Tesla cuts Model Y price again and makes Model X the cheapest ever but nixes referral credits

Recent Model Y buyers might be a bit miffed to learn that Tesla is cutting the price of its bestselling Model Y yet again.

Just a few weeks back, when Tesla was still working through the leftover inventory from Q1, a Model Y 7-seater could be had at a more than $15,000 off.

While this was with both the tax credit and existing inventory discounts, it made the Model 3 Highland look downright expensive in comparison.

New Tesla Model Y prices bring it under $30,000

With the new $2,000 Model Y price drop, Tesla is now advertising it to cost under $30,000 with the federal tax credit and its own "probable savings" calculations. That is the lowest price it has ever advertised for its Model Y bestseller.

In reality, the Tesla Model Y now starts from $35,490 with the tax credit subsidies, for which the US government is now shelling out about $200 million every month.

Last quarter, the lion's share of government subsidies went to the 96,729 Model Y units Tesla shipped then, as it is outselling all other EV makers in the US combined.

The Model Y Long Range also got a price cut, and now starts from just $40,490 with the tax credit amount, while the top Model Y Performance trim is now $43,990 with the same discount.

New Model X price makes it the cheapest

Besides making Model Y extremely affordable, Tesla also made its long-range Model X AWD the cheapest it has ever been.

The beast of an electric SUV got a price shave down to $63,990, according to Tesla's "probable savings" calculator, as it now qualifies for the federal tax credit, too.

The new $77,990 Model X price before the tax credit is applied is actually the cheapest this top-shelf performance SUV has ever been in its history of existence, and a sign of the times.

Tesla also dropped the price of its other performance vehicle, the Model S, also by $2,000. It is still way above the federal tax credit threshold for sedans, though, so its purchase price is now $72,990, making it the most expensive base Tesla model this side of the Cybertruck.

Tesla referral program ends April 30

These new Tesla $2,000 price cuts come just a few weeks after it removed a "temporary" $1,000 Model Y price cut designed to pad sales towards the end of Q1, along with free FSD transfers.

Apparently, Tesla decided that bringing the Model Y price tag under the proverbial $30,000 line will do enough for sales to warrant the removal of its referral program from next month.

If you like your Tesla referral credits, you can keep them, though. According to Elon Musk, it's just that "new credits would not be earned until we launch a future referral program, which is a few months away."

As with the never-ending Model Y price gyrations, it's anyone's guess how Tesla's discount and incentives strategy will shape up in the future, but for now it is saying no more referrals.

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