Tesla reduces prices on Model 3 and Model Y cars in the United States

Elon Musk’s Tesla has recently reduced the prices of its Model 3 and Model Y electric vehicles in the United States. The price reductions range from approximately 2.7% to 4.2%, as indicated on the company's website. This decision comes about a month after Tesla previously lowered the prices of its premium Model S and Model X vehicles.

Throughout this year, Tesla has been taking important steps to significantly reduce prices in order to address the challenges posed by the slowdown of the electric vehicle market and the increasing competition from both emerging companies and established industry players.

According to information on the car company's website, the car company has reduced the price of the Model 3 sedan by $1,250, and it is now priced at $38,990. Similarly, the Model Y long-range variant has seen a price reduction of $2,000, bringing it down to $48,490.

Since the beginning of 2023, the standard Model 3 has witnessed a price decrease of approximately 17%, while the Model Y long-range variant has experienced a reduction of more than 26% in its price.

This price drop for the Model 3 comes at the same time as deliveries of its newer and higher-priced standard version are expected to commence in the fourth quarter.

Earlier this week, Tesla fell short of market expectations for third-quarter deliveries. This shortfall occurred due to scheduled upgrades at its manufacturing facilities. This was necessary to facilitate the production of the newer version of the Model 3 sedan and resulted in temporary production halts.

On 5 October, 2023, Tesla also reduced prices for its higher-priced variants of the Model Y and Model 3. Earlier this week, Tesla reintroduced the base Model Y rear-wheel drive at a price of $43,990.