Tesla's latest price cut brings Model 3 pricing below $40,000
across its lineup, with some models getting a price drop of as much as 20 percent.
As Tesla notes on its website, though, the rear-wheel drive model now only qualifies for $3,750 in tax credits after the government'stook effect on April 18th. The new rules are related to the US cutting off China as an approved trading partner, which would lead to EVs using China-made batteries losing tax credits as a result. To note, Tesla's other cars are still eligible for the full $7,500 tax credits, including the Model Y vehicles that also got a price cut.
The base, the Long Range and the Performance Model Y vehicles now cost $3,000 less than before. The base Model Y will now set buyers back $46,990, while the Long Range and Performance vehicles now cost $49,990 and $53,990, respectively. When Tesla reported its earnings for 2022 in January this year, Elon Musk said the company was seeing orders"almost twice the rate of production.
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