Tesla cuts prices by $2,000 in US, Model Y back to its lowest price ever
Tesla has dropped the price of the Model Y, Model S and Model X by $2,000 each in the US. Model 3 prices remain the same, as do prices of the newly-released Cybertruck.
Tesla has had quite the week, between firing 10% of its workforce and losing two key executives, filing to get CEO Elon Musk’s voided $55 billion pay package reinstated, and putting its upcoming $25k car on hold.
All this news comes after disappointing quarterly delivery results, with inventory rising to high levels.
Perhaps in anticipation of these poor delivery results, last quarter, Tesla put a “temporary” discount on the Model Y its most popular vehicle (and the world’s best-selling vehicle), lowering prices by $1,000 for just a few weeks. After that discount lapsed, it warned buyers ahead of time that prices would increase again by $1,000 at the end of the quarter.
Those prices did indeed increase on April 1 – but now, less than three weeks later, the price is back down again.
As of today, Tesla has dropped prices on all trims of its Model Y, along with the Model S and Model X as well.
The Model Y RWD now starts at $42,990, down from $44,990. Model Y Long Range is $47,990, when it was previously $49,990. Model Y Performance is now $51,490, previously $53,490.
This is equivalent to the price of the Model Y during Tesla’s temporary discount in February, which only lasted a couple weeks.
Tesla’s more expensive Model S and X vehicles are now cheaper as well. While $2,000 isn’t as big a chunk of either of their prices, they’ve got the same discount as the Model Y did, with $2k taken off of each trim.
The Model S Long Range now starts at $72,990 and Model S Plaid at $87,990, with the Model X Long Range starting at $77,990 and Model X Plaid at $92,990.
This also happens to be the lowest price for the Model X ever, which also qualifies for the federal tax credit and thus could cost as little as $70,490 upfront (assuming you’re under the income cap, which many buyers of that vehicle won’t be).
Tesla has not referred to this as a “temporary” discount, unlike it did with Model Y’s last discount. This seems to just be a standard random Tesla price cut, as we’ve seen quite often, especially in the last couple years.
The Model 3, which recently received a big refresh and is about to receive an updated “ludicrous” performance spec, still has the same purchase price as yesterday. However, as of two days ago, Tesla is now offering a $299/mo lease on the Model 3, whereas previously it had charged $329/mo.
Cheapest US Model Y ever?
At $42,990 base price, the Model Y is now a “$35k car” after taking into account federal EV incentives, which are now available upfront at point-of-sale.
This $35,490 post-incentive price is tied for the cheapest price for the Tesla Model Y in the US yet, though the previous time Model Ys were this cheap was considered a “temporary discount” by Tesla. It beats the previous “permanent” low price of $36,490.
Early on, Tesla had offered a Standard Range Model Y as low as $39,990, but at the time it did not qualify for the tax credit as Tesla’s credits under the previous law had run out. Plus, it only appeared on the site for orders for a couple weeks, showing up in early January 2021, then getting a price cut in February before being removed from the configurator a week later. It was supposedly still available “off menu” as a custom order for a while.
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The Kia EV5 has officially arrived in the UK. Boasting up to 329 miles of range, Kia opened orders for the new Sportage-sized electric SUV on Monday. Here’s a breakdown of Kia EV5 prices, range, and other specs for the UK market.
Kia EV5 prices and range in the UK
Kia calls the EV5 “a cornerstone” of its electrification strategy. The midsize electric SUV is about the size of a Tesla Model Y and loaded with Kia’s latest tech, software, and sleek new styling.
After opening EV5 orders in the UK on Monday, Kia now offers an SUV across every powertrain in Europe’s most competitive segment.
The EV5 is available in three trims: Air, GT-Line, and GT-Line S. All three variants are powered by an 81.4 kWh battery, offering a range of up to 329 miles. Based on a 400V platform, Kia said the electric SUV can recharge from 10% to 80% in about 30 minutes.
All three are powered by a single front-mounted electric motor, capable of producing up to 214 horsepower (160 kW) and 295 Nm of torque. The EV5 can go from 0 to 62 mph in 8.4 seconds.
The interior features Kia’s new Connected Car Navigation Cockpit (ccNC), which includes a three-screen infotainment system.
Kia’s ccNC infotainment features dual 12.3″ driver display and navigation screens with Wireless Apple CarPlay and Android Auto, as well as a 5.3″ climate control display. A customizable 12.3″ Head-Up Display (HUD) is available on higher trim options.
At 1,875 mm wide, 4,610 mm long, 1,675 mm tall, and a wheelbase of 2,750mm, the EV5 is 10mm wider, 70mm longer, and 30mm taller than the Sportage.
Prices for the base Kia EV5 Air start at £39,295 ($53,000), on-the-road (OTR). Upgrading to the sporty GT-Line model, which gains exclusive trim exterior and interior design elements, is priced from £42,595 ($57,800). The range-topping GT-Line S starts at £47,095 ($63,700).
| Starting Price (OTR) |
Driving Range (WLTP) |
|
| Kia EV5 Air | £39,295 ($53,000) | 329 miles |
| Kia EV5 GT-Line | £42,595 ($57,800) | 313 miles |
| Kia EV5 GT-Line S | £47,095 ($63,700) | 313 miles |
The EV5 joins the EV3, EV4, EV6, and EV9 as Kia expands its electric vehicle lineup in the UK. Kia’s EV3 was the best-selling retail EV in the UK in the first half of 2025.
Can its bigger brother, the EV5, top it? Pre-orders are now open, and Kia plans to deliver the first customer vehicles later this year.
As a sibling to the Sportage, Kia’s global, European, and UK-wide best-selling vehicle, it might actually have a chance. Let us know what you think of it in the comments below.
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Tesla has reduced the price of the Model 3 RWD Long Range, a newly launched version of the popular Model 3, amid a sales slump.
As we reported last week, China has reached a tipping point of EV adoption: the majority of new car sales are electric.
Yet, Tesla, which was once the largest EV company in China, is not benefiting from the surge in EV sales in China.
As of last week, Tesla’s sales in China are down 6.3% year-to-date based on insurance registration data compared to 2024.
Electric vehicle competition is intensifying, and Tesla is struggling to keep up.
Over the last few weeks, Tesla has launched two new versions of the Model 3 and Model Y to help stem the decline in China.
For Model 3, Tesla launched a new Long Range RWD version in early August for 269,500 yuan.
Today, Tesla slashed the price by 10,000 yuan just weeks after the launch – indicating that demand was lower than anticipated.
Furthermore, Tesla is also offering a series of incentives on top of the price reduction:
- Participate in the referral bonus promotion and place an order before September 30th to receive an 8,000 yuan bonus on optional paint.
- Order select models (excluding the High-Performance All-Wheel Drive version) before September 30th to apply for a limited-time 5-year 0% interest financing plan. Order
- select models (excluding the High-Performance All-Wheel Drive version) and receive delivery before September 30th, along with partner insurance, to receive a limited-time subsidy of 8,000 yuan.
Competition in the EV sector is tough in China. New models are being launched every week, and prices are incredibly competitive.
Tesla is still performing well in the premium segment, but its most popular models are, by far, the cheaper Model 3 and Model Y in RWD versions. Meanwhile, Chinese EV automakers have launched numerous vehicles in these segments.
Electrek’s Take
Add this to the numerous red flags regarding Tesla’s declining sales worldwide.
For Tesla, Europe is almost a thing of the past. China is in a steady decline, while the US is expected to experience only slight growth.
The level of competition in China is simply too high, resulting in Tesla selling many vehicles in the market for virtually 0% gross margin.
This is not sustainable and will likely result in Tesla starting to lose money in 2026 without some major changes.
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With just a week left until its official debut, Volkswagen is giving us a sneak peek of its most affordable electric SUV, the ID.2. Here’s our closest look at the new entry-level EV.
The Volkswagen ID.2 is an affordable electric SUV
Volkswagen is revamping its electric car lineup with a new family of entry-level models, starting with the ID.2. The ID.2 is an electric hatch that VW promises is “spacious like a Golf,” yet still “affordable like a Polo.
With a starting price of around € 25,000 ($29,000), the ID.2 will be among the most affordable electric cars on the market.
Shortly after launching the electric hatch, Volkswagen is set to introduce an SUV version of the ID.2, which could be an even bigger hit. The ID.2 SUV will sit below the ID.3 and ID.4 in Volkswagen’s EV lineup as an even more affordable crossover SUV option.
Although we’ve seen the hatch out testing a few times, the SUV version has been mostly kept under wraps outside of a blurry image from December 2023. That is, until now.
Volkswagen’s design boss, Andreas Mindt, offered a closer look at the ID.2 SUV on Monday, releasing a few new teasers. The images reveal a sleek new look from its current ID models, closer in style to the updated T-Roc, which was unveiled last week.
Mindt said the “design speaks for itself.” The ID.2 and SUV versions will be based on a new MEB+ platform, which will underpin Volkswagen’s upcoming lineup of entry-level EVs.
The hatch will be offered with two battery pack options: 38 kWh or 56 kWh, offering a WLTP range of up to 280 miles. Volkswagen has yet to reveal final prices and range for the SUV version.
According to VW’s tech development boss, Kai Grünitz, the brand’s EV lineup is in line for a major refresh. Grünitz told Autocar that “huge improvements” were coming, including updated styling inside and out.
The interior will feature the new design, which includes a 12.9″ infotainment and 10.9″ driver display screens and plenty of physical controls. There will also be a few fun added features like the ability to switch between drive modes that resemble Volkswagen classics, like the Golf or Beetle.
Since the ID.4 starts at around 35,000 euros ($41,000) to 40,000 euros ($47,000), depending on the market, you can expect prices to be slightly lower, likely at around 30,000 euros ($35,000).
Volkswagen will unveil the ID.2 SUV next week at the Munich Motor Show on September 7. The German auto giant claims the ID.2 SUV “is another important step towards bringing affordable electric mobility to the masses.” It’s expected to hit the market next year following the hatch version. We’ll learn more at the event.
Although the ID.2 is not expected to be sold in the US, Volkswagen’s current SUV, the ID.4, is actually already one of the most affordable electric SUVs. Volkswagen is currently offering ID.4 leases as low as $129 per month. That’s even cheaper than a Jetta.
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