Tesla Model Y's 7-Seat Option Just Got A Price Drop

Tesla's cars have been receiving so many price cuts lately that tracking them is becoming difficult. Last week, we reported about the price cut on Tesla Model 3 — the EV-maker's most affordable car. That price cut brought the base model of the Model 3 to $39,990. A week later, Tesla is doing something similar to the company's popular Model Y SUV.

For those unaware, Tesla offers two-seat options for potential Model Y SUV owners. While the standard variant of the car seats five, there is an option for consumers to opt for a seven-seat variant for an additional charge. As you might expect, the seven-seat variant is popular among families who often travel with many kids. Tesla's latest price cut is making this upgrade cheaper for such families, reducing the price from $4,000 to $1,000, a $3,000 reduction.

Given that the latest price cut doesn't concern the standard five-seater Tesla Model Y, this variant continues to be priced at $47K. Tesla also sells a five-seater Long Range variant for $50K, followed by the seven-seater variant, which retails for $53K in the U.S.

This was the original price of the seat upgrade when the Model Y was first introduced in 2021. While not as significant as some of the company's other recent price cuts, families considering the Model Y as their next car will welcome the decision to make the seven-seater upgrade cheaper.

Car prices across the globe have witnessed an upward trend ever since the COVID-19 pandemic hit. Most of these price hikes resulted from the various challenges brought by the pandemic and the subsequent supply chain issues (remember the chip shortage?). These challenges often meant that cars were in short supply, and demand surged, leading to price hikes. However, the post-pandemic economic downturn that has affected pretty much all countries on the planet seems to be finally reversing this trend.

As things stand today, Tesla's inventory in the U.S. has reached an all-time high. This effectively means that few people are buying Tesla's cars as the company expected, reducing demand. Tesla is using these price cuts to prop up demand for the vehicle. However, it is unclear if this strategy works for them, given that the company already had several price cuts in 2022. This latest price cut is the third-such attempt from Tesla in April 2023 alone and comes just two weeks after a comprehensive price cut across several Tesla models in the first week of April.

Nevertheless, it would be interesting to see how consumers — and the automobile industry in general — react to these latest price cuts from Tesla.