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Tesla Drops Prices Up to 30%

If you're in the market for a new electric vehicle, now looks like the best time to purchase a Tesla, especially the Model Y. Earlier this month, Tesla reduced prices by up to 20% (30% including EV tax credit) in order to help vehicles qualify for federal tax credits and also increase demand as they ramp up their factories.

These reduced prices may not last long because of a current loophole in the federal EV tax credit, which allows all vehicles meeting a price threshold to qualify for the full $7,500 rebate. In March, many vehicles including Teslas may not qualify for the full credit once battery sourcing requirements take effect. Therefore, there is a good chance Tesla may increase prices and/or the federal tax rebates may be reduced.

On January 12th, Tesla cut the price of the Model Y Long Range from $65,990 to $52,990, a whopping $13,000. When you include the $7,500 tax credit the Model Y now qualifies for, you're looking at a 30% discount off MSRP compared to just a month ago. (Note: Tesla just raised the price of this Model Y by $500 this week, further proof that prices may rise as time goes on).

New Tesla Discounts

ModelOld PriceCurrent PriceTotal Discount% DiscountDiscount With Tax Credit
Model 3 RWD $46,990 $43,990 $3,000 6.4%22.3%
Model 3 Performance $62,990 $53,990 $9,000 14.2%26.2%
Model Y Long Range $65,990 $53,490$12,500 19% 30.0%
Model Y Performance$69,990 $56,990 $13,000 18.5% N/A

In my opinion, Teslas are by far the best electric vehicles in their class. I've owned a Model 3 for almost 5 years now and can honestly say it's the best car I've ever owned.

There is basically zero maintenance, the vehicle software and user interface is the best on the market, autopilot is awesome, Tesla's charging network is far better than any other network (long road trips in any other EV are terrible), and best of all, you can buy the vehicles online, no scammy dealers - everyone pays the same price! And now with the reduced prices, there's really no reason to consider the competitors, check out the prices and comparison table below:

Tesla Compared to the Competition

Brand Model Battery Form Range 0-60 Drivetrain Seats Price After EV Credit $ per Range
VW ID4 Standard SUV 209 7.6 RWD 5 $38,995 $31,495 $151
Tesla Model 3 Standard Sedan 272 5.8 RWD 5 $43,990 $36,490 $134
VW ID4 Long Range SUV 275 7.6 RWD 5 $43,995 $36,495 $133
Ford Mach-E Standard SUV 247 5.8 RWD 5 $46,895 $39,395 $159
VW ID4 Long Range SUV 255 5.7 AWD 5 $47,795 $40,295 $158
Hyundai loniq5 Standard SUV 220 7 RWD 5 $41,450 $41,450 $188
Tesla Model 3 Long Range Sedan 358 4.2 AWD 5 $49,990 $42,490 $119
Tesla Model Y Standard SUV 279 5 AWD 5 $50,990 $43,490 $156
Tesla Model Y Long Range SUV 330 4.8 AWD 5 $53,490 $45,990 $139
Hyundai loniq 5 Long Range SUV 303 7 RWD 5 $45,500 $45,500 $150
Ford Mach-E Long Range SUV 310 6.1 RWD 5 $54,975 $47,475 $153
Kia EV6 Long Range SUV 310 6.5 RWD 5 $48,700 $48,700 $157
Hyundai loniq 5 Long Range SUV 266 5.2 AWD 5 $50,295 $50,295 $189
Kia EV6 Long Range SUV 282 4.6 AWD 5 $52,600 $52,600 $187
Ford Mach-E Long Range SUV 312 4.8 AWD 5 $63,575 $63,575 $204

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About The Author

Gregg Fidan Gregg Fidan is the founder of RealCarTips. After being ripped off on his first car purchase, he devoted several years to figuring out the best ways to avoid scams and negotiate the best car deals. He has written hundreds of articles on the subject of car buying and taught thousands of car shoppers how to get the best deals.

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