--- title: "Tesla Slashes Car Prices Up to 20 Percent" description: "Tesla's EVs like the Model Y are not only $13,000 cheaper, but also now qualify for a $7,500 tax credit from the federal government." date: "2023-01-14" modified: "2023-01-14" authors: - name: "Frank Landymore" job_title: "Contributing Writer" link: "https://futurism.com/authors/flandymore" url: "https://futurism.com/the-byte/tesla-slashes-car-prices-up-to-20-percent" categories: - "Advanced Transport" - "Tesla" tags: - "evs" - "tesla" - "the digest" --- # Tesla Slashes Car Prices Up to 20 Percent ![Tesla's EVs like the Model Y are not only $13,000 cheaper, but also now qualify for a $7,500 tax credit from the federal government.]() *\Image: Tesla/Futurism\* ## Big Adjustments Teslas just got a whole lot cheaper. The Elon Musk led automaker has cut prices across the board on its new models of EVs — as much as 20 percent cheaper — in the US and Europe, following substantial price cuts in China and other Asian markets that rolled out earlier this month. The most affordable EV from Tesla's lineup, the standard Model 3, went down from $46,990 to $43,990, a six percent drop. Not super drastic, but we're just getting started. Take the Model Y, which got the biggest slash of a whopping 20 percent, down from $65,990 to $52,990. That also means that the Model Y now qualifies for the $7,500 tax credit for EVs as part of the Inflation Reduction Act. The company's uber expensive cars, like the Model S, dropped ten percent from $104,990 to $94,990, and the Model X a nine percent fall, from $120,990 to $109,990. Performance and Plaid versions of certain models also received significant cuts. The Model S Plaid, for example, fell 15 percent from $135,990 to $114,990, making it the biggest slash by sheer dollar amount at a $21,000 drop. ## Up and Down Again These price cuts are nothing to sneeze at, but also highlight how expensive Teslas had been previously, receiving [multiple price hikes]() last year amid surging inflation. There's good reason that the price drop is coming now. As *Reuters* [reports](), Tesla missed its quarterly deliveries estimates for the end of last year, although it experienced a 40 percent rise in deliveries for the year overall. Still, that raised concerns over demand, especially in the domestic market. Likely the biggest impetus for Tesla, however, was its dramatically declining stock in 2022, which it is yet to rebound from. Overall, it lost 65 percent of its valuation, or around $700 billion — making it Tesla's [worst year in its stock history](). Tesla stock took another minor blow after these most recent price cuts, dropping another 4.5 percent according to *Reuters*, but obviously the company expects the move to pay off in the long run. **More on Tesla:** *[Tesla Smashes Through Wall, Lands in Swimming Pool]()* ## Author At Futurism, my work has often centered on bringing a sense of clarity and insight to complex topics ranging from the regulation of emerging technologies to the esoteric ideologies of Silicon Valley executives, while striving not to lose the poetic sense of awe inspired by often-obscure fields like astrophysics and quantum computing. I broke the story of CNET using AI to produce articles that turned out to be riddled with factual errors and plagiarism — a dam-breaking inflection point, as I've reported, that's inspired copycats and endless discourse while beguiling stakeholders ranging from tech giants to purveyors of spam around the web. My work at Futurism has been cited by publications including CBS News, the Los Angeles Times, Vice, Gizmodo, Engadget, the Verge, and Vanity Fair. I grew up in locales ranging from India to China, and now live in the exotic suburbs of Virginia. In my free time, I'm an avid reader of weird sci-fi literature, an aficionado of East Asian cinema, and, regrettably, a relapsed gamer. Allegedly, I’m working on a debut novel, currently untitled. ### Author social links [Bluesky]()