Another day, another round of Tesla price cuts.

Shortly after introducing a RWD variant of the Model Y, which after federal EV tax credit is the cheapest variant of that car we’ve seen in the U.S., Tesla has reduced the prices of its other Model 3 and Model Y variants.

The Tesla Model 3 now starts at $38,990, down $1,250 from the previous price of $40,240. That’s for the RWD version; the Long Range variant is now $45,990, down from $47,240, while the Model 3 Performance costs $50,990, down from $53,240.

The RWD Model Y hasn’t changed its price; it still starts at $43,990. But the Long Range and the Performance variants have gotten cheaper. A Tesla Model Y LR will now set you back $48,490, down from $50,490, while the Model Y P costs $52,490, down from $54,490.

Both cars qualify for the federal tax credit, and potentially for state incentives as well, meaning they can be had for a lot cheaper too, depending on where you live.

It’s worth noting that Tesla CEO Elon Musk originally promised the Model 3 would be a $35,000 car. There was a version that actually delivered on that promise, but it was short-lived and hard to get. Now, with the tax incentives, you can actually get the Model 3 for less than $30,000.

The price cuts aren’t massive, but they’re notable because Tesla has already made its cars more affordable several times this year. With this latest move, the company is likely making the competition very uncomfortable. The Model 3 and Model Y sit atop the best-selling EV car lists in the U.S., and the company recently said it delivered 419,074 Model 3 and Y vehicles in the third quarter of 2023, a 29 percent year-over-year increase.

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MuskWire TLDR:

Tesla has once again reduced the prices of its Model 3 and Model Y variants. The RWD variant of the Model Y, which is now the cheapest variant in the U.S. after federal EV tax credit, remains unchanged at $43,990. However, the Long Range and Performance variants of the Model Y have become cheaper, with the Model Y LR now priced at $48,490 (down from $50,490) and the Model Y P costing $52,490 (down from $54,490). The Model 3 prices have also been reduced, with the RWD version now starting at $38,990 (down from $40,240), the Long Range variant at $45,990 (down from $47,240), and the Model 3 Performance at $50,990 (down from $53,240). Both the Model 3 and Model Y are eligible for federal tax credits and potential state incentives, making them even more affordable. This latest price cut from Tesla comes as the company aims to maintain its position as the top-selling EV brand in the U.S.