Tesla recently implemented a special pricing update for the Model Y in the United States, marking a new approach to price adjustments. Instead of making permanent changes to the price, the manufacturer announced that the price change would only be temporary.
Under this update, the new Tesla Model Y RWD and Long Range AWD are now $1,000 less expensive, while the Performance version of the car maintained its previous price. However, it’s important to note that this change is time-limited and only applies to vehicles that will be delivered by the end of this month (February 29).
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Tesla Model Y is the best-selling car
In 2023, the Tesla Model Y became the best-selling car in the world overall, regardless of the powertrain. It was also the best-selling all-electric car in the U.S., Europe, and China.
These promotional prices for the Model Y will revert back to their original values, as Tesla has announced that prices will increase by “$1,000 or more” starting March 1. In other words, there’s a possibility that the car will be even more expensive after that date.
Tesla Model Y temporary price change
The adjusted prices for the new Tesla Model Y are as follows:
- RWD: $42,990 (down $1,000 or 2.3% from $43,990)
- Long Range AWD: $47,490 (down $1,000 or 2.1% from $48,490)
- Performance: $52,490 (no change)
When considering the destination fee and order fee, as well as the $7,500 federal tax credit, the new effective starting cost is $37,130. The entry-level Model Y RWD has an EPA range of 260 miles, according to Tesla.
| Model | Base Price | Dest. Charge | Tax Credit | Effective Price |
| 2024 Tesla Model Y RWD 19-in | $42,990 | +$1,640 | $7,500 | $37,130 |
* Tesla adds a Destination fee (DST) of $1,390 and an Order Fee of $250 to all its models ($1,640 total).
The reason for the adjustment and its unique form this time is not entirely clear, but it may be a test or an effort to boost sales within the quarter, as noted by Tesla analytics and industry experts alike.