The Driven
  • EV News
    • Electric Cars
    • Electric Bikes
    • Electric Boats
    • EV Conversions
    • Electric Flight
    • Electric Transport
    • Hydrogen Fuel Cell
    • Batteries
    • Charging
    • Policy
  • EV Models
  • EV Sales
  • Road Trips
  • Reviews
  • Multimedia
    • Podcasts
    • Videos
  • EV Explainers
    • FAQs
    • Readers’ Questions

The Driven
The Driven
  • EV News
    • Electric Cars
    • Electric Bikes
    • Electric Boats
    • EV Conversions
    • Electric Flight
    • Electric Transport
    • Hydrogen Fuel Cell
    • Batteries
    • Charging
    • Policy
  • EV Models
  • EV Sales
  • Road Trips
  • Reviews
  • Multimedia
    • Podcasts
    • Videos
  • EV Explainers
    • FAQs
    • Readers’ Questions
Comments
  • Electric Cars

Tesla slashes EV prices by up to $A19,000 in US, more cuts in Australia may follow

  • January 13, 2023
  • No comments
  • 2 minute read
  • Riz Akhtar
Tesla Mulgrave Nov 2022 Vehicles Parked
Image: Riz Akhtar
Share 38
Tweet 0
Share 0
Share 0
Share 0
Share 0
Share 0
Share 0
Share 0

Tesla started the year in Australia last week by shaving thousands off the price of an electric vehicle for existing order holders and new customers.

Now Tesla has heavily slashed prices in the US, making the discounts offered in Australia look comparably tiny. New prices just announced are up to 23% lower for the Tesla Model Y performance SUV, a saving of $US13,000 ($A19,000).

US prices have traditionally remained high during 2022 as Tesla navigated through Covid-19 supply chain issues as well as the ramp-up of its newest and largest Texas Gigafactory.Ā 

A Model Y in the making at Giga Texas. Source: Tesla
A Model Y in the making at Giga Texas. Source: Tesla

Now that many of those challenges are behind the world’s largest EV maker, today’s price reduction shows the advantage Tesla has over other EV makers.Ā 

Tesla’s high margins and reduction in the cost of production have meant that the prices across the Model 3 and Model Y range have been reduced to:

  • Tesla Model 3 RWD: Reduced from $46,990 to $43,990 USD
  • Tesla Model 3 Performance: Reduced from $62,990 to $53,990 USD
  • Tesla Model Y Long Range: Reduced from $65,990 to $52,990 USD
  • Tesla Model Y Performance: Reduced from $69,990 to $56,990 USD

These price cuts would also make some models become available to tens of thousands of more customers which were priced out of buying a Tesla after multiple price increases in 2022.

Lowered prices also will mean that more of Tesla’s EVs will become eligible for the Inflation Reduction Act (IRA).Ā 

Tesla Model 3 Price US 13012022
Image: Tesla US

The Inflation Reduction Act of 2022 was signed into law on August 16 last year and is considered the most important legislation to help accelerate the electrification of transport in the US. It offers the purchaser of an EV up to $7,500 of tax credit for eligible electric vehicles.

Although the prices of Teslas have dropped significantly, one option has increased in price. That’s the Tesla Model Y 7-seat option which is available in the US. It’s now gone up to $4,000 USD, an increase of $1,000.

With reduced prices, the Tesla Model 3 & Model Y will see an influx of buyers which will accelerate demand for Tesla in the North American market.Ā 

Elon Musk unveils the Model 3

After seeing such sharp price cuts in Australia last week, it may leave the door open for more price cuts in Australia too but at this stage, it is looking unlikely given the high demand for Tesla’s EVs in the country.Ā 

We’ll be watching this space closely as any further move on prices will likely be forwarded to thousands of Australian customers awaiting deliveries of their new Tesla.

Riz Akhtar
Riz Akhtar

RizĀ is the founder of carloop based in Melbourne, specialising in Australian EV data, insight reports and trends. He is a mechanical engineer who spent the first 7 years of his career building transport infrastructure before starting carloop. He has a passion for cars, particularly EVs and wants to help reduce transport emissions in Australia. He currently drives a red Tesla Model 3.

Share 38
Tweet 0
Share 0
Share 0
Share 0
Share 0
Share 0
Share 0
Share 0
Get the free daily newsletter

I agree to the Terms of Use

Trending posts
  • CATL Battery Showcase Melbourne Tesla supplier CATL to produce M3P batteries that will deliver big boost in range for EVs posted on March 27, 2023
  • Car inventory Legacy auto faces disaster in China with unsellable cars as pollution crunch looms posted on March 30, 2023
  • toyota hilux “Disguise, defeat and deny:” Toyota loses appeal and must pay $1.3bln for dodgy diesel filters posted on March 28, 2023
  • Jet Charge bidirectional charger “An immense amount of competition:” V2G charging station costs set to plummet posted on March 29, 2023
EV Explainers
  • tesla charging Where can you charge a Tesla or other electric car for free? posted on February 27, 2022
  • vanderstock zappi How to save thousands when installing an EV charger at home posted on July 15, 2022
  • Charging battery of an electric car - optimised EastLink The top ten electric vehicle myths that need to be debunked posted on November 3, 2021
  • tesla model 3 charging Which electric car delivers the best driving range for your dollar? posted on May 3, 2022
Emissions counter
  • EV News
    • Electric Cars
    • EV Conversions
    • Electric Boats
    • Electric Bikes
    • Electric Flight
    • Electric Transport
    • Electric Work Vehicles
    • Hydrogen Fuel Cell
    • Charging
    • Policy
  • EV Explainers
  • EV Conference
  • EV Models
  • EV Sales
  • Road Trips
  • Multimedia

the driven electric vehicle podcast

Get the free daily newsletter

I agree to the Terms of Use

Follow The Driven on Socials
The Driven
  • About The Driven
  • Get in Touch
  • Advertise
  • Terms of Use
  • Privacy Policy
  • Feedback
X
Aust's only instant solar & battery comparator. Since 2008.
Solar Choice

Input your search keywords and press Enter.