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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British Columbia got its first 400 kW DC fast charger last week at Canadian C-store chain On The Run, but that’s not the good part. As part of a limited time offer, these chargers are FREE!
The Canadian convenience store chain just took the wraps off its new, ABB-developed, 400 kW chargers earlier this month, but they’re already planning to bring the ultra-fast 400 kW dispensers to at least four more locations in BC this spring, and have them online just in time for the summer road trip season – something On The Run hopes its customers will appreciate.
“The A400 charger delivers an enhanced customer experience, with reliability and performance from a 32-inch screen to higher power charging sessions and power sharing,” reads the company’s official announcement, via LinkedIn. “Download the Journie Rewards app to start the charge – free for a limited time.”
On The Run’s new 400 kW ABB DC fast chargers are compatible with CCS and CHAdeMO plugs, and can accommodate Tesla and other NACS-equipped vehicles with an adapter. That said, the company seems to imply that Tesla drivers in particular will have a maximum charging speed of “just” 50 kW, which feel hilarious (given the current state of affairs between Tesla and the Canadian government), but probably isn’t.
In addition to the ABB A400 400 kW units shown here, On The Run locations also employ the ABB Terra 184 dispensers rated at 180 kW. On The Run plans similar deployments at the four BC locations mentioned above, as well as two more each in Quebec and Ontario slated to go live towards the end of this year.
Electrek’s Take
Tesla’s controversial CEO Elon Musk once mocked 350 kW charging speed as being “for a child’s toy,” despite the fact that, nearly nine years later, his own cars and Superchargers can barely make it to 325 kW while others have sailed right on past. I made fun of that fact on the Quick Charge episode shown, above – and, while I do think it’s funny and relevant, the much more relevant piece of news here is that companies like BP Pulse, Revel, and Wallbox are actively deploying 400 kW solutions, today (while others hit the same mark as far back as 2017).
It’s just a fact: Tesla has fallen way behind.
SOURCE | IMAGES: On The Run, via Electric Autonomy.
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Terawatt Infrastructure‘s first medium- and heavy-duty electric charging truck stop in California is now online, in Rancho Dominguez.
Located 12 miles north of the ports of Long Beach and Los Angeles, the private Rancho Dominguez site, which is shared among multiple fleets, will support electric trucking fleet operations in and out of the largest container ports in the US.
First customers include Dreaded Trucking, Hight Logistics, PepsiCo, Quick Container Drayage, Southern Counties Express, Tradelink Transport, and WestCoast Trucking & Warehousing.
Terawatt’s electric charging truck stop features 20 pull-through and bobtail DC fast charging stalls with a capacity of 7 megawatts (MW), enabling charging for up to 125 trucks per day using a simple reservations system. Terawatt’s site features a proprietary charge management system, in-house technicians, 24/7 customer service, and onsite parts management.
“This launch underscores growing collaboration between enterprises, shippers, carriers, and charging infrastructure providers to advance sustainable technologies across logistics and transportation operations, especially in the medium and heavy-duty sectors,” said Neha Palmer, CEO and cofounder of Terawatt. Palmer added that the company will bring another charging site online in Rialto, California, in June.
Terawatt joined some of the world’s largest shippers and carriers in September 2024 to launch the I-10 Consortium heavy-duty EV operations pilot, the “first-ever US over-the-road electrified corridor.” Terawatt is providing charging infrastructure, including software, operations, and maintenance support at six of its owned charging hubs along the I-10 corridor.
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In its most aggressive attack against offshore wind yet, the Trump administration halted the $5 billion Empire Wind 1, already under construction off New York’s coast.
Norwegian developer Equinor announced yesterday that it received notice from the Bureau of Ocean Energy Management (BOEM) ordering Empire Wind 1 to halt all activities on the outer continental shelf until BOEM has completed its review. Interior Secretary Doug Burgum posted this tweet yesterday:
Burgum gave no indication of what insufficiencies there were in the approval process for the fully permitted offshore wind project, despite Trump’s recent declaration of a national energy emergency that speeds up permitting processes.
The commercial lease for the 810-megawatt (MW) Empire Wind 1’s federal offshore wind area was signed in March 2017 during the first Trump administration. It was approved by the Biden administration in November 2023 and began construction in 2024.
The project is being developed under contract with the New York State Energy Research and Development Authority (NYSERDA). Empire Wind 1, which was due to come online in 2027, has the potential to power 500,000 New York homes.
“Halting construction of fully permitted energy projects is the literal opposite of an energy abundance agenda,” said American Clean Power Association CEO Jason Grumet in a statement. “We encourage the administration to quickly address perceived inadequacies in the prior permit approvals so that this project can complete construction and bring much-needed power to the grid.”
As Electrek reported, Equinor secured $3 billion to finance Empire Wind 1 in January. The total amount drawn under the project finance term loan facility as of March 31 was around $1.5 billion.
As of March 31, Empire Wind has a gross book value of around $2.5 billion, including South Brooklyn Marine Terminal (pictured above), which was expected to become the US’s largest dedicated port facility for offshore wind.
In response to BOEM’s stop work order, New York Governor Kathy Hochul issued the following statement:
Every single day, I’m working to make energy more affordable, reliable and abundant in New York and the federal government should be supporting those efforts rather than undermining them. Empire Wind 1 is already employing hundreds of New Yorkers, including 1,000 good-paying union jobs as part of a growing sector that has already spurred significant economic development and private investment throughout the state and beyond.
As Governor, I will not allow this federal overreach to stand. I will fight this every step of the way to protect union jobs, affordable energy and New York’s economic future.
Equinor says it’s considering appealing BOEM’s order.
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