Tesla cuts Model 3 and Model Y cars price in the US

By Christina Cheng

Posted on October 6, 2023

Tesla has cut down the price of the Model 3 compact sedan and Model Y SUV in the U.S. by about 2.7% to 4.2% to stoke demand for its electric vehicles, days after the automaker fell short of third-quarter delivery estimates.

The Elon Musk-led company’s shares, which have more than doubled so far this year, fell 1.5% in trading before the bell as investors worried that the price cuts could further hit margins, already hovering near four-year lows.

Prices for the standard Model 3 have come down by about 17% since the beginning of the year while the Model Y long-range variant has seen a drop of over 26%. This price drop deliveries of its refreshed and higher-priced standard version are expected to start in the fourth quarter.