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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It’s official. BYD is launching its first kei car. The new electric car is BYD’s smallest EV yet, and it’s expected to arrive next year with a starting price under $18,000. After it was spotted testing again, we are learning a little more about what to expect.
BYD’s smallest EV is coming in 2026
Kei cars, or K-Cars, as they are often called, are one of the most popular types of vehicles in Japan. They are the smallest street-legal passenger vehicles you can buy in the country.
To be classified as a kei car, the vehicle must be less than 3.4 m (134″) long, 1.48 m (58″) wide, and 2 m (79″) tall.
BYD’s smallest EV, and top-selling, is currently the Seagull (sold as the Dolphin Surf and Mini overseas), measuring 3,780 mm in length (148.8″).
We caught a glimpse of the new electric Kei car for the first time in May after it was spotted testing on public roads. Like many kei cars, including the Honda N-Box, Japan’s top-selling vehicle, BYD’s tiny EV has that quirky, upright, boxy design.
After being recently spotted parked at a test facility, new spy photos provide a closer look, including a sneak peek of the interior.
The new images, posted by ThinkerCar, show essentially the same kei car we saw in May. It’s a right-hand-drive vehicle, suggesting it will launch in Japan, the UK, parts of Southeast Asia, and possibly other regions.
#BYD K-Car spy shots reveal a four-door layout with sliding rear doors. The vehicle is expected to launch in #Japan in H2 2026, with a starting price of RMB 130,000.
It will feature a 20 kWh battery offering 180km range (WLTC), heat pump AC system, and 100 kW fast charging… https://t.co/B2P05I5RAp pic.twitter.com/wYGtoC3yJk— ThinkerCar (@thinkercar) July 16, 2025
For the first time, the interior is shown. Like BYD’s other vehicles, there’s a large floating infotainment screen at the center.
The electric car is expected to feature a 20 kWh battery, providing a WLTP range of 180 km (112 miles). It will also support DC charging speeds of up to 100 kW.
BYD’s Dolphin Surf (Seagull EV) is available with two battery packs: 30 kWh and 43.2 kWh, offering WLTP ranges of 137 miles and 189 miles, respectively.
By using LFP batteries from its battery unit, FinDreams, BYD could have the upper hand with costs. The Kei car is expected to launch in Japan in the second half of 2026 with a starting price of 2.5 million yen, or under $18,000. In comparison, the Nissan Sakura, Japan’s top-selling electric vehicle, starts at 2.59 million yen.
Earlier this year, Nikkei reported that Japanese automakers are already preparing for its arrival. A Suzuki dealer explained that “Young people do not have a negative view of BYD. It would be a huge threat if the company launches cheap models in Japan.”
Can BYD’s smallest EV find a foothold in Japan? Domestic brands like Toyota, Honda, and Nissan have long dominated the market. Check back soon for the latest updates.
Source: TheDriven, ThinkerCar
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Tesla has launched a long list of new discounts and incentives for its electric vehicles in the US as it seeks to capitalize on what will likely be its last strong quarter in its best market.
Since the beginning of the year, we have been reporting on how Tesla’s sales are declining in its largest markets, including Europe and China, with the US being the notable exception.
With the federal tax credit for electric vehicles set to expire by the end of the quarter, the US is also expected to become a challenging market for Tesla and electric vehicles in general.
Many electric automakers are trying to take advantage of the demand being pulled forward into Q3 due to the imminent end of the tax credit.
Tesla has introduced several new incentives that can be combined with one another. Here’s the full list:
All New Tesla Vehicles
- $7,500 Lease Incentive (delivery by Sept 30)
- $1,000 Off for American Heroes (military, first responders, teachers, students)
- Free 1-Month Full Self-Driving (Supervised) Trial
- Free Full Self-Driving (Supervised) Transfer from your current Tesla
- Premium Connectivity Trial
- 30 days for Model 3 and Y
- 1 year for Model S, X, and Cybertruck
Model Y
- $7,500 Lease Incentive
- One Free Upgrade on select inventory (pre-discounted)
- $7,500 Federal Tax Credit at Point of Sale (cash/finance only)
- Lease from $349/mo (24-month) or $399/mo (36-month) with $3,000 down
- APR Financing: 3.49% up to 60 months
- 18 Months Free Supercharging (cash purchases only)
Model 3
- $7,500 Lease Incentive
- One Free Upgrade on select inventory (pre-discounted)
- $7,500 Federal Tax Credit at Point of Sale (cash/finance only)
- Lease from $299/mo (24-month) or $349/mo (36-month) with $3,000 down
- 0% APR Financing with FSD (Supervised), 2.49% without
Model X
- $7,500 Federal Tax Credit at Point of Sale
- One Free Upgrade with FSD (Supervised)
- Premium Connectivity Trial (1 year)
Model S
- One Free Upgrade with FSD (Supervised)
- Premium Connectivity Trial (1 year)
Cybertruck
- $7,500 Federal Tax Credit at Point of Sale
- 0% APR Financing with FSD (Supervised)
- Free 20″ Cyber Wheel Upgrade ($3,500 value) on lease orders
- Premium Connectivity Trial (1 year)
Electrek’s Take
It looks like Tesla is now relying less on 0% APR, likely due to the fact that now interest on car payments is deductible up to $10,000.
Though Tesla is still offering 0% financing on the Cybertruck for obvious reasons: it can’t sell them.
That said, it is still offering financing discounts for the Model 3 and Model Y, albeit at a lower rate than before the change.
18 months of free Supercharging on Model Y is also a significant discount, but that’s if you don’t take the financing deal.
It looks like Tesla is going all-out to try to secure as many buyers in Q3 as possible.
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Environment
Volvo is ‘definitely not’ leaving the US, but it’s dropping these vehicles from its lineup
Volvo confirmed it will continue selling vehicles in the US, but its lineup will look a little different. With plans to cut several models, Volvo will offer only about half of the cars it currently sells globally.
Volvo adjusts US lineup, cutting several vehicles
Days after Volvo announced it would begin production of the XC60 in the US, its best-selling vehicle, we are learning the move is part of a major shakeup.
Volvo has already begun cutting sedans and station wagons from its US lineup. The Swedish luxury brand confirmed plans with Reuters on Thursday, citing slowing demand amid the Trump administration’s new auto tariffs.
Outside of the V60, Volvo will only offer SUVs in the US, or about half of the 13 vehicles in sells globally. Production of the S60 ended at its South Carolina facility last year.
Volvo also told Reuters that the European-spec EX40 was also temporarily paused, but it would be available “shortly.” The company didn’t comment on why.
Meanwhile, its new electric vehicles, including the EX30 and three-row EX90, are failing to live up to the hype. Both were expected to see strong US demand, but Volvo is one of the most exposed to Trump’s tariffs.
Although the EX90 is built in South Carolina, many parts still come from Europe, which is now subject to a 25% tariff.
The EX30, which was expected to arrive at around $35,000, is only available in the dual-motor variant, priced from $46,195.
During an interview on CNBC’s Europe Early Edition, Volvo’s CEO Håkan Samuelsson said the company would “definitely not” leave the US market altogether.
“What we are doing is first of all, we want to fill our factory we have in South Carolina. It should be the strategic asset it was intended to be. So, we have to utilize it more,” Samuelsson explained.
By bringing XC60 production to the facility, Volvo said it would “soon now produce something for everyone in its US plant.”
The EX60 has been Volvo’s best-selling model globally for years and is the most popular in the US. So far this year, the XC60 accounts for over a third of Volvo’s total sales. It’s also the fourth-best-selling luxury plug-in hybrid in America.
Volvo is set to begin building XC60 models in South Carolina in late 2026. It will also continue building the EX90 “for customers who want more space or are looking to go fully electric.”
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