Tesla Model 3 and Model Y sharply reduced in price
Our loyal readers may remember the news that Tesla customers in China furiously stormed the showroom because the brand was suddenly offering high discounts on many models. That discount is not limited to just the Chinese market. Tesla is also lowering prices in the Netherlands. Indeed, the Tesla Model 3 and Model Y are suddenly on the order books for thousands less. The Model 3 now comes ready to drive starting at 45,993 euros, and the Model Y starts at 47,993 euros.
Subsidized Tesla
Those new starting prices mean that boarding a Model 3 has become thickly 7,000 euros cheaper! And there is more good news for people who had their eye on a Model 3, as the tax starting price, at 44,990 euros, is just under the 45,000 euros limit for applying for the SEPP subsidy. That means that as an individual, you can get another 2,950 euros discount on your new Tesla Model 3. So all in all, you are almost 10 grand cheaper than before. The entry-level version of the Tesla Model Y does still fall outside the limit for the subsidy.
Also discounts on more expensive versions
Tesla is not only discounting the entry-level versions of the Model 3 and Model Y. The more expensive versions of both cars, the Long Range and Performance, are also getting lower starting prices. For clarity, all new and old prices are listed side by side in the table below. The biggest discount is for the Model Y Long Range. With that version, Tesla scrapes a whopping 12,000 euros off the previous starting price!
| Model and version | Old starting price (fiscal) | New starting price (tax-related) |
| Tesla Model 3 | $51,990 | $44,990 |
| Tesla Model 3 Long Range | $59,990 | $52,990 |
| Tesla Model 3 Performance | $59,990 | $65,990 |
| Tesla Model Y | $49,990 | $46,990 |
| Tesla Model Y Long Range | $65,990 | $53,990 |
| Tesla Model Y Performance | $69,990 | $63,990 |
Why is Tesla lowering the prices of the Model 3 and Model Y?
In fact, the reason Tesla is discounting the entry-level version of the Model 3 has already been given. That has everything to do with the SEPP subsidy, which the brand wants to use to lure additional customers. Indeed, sales of the Model 3 slumped considerably last year. In addition, Tesla said in an explanation of the price cuts that the company’s goal is to “accelerate the transition to renewable energy. Tesla also explains that production in Gigafactories is currently increasing, which can make the vehicles more affordable.
Left or right: the price reduction is a very attractive proposition for new customers, but is pretty sour for people who have ordered a Tesla at a much higher price in the recent period….