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Tesla's new Model Y price cut brings it down to Model 3 levels

Model Y is priced the same as Model 3 in Canada now (image: Tesla)
Model Y is priced the same as Model 3 in Canada now (image: Tesla)
While the price of the Model Y in the US can dip below that of the new Model 3 Highland because of federal subsidies, even Tesla's retail Model Y price can now match the Model 3.

When it became clear that even the new Model 3 Highland facelift won't qualify for the government's tax credit bonanza on account of its Chinese phosphate batteries, the Model Y immediately increased its appeal. After all, the new Model 3 Highland purchase price in the US starts from $38,990, while the RWD Model Y costs $36,490 after the tax credit which is now applied directly at the point of sale.

After doing a round of Model Y price cuts in China in Europe that ranged up to 9%, Tesla just reduced the Model Y tag in Canada as well. The Model Y price drop of CA$4,000 is not insignificant, and it does qualify for a further CA$5,000 federal rebate.

If you live in Quebec, the most recent Model Y price cut brings its starting price below the province's Roulez vert program eligibility cutoff. Thus, it immediately becomes eligible for another CA$7,000 in rebates, for a whopping total of CA$12,000 in incentives that now bring the base Model Y price down to the equivalent of US$31,300, a really amazing price point that the US can't match even with the tax credit.

What's even more interesting, however, is that even the official retail prices of the Model Y and Model 3 are now completely equalized in Canada. Both Tesla vehicles start from CA$53,990 (US$40,230) there even before any federal or state tax credit and other incentives.

A Model 3 and Model Y starting at the same base price may sound crazy, but Tesla is preparing to release the Model Y Juniper facelift in the summer, so it may do another round of price cuts, including in the US, so as to clear older inventory before the Juniper launch.

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> Expert Reviews and News on Laptops, Smartphones and Tech Innovations > News > News Archive > Newsarchive 2024 02 > Tesla's new Model Y price cut brings it down to Model 3 levels
Daniel Zlatev, 2024-02- 2 (Update: 2024-02- 2)