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- Tesla has cut the prices of its base Model 3 and Model Y cars.
- The Model 3 standard range plus dropped by $1,000, to $36,990, and the Model Y standard range by $2,000, to $39,990.
- The prices of Tesla’s Model 3 and Model Y upgraded performance vehicles rose, to $55,990 and $60,990 respectively.
- Visit the Business section of Insider for more stories.
Tesla has cut the price of its Model 3 sedan by $1,000 and its Model Y sports utility vehicle by $2,000, the electric carmaker’s website showed.
The price cut only affects the base models of the cars. The price of its Model 3 standard range plus dropped to $36,990, from $37,990. Tesla cut the price of its Model Y standard range to $39,990 from $41,990, according to the website.
The prices of the Model 3 and Model Y long-range versions, which give owners more miles per charge, haven’t changed. The Model 3 performance version, which has a higher top speed, increased from $54,990 to $55,990, and the Model Y performance rose from $59,990 to $60,990.
Tesla didn’t immediately respond to Insider’s request for comment
The standard range of the Model Y was launched in January with a starting price of $41,990 – $8,000 less than the long-range model. The car was only $4,000 more than Tesla’s cheapest vehicle, the Model 3 standard range plus.
The price cuts come six months after Tesla CEO Elon Musk promised to make a $25,000 electric car that was "fully autonomous" in about three years.
President Tom Zhu, the head of Tesla in China, said February 9 that the research lab where Musk's company plans to design the $25,000 car would be up and running this year.
With the price drops, the cheaper Teslas have more potential to undercut other electric vehicles currently on the market, including the Nissan Leaf and Chevrolet Bolt, both priced at $44,000.
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