Tesla has been cutting prices on new models since late last year, and now it just reduced the price of its Model 3 and Model Y inventory units. If you buy an inventory model, you can save some money and get your car a bit quicker, but you'll have to settle for what's available.
There's really no way to know for sure why Tesla is cutting prices on its inventory, but it comes as no surprise. The company has been pulling out all the stops to sell and deliver as many EVs as possible, and it's now capable of producing more units than it can actually sell, at least at the current time.
Keeping inventory levels on the lower side looks better since it suggests Tesla still doesn't have demand issues. However, the US EV maker could also be getting prepared to launch and begin deliveries of the refreshed Model 3. Reports suggest the new Tesla sedan will be coming to market in the second half of 2023.
Tesla first started dropping the prices of its Model 3 inventory last month by around $1,200 per unit. It has since doubled the discounts to just over $2,400. In rare cases, there are inventory Model 3s available with price cuts of over $3,000. However, prices vary by market.
If you head to Tesla's website and search its inventory, the prices are discounted at different levels based on the zip code you enter into the search. Model Y inventory units are available at a discount as well, though many of the price reductions aren't as generous as those for the Model 3.
While Tesla has had higher inventory levels in the recent past than it did some time ago, there's still not a huge amount of cars to choose from. If you're really picky about color and configuration, you may not find what you're looking for.
Since Tesla's inventory cars are considered new, both Model 3 and Model Y EVs are eligible for the new US federal EV tax credit. While the Model 3 Long Range is eligible for a tax credit of up to $3,750, the Performance version qualifies for the full $7,500 credit. All Model Y crossovers are eligible for the full credit.