Tesla slashes prices of its most popular models in NZ

Saturday, 7 January 2023

Tesla started delivering the Model Y two years ago, now its 2023 model is under investigation from US transport authorities.

Tesla has confirmed new reduced prices across its collective Model 3 and Model Y line-up for the New Zealand market.

Previously, the Model 3 had been priced from $74,900 for the entry-level spec, $91,200 for the Long Range RWD, and $103,900 for the flagship Performance grade.

The Model Y, meanwhile, had previously had its entry-level model and Performance model priced at $76,200 and $108,900, respectively.

Tesla has dropped its Model 3 and Model Y pricing, while also culling one option from the Model 3 line-up.

Now, the Model 3 is priced from $70,900 – a $4000 price drop. Its range-topping Performance model has had its price dropped by $3000 to $100,900.

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It appears the Model 3 Long Range RWD has been phased out locally, having disappeared from the company’s New Zealand website.

The Model Y’s pricing has seen more modest change, with the entry-level grade now priced from $75,900 (a $300 price cut) and the dual-motor Performance priced from $105,900 (a $3000 price cut).

Similar reductions to Model 3 and Model Y pricing were rolled out around the world in November and December, with some speculating that the move was motivated by hopes for an explosive Q4 in sales.

The move ends a series of steady price increases given to the Model 3 in particular, with the most affordable model’s retail price increasing by almost $8000 between July of 2021 and June of 2022.

The bulk of these price increases have previously been linked to rising production costs and semiconductor shortages.

Tesla enjoyed a 47% growth in production output and a 40% growth in sales year-on-year in 2022 – figures achieved in the face of Covid-19 challenges that included ongoing lockdowns that impacted its Shanghai GigaFactory.

Closer to home, the Model Y was the most popular new electric vehicle in New Zealand last year, despite only being introduced to the market in August.