Tesla Lowers the Starting Price of Model Y

Jul 12, 2020   

Tesla has lowered the price of both available configurations of Model Y.

Tesla’s Model Y mid-size SUV now starts at $49,900 for a Long Range Dual Motor configuration, equipped with a premium interior and Autopilot. Similarly, the Performance configuration is priced at $59,900 with a standard Performance upgrade package. Both represent a price cut of $3,000.

This comes less than four months after the launch of Model Y in March. Owners began taking delivery in late March; however, many early VIN’s faced complaints about build quality and production issues.

Tesla had a backlog of pre-orders from customers who had placed deposits for its latest vehicle. It appears that the automaker has worked through those orders, and is now adjusting for demand in the wake of the ongoing pandemic.

Model Y is now available for $3,000 more than a similar Model 3 Long Range Dual Motor configuration (a move that puts the vehicles more in parity than expected), with a delivery estimate of 4-8 weeks.

Real Talk

It’s clear that the used market for Model Y was inflated by early pre-orders that had attempted to flip the vehicle at a profit. While it may still be possible to sell a Model Y to a customer that’s looking for immediate delivery, as with any price cut this will affect used values for Tesla’s latest vehicle.

Just as Tesla has done with Model 3, we expect prices to drop further over time. Our recommendation is to purchase whenever is convenient, and not to necessarily wait for a deal.

Standard Range production for Model Y will begin early next year, and we anticipate this will drive demand for the vehicle once final specifications are revealed.