February 29, 2024
Investors

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.




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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.

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