Tesla cuts Model 3 and Model Y prices
Great news for those who to purchase an electric vehicle! Tesla is significantly cutting prices for the Model 3 and Model Y. Just a month ago, we reported that Tesla increased prices for 2023 models in Israel due to an increase in the purchase tax on electric vehicles. But now, the Tesla Model 3 has fallen in price by 37,000 shekels, while the Model Y costs 80,000 shekels less! This happens almost for the first time in our memory, usually the situation is opposite. Just imagine, the two main models of the popular brand have fallen in price by tens of thousands of shekels…
When Tesla Israel announced a price increase in early January 2023, the company did not raise the price for its models worldwide, pre-tax prices remained the same. Therefore, all the changes in Israel were the result of a tax increase: from January 2023, the tax on the purchase of electric vehicles increased from 10% to 20%, and the maximum benefit limit was lowered from 75,000 to 60,000 shekels.
It should be noted right away that this is a global step by Tesla, and not a special gift to Israeli buyers. It was Tesla that actually launched the electric vehicle market, not only in Israel, but everywhere, it is an important driving force in the global automotive industry as a whole, and other players in the electric vehicle market are closely watching the changes in its policy. By the way, they should definitely think about their pricing policy now. And if every move of this American company matters. At the end of 2022, Tesla remained an undisputed leader in the electric vehicle market, having sold 1.31 million cars, but its share in the electric segment decreased from 23% to 18%. Perhaps this is the whole point: the ‘Chinese’ are indeed ‘on Tesla’s heels’… Be that as it may, this is a long-awaited decision for us.
Now the 2023 price list looks like this:
- The entry-level Tesla Model 3 RWD costs 205,609 shekels (versus 242,746 shekels), while the top-end AWD Performance has fallen in price to 289,166 shekels (versus 319,525 shekels).
- The entry-level Tesla Model Y AWD Long Rage costs 270,598 shekels (versus 351,389 shekels), while the AWD Performance can now be bought for 308,843 shekels (versus 383,043 shekels).
- The price for the Tesla Model S and Tesla Model X has remained unchanged.
