Tesla, the renowned electric vehicle (EV) manufacturer, has reduced the prices of some of its Model Y cars in the United States. The US car maker also announced that the price change would only be temporary and that the reduced pricing would be available only until February 29.
Since most people don’t love to buy cars in the middle of winter, Tesla is offering a $1000 incentive to do so.
This is the essential quandary of manufacturing: factories need continuous production for efficiency, but consumer demand is seasonal. https://t.co/Tn9ThqMATZ
— Elon Musk (@elonmusk) February 11, 2024
“Since most people don’t love to buy cars in the middle of winter, Tesla is offering a $1000 incentive to do so,” wrote Tesla CEO Elon Musk on his X handle on February 12. “This is the essential quandary of manufacturing: factories need continuous production for efficiency, but consumer demand is seasonal,” the billionaire added in his post. Notably, in another post, Tesla mentioned that the prices will go up again in March.
Tesla has made this price cut on the rear-wheel drive (RWD) and long-range versions of the Model Y. After the $1,000 price reductions, the starting price of the Model Y RWD is $42,990, and the Long Range variant of the vehicle arrives with a starting price of $47,990. However, the prices of the Model Y Performance variant and other models have not changed.
“New Model Y RWD and Long Range AWD prices reduced for deliveries now through February 29. Prices will increase by $1,000 or more on March 1,” wrote the EV maker on its website. At the same time, Bloomberg reported in December 2023 that Tesla is preparing to unveil a revamped version of the Model Y sport utility vehicle. However, the car maker has confirmed in an internal email to employees that there will be no Model Y refresh coming this year, reported Drive Tesla.
The latest price cut comes less than a month after Tesla cut Model Y prices in Germany. According to a Reuters report, the EV manufacturer trimmed prices in Germany for its Model Y Long Range and Model Y Performance by 5,000 euros to 49,990 euros and 55,990 euros, respectively.