Tesla reduces Model 3 and Model Y prices, now starts under $37,000

Tesla has updated its pricing across the Model 3 and Model Y lineup, including price cuts for both base models.

The new cheapest Tesla vehicle now starts just under $37,000.

Tesla Model 3 Prices

With the price update today, Tesla has now reduced the price of the Model 3 Standard Range Plus to $36,990 – a new low.

Here are the price differences for all 3 trims of the Model 3:

• Tesla Model 3 Standard Range Plus – now: $36,990 – was: $37,990
• Tesla Model 3 Long Range (AWD) – now: $46,990 – was: $46,990
• Tesla Model 3 Performance (AWD) – now: $55,990 – was: $54,990

As you can see, Tesla didn’t change the price of the Model 3 Long Range, which now has a $10,000 difference with the base version, but it does come with a bigger battery pack and an extra motor.

The Model 3 Performance has actually received a price increase.

The updated pricing comes following changes that the automaker introduced as part of the Model 3 refresh late last year.

Tesla Model Y Prices

Along with the changes to the Model 3 prices, Tesla has also updated prices in the Model Y lineup.

Most notably, Tesla has reduced the price of the Model Y Standard Range by $2,000 to now $39,990.

That’s a significant price reduction for a vehicle that was introduced just a month ago.

The vehicle was officially introduced last month despite Elon Musk previously saying that Tesla wouldn’t make that version of the electric SUV due to range concerns.

Here are the price differences for all 3 trims of the Model Y:

• Tesla Model Y Standard Range – now: $39,990 – was: $41,990
• Tesla Model Y Long Range (AWD) – now: $49,990 – was: $49,990
• Tesla Model Y Performance (AWD) – now: $60,990 – was: $59,990

Like with Model 3, the Model Y Long Range stays the same price, but the Performance version also receives a $1,000 price increase.

Over the last few months, Tesla has been updating the Model Y to match some of the updates made in Model 3.

More recently, a Model Y was spotted with the new center console introduced in the Model 3 2021 refresh.

However, the old center console is still shown in the online configurator when placing a new update even after the configurator being updated with these new prices.