Amid demand concerns, Tesla cuts prices by up to $13k in US
Tesla has massively cut prices across new models in the US, with the largest price drop occurring on the Model Y, which is now $13k and 20% cheaper than it was yesterday.
The changes just happened on Tesla’s website and seem to cover all models.
Over the course of the last year or so, Tesla has continually raised prices on all of its vehicles as demand for EVs has been extremely high. While Tesla’s sales and production have been growing rapidly, demand for EVs has also been growing, and supply of EVs has not been able to keep up.
Other automakers have been raising prices too, though some more modest than others.
But in recent weeks we’ve finally seen some signs that Tesla might need to shore up demand, or at least that the price hikes have gone a little too far. The first and most aggressive cuts so far have been in China, but several other markets are seeing discounts and incentives added to help move vehicles as inventory has grown.
These price drops even led to protests in China from recent buyers who felt like they overpaid, to whom Tesla declined to offer compensation.
Here are the new and old prices for Tesla’s various models:
| Model | Old price | New price | Difference |
| Model 3 | $46,990 | $43,990 | -$3k (-6%) |
| Model 3 Performance | $62,990 | $53,990 | -$9k (-14%) |
| Model Y | $65,990 | $52,990 | -$13k (-20%) |
| Model Y Performance | $69,990 | $56,990 | -$13k (-19%) |
| Model S | $104,990 | $94,990 | -$10k (-10%) |
| Model S Plaid | $135,990 | $114,990 | -$21k (-15%) |
| Model X | $120,990 | $109,990 | -$11k (-9%) |
| Model X Plaid | $138,990 | $119,990 | -$19k (-14%) |
Other configurations, including Performance models, have also received price cuts, with the largest being the $21k (15%) reduction on the “Plaid” Model S. However, there is one significant price hike – the 7-seat option on the Model Y is now $4,000, rather than the $3,000 it used to be.
Among other things, this means that the base 5-seat Model Y now qualifies for the $7,500 EV tax credit in the Inflation Reduction Act. The 5-seat Model Y configuration was previously left out of qualifying since it’s considered a “car” rather than an “SUV” by government rules, which take into account a number of factors. This means that it needs an MSRP of under $55k to qualify, which base models now do.
So in addition to the $13,000 price drop, the base Model Y is another $7,500 cheaper for those who qualify for the full tax credit, meaning a Model Y ordered today could be more than $20k cheaper than one ordered yesterday.
Recently, Tesla CEO Elon Musk called for the government to reconsider this longstanding definition of “SUV,” which has been in place since before the Model Y went into production. He asked his followers to comment on the matter, but the public comment link in question looks to pertain to an annual update to the tax credit form, not to the tax credit qualifications themselves (his company’s lawyers might have told him about this, or he might have read it himself, if he weren’t spending all of his time doomscrolling on twitter).
Previously, Musk had called for the government not to pass the bill extending tax credits, saying that Tesla did not need these credits to be successful.
Electrek’s Take
After a year of price hikes, it’s about time that we got a few price drops. Tesla may now be the top luxury brand in the US, but the original concept behind the Model 3 and Y were to be the “people’s vehicles,” closer to the low-end of the luxury segment than the mid or high end.
The original launch price of the Model 3 was supposed to be $35k, and the Model Y was supposed to be $40k.
Yesterday’s prices of $46,990 and $65,990 (!) didn’t look anything like those original numbers, so it’s great to now see some prices a lot closer – still not quite there, even after the federal tax credit, but closer.
And, while there definitely seem to be demand concerns across various markets, including North America, much of this must be attributable to the large price rises Teslas have seen in the last year. These cuts finally get us heading in the right direction in terms of price, and should spur significant additional demand. But in addition, CEO Musk has been doing his part to turn customers away with his social media antics, causing many people who would otherwise consider Teslas to look at other brands instead.
These price cuts will reverse the price portion of Tesla’s demand concerns, but it remains to be seen whether customers will remain turned off by the brand destruction to which its CEO seems committed.
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Tesla is going to build a new Megafactory in Texas near Houston, according to a tax abatement agreement with Waller County.
At the time of writing, Tesla had yet to comment on the new project, but the Waller County Commissioners Court confirmed the project on Wednesday when they approved a tax abatement deal with the company:
Under the proposed agreement, Tesla will receive tax abatements from Waller County based on property improvements. The deal includes $44 million in facility improvements and $150 million in Tesla manufacturing equipment that Tesla will install. The next phase involves a new $31 million distribution facility with about $2 million in Tesla distribution equipment and building upgrades.
Tesla is going to take over a 1-million-sq-ft building that it already held the lease on at the Empire West industrial park near Katy, Texas – just outside of Houston.
Logistics company DB Schenker occupied the space where it handled parts for Tesla, but it will move out and Tesla plans to build Megapack production lines at the site:
Tesla will operate a new Megapack battery storage manufacturing facility at a 1 million-square-foot building, which was initially constructed with no tenant on speculation that it would attract jobs and economic development.
Tesla has previously referred to plants producing Megapacks as “Megafactory”. The company already operates one in Lathrop, California, and one in Shanghai, China, where it just started production.
Those factories are set up for a production capacity of 40 GWh worth of Megapacks per year.
It’s not clear if Tesla plans for a similar capacity at this new factory, but the county announced project should result in creating 1,500 jobs.
In addition to the existing building, the project will include the construction of an additional “600,000-square-foot distribution facility with some manufacturing capabilities.”
Unlike its automotive business, Tesla’s energy business has been growing at an impressive pace – although prices and margins have come down last year.
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![Is Genesis taking notes from Porsche? New GV60 Magma caught with the Taycan [Video]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/03/Genesis-GV60-Magma-Porsche-2.jpeg?resize=1200,628&quality=82&strip=all&ssl=1)
Genesis is gearing up to unleash its alter ego with its upcoming Magma lineup, its debut into the world of high-performance luxury vehicles. First up is the Genesis GV60 Magma, due out later this year. As testing wraps up, the GV60 Magma was spotted alongside none other than the Porsche Taycan.
The first dedicated Genesis EV model, the GV60, will kick off another new chapter for the Korean luxury automaker.
Genesis unveiled the GV60 Magma last March, claiming it will kick off “the brand’s expansion into the realm of high-performance vehicles.” The performance EV includes an improved battery, chassis, and motor for added performance.
The Magma model boasts a wider, lower stance for more control. Other key upgrades include a wider front air intake to help cool the batteries, motor, and brakes. It also includes air curtains to maximize efficiency and an added roof fin channels air to the rear wing, generating downward force.
Genesis upgraded the interior to match the GV60 Magma’s luxurious, sporty design. It includes unique sports car-like bucket seats with exclusive “double-diamond stitching” in the Magma orange and titanium coloring.
Genesis GV60 Magma spotted with the Porsche Taycan
With its official debut coming up, the sporty Genesis GV60 Magma was spotted testing alongside a Porsche Taycan and Hyundai’s IONIQ 5 and IONIQ 6 N models.
Despite the camouflage, the video from CarSpyMedia reveals a few new design elements, like the two-line headlight featured on the updated GV60 model.
Genesis will launch the GV60 Magma later this year in its home market, followed by the US, Europe, and others. Production is scheduled to start in the third quarter of 2025.
Will the Genesis GV60 Magma keep up with the Porsche Taycan or Tesla Model S Plaid? Priced and specs will be revealed closer to launch, but it will sit above the Performance AWD trim, which starts at $69,900 in the US. With up to 429 horsepower and 516 lb-ft of torque, it can hit 0 to 60 mph in 3.7 seconds.
| Horsepower | 0 to 60 mph (seconds) |
Starting Price | |
| Genesis GV60 Performance | 429 | 3.7 | $69,900 |
| Genesis GV60 Magma | ? | ? | ? |
| Porsche Taycan | 402 | 4.5 | $99,400 |
| Porsche Taycan Turbo GT (with Weissach Package) |
1,092 | 2.1 | $230,000 |
| Tesla Model S Plaid | 1,020 | 1.99 | $89,990 |
In comparison, the Porsche Taycan starts at $99,400 with up to 402 hp and a 0 to 60 mph time in 4.5 seconds. The Taycan Turbo GT, equipped with its Weissach package, packs 1,092 hp for a 0 to 60 mph sprint in just 2.1 seconds, but it costs $230,000.
Tesla’s Model S Plaid starts at $79,990 and can accelerate from 0 to 60 mph in 3.1 seconds with 1,020 horsepower. Which performance EV are you choosing?
Source: CarSpyMedia
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Tesla gets more than 20% of its parts from Mexico, as well as some from Canada on top of it. So, yes, Tesla will be negatively affected by the tariffs.
However, there’s another one-month delay.
I didn’t think I would have to write this article, but I have seen plenty of “Tesla influencers” claim that Tesla would not be affected by President Trump’s current trade war:
This is false. Tesla gets a significant percentage of its car parts from Mexico and Canada.
NHTSA releases data about the sourcing of parts for all vehicles in the US. Unfortunately, it doesn’t account for the US and Canada together, but it also lists the country of origin for the next largest source of parts.
For Tesla, that’s Mexico for all car models:
| Models | US/Canada | Mexico |
| Model 3 LR AWD/RWD | 75% | 20% |
| Model 3 Performance | 70% | 20% |
| Model Y LR AWD/RWD | 70% | 25% |
| Model Y Performance | 70% | 20% |
| Cybertruck | 65% | 25% |
| Model S | 65% | 20% |
| Model X | 60% | 25% |
This means that Tesla gets more than 20% of its parts from Mexico in addition to what it gets from Canada.
It’s also noteworthy that Tesla’s most popular car, Model Y, gets 25% of its parts from Mexico.
Despite free trade agreements with Canada and Mexico, Trump has implemented 25% blanket tariffs on the countries.
The tariffs were delayed last month, but they went into effect on Tuesday.
However, today, the White House confirmed that they were delayed again just for the automotive industry. Trump reportedly had a call with the big three this morning, Ford, GM, and Chrysler, and he agreed to another one-month delay.
If you needed more proof that Tesla is going to be affected by the tariffs, ever they go into effect, Tesla’s stock was up 2% on the news that Trump agreed to delay the tariffs.
Electrek’s Take
Tesla fans are delusional. They think that because Elon is involved with Trump and he is not fighting the tariffs, it means that it wouldn’t negatively affect Tesla.
That’s a false assumption. Elon is not fighting because he is either completely delusional about Tesla himself or just doesn’t care.
If the tariffs are ever implemented, they will negatively affect Tesla. They will increase the cost of all Tesla vehicles. Some automakers will be more affected, but Tesla will be hurt, too.
The tariffs are a complete mess. They are on one day and delayed the next. I doubt they will ever be in place for any significant length of time.
Their only real impact is making Canadian and Mexican buyers and businesses think twice about doing business with the US. This impact will likely last longer than the tariffs and Trump’s administration.
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