In efforts to make up lost ground due to the Coronavirus shutdown, Tesla has cut prices on its products during the restart of production. The lower-entry Model Y will see a $2000 reduction, while the Model S and X will see a $5000.
Another change seen from Tesla is the halt of unlimited free supercharging to new Model S and X customers. A perk that does not apply to the new Model Y crossover and is not available to Model 3 buyers. In August 2019, the company brought back the perk in an effort to boost sales of its more expensive electric vehicles. The free unlimited supercharger referral program is now set to end September 18.
With these price changes the Model 3 will become the least expensive Tesla with a starting price of $37,990. In addition, this will inch it towards the promised $30,000 base price, considering the company is still eligible for the federal electric vehicles tax credit of $7,500. Unfortunately, the tax credit is no longer applicable as Tesla has sold over 200,000 vehicles. On the bright side Teslas are still eligible for state and local incentives.
The starting price for the Model S is now $74,990 and the Model Y $79,990, both Long Range Plus Versions. The EPA estimates between charges, the Model S has a range of 391 miles while Model X lands just below at 351 miles.
New to the market, the Model Y will not see any price cuts. Like other Tesla models, it will not be eligible for federal tax cuts. The Model 3-based crossover has a starting price of $52,990 with the performance version costing $60,990.
With price cuts being implemented we can only assume this is a strategic measure to move product as well as push competitive pressures. Besides cutting pricing in the United States, Tesla will also lower prices in China. There, the Model S and Model X will see a price cut of approximately four percent.