Summary List Placement
Tesla has cut the price of its Model 3 sedan by $1,000 and its Model Y sports utility vehicle by $2,000, the electric carmaker’s website showed.
The price cut only affects the base models of the cars. The price of its Model 3 standard range plus dropped to $36,990, from $37,990. Tesla cut the price of its Model Y standard range to $39,990 from $41,990, according to the website.
The prices of the Model 3 and Model Y long-range versions, which give owners more miles per charge, haven’t changed. The Model 3 performance version, which has a higher top speed, increased from $54,990 to $55,990, and the Model Y performance rose from $59,990 to $60,990.
Tesla didn’t immediately respond to Insider’s request for comment
The standard range of the Model Y was launched in January with a starting price of $41,990 — $8,000 less than the long-range model. The car was only $4,000 more than Tesla’s cheapest vehicle, the Model 3 standard range plus.
The price cuts come six months after Tesla CEO Elon Musk promised to make a $25,000 electric car that was “fully autonomous” in about three years.
President Tom Zhu, the head of Tesla in China, said February 9 that the research lab where Musk’s company plans to design the $25,000 car would be up and running this year.