Tesla slashes NZ prices on its most popular models

Wednesday, 5 April 2023

Tesla has rolled out its third New Zealand price cut in four months.

The prices of two of New Zealand’s most popular electric cars – the Tesla Model Y and Model 3 – continue to trend downwards, with another round of price cuts announced late yesterday.

The price drop is one of the largest issued to date, with the entry-level variant of each nameplate now $3,000 cheaper each.

Car rental company Go Rentals received a government subsidy to purchase a fleet of electric vehicles. It now has 10 Tesla Model 3 for hire. (First published in May 2021).

The latest price update sees the Model 3 rear-wheel drive get a new base price of $65,900 plus on-road costs, with the Model Y rear-wheel drive now $70,900, down from $68,900 and $73,900, respectively.

Even larger price drops have been introduced amongst the Model 3 Performance and Model Y Performance flagship variants. Both have been given a significant $5,000 drop, now being priced from $95,900 and $100,900 each.

This is the third time that Tesla has dropped Model 3 and Model Y prices this year, having rolled out discounts in January and February.

Tesla set a new delivery record in Q1 of 2023, selling over 420,000 vehicles around the world.

* Tesla shares tumble after company misses delivery target

* Tesla slashes prices of its most popular models in NZ

* Tesla delivers record 405,278 cars in quarter but misses target

The rapid changes mean that those who order the most affordable Model 3 or Model Y now will be paying $9,000 (Model 3) or $6,000 (Model Y) less than those who purchased either car at the end of last year.

The changes further enhance Tesla’s positioning relative to the rest of the electric vehicles sold locally that qualify for the $8,625 Clean Car Discount rebate. A Model 3 can now be obtained for well under $60,000 once factoring in the rebate, not including on-road costs.

It is unclear exactly why the Model 3 and Model Y have inherited yet more discounts, although there has previously been speculation that the shift’s aim is to make Teslas more competitive relative to other brands at the more affordable end of the market.

Whilst the Model Y was New Zealand’s most popular electric vehicle last year at a canter, the nameplate appears to have a challenger this year in the form of the BYD Atto 3. Year-to-date, the Atto 3 holds a narrow sales lead over the Tesla – 995 registrations to 991.

The price update comes just days after Tesla confirmed record worldwide deliveries in Q1 of 2023. The American carmaker reportedly delivered 422,875 in the quarter, with its repeated price drops playing a likely role in the result.