Thursday, the price of the Model 3 went down by $1000. The base Model Y is now part of the lineup, and the Long Range and Performance models each got a $2,000 price cut. On April 18, the $7500 tax credit for the base Model 3 will be cut in half. This is when the prices will go down. If you’ve been considering buying a Tesla Model 3, now is the time to decide. The company cut the price of the single-motor rear-drive sedan by $1,000 on Thursday in preparation for a change in the federal tax credit that will happen later this month. On April 18, “based on recent IRS instructions,” the company’s Federal Tax Incentives page says that the Model 3 Rear-Wheel Drive credit will go from $7,500 to $3,750. The price drop is because the lithium-iron-phosphate battery in the base Model 3 is the only one in Tesla’s U.S. line that comes from China. Inflation Reduction Act eligibility. Its battery cells must also be put together in North America, and some of its minerals must come from a specific list of free-trade partners (excluding China). So, the Model 3 starts at $43,630 today, and you can get the full $7,500 credit until April 18. The credit will be cut in half after that. You can guess as well as we can see what Tesla will do with the price of the Model 3. In related Tesla news, the base price of the Long Range model of the Model Y has dropped to $54,630 from $58,630. Tesla’s website now has a base Model Y with a range of 279 miles. The base model costs $51,630, cheaper than the Long Range model. Before, it was only available for inventory models and wasn’t listed on Tesla’s website with the Long Range and Performance Models. Instead, Tesla used a “secret menu” style, like In-N-Out, to keep it a secret. On its website, Tesla says that after April 18, all Model Y cars will still be able to get the full credit.
