New York, February 10, 2024, The Europe Today: Tesla Inc. has announced a temporary reduction in prices for certain Model Y cars in the United States until February 29, marking another strategic move by the electric vehicle manufacturer. This adjustment comes shortly after Tesla made similar price cuts for Model Y vehicles in Germany.
The temporary price reduction applies to the Model Y rear-wheel drive and the Model Y Long Range, with prices reduced by $1,000 to $42,990 and $47,990, respectively. This represents a discount of 2.3% and 2% from the previous prices. Notably, the prices for the Model Y Performance variant and other models remain unchanged, as stated on Tesla’s official website.
According to Tesla’s notice, the reduced prices for the Model Y rear-wheel drive and Long Range models are applicable for deliveries made through February 29. Starting March 1, the prices for these models are expected to increase by $1,000 or more.
This move follows Tesla’s recent decision to lower Model Y prices in Germany. The company took this step after facing disruptions in car production at its Berlin factory due to a lack of components, caused by attacks in the Red Sea affecting shipping operations.
In addition to these price adjustments, Tesla has already signaled expectations of “notably lower” sales growth in the current year. The focus on ramping up production of its next-generation electric vehicle, codenamed “Redwood,” is a key factor in this outlook. However, the ongoing price reductions may pose challenges to Tesla’s margins, which have already been impacted by a price war that began over a year ago.
The temporary price cuts on Model Y vehicles in the U.S. reflect Tesla’s dynamic approach to market conditions and its ongoing efforts to maintain competitiveness in the rapidly evolving electric vehicle industry.