Elon Musk recently announced that Tesla would be reducing the prices of the Model Y by $1,000 until the end of the month. The price cut was offered because people tend to be less inclined to buy cars during the winter months. This is not the first time Tesla has reduced prices in the past year due to lower demand for electric vehicles.
The discounted prices are only available for the rear-wheel drive and long-range versions of the Model Y in the US. The new prices are $42,990 and $47,990, down from the original price, but do not include the “performance” version. However, this is only a temporary discount, as prices will go back up on March 1st.
The Model Y is Tesla’s most popular model and accounted for a third of all electric vehicle sales in the US last year. But, Tesla is facing challenges as it faces competition from other electric vehicle manufacturers, particularly from Chinese automaker BYD, which recently overtook Tesla as the world’s top seller of electric vehicles.
Tesla is also preparing to ramp up production of a more affordable mass-market electric vehicle code-named “Redwood,” after Elon Musk warned investors of a potential sales slowdown. This comes as Musk informed Tesla workers that they can expect a difficult version of their well-known “production hell.” With a push to make its cars cheaper and facing competitive threats, 2022 is a pivotal year for the automaker.