Tesla Slashes Prices on Model 3 and Model Y Vehicles Amid Heightened EV Competition

Tesla has lowered prices for Model 3 and Model Y vehicles, bringing MSRPs to new all-time lows amid increased EV competition.

All Model 3 variants received discounts, along with the Long Range and Performance versions of the Model Y. This continues Tesla's price war in early 2022.

Price cuts may reflect a stabilizing EV market with slowing adoption rates and attractive new models from other automakers like Hyundai, Kia, and Volvo.

Lower production costs, especially for batteries, have enabled Tesla's reduced pricing. The imminent US arrival of the refreshed Model 3 may also play a role.

Price cuts likely respond to an evolving EV market where premium electric cars are becoming less differentiated and seeing lower demand.