Tesla is cutting Model Y prices for a limited time — at least for now
Tesla The electric car giant TSLA announced Saturday that it has reduced U.S. prices for two variants of the Model Y, but only through February.
The base Real Wheel Drive Model Y gets a $1,000 discount, bringing it to $42,990, but the new owner must take delivery by February 29. The All Wheel Drive Model Y is also reduced by $1,000, to $47,990. Model Y performance remains unchanged at $52,490. This is before the $7,500 federal tax credit.
While the Tesla Model Y sale officially ends after February 29, it is possible that it will be extended or made permanent. Tesla typically ramps up incentives at the end of the quarter. On February 8, Tesla revived an offer to allow Full Self-Driving owners to transfer their FSD rights to a new Model 3, Y, S, or
Model Y inventories are also relatively high in the US, even with Tesla’s Austin factory running well below capacity. Tesla is already discounting Model Y inventory by more than the temporarily discounted list price, so it’s not clear how much a list price discount will boost demand.
In January, Tesla modestly reduced its prices in China for some Model Y models as well as the Model 3, followed by larger Model Y price cuts in Europe.
Demand for electric vehicles is generally slowing. Friday, Rivian (RIVN) has reduced the prices of its base model R1T pickup and R1S SUV by $3,100, to $71,700 and $76,700, respectively.
Tesla has not cut prices for the new Model 3 in the US, with production limited at its Fremont factory. In fact, Tesla raised the price of its Model 3 Long Range by $1,000 to $56,990 on February 4.
The Model 3 is no longer eligible for the $7,500 tax credit, due to stricter guidelines on battery sourcing. This means that it is often much cheaper to buy a Model Y than a Model 3.
Elon Musk ordered to testify
A federal court in California on Saturday ordered Tesla CEO Elon Musk to comply with an SEC subpoena over possible violations of securities laws related to his 2022 Twitter purchase. The two sides must meet within a week to set a date and place for Musk’s testimony.
Musk revealed his initial purchases on Twitter after the legal deadline, as well as indicating that the investment was passive.
Tesla stock rose 3% to 193.57 last week, retreating from its worst levels in nearly nine months. Rivian stock jumped 6.9% to 16.68, rebounding from nearly recent lows.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson For stock market updates and more.
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