Tesla recently announced that it would be cutting the prices of the Model Y by $1,000 until the end of the month. Elon Musk explained that this price cut was being offered due to lower demand for electric vehicles during the winter months. This is not the first time that Tesla has reduced prices in response to market conditions.
The discounted prices will only be available for the rear-wheel drive and long-range versions of the Model Y in the US. These versions will now cost $42,990 and $47,990, down from their original prices, but not including the “performance” version. However, this is only a temporary discount as prices are set to increase on March 1st.
Despite this price cut, Tesla is still 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. In addition to this challenge, Tesla is also preparing to ramp up production of a more affordable mass-market electric vehicle code-named “Redwood,” after Elon Musk warned investors of a potential sales slowdown. With a push to make its cars cheaper and facing competitive threats, 2022 is a pivotal year for the automaker.