Tesla recently announced a temporary discount on its Model Y, cutting some prices by $1,000 until the end of the month. The company has cut prices several times in the past year as demand for electric vehicles (EVs) cools.
Elon Musk explained that the price cut is being offered because people don’t typically buy cars during the winter months. The discount will apply to the Model Y rear-wheel drive and long-range versions sold in the US, with prices of $42,990 and $47,990 respectively. However, the performance variant will not see a price reduction. The prices for Model Y will rise again on March 1.
The Model Y is Tesla’s most popular model and accounted for around one-third of all EV sales in the US last year, per data from Kelley Blue Book. Despite this success, Tesla is facing competition from Chinese automaker BYD and other companies entering the EV market. Elon Musk warned investors of a sales slowdown last month and has been pushing to make its cars more affordable through an affordable mass-market EV codenamed “Redwood.” This push comes as Tesla faces increased pressure from BYD to expand into Europe and other key markets where it currently has a strong presence.