Tesla Model Y Price Drops Below the Cost of Average New Car, Cybertruck Spotted
Tesla has always stayed relevant in the news cycle, but the brand’s EV cars and sport utility vehicles are a hotter topic than ever before. In this week’s Tesla news, the Model Y received another price cut that made a significant impact. The Tesla stock took a tumble after these reductions hit the airwaves, and the Model 3 is more affordable than it has been in a while.
Recent Tesla news makes the Model Y more affordable than ever
In Tesla news this week, Yahoo! News says Model Y cost reduction has brought it down to $46,990 for the dual-motor all-wheel drive option. The Tesla MY Long Range is $49,990, and the Performance is $53,990. In order to qualify for the $7,500 federal tax credit, the cost of the Model Y has to remain under $80,000. That means all three options qualify for the tax credit as long as the driver remains eligible.
The federal tax credit brings the Model Y down to $39,490, $42,490, and $46,409. According to Cox Automotive, the average cost of a new vehicle was $48,008 in March. That means Tesla’s Model Y is cheaper than an average new car.
Some potential Tesla shoppers have been hesitant to buy with all the negative Tesla news lately. However, this drop and the tax credit eligibility are making the EV even more desirable than before. Compared to some of its direct competition, the Tesla Model Y is one of the cheapest options.
In other Tesla news, the Model 3 also qualifies for the tax credit again
Tesla’s Model 3 is also eligible again, starting at $39,990 for the Rear-Wheel Drive version and $52,990 for the Dual Motor All-Wheel Drive. The Rear-Wheel Drive option can only get $3,750, bringing it down to $36,240. For those interested in the Performance, the full tax credit brings it down to $45,490. The Model Y has to remain under $55,000 to get the full credit, no matter which trim it is.
Even though this style of Tesla news has been pretty standard lately, it does make one of the most popular EVs fit into more budgets. The delivery dates for the Model 3 and Model Y are not too far out either, which means the automaker has been able to ramp up production as promised.
Unfortunately, the tumultuous nature of the pricing has had a significant impact on the Tesla stock. Yahoo! News says the Tesla stock closed at $153.75, down 4.3% and the lowest since January 25. Shares are down 26% in April alone. During its first-quarter call, the automaker also revealed that it did not meet analyst expectations in most metrics. Some investors were “particularly rattled” by Elon Musk saying Tesla price cuts would continue to bring in shoppers.
When will the Cybertruck be available?
Even though news about the Tesla Cybertruck is constantly trickling out, CarScoops says the automaker only promised it would be “revealed before the end of this year.” Either way, the elusive electric truck was seen on the roads in California, next to a road sign and a bicyclist. Insignificant information in the grand scheme of things, but it does offer some scale for how large the EV is.
The most recent Tesla news might have been bad for Tesla’s stock, but there is no such thing as bad press, right? If the cost reductions work, there will be more Model 3 and Model Y EVs on the road than ever before. That is one way to come for the Ford Mustang Mach-E crowd.
If the rumors are true that a refreshed look for Tesla’s lineup is coming in the next few months, moving this inventory off dealerships lots is a good start.
