Tesla recently announced a $1,000 price cut on the Model Y until the end of the month. Elon Musk stated that this was due to lower demand for electric vehicles during the winter months. This is not the first time Tesla has reduced prices in the past year in response to lower demand.
The discounted prices will only be available for the rear-wheel drive and long-range versions of the Model Y in the US, with prices starting at $42,990 and $47,990, down from the original price. However, this is only a temporary discount as prices will go back up on March 1.
Despite facing competition from other electric vehicle manufacturers, particularly from Chinese automaker BYD which recently overtook Tesla as the world’s top seller of electric vehicles, Tesla’s Model Y remains its most popular model and accounted for a third of all electric vehicle sales in the US last year. But with production ramping up for a more affordable mass-market electric vehicle code-named “Redwood,” 2022 is a pivotal year for the automaker.