Tesla just rolled out their 1st price change of 2024, and although it was limited in scope, they also rolled out a couple new programs to incentivize deliveries throughout the rest of the quarter. On top of this, Tesla has also brought back an incentive for Cybertruck reservation holders.

First up, Tesla has already increased prices on the new Refresh Tesla Model 3 (Highland). Fortunately it was only the Long Range Model 3 that was impacted, and the Model 3 RWD is still sitting at $38,990. This is hardly surprising as we have seen lead times for new orders on the Model 3 slip twice now this year. In fact, a Model 3 LR AWD is no longer guaranteed to deliver this quarter.

Tesla has also brought back some incentives we have seen recently in the past. In September of 2023, Elon Musk brought FSD transfer to reality, but it was limited as a "one time" thing and would only be available for the remainder of that quarter. As it turns out, Tesla had quite a bit of success with the program and is once again offering this transfer opportunity for those who take delivery by March 31st, 2024.

In addition, Tesla is also bringing back Free Unlimited Supercharging transfer for those who have older vehicles that came with this benefit. For those who have free unlimited Supercharging, they can now trade in on any new Model S, Model 3, Model X or Model Y and transfer that benefit to the new car. This is a great incentive for those holding on to much older cars to step into a new Tesla and maintain what is likely one of the hardest benefits to let go of.

Both programs can be used for the purchase of a new Tesla Model S, Model 3, Model X or Model Y.

Finally, Tesla is also bringing back an offer we saw at the end of 2023, and that is an extra $1,000 incentive to Cybertruck Reservation holders. This allows those who purchase a new Tesla the opportunity to stack this $1,000 off offer on top of any and all other offers available to them.

When you combine all of these offers, and include the $7,500 tax credit for the Model Y, the Model 3 is actually quite a bit more money than the Model Y. In fact, at minimum, assuming qualification for the tax credit, the Model Y is $2,500 and up to $10k less than the same trim Model 3.

As we march to the end of this quarter, and into the next quarter, all eyes will be on the Model Y as we await the refresh Model Y, also called Project Juniper. Once this starts to look like it's imminent, we will likely start seeing a lot of the same for the Model Y that we are seeing on the very popular refresh Model 3.


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