On January 24th, less than two weeks after rolling out a series of aggressive price cuts for its entire S3XY series, Tesla launched a $500 price discount for the dual-motor all-wheel drive version of the Model Y in the United States. With a slight price increase, the car now starts at $53,490 (currently about 363,000 yuan).
Even with the $500 more starting price, the dual-motor all-wheel-drive version of the Model Y is still much more affordable in the U.S. than it was last year. Before Tesla slashed prices earlier this month, the crossover SUV was priced at $65,990 on the company’s official website.
Now the all-wheel-drive Model Y is still eligible for the US Inflation Reduction Act (IRA) tax credit of $7,500, and the price is about $45,990.
The current $53,490 starting price for the Model Y with all-wheel drive may discourage buyers from choosing more options, such as red multi-coat paint or 20-inch induction wheels The price of the vehicle exceeds the $55,000 IRA cap.
The Tesla Model Y was already one of the best-selling vehicles in the U.S. last year, and that’s even at a price far higher than other vehicles. With its lower price, sales of the all-electric crossover are likely to increase significantly this year.
At present, the prices of Tesla Model 3 (configuration|inquiry) and Model Y in mainland China are the lowest in the world. Model 3 starts at only 229,900 yuan, and Model Y starts at only 259,900 yuan.