In recent news, Elon Musk has announced that Tesla will be reducing the prices of the Model Y by $1,000 until the end of the month. The price cut is being offered because people tend to be less inclined to buy cars during the winter months, according to Musk. This is not the first time Tesla has reduced prices in the past year due to lower demand for electric vehicles.
The discounted prices will only be available for the rear-wheel drive and long-range versions of the Model Y in the US, with prices starting at $42,990 and $47,990. However, this is only a temporary discount as prices are set to go back up on March 1st. It’s worth noting that this offer does not include the “performance” version.
Tesla’s Model Y is its most popular model and accounted for a third of all electric vehicle sales in the US last year. However, Tesla is facing competition from other electric vehicle manufacturers, particularly from Chinese automaker BYD which recently overtook Tesla as the world’s top seller of electric vehicles. This presents a challenge for Tesla as it prepares to ramp up production of a more affordable mass-market electric vehicle code-named “Redwood.” As Elon Musk warned investors of a potential sales slowdown earlier this year, 2022 is indeed a pivotal year for Tesla.