How Much Is a Tesla? All Models Just Got Prices Cut (Again)

Teslas just got a whole lot cheaper.
The company recently (and quietly) lowered the prices on all its cars.
Is this the right move at the right time or an act of desperation?

[Update April 7, 2023: This article has been updated to reflect the new round of price cuts made by Tesla.]

Tesla has issued yet another round of sweeping price cuts. After recently slashing prices for the Model S and Model X, this new cut affects all models. Automotive News first reported that the Model 3 and Model 3 Performance both get a $1,000 price cut after news broke that the Model 3 would only be eligible for half of the $7,500 tax credit because of new raw materials sourcing requirements that take effect soon. Though the base Model 3 will lose half the tax credit, the Model 3 Performance will still qualify for the full $7,500 amount.

The news of price cuts also brings a new Model Y variant. The new trim both costs less, starting at $51,630, and gets less range (279 miles) than the Model Y Long Range and the Model Y Performance — both of which received a $2,000 price cut in this round of slashing. The Model S is now cheaper by $5,000 and starts at $86,630 with destination, and Tesla took a huge $10,000 off the price of the Model X. It now starts at $96,630.

As the new regulations around material sourcing loom — they'll require 80% "of the market value of critical minerals" in an EV battery to be "sourced domestically or from U.S. free-trade partners" by 2027 — it's worth noting that Tesla makes the batteries for all its models except the Model 3 in the U.S. As a result, it might have a more stable path forward when the regulations come into full effect.