Tesla drops Model Y price by $3,000

Tesla just gave would-be Model Y buyers an unexpected treat: a sudden price drop. Electrek has discovered that Tesla lowered the cost of a Long Range AWD variant by $3,000 to $49,990 before taxes and incentives. The electric crossover still isn’t a trivial purchase at that price, but it might be easier to justify if the earlier price was just a little too hard to swallow.

There are perks if you’re willing to spend more, too. The Performance trim (priced at $59,990) now includes the previously optional Performance Package as standard. That nets you a higher 155MPH top speed, 21-inch wheels, upgraded brakes, a lowered suspension and aluminum alloy pedals. You will take a hit in range due to those wheels, down from 316 miles on the Long Range to 291 miles, but this saves you money if you were already set on getting a maxed-out Model Y.

We’ve asked Tesla for comment. A cut like this makes sense, though. Tesla has a habit of reducing prices as production and economies of scale improve, and the COVID-19 pandemic has had a disastrous effect on car sales — even if EVs represent a rare bright spot. Cuts like this, as well as earlier price drops for the Model S and Model X, could keep Model Y sales humming even as the pandemic continues and the car’s initial novelty wears off.