From Nasdaq, Inc.:

Electric vehicle giant Tesla, Inc. (NASDAQ:TSLA) implemented a temporary price cut on its Model Y in the U.S. The Model Y was the best-selling car in the world in 2023. The temporary price cuts for the rear-wheel drive and long range all-wheel drive variants will be available only until Feb. 29. The starting price of the RWD variant is now at $42,990 and the long range variant is at $47,990, while the performance variant’s price remains unchanged at $52,490. Eligible buyers can receive $7,500 federal tax credit, which will be deducted from the purchase price of all new 2024 Model Ys at the time of delivery.

The company has also made its leasing option further attractive by taking down the down payment by as much as $2,000. The price cuts triggered rumors that the company could be trying to clear inventories before launching a refreshed Model Y. Tesla recently lowered its Model Y prices in Canada twice. The latest price cuts in the U.S. comes after a lull and are temporary, they may not trigger a negative stock reaction. Social media users have speculated that the price cuts intended for next Thursday were pulled forward to capitalize on the increased traffic Tesla normally gets to its website during the week of the Super Bowl. Tesla clarified to employees that a refresh is not in the works in North America this year.

Tesla ended Friday’s session up 2.12% at $193.57, according to Benzinga Pro data. After reducing prices successively beginning in early 2023, Tesla stalled its price-cutting spree late last year. The price cuts did little to improve sales amid slowing EV adoption and eroded margins. The company has reported below-consensus earnings and revenue for two straight quarters now. The price reduction in the Model Y is an attempt to stimulate sales through new tax credits and an adjusted leasing option.

Overall, Tesla’s recent price cuts in the U.S. and Canada are likely to stimulate new demand for its Model Y, which has declined in popularity in recent months due to slowing EV adoption and erosion of margins. The company is likely trying to clear inventories before launching a refreshed Model Y, although Tesla has clarified that no refresh is in the works in North America this year.

Tesla recently implemented price cuts on its popular Model Y EV to stimulate demand, offering new tax credits and a more attractive leasing option. The company also clarified to employees that no Model Y refresh is in the works in North America this year, squashing rumors of a potential refresh. The latest price cuts in the U.S. and Canada come amid decreasing sales of the Model Y and below-consensus earnings and revenue reports for the company.



Read more: Tesla Model Y Price Cut Alert: EV Giant Temporarily Trims Prices Of Its Bestseller, Reportedly Quashes Refresh Rumors