If you’re in the market for a new electric vehicle, now seems like the best time to buy a Tesla, especially the Model Y.
Earlier this month, Tesla cut prices by up to 20% (30% including the EV tax credit) to help vehicles qualify for federal tax credits and also increase demand as its factories grow.
These reduced prices may not last long due to a current loophole in the federal EV tax credit, which allows all vehicles that meet a price threshold to qualify for the full $7,500 rebate.
In March, many vehicles, including Teslas, may not qualify for the full credit once battery supply requirements take effect.
So there’s a good chance Tesla will raise prices and/or reduce federal tax refunds.
On January 12, Tesla dropped the price of the Model Y Long Range from $65,990 to $52,990, a whopping $13,000.
When you include the $7,500 tax credit that the Model Y now qualifies for, you’re looking at a 30% discount in MSRP compared to just a month ago.
But just so you know: Tesla just raised the price of this Model Y by $500 this week, further proof that prices can go up over time.
Here are the data:
| Model | Previous price | New price | Discount | % Discount | Tax Credit Discount |
|---|---|---|---|---|---|
| Model 3 RWD | $46,990 | $43,990 | $3,000 | 6.4% | 22.3% |
| Model 3 Performance | $62,990 | $53,990 | $9,000 | 14.2% | 26.2% |
| Model Y Long Range | $65,990 | $53,490 | $12,500 | 19% | 30.0% |
| Model Y Performance | $69,990 | $56,990 | $13,000 | 18.5% | N/A |