Vehicles | January 13, 2023 12:35 pm

Most Tesla Models Just Got Significant Price Cuts

And that's before the tax credits kick in (for some)

Tesla logo
The automaker is lowering prices on a number of models.
CFOTO/Future Publishing via Getty Images

If you’ve been holding off on buying a Tesla until this year, we have good news for you — you might have inadvertently saved yourself a not-insubstantial amount of money. As Engadget reports, the automaker has instituted price cuts on a substantial number of its models and configurations. (That doesn’t mean all of them, however — a seven-seat Model Y is actually going to be more expensive than it was previously.) Throw EV credits into the mix, and you have a perfect storm of relative EV affordability.

As the New York Times recently reported, electric vehicle tax credits in the U.S. “will apply to sedans that cost no more than $55,000 and sport utility vehicles and pickup trucks that cost up to $80,000.” What’s especially interesting about some of the Tesla price cuts is that they’ve made certain models and configurations eligible for these tax credits in a way that they weren’t before.

Engadget’s article singles out the Model Y Long Range in its five-seat configuration, which had previously cost $65,990 and now costs $52,990. That’s before the tax credits kick in, making the overall savings even higher.

There are some other variables in the mix when it comes to the tax credits as well — including the household income of the buyer. Later this year, the tax credits are set to undergo a series of updates focusing on the countries of origin of certain components — but those guidelines aren’t available yet.