Tesla Price Cut: Model Y, Model 3 Now Even Cheaper

Tesla (TSLA) has decreased the price of its Model 3 sedan and Model Y SUV, making certain configurations of the EVs more affordable to own.

The Model 3 Standard Range Plus EV now has a price tag of $36,990, while the Model Y Standard Range SUV’s price sits at $39,990. The previous price of the Model 3 Standard Range Plus was $37,990 and Model Y Standard Range SUV was $41,990, Reuters reported.

The price cuts only affect the base model of the electrified vehicles, while the automaker’s longer-range Model 3 and Model Y models saw an increase in price across the board.

Tesla raised the price of the Performance model of the Model 3 to $55,990, and the Model Y Performance configuration now costs $60,990, the website said. The Model 3 Performance version was previously priced at $54,990, and the Model Y Performance model had a price tag of $59,990, according to Reuters.

The Model 3 is the least expensive car in Tesla’s EV lineup, while the Model Y was recently launched in January. When Tesla introduced the Model Y, the SUV had a starting price of $41,990, while the Performance version was $8,000 more, Business Insider reported.

According to the news outlet, Tesla CEO Elon Musk has made a promise to come to market with a $25,000 EV that is “fully autonomous” in about three years.

Tesla delivered 499,550 electric vehicles in 2020, just shy of Musk’s goal of 500,000 units for the year.

Shares of Tesla were trading at $781.00 as of premarket hours on Thursday, down $17.15 or 2.15%.