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tesla (TSLA) discounted U.S. prices for two Model Y variants, but only through February, the electric vehicle giant announced Saturday.
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The base Model Y with real-wheel drive gets a $1,000 discount, to $42,990. The Model Y with all-wheel drive is also reduced by $1,000, to $47,990. The Model Y Performance remains unchanged at $52,490. Those are before federal tax credits of $7,500.
While Tesla Model Y discounts officially end after February 29, they may be extended or made permanent. Tesla typically increases incentives at the end of the quarter. Additionally, Model Y inventories are relatively high in the US. Tesla is already discounting Model Y inventory above the temporarily reduced list price. Meanwhile, Tesla’s Austin plant is operating well below its official capacity.
In January, Tesla modestly cut prices in China for some Model Y variants, as well as the Model 3, followed by larger Model Y price cuts in Europe.
Demand for electric vehicles overall is slowing. On Friday, rivian (RIVN) reduced the prices of its base model R1T truck and R1S SUV by $3,100, to $71,700 and $76,700, respectively.
Tesla is not lowering US prices for the new Model 3 as production at the Fremont plant is limited. The Model 3 is no longer eligible for the $7,500 tax credit due to stricter battery sourcing guidelines. That means it’s often substantially cheaper to buy a Model Y than a Model 3.
Tesla Stock
Tesla shares rose 3% to 193.57 last week, retreating from their worst levels in nearly nine months. Rivian shares rose 6.9% to 16.68, recovering from recent lows.
Follow Ed Carson on Threads at @edcarson1971 and X/Twitter in @IBD_ECarson for stock market updates and more.
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