What's Up With Tesla? Latest Price Drop Puts Base Model 3 Under $40K

pcmag.com:

Tesla has once again dropped prices on the Model 3 and Model Y, one of at least a half dozen price adjustments the automaker has made in 2023 alone.

Ahead of its Q1 earnings report, Tesla dropped the price of its Model 3 standard range RWD from $41,990 to $39,990. The Model Y also got a $3,000 haircut across its variants: the AWD version went from $49,990 to $46,990; the long range from $52,990 to $49,990; and the Model Y Performance from $56,990 to $53,990.

The higher-priced Model X and Model S prices stay the same this time around, though last month they dropped $10,000 and $5,000, respectively.

$48,440 on the 2022 version(Opens in a new window)

$46,990 early January 2023

$43,990 after late January 2023 price cut

$42,990 in February 2023

$41,990 in early April 2023

$39,990 today, late April 2023

The Model Y got a notable $13,000 discount in January, prompting a rush of purchases and making the Model Y the top-selling EV in the US in January, followed by the Model 3.

Federal tax credits can also further lower the cost for eligible buyers. Yesterday, the US Treasury published an updated list of vehicles that qualify for the credit. The Model Y retained its $7,500 credit for all three variants, but the Tesla Model 3 standard range RWD dropped to $3,750 because its battery does not have enough domestically sourced materials to qualify for the full amount. The Model 3 Performance retained its full $7,500 credit. The Model S and X are too expensive to qualify, meaning they are above the federal price cap limit for the credit.

Tesla's piece of the EV market has dropped in the face of more competition, going from 74% of all EV sales from Teslas in January 2022 to 57% in January 2023. That's a steep decline in share, but