Tesla slashes prices again to all-time lows
23 May, 2024
Tesla has drastically cut the price of its popular electric SUV, the Model Y, and its Model 3 sedan.
The Tesla Model Y RWD price has dropped by $5000 before on-road costs (an 8 per cent reduction) bringing it down to $55,900, while pricing for the Long Range and Performance variants remain the same.
Tesla has dropped the price for two Model 3 variants – the RWD and the Long Range. The Tesla Model 3 RWD now starts at $54,900 before on-roads, down $4000 for a 6.7 per cent cut.
The Model 3 Long Range price has dropped by an astonishing $6000, down 9.5 per cent, and now starts from $64,900 before on-road costs.
The latest price cuts come hot on the heels of two previous price drops in April.
At the start of April, the Model Y RWD cost $65,400. All in all, it is now down an incredible $9500. The Model Y Long Range was priced from $78,400 before on-roads at the start of last month, so the total price cuts now equal a whopping $13,500.
The Model 3 RWD was priced from $61,900 before on-roads at the start of April and is now down $7000 in total. The Model 3 Long Range was priced from $70,900 before on-roads at the start of the month and is now down $6000 in total.
Why is Tesla dropping its EV prices?
Tesla’s price drops are not confined to Australia. It has been cutting the prices of its electric vehicles around the world, in the face of increasing competition as other carmakers ramp up their EV offerings. Decreasing manufacturing costs are likely also part of the picture: as with any new technology, both scale and time bring this down.
The price drops are hurting rental fleets, which have ploughed millions into electrification. Because leasing companies buy vehicles based on total cost of ownership including resale values, the subsequent drop in secondhand values impacts their bottom line.
As Automotive News reports, Tesla sales were down 25 per cent in February compared to the same month in 2023 – although this doesn’t mean it is on a losing streak. Even though Tesla has seen a drop from 80 per cent in the US in 2020 down to 52.4 per cent in March, it is still a market leader in electric vehicles, as Jalopnik reported.
Locally, Tesla’s market share fell to a low of 33 per cent in April whereas it held 53 per cent of the market in all of 2023, as we reported in April EV sales figures. It still sold the most EVs of any brand: almost 15,000, putting it in the top ten car brands for the month.
Decreasing manufacturing costs are likely also part of the picture: as with any new technology, both scale and time bring this down.
All the EV price cuts so far in 2024
Tesla is not the only carmaker decreasing its EV prices, either. The following EV brands have also cut prices in Australia:
- Peugeot cut the e-2008 price by around $25,000, down to $39,990
- BYD is offering a reduced sale price starting at $45,990 for as-new Atto 3 electric SUV demos
- MG slashed prices of its entire EV range and introduced nationwide driveaway pricing
- GWM is offering the Ora electric hatchback from $35,990, making it the cheapest EV in Australia
- Renault is selling the Megane E-Tech for $54,990, down $10,000 until end June 2024
- Nissan dropped the price of its base-model Leaf down to $39,990 driveaway, and the Leaf e+ down to $49,990 for the month of May 2024
- Polestar has also cut pricing for its Polestar 2 range, with savings in some cases of up to $15,000
