Tesla cuts prices on two US models

Nothing lasts forever. Not even Tesla prices. The electric vehicle maker has changed the prices of two of its models sold in the US.

The Model 3 and Model Y, which were the lowest-cost models already, experienced price cuts in the Standard Range trims. Conversely, the Performance trims of both models got price bumps. The new prices are live on the company’s website.

The Model 3 Standard Rage is now selling for $38,190, a cut of $1,000. The Model Y got a bigger cut of $2,000, leaving the price at $41,190.

Elsewhere, the company is also cutting prices in Japan.

image from www.tesla.com

The Performance trim of the Model 3 is however now selling for $55,990, up $1,000. The same trim for the Model Y also got an increase of $1,000, now going for $60,990.

With the federal electric vehicle tax incentives already used up by Tesla, the new prices are what buyers will pay, except where they are able access applicable state and local incentives.

The company is also interested in making a $25,000 electric car, and will probably be able to hit the price point by using its battery announced at the last Battery Day event.

image from www.tesla.com

Tesla had a busy year last year, delivering about half a million vehicles despite production facilities being shut down due to the Coronavirus pandemic. These cuts might be an attempt to replicate the success.

Prices of electric vehicles are however expected to fall gradually until they match the costs of ICE vehicles. The industry could reach the milestone as soon as 2023. Dropping prices of Lithium-ion batteries and economy of scale will eventually drive down the costs.

Other electric makers are also dropping prices as they vie for more share of the market. The two models recently announced by Ford (Bolt EV and Bolt EUV) were actually several thousand dollars cheaper than their predecessor.

Written by D.O. for www.ShargeMe.blog