The majority of motor vehicles have been experiencing a price increase for the past few months, in response to very high demand and exploding material prices. Contrary to the current trend, Tesla creates surprise this morning for potential buyers, but also disappointment for recent buyers of the brand: the price of all Tesla models was lowered overnight, including some models by a jump of more than $ 26,000 .
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Tesla Model 3
The most significant changes affect the two most popular models. First, the rear-drive Tesla Model 3 sees its price drop by $5,000 to $54,990, just below the maximum eligibility threshold for the $5,000 federal rebate. This means that the car again becomes eligible for the federal rebate, which, combined with the already available provincial rebate of $7,000, makes the car eligible for a total of $12,000 in rebate applied after taxes.
Even the Performance version, which had a price tag of over $80,000, sees its price drop to $72,900. As was the case at the end of 2022, the long-range all-wheel-drive Model 3 is still unavailable to order, but the manufacturer’s site continues to state that it will become so again during the year. Nevertheless, by searching the manufacturer’s inventory, some long-range Model 3 all-wheel drive vehicles are available for sale in Quebec, despite the unavailability displayed in the configurator.
Tesla Model Y
While we’ve criticized the Model Y’s price hike over the past few months, putting it above most of its competitors, Tesla is correcting the situation at the start of the year. The long-range Tesla Model Y drops from around $85,000 to $69,990, a drastic drop from $15,000. Even the Performance trim drops several thousand dollars to $75,900, now putting it ahead of the competition.
Tesla Model S and Model X
Even the most high-end models of the manufacturer suffer a price drop. The long-range Model S and Plaid get a reduction of $12,000 and $26,600 respectively, while the long-range Tesla Model X and Plaid see their prices drop by $14,000 and $26,600 respectively. These adjusted prices allow them to be more competitive with new models of the genre such as the BMW i7 and iX, Mercedes-Benz EQS and EQE sedan and SUV and even the Rivian R1S which is currently arriving in British Columbia.
2022 sales
This major change – and especially against the trend in the industry – follows the incentives put in place by the manufacturer at the end of 2022 to boost sales of certain models. Rear-drive Model 3s were eligible for a $5,000 rebate and credit for use of the Supercharger charging network if purchased by December 31, 2022. Although the original goal was not met, these incentives helped Tesla end 2022 with a record 1.31 million vehicles sold worldwide, up more than 300,000 vehicles from 2021.
