February 29, 2024

Tesla Cuts Model Y Prices For A Limited Time — At Least For Now

Tesla (TSLA) discounted U.S. prices for two Model Y variants, but only through February, the EV giant announced Saturday.


The base Real Wheel Drive Model Y is getting a $1,000 discount, to $42,990. The All Wheel Drive Model Y also has been reduced by $1,000, to $47,990. The Model Y Performance remains unchanged at $52,490. Those are before federal tax credits of $7,500.

While the Tesla Model Y discounts officially end after Feb. 29, it’s possible that they could be extended, or made permanent. Tesla typically ramps up incentives at the end of the quarter. Also, Model Y inventories are relatively high in the U.S. Tesla already discounts Model Y inventory by more than the temporarily lowered list price. Meanwhile, Tesla’s Austin plant is running well below official capacity.

In January, Tesla cut China prices modestly for the some Model Y variants as well as the Model 3, followed up by larger Model Y price cuts in Europe.

EV demand generally is slowing. On Friday, Rivian (RIVN) cut the prices of its base-model R1T pickup and R1S SUV by $3,100, to $71,700 and $76,700, respectively.

Tesla isn’t cutting U.S. prices on the new Model 3, with production limited at the Fremont plant. In fact, Tesla raised the price of its Model 3 Long Range by $1,000 to $56,990 on Feb. 4.

The Model 3 is no longer eligible for the $7,500 tax credit, due to tougher battery sourcing guidelines. That means it’s often substantially cheaper to buy a Model Y than a Model 3.

Tesla Stock

Tesla stock rose 3% to 193.57 last week, reversing higher from its worst levels in nearly nine months. Rivian stock leapt 6.9% to 16.68, rebounding from near recent lows.

Please follow Ed Carson on  Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.


Why This IBD Tool Simplifies The Search For Top Stocks

Want To Get Quick Profits And Avoid Big Losses? Try SwingTrader

Best Growth Stocks To Buy And Watch

IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today

Market Hot, But Watch For This; 5 Stocks In Buy Zones

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *