Tesla discounted U.S. prices for two Model Y variants, but only through February, the EV giant announced Saturday. Meanwhile, there were reports that Tesla won't roll out the "Project Juniper" Model Y refresh in 2024. TSLA stock fell Monday.
The base Real Wheel Drive Model Y is getting a $1,000 discount, to $42,990, but the new owner must take delivery by Feb. 29. The All Wheel Drive Model Y also has been reduced by $1,000, to $47,990. The Model Y Performance remains unchanged at $52,490. Those are before federal tax credits of $7,500.
While the Tesla Model Y discounts officially end after Feb. 29, it's possible that they could be extended, or made permanent. Tesla typically ramps up incentives at the end of the quarter. On Feb. 8, Tesla revived an offer to let Full Self-Driving owners to transfer their FSD rights to a new Model 3, Y, S or X, with delivery taken by March 31.
Also, Model Y inventories are relatively high in the U.S, even with Tesla's Austin plant running far below capacity. Tesla already discounts Model Y inventory by more than the temporarily lowered list price, so it's not clear how much the list price discount will boost demand.
In January, Tesla cut China prices modestly for the some Model Y variants as well as the Model 3, followed up by larger Model Y price cuts in Europe.
EV demand generally is slowing. On Friday, Rivian cut the prices of its base-model R1T pickup and R1S SUV by $3,100, to $71,700 and $76,700, respectively.
Tesla Model 3
Tesla isn't cutting U.S. prices on the new "Highland" Model 3, with production limited at the Fremont plant. In fact, Tesla raised the price of its Model 3 Long Range by $1,000 to $56,990 on Feb. 4.
The Model 3 is no longer eligible for the $7,500 tax credit, due to tougher battery sourcing guidelines. That means it's often substantially cheaper to buy a Model Y than a Model 3.
No 'Juniper' Model Y in 2024?
In a related note, Tesla sent an email to delivery advisors on Saturday that a Model Y refresh won't be coming to North America in 2024, according to the Teslarati blog. The "Project Juniper," a modest refresh along the lines of the "Highland" Model 3, had been expected to launch sometime this year.
Separately, local Chinese media said the Model Y won't get a facelift in China this year either.
Some potential Model Y buyers around the world. may have been holding out for a "Juniper" refresh.
Tesla Shanghai began making the Highland Model 3 in third-quarter 2023, with deliveries starting in China and Europe in Q4. The Fremont just began making the refreshed M3 for North America several weeks ago.
Elon Musk Ordered To Testify
A federal court in California on Saturday ordered Tesla CEO Elon Musk to comply with an SEC subpoena regarding possible violations of securities laws related to his 2022 Twitter purchase. The two sides must meet within a week to decide on a date and location for Musk's testimony.
Musk disclosed his initial Twitter purchases past the legal deadline, as well as stating that the investment was passive.
Tesla Stock
Shares fell 2.8% to 188.13 on Monday.
Tesla stock rose 3% to 193.57 last week, reversing higher from its worst levels in nearly nine months.
Rivian stock fell 2.1% to 16.33 Monday, as Barclays downgraded the EV startup to Equal Weight, citing a broad slowdown for electric vehicles. Last week, shares leapt 6.9% to 16.68, rebounding from near recent lows.
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