Tesla Cuts Model 3 and Model Y Prices Again

Tesla CEO Elon Musk has once again slashed prices on many of its models in response to rising interest rates that could dampen consumer demand. The Austin, Texas-based automaker said on its website that the price of its Model Y extended-range all-wheel-drive model will be cut 9.1 percent to $49,990, while the price of its Model Y performance model will be cut 8.5 percent to $53,990. The Model 3 rear-wheel-drive will cost 7 percent to $39,990. The price cut is the second of the month as the automaker tries to revive demand after several quarters of disappointing deliveries. The company is in a rare position among electric vehicle makers to operate with high margins as incumbents including Ford Motor and new entrants such as Rivian Automotive and Lucid Group struggle to make money on lower volumes. After Tesla’s initial price cuts earlier this year, Musk said on a Jan. 25 earnings call that orders are coming in at nearly double the pace of production.