# **Tesla Offers Limited-Time Discounts on Model Y Variants in the US**
## Magnifying Savings for Tesla Model Y Buyers
Tesla, the electric vehicle (EV) giant, announced on Saturday that it will be offering limited-time discounts on two variants of its popular Model Y vehicle in the United States. The discounts, which are available only until the end of February, will give buyers the opportunity to save $1,000 on both the base Real Wheel Drive Model Y and the All Wheel Drive Model Y. The base Model Y will now be priced at $42,990, while the All Wheel Drive version will be available for $47,990. The price of the high-performance Model Y remains unchanged at $52,490. It’s important to note that these prices are before federal tax credits, which can further reduce the cost of the vehicles by $7,500.
## Possible Extension of Discounts and High Model Y Inventories
Although the official end date for the discounts is February 29, there is speculation that Tesla may extend the offer or make it permanent. The company has a history of increasing incentives towards the end of a quarter, and with relatively high inventories of Model Y in the United States, extending the discounts seems plausible. Additionally, Tesla’s Austin plant is operating below its official capacity, which may further contribute to the decision to continue these discounts.
## Global Price Adjustments in Response to EV Demand
Tesla has been making price adjustments to its vehicles around the world in response to the slowing demand for electric vehicles. In January, the company reduced the prices of select Model Y variants in China, as well as the Model 3. This was followed by larger price cuts for the Model Y in Europe. The EV market is becoming increasingly competitive, with other manufacturers also lowering prices to attract buyers. Rivian, a major competitor to Tesla in the EV market, recently reduced the prices of its R1T pickup and R1S SUV models in the US.
## Tesla’s Strategic Pricing Decisions
It is worth noting that Tesla has not reduced prices for its new Model 3 in the United States. Production of the Model 3 is currently limited at the Fremont plant, and stricter battery sourcing guidelines have made the vehicle ineligible for the $7,500 tax credit. As a result, the Model Y has become a more attractive option for buyers, as it often offers more savings compared to the Model 3.
## Stock Performance and Analysts’ Insights
Tesla stock experienced a 3% increase last week, reaching a price of $193.57 per share. This rise comes after a period of decline, with the stock hitting its lowest levels in almost nine months. On the other hand, Rivian stock saw a 6.9% increase, rising to $16.68 per share. Despite facing recent lows, the company has managed to bounce back.
Overall, industry analysts believe that Tesla’s strategic pricing decisions and its ability to adapt to changing market conditions will continue to contribute to its success. The company’s focus on discounts and incentives, along with its expansion plans for its Austin plant, are expected to strengthen its position in the highly competitive EV market.
Analyst comment
Positive news: Tesla is offering limited-time discounts on two variants of its Model Y vehicle in the US, allowing buyers to save $1,000. There is speculation that the discounts may be extended due to high Model Y inventories and Tesla’s history of increasing incentives at the end of a quarter. Tesla’s strategic pricing decisions and ability to adapt to market conditions are expected to strengthen its position in the competitive EV market. Stock performance for both Tesla and Rivian has improved, indicating positive market sentiment.
