Tesla slashes prices on existing Model Y inventory, costs buyers as low as $34,000

Tesla has launched a significant price reduction on its Model Y inventory, offering some of the lowest prices to date. As the company prepares to introduce the redesigned Model Y, older versions are now available starting at $33,890 before taxes and fees.

A search on Tesla’s official website for Los Angeles (ZIP code 90005) shows that the rear-wheel drive long-range Model Y qualifies for a $7,500 federal EV tax credit. It also includes an additional $3,600 price adjustment discount.

Leasing and Financing Options

For those considering a lease, the estimated monthly payment over 36 months is $253 with a 10,000-mile annual limit. Buyers can also finance the vehicle at a 5.84% interest rate, available to those with a credit score of 720 or higher. With a $4,000 down payment, the monthly payment comes to $517 over 72 months.

Why Tesla Is Lowering Prices

Industry experts see this Tesla Model Y discount as a rare chance for buyers to get an affordable EV. Analysts believe Tesla is cutting prices to clear out existing inventory before rolling out the new Model Y. Limited pre-orders for the redesigned version have begun, and deliveries are expected this month.

Major Discounts Across All Model Y Variants

Other versions of the existing Model Y also have major price reductions. The long-range all-wheel-drive Model Y is now $37,130, while the performance all-wheel-drive Model Y is listed at $37,120. These prices mark a significant drop from the previous $40,000–$50,000 range.

Price Comparison: Old vs. New Model Y

The upcoming Model Y AWD Launch Edition Long Range is priced at $52,490 after the federal tax credit. This makes it $18,600 more expensive than the lowest-priced older Model Y.

The price difference comes down to added features. The new Model Y includes Tesla’s $8,000 Full Self-Driving (FSD) package, a towing package, premium wheels, and custom interior and exterior options. Tesla also claims improved ride quality and noise reduction in the updated version.

Should You Buy Now?

Despite these upgrades, experts say the existing Model Y remains a high-performance vehicle. It was the third best-selling car in the U.S. last year and continues to be the top-selling EV.

The Tesla Model Y discount may not last long. Pricing depends on inventory and location, and additional taxes and fees may apply. Some discounts could expire early if stock sells out. Buyers looking to take advantage of these deals should act quickly.

BY HOONSIK WOO [woo.hoonsik@koreadaily.com]