Your #1 source for auto industry news and content


Tesla lowers Model 3/Y prices in the U.S. to fulfill delivery target

The most recent cuts occur as the company works extremely hard to deliver a record 476,000 vehicles in the final three months of 2023

Tesla is slashing the prices of its Model 3 compact sedan and Model Y SUV in the U.S., intensifying its price war only days after the world’s most valuable automaker’s third-quarter deliveries fell short of market estimates.

The most recent cuts occur as the company works extremely hard to deliver a record of  476,000 vehicles in the final three months of 2023 to reach the annual aim of delivering over 1.8 million vehicles.

Tesla began cutting prices in January to boost sales in an unsteady economy and ward off competition from American automakers like Ford and China’s BYD. The price reductions are currently between 2.7% and 4.2%.

The company’s market-leading margins, which had already fallen to almost four-year lows in the April-June quarter, are expected to be further eroded by the cuts. Sending Tesla’s shares to plunge by 2.1% lower amid broader market volatility.

According to Tesla’s website, the base Model 3 car is now priced at $38,990, and the long-range Model Y is now $48,490. Additionally, Tesla cut the cost of its more expensive versions of the two models.

Since the beginning of the year, costs for the basic Model 3 have decreased by nearly 17%, and those for the long-range Model Y have reduced by more than 26%. The pricing reductions will put additional pressure on the “Detroit Three” as they attempt to manage an unprecedented autoworkers’ union strike.

Stay up to date on exclusive content from CBT News by following us on Facebook, Twitter, Instagram and LinkedIn.

Don’t miss out! Subscribe to our free newsletter to receive all the latest news, insight and trends impacting the automotive industry.

CBT News is part of the JBF Business Media family.

Jaelyn Campbell
Jaelyn Campbell
Jaelyn Campbell is a staff writer/reporter for CBT News. She is a recent honors cum laude graduate with a BFA in Mass Media from Valdosta State University. Jaelyn is an enthusiastic creator with more than four years of experience in corporate communications, editing, broadcasting, and writing. Her articles in The Spectator, her hometown newspaper, changed how people perceive virtual reality. She connects her readers to the facts while providing them a voice to understand the challenges of being an entrepreneur in the digital world.

Related Articles

Latest Articles

From our Publishing Partners