Tesla has enacted a round of price cuts, driving the cost of its least-expensive car under the $40,000 line (before delivery fees). It’s the latest in a long string of unannounced price cuts in 2023.
The Tesla Model 3 sedan now starts at $39,990, plus a $1,390 delivery fee. Federal EV tax rebates can cut that price by another $3,750. A recent round of changes to tax policy halved the base Model 3’s rebate and took tax rebates away from many competitors.
The Model Y SUV, meanwhile, has seen a $3,000 price cut at every trim level. The prices of the higher-end Model S sedan and Model X SUV remain unchanged.
Frequent Price Changes
At the height of the COVID-19 pandemic and a global microchip shortage that rocked the car industry, Tesla grew famous for regularly raising prices without warning or announcement. Now, it’s earning a reputation for the opposite.
The company doesn’t operate a public relations department, announce price changes, or answer journalists’ questions. So the frequent price cuts are a surprise every time, and there appears to be no way to predict when they’re coming. We’d love to tell shoppers how long they should wait to nail the best price, but Tesla won’t say.
New Tesla Prices
The company also charges a $1,390 destination fee on every car it sells.
| Model | Old Price | New Price | Discount | Federal Tax Rebate |
| Model 3 | $41,990 | $39,990 | -$2000 | $3,750 |
| Model 3 Performance | $52,990 | $52,990 | None | $7,500 |
| Model Y | $49,990 | $46,990 | -$3,000 | $7,500 |
| Model Y Long Range | $52,990 | $49,990 | -$3,000 | $7,500 |
| Model Y Performance | $56,990 | $53,990 | -$3,000 | $7,500 |
