One week ago today, Tesla announced one of the largest rounds of price cuts we’ve ever seen from an automaker — and it seems to have worked. Interest in buying a Tesla has spiked in the week since.
The Cuts
The move saw the price of America’s best-selling electric vehicle (EV), the Tesla Model Y, lowered by up to 20%. America’s second best-selling electric vehicle, the Tesla Model 3, saw price cuts of up to 14%.
The cuts also give some buyers a chance at additional savings. They make every Model 3 and many Model Y SUVs eligible for federal tax incentives of up to $7,500, provided the buyer meets certain income guidelines.
Related: How Do Electric Car Tax Credits Work?
| Vehicle | Old Price | New Price | Discount |
| Model 3 | $46,990 | $43,990 | -$3K (-6%) |
| Model 3 Performance | $62,990 | $53,990 | -$9K (-14%) |
| Model Y | $65,990 | $52,990 | -$13K (-20%) |
| Model Y Performance | $69,990 | $56,990 | -$13K (-19%) |
| Model S | $104,990 | $94,990 | -$10K (-10%) |
| Model S Plaid | $135,990 | $114,990 | -$21K (-15%) |
| Model X | $120,990 | $109,990 | -$11K (-9%) |
| Model X Plaid | $138,990 | $119,990 | -$19K (-14%) |
The Result
More than twice as many people searched for a Tesla Model Y on KBB.com in the week after the price cuts, compared to the week before. The Model 3 saw more than a 20% traffic increase.
Electrek quotes “sources familiar with the matter,” saying Tesla itself is experiencing “unprecedented demand.” The site reports that some Tesla stores have “reached their new record for sales in a single week.”
Similar interest spikes may have occurred overseas. Wedbush analyst Dan Ives surveyed Chinese EV shoppers after the cuts were announced. “Nearly 70% responded that the most recent price cuts have positively influenced their decision to more likely purchase a Tesla Y, proving the price cuts have been a home-run success out of the gates,” Ives told Barron’s.
Tesla reports sales results quarterly, so we won’t be able to put numbers to the phenomenon until early April.
