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Tesla’s latest US price cuts bring the Model 3 below $40,000

New York Tech Editorial Team by New York Tech Editorial Team
April 19, 2023
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Tesla’s latest US price cuts bring the Model 3 below $40,000
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The Tesla logo on a red, black, and white background.
The entire Model Y range has also been discounted by $3,000. | Illustration: Alex Castro / The Verge

Tesla has cut the price of its Model 3 and Model Y vehicles in the US for the second time this month, reducing the starting price of Tesla’s most affordable EV below $40,000 (before incentives). The adjusted pricing has been rolled out shortly before Tesla is expected to release its quarterly earnings report later today.

The Model 3 Standard Range RWD has been reduced from $41,990 to $39,990. That’s not the cheapest price we’ve seen for the EV — Tesla had previously offered the Standard Range model for $35,000 in 2019 prior to its 2021 update. As noted by Electrek, the Model 3 is Tesla’s only vehicle to have seen its federal tax credit cut from $7,500 to $3,750 under new guidance from the US Treasury regarding battery sourcing…

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