Tesla Price Cuts Creating A New Problem For The Automaker

The price reductions came as a surprise and saw popular models like the Model 3 and Model Y becoming more affordable than before. The latter, for example, now has a starting MSRP of $53,490. Initially, it was priced at $52,990 but Tesla tacked on $500 in response to the demand. Despite this, the electric crossover now offers more value for money and, importantly, is now eligible for the appealing $7,500 EV tax credit.

Tesla’s long-awaited Cybertruck won’t contribute much to the automaker’s 2023 production forecasts, even though Musk has previously said the electric truck will enter production later this year.

“We do expect production to start sometime this summer. But I always try and downplay the start of production because [the] start of production is always very slow,” said the CEO.