Hey, everybody. Welcome back to the Elon Musk
Podcast. This is a show where we discuss
the critical crossroads, the shape, SpaceX, Tesla X, The
Boring Company and Neurolink. I'm your host, Will Walden.
How low are Tesla's prices dropping for the Model Y?
And also what's driving these new discounts?
And is it worth holding out for the updated Model Y known as
Juniper? Also, Cybertruck is seeing some
price cuts just months after its launch.
Let's unpack these details and explore what this means for
Tesla, and more importantly, what it means for you, the
customer. Tesla is rolling out significant
discounts on select Model Y inventory vehicles in the United
States, fueling interest among buyers seeking lower prices for
one of the most popular electric vehicles on the market.
The discounts arrive as Tesla prepares to release the
anticipated Juniper update to the Model Y later this year.
And the current discounts make some Model Y configurations
cheaper than ever, a move likely intended to clear existing
inventory before the updated model debuts.
Now, the Model YS importance to Tesla cannot be overstated.
According to Kelley Blue Book, the Model Y was the best selling
electric vehicle in the United States in 2024, far outpacing
its competitors. When combined with the Model 3,
Tesla's two most accessible vehicles accounted for over 40%
of the US electric vehicle market last year.
Now, the dominance has solidified Tesla's leadership in
the EV sector, but it's also created challenges as
competitors like Ford, Rivian, and Lucid Motors continue to
narrow this gap. Current discounts of the Model Y
inventory are particularly noteworthy for their pricing,
which in some cases brings the vehicles cost below $40,000.
This price includes the $7500 federal EV tax credit, which
applies to many Tesla models. And for example, a long range
all-wheel drive Model Y in Stealth Gray available through
Tesla's inventory page is listed at $38,570 before taxes and fees
is nearly $2000 less than the same model.
Order directly from Tesla's build to order system where it's
priced at $40,490.00. These inventory specific
discounts effectively reduce the cost of the all-wheel drive
Model Y to levels typically associated with Tesla's lower
priced rear wheel drive variant. Buyers looking for an all-wheel
drive Model Y which offers better handling and performance
may find this an attractive opportunity, especially with
Tesla Straightforward ordering online which makes the deals
really easy to spot. Go check them out right now at
tesla.com. The leasing options are also
more affordable for discounted Model Y inventory.
A standard lease for an all-wheel drive Model Y is
around $399 per month before taxes and fees.
However, discounts on inventory vehicles allow Tesla to offer
slightly reduced monthly payments, with some leases
dropping to about $10 less $385 per month.
But this may seem like a small difference, though.
Over a typical three-year lease term, it adds up to meaningful
savings for cost conscious customers.
Now. It's essential, however, for
potential buyers to understand that these discounts apply to
the current version of the Model Y, which Tesla first launched in
March of 2020. And while the vehicle remains a
top seller, it's no longer Tesla's newest design.
It's been updated. There's a Model Y called the
Juniper, which is announced earlier this month in China and
is expected to bring notable improvements when it arrives in
the United States, though the exact timing remains unclear.
The Juniper update is widely believed to include both
interior and exterior design enhancements, similar to the
changes Tesla made to the Model 3 in 2023.
And while many details remain speculative, analysts suggest
that the updated version will appeal primarily to returning
Tesla customers rather than first time buyers.
Many customers for the update will be returning Tesla owners.
This suggests that the discounts on the current Model Y are
likely aimed at enticing new customers into the Tesla
ecosystem before the refresh model arrives.
Now, beyond the Model 3, Tesla's also slashing prices on the
recently launched Cyber Truck, the electric pickup that has
drawn equal parts fascination and criticism since its
unveiling. The Cyber Truck, which first
rolled off production lines in late 2023, has faced numerous
challenges including delays, production bottlenecks and
criticisms of its unconventional design and also its tow hitch
being ripped off on some YouTube videos.
Now Tesla's website now this discounts of up to $1600 on new
Cyber Trucks configurations, bringing the starting price of
the vehicle to $72,000 and or $72,890.00 in demo units.
Vehicles used for test drives or display purposes are also seeing
steep price reductions, with discounts reaching as much as
$3410 off. Even with these markdowns,
though, the Cyber Truck remains far more expensive than
initially promised. Elon Musk said it was going to
be around $40,000, but the figure has been abandoned and
the production costs have soared.
So $80,000 ish is what you're going to get a cyber truck for.
So about double the price. So report suggests that Tesla is
grappling with significant production challenges at a Skiga
factory in Texas where the cyber truck is built.
And some Tesla employees have even been reassigned from the
cyber truck assembly line to focus on manufacturing the Model
Y, Tesla's top selling vehicle. It's important for the Model Y
to continue to grow in this the biggest part of Tesla's bottom
line, especially as the company navigates increasing competition
in the coming years. Now the cyber truck hasn't been
a smooth launch since since it launched, vehicle has faced
criticism for the exterior. Of course, it's weird looking on
the road is big, is bulky, it's angular and it's been prone to
rust and spotting. In December, Tesla recalled
70,000 Cyber Trucks due to issues with the tire pressure
monitor system, marking the 7th recall for the sharp edged
electric pickup. And but despite these setbacks,
the Cyber Truck remains a cornerstone of the product
lineup, even as it's polarizing design continues to divide
public opinion. Now price wars within the EV
market have added another layer for Tesla legacy automakers for
General Motors and Rivian also and Lucid.
The new guys have been aggressively competing on price
to capture market share. For Tesla, which is historically
positioned itself as a premium vehicle, these market dynamics
have necessitated more frequent price adjustments.
This counts on the Y and the cyber truck also raise questions
about demand for Tesla's vehicles.
And while Tesla has consistently ranked among the top selling EV
brands, the company has faced slowing sales growth in recent
quarters, especially in regions like China and Europe.
Analysts have speculated that these price reductions may be a
strategic response to waning demand as Tesla seeks to
maintain its competitive edge. But for potential buyers, the
question of whether to take advantage of current discounts
or wait for new models remains central consideration right now.
While the current Model Y offers excellent value with its reduced
price, the upcoming Juniper update may sway some customers
to wait for the latest features and design improvements.
Meanwhile, the Cyber Trucks price cuts could make the pickup
a more attractive option for those willing to overlook its
design and production hiccups. It's a weird looking truck
compared to other vehicles on the road, but some people love
it, and Tesla's strategy will likely hinge on how well the
company can balance its existing product lineup with its plans
for innovation and expansion. The Model Y and the Cyber Truck
are two different aspects of Tesla's approach.
The former is a proven volume seller and the latter as a bold
statement and an experiment that will redefined electric vehicles
for the future Now if you want my take on this, you can go to
discord. We have a discord you can check
it out in a link in the show notes, but I'm going to give you
a little taste here let's talk about this in the discord
because we can have a bigger conversation about this.
I am a big fan of the model Yi almost pulled the trigger out of
model Y just about six months ago and I held off I don't know
why, but I held off on it. I currently, yeah, I'm looking
into the Juniper. I'm waiting for the Juniper to
come through and I've seen all the improvements to the Model Y
and I will pick up a Juniper when they launch.
It's going to be a great car for a family.
I have a family now and the the cyber truck, which we talked
about in this episode, not so great for me.
It's a big car. I have a small child, you know,
large vehicle, very impractical for that, but it's a statement.
It's a fashion piece, if you will.
You show up at any place with that truck and people are going
to look at you. And I'm OK with that.
But the Model Y seems to fit my style a little bit more.
I like a coupe and I like a sedan.
And the Model Y is a is a great vehicle for the price.
If you get an older model vehicle, Model Y, that's a great
deal there right now. So check out Tesla's website for
any deals you can get. Just keep checking back
everyday. They might post something new.
And I know when I was looking for mine, there were deals going
on where I could have gotten probably, I was, I think it's
about 2500 to 3000 off when I was going to buy mine and I just
didn't pull the trigger. I, I, there's something going on
and I've heard about the Juniper.
I heard they were going to refresh the Model Y.
So I just had to, I waited a few months And then by that time I
was also going to pull the trigger and I stopped and I
stopped myself. And I was like, there's got
something new is going to happen.
The refresh is going to happen. So I got to wait.
I thought, I thought it was either going to be that or like
the $25,000 Tesla that we've all been hearing about.
So I just held, I hold, hold, hold.
And then now the Juniper is coming out, so that will be my
next vehicle. That's my plan.
So if you want more information, go to the Discord link in the
description or show notes. Also, thank you so much for all
the continued support. Hey, thank you so much for
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