Tesla Reduces Prices in the U.S. Again; Model 3 Now Starts Below $40K

In a surprising move, Tesla lowers Model 3 and Model Y prices in the U.S. again

Tesla

Stop me if you've heard this one before, Tesla is lowering prices. I know you have, but I'll tell you about the latest surprising move. The new set of price reductions for its popular Model 3 and Model Y vehicles in the United States happen just one day before its Q1 2023 financial results release.

This decision marks the second round of price cuts in April, further enhancing the affordability of Tesla's electric vehicles for consumers. Tesla's aggressive pricing strategy is expected to increase market share and demand for its vehicles, putting pressure on its competitors.

Model 3 Becomes More Affordable

The base Model 3 Rear-Wheel Drive (RWD) now has a starting price of $39,990, down from its previous $41,990. Considering the recently reduced $3,750 US tax credit, the Model 3's effective price could be as low as $36,240. There has been no change to the Performance variant's price, and the Long Range version remains unavailable for order.

Model Y Prices Adjusted Across All Variants

All Model Y versions have seen a $3,000 price reduction, making them more accessible for potential buyers. The newly introduced Model Y AWD with 4680 cells now has a starting price of $46,990, while the Long Range and Performance versions begin at $49,990 and $53,990, respectively.

Each Model Y variant qualifies for the full $7,500 tax credit, and when combined with state-level incentives like those in California, a new Model Y can be purchased for as low as $37,490 in Tesla's largest US market.

Assessing the Impact of Price Cuts on Tesla's Margins

As Tesla continues implementing price cuts, questions arise regarding the potential impact on the company's industry-leading margins. However, Elon Musk forecasted these reductions a while back. On July 15, 2022, he tweeted: if inflation calms down. we can lower prices for cars. The inflation rate is under 5%, down from 6% last month and 8.5% at this time last year. The Q1 2023 earnings call will provide further insights into the effects of subsequent price cuts on Tesla's margins.

A Bold Global Pricing Strategy Pushes Competitors to Adapt

Tesla has also recently reduced prices for its vehicles in Europe, Israel, and Singapore, in addition to its price cuts in the United States. This strategic move puts considerable pressure on Tesla's competitors while making electric vehicles more accessible to consumers. As Tesla expands its global production facilities and enhances manufacturing capacity for its Model 3 and Model Y vehicles, the market can expect more price adjustments and heightened competition within the electric vehicle industry.

Follow

Follow

Follow

Tesla Adds Interest-Free Payment Plan to Tesla Shop - FSD Payment Plan Next?

Not a Tesla App

Tesla has added payment plan options to its shop items for the first time. They’ve partnered with Klarna, a deferred payment provider, to spread the cost of items across multiple payments. For now, this appears to be limited to the Tesla Shop in the United States—no support for other regions quite yet.

Payment Options

Klarna’s primary payment option allows buyers to get 0% APR for 6 weeks, with 4 payments. The payment schedule is essentially one payment every two weeks for whichever product you buy - enabling you to buy now, and pay later with 0% financing.

For example, the payment schedule for the $420 Wall Connector is evenly divided into four portions. Of course, you’d also have to pay for shipping and taxes, both of which will be included in your first payment.

For some of Tesla’s more expensive Shop options - like the Cybertent, this could be a fantastic means for some owners to pick up something more expensive without having to worry about interest charges on their credit card.

Klarna also offers some other payment schedules, which do have interest. While these are far more expensive and are more like credit cards, they still provide buyers a means to buy now and pay over time. These are all open loans as well, so you can pay them down at a faster rate, thereby reducing the overall interest.

FSD Payment Options?

We’d love to see an equivalent payment option available for Tesla’s FSD purchase, which is currently $8,000, even if it's bought after the vehicle purchase. The high upfront cost is likely one reason why Tesla’s FSD subscription is so popular.

It’s likely that purchasing FSD is much more popular at the time of vehicle purchase, as owners can roll the cost of FSD into their financing rather than paying the full $8,000 later on.

IPO Filing

Interestingly enough, along with today’s news that Klarna is working with Tesla, Klarna has also filed for an IPO in the United States. It is one of the first financial tech (FinTech) companies to file for an IPO in 2025 and, interestingly, one of the first European companies to conduct an IPO in the United States.

For those who trade in the financial sector, this will be one to watch—Klarna was valued at around $46 billion in 2021 and is now valued at approximately $15 billion. Partnering with a large and well-known brand like Tesla could uplift Klarna, but that’s all financial speculation.

Follow

Follow

Follow

A Look at Tesla's Beach Buggy Racing Leaderboards – Supercharger Edition

Not a Tesla App

Earlier this year, Tesla released a update for its Beach Buggy Racing 2 game in update 2024.20, which brought a new leaderboard feature to the game.

Grab your wheel, and step on the accelerator, because it's time to take a look at Tesla’s updated Beach Buggy Racing 2 – Supercharger Edition.

Supercharger Leaderboards

Tesla introduced Supercharger Leaderboards to the game, which means anytime you’re at or near a Supercharger site, you can open up Beach Buggy Racing, and compete against other real people in a local leaderboard. Leaderboard are time-based, so that you’re able to compete against other drivers even if there’s no one else currently at the Supercharger.

Leaderboards are available for each track and are location specific, meaning that all Supercharger locations have their own unique leaderboard.

When you arrive at a Supercharger Tesla will prompt you to play Beach Buggy Racing and take a stab at the Leaderboards, but you don’t actually need to be charging to play. All the game requires is that your vehicle is physically at the Supercharger location.

So far, there are no global leaderboards, but competing with fellow Tesla owners at your local Supercharger offers a fun way to pass the time during a 15-minute charge.

Vehicle Colorizer

Not a Tesla App

One lesser known feature of Beach Buggy Racing is that changing your vehicle’s on-screen color through Tesla’s Colorizer will also change the way your vehicle looks in Beach Buggy Racing. It’s a neat little easter egg, but it's all the small details that count. The paint style options apply as well – so Solid, Matte, and Metallic also all reflect in the game.

How to Play Beach Buggy Racing

There are a few ways to play Beach Buggy Racing, and Tesla has thought of everything for this specific game.

You can open up the game from Tesla Arcade when the vehicle is in Park. You have three control options – using the touchscreen, using a Bluetooth or USB controller, or using your vehicle’s steering wheel.

If you’re using the steering wheel, keep in mind that unless you’ve got a Cybertruck with Steer-by-Wire, your actual wheels will also turn. This can add some flat spots to your tires if you play excessively. We recommend using a controller or the touchscreen. Keep in mind that if you’re playing with the vehicle’s steering wheel, you actually use the Brake pedal to accelerate, not the real accelerator pedal.

The author recently took first place at the Leaderboards for the Supercharger in Scarborough, so if you’re in Toronto anytime, feel free to challenge my score! If you’re a leaderboard holder, come let us know where you took first place in the forums.

Follow

Follow

Follow