging network?
  
  Like
- Ajla on Apr 20, 2023
  
  I don't think the 76 mile difference between the RWD and LR is peanuts. Plus a lot of people want the added AWD traction.
  Against the M3P, do you need to be that fast? And, it is stiffer than the LR. I guess you could do aftermarket suspension and wheel changes but that seems like a hassle on a new car when we know Tesla already offered a sweet spot option.
  
  1
- Tassos on Apr 20, 2023
  
  If you were SERIOUSLY interested in a long range 3 and they don';t offer it, your alternative is NOT an ICE, NOT even a Hybrid, but a PLUG IN HYBRID, and there are many many models to choose from. In fact, until the EV segment matures and the infrastructure is complete, PLUG INS are the way that makes the most sense. However, because most buyers today are Early Adopters EV fans, they don't even consider Plug-Ins. PIty. They should.
  
  Like
ToolGuy on Apr 19, 2023

I will take all the price decreases I can get. 😉

4 Reply
- Tassos on Apr 20, 2023
  
  Absolutely. And let's not forget the tune Tesla Haters sang just before the price decreases, these econ illiterates were blaming Musk for not offering the model 3 for $35k as he promised in 2016 (and of course the clueless idiots did not understand that $35k in 2016 is well over $40-45k in worthless 2023 Idiot Joe Biden devalued $)!
  
  1
Spectator on Apr 19, 2023

Mustang Mach-E qualifies for half credit, with Tesla reducing pricing on the model 3 and Y And getting full credit, there isn’t really a price competition / comparison. Tesla has a $10K effective cost advantage and the largest charging infrastructure - and the most American vehicle content. Thoughts?

Like Reply
- SCE to AUX on Apr 20, 2023
  I rented a Hertz Model 3 for a week (last week in Phoenix), and was surprised when I arrived and was told I could just choose any EV I wanted for the same price. (They have the Model 3 priced better than most of their fleet).
  The options were:
  Model 3 Base
  Model Y Performance (didn't see it on the web site), but it wasn't charged enough for them to release it.
  Kia EV6
  Mach-E
  Polestar 2
  
  I chose the Model 3 because I planned to drive a fair bit (ended up being 430 miles in 7 days), and wanted to experience the Supercharger network - with the expectation it would be less hassle.
  The Superchargers I used were reliable but very busy, and did not fill as quickly as I expected. I'd say they were good enough. My limited experience with other chargers - plus seeing others' comments - is that they have spotty but improving function and performance.
  Tesla is way ahead, so if you plan to use an EV for long-range driving Tesla is the only way to go today. I did not like the controls or the GUI, just as I didn't in 2018 when I first test drove a Model 3. But the car is great to drive and maybe you get used to it.
  1
- Redapple2 on Apr 20, 2023
  
  AUX. What is GUI? ( 1st rule of technical talk = always specify the abbreviations; jeez )
  
  Like
- 95_SC on Apr 20, 2023
  
  According to their website when I last looked, the base 3 only got half the credit. The Performance got the full. https://www.tesla.com/model3/design#overview
  
  1