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Tesla cuts prices for its most popular EVs
Tesla has dropped the prices of its best-selling Model 3 and Model Y electric cars by as much as £8,000 in the UK this week. The exact saving depends on the version of the Model 3 and Model Y
Words by: Hannah Hill
Published on 13 January 2023 | 0 min read
The rear-wheel drive (RWD) version of the Model Y is down by £7,000, the Long Range version by £5,000 and the Performance version by £8,000. The Model 3 RWD is down by £5,500, the Long Range version by £6,500 and the Performance version by £3,500. The Model Y crossover SUV was previously priced at £51,990 and now starts at £44,990, whilst the Model 3 used to cost £48,490 and now starts at £42,990.
There are no price reductions for the larger Model S and Model X. Amidst the cost-of-living crisis and falling supply chain costs, Tesla has slashed its prices across the globe, through Europe and the USA, with price drops now extending to the UK, where the Model 3 and Model Y are among the best-selling electric cars. Tesla says it hopes this drastic move will boost sales and economies of scale globally, helping them to regain supremacy against progressive rivals in the EV market. Elon Musk explained the new pricing strategy in a tweet: “Allow margins to fall during a recession so that volume can still grow. This makes sense because Tesla can still make it up selling software services.” It remains to be seen how rivals in the electric-car market, which now includes almost every car brand, will respond in their pricing.
There are no price reductions for the larger Model S and Model X. Amidst the cost-of-living crisis and falling supply chain costs, Tesla has slashed its prices across the globe, through Europe and the USA, with price drops now extending to the UK, where the Model 3 and Model Y are among the best-selling electric cars. Tesla says it hopes this drastic move will boost sales and economies of scale globally, helping them to regain supremacy against progressive rivals in the EV market. Elon Musk explained the new pricing strategy in a tweet: “Allow margins to fall during a recession so that volume can still grow. This makes sense because Tesla can still make it up selling software services.” It remains to be seen how rivals in the electric-car market, which now includes almost every car brand, will respond in their pricing.