Tesla Cuts Model Y, Model 3 Prices in Bid to Boost Sales
Oslo, Norway – Tesla unveiled more affordable versions of its popular Model Y and Model 3 vehicles on Tuesday, starting at $39,990 and $36,990 respectively, in a move aimed at countering falling sales and increasing competition in the electric vehicle market. The price reduction for the Model Y represents a roughly 15 percent decrease from the previous entry-level model, potentially translating to a price of around NOK 407,800 (approximately $38,000 USD) in Norway once fees are included. Currently, the entry-level Model Y in Norway costs NOK 476,996.
The launch follows a weekend of teaser videos posted by Tesla on X,generating anticipation among fans. industry analysts believe the lower price point - falling under $40,000 – is crucial for reigniting demand. “A price under $40,000 will help Tesla increase deliveries,” Seth Goldstein, an analyst at Morningstar in Chicago, told Reuters. The company’s stock fell approximately four percent following the proclamation.
Tesla’s decision comes as the electric car manufacturer faces challenges including an aging vehicle lineup, intensified competition, particularly in China and Europe, and a decline in brand loyalty in Europe potentially linked to CEO Elon Musk’s political views. According to CNN, deliveries of the new, cheaper models are expected to begin in December or January.
The more affordable vehicles are also central to tesla’s enterprising goal of delivering 20 million cars over the next decade.
