Tesla further trims Model 3 and Model Y prices

Tesla has taken a knife to Model 3 and Model Y prices again, reflecting global price cuts for its two primary models.

The refreshed Model 3 last week cost $NZ65,900 for the base Model 3 and $75,200 for the Long Range variant. Now the pair are selling for $63,900 and $73,900, respectively. At the time of the Model 3 refresh last year, they had sticker prices of $67,900 and $76,200. 

Tesla has also reduced pricing for the Model Y by a similar amount. The base model falls from $67,900 to $65,900, and the Long Range drops by the same amount to $75,900 while the Performance model falls to $86,900.

Since its introduction here in 2022, the price for Tesla’s least expensive Model Y SUV has fallen by over $10,000. The original price was $76,200. The Model Y Performance’s price has contracted by $22,000, down from its original price of $108,900.

And on Performance models, Tesla has just updated the Model 3 Performance variant with a more focused driver experience, and fresh design elements. It can now do the 0-100 quickstep in a claimed 3.1sec, en route to a top speed of 262km/h. Range is a stated 528km (WLTP).

Staggered 20-inch performance tyres are said to produce sharper turn-in response, improved predictability and increased corner exit traction on both road and track. A new feature is adaptive damping, set for improved handling prowess without affecting ride comfort unduly. Contributing to improved dynamics is increased structural stiffness in the chassis, and updated springs, stabiliser bars and bushings. Stronger brakes use high-performance brake pads for more immediate deceleration and higher thermal limits.

A revised Track Mode now integrates adaptive suspension control with a performance-optimised powertrain. Handling balance, stability controls and regenerative braking can all be customised via a new user interface.

Pick the Model 3 Performance by its new front and rear fascias. Together with the rear diffuser and carbon-fibre spoiler the aeros are optimised while inside new sport seats feature extra bolstering for obvious reasons. They are also heated and ventilated. A go-faster carbon-fibre trim rounds out the Model 3 Performance special features.

Tesla’s global price moves come on the back of a year-on-year decline in sales and profitability, the latter down by 55 per cent. That’s the result of softening in consumer demand for new EVs and price drops for its models. Decreased sales of electric vehicles is in part the result of subsidies ending in numerous countries.

Tesla’s share price has declined by over 40 per cent in 2024, but rallied slightly when the company suggested more affordable models are coming next year. That’s likely a reference to the purported Model 2, rumoured to have been dropped in favour of robotaxi development recently. The company is said to be informing the market about its “more affordable” model imminently.