Elon Musk recently announced that Tesla would be reducing the prices of the Model Y by $1,000 until the end of the month. The discount is being offered due to lower demand for electric vehicles during the winter months. This is not the first time Tesla has reduced prices in the past year, as it has faced competition from other electric vehicle manufacturers, particularly from Chinese automaker BYD, which recently overtook Tesla as the world’s top seller of electric vehicles.
The price cut will only be available for the rear-wheel drive and long-range versions of the Model Y in the US, with discounted prices of $42,990 and $47,990. However, this is only a temporary discount as prices are set to go back up on March 1. The Model Y is Tesla’s most popular model and accounted for a third of all electric vehicle sales in the US last year.
Tesla is also preparing to ramp up production of a more affordable mass-market electric vehicle code-named “Redwood,” after Elon Musk warned investors of a potential sales slowdown. This comes as Musk informed Tesla workers that they can expect a difficult version of the company’s well-known “production hell.” With a push to make its cars cheaper and facing competitive threats, 2022 is a pivotal year for the automaker.