On April 8, 2023, Tesla has lowered the Model 3 and Y.
Model Y AWD now costs $49,990 and a Model 3 RWD is $41,990. The Model 3 will also have its tax credit drop to $3,750 after 4/18/2023 because its LFP cells are made by CATL and is sourced from China. The IRS based on the Inflation Reduction Act of 2022 requires batteries to use minerals mined in US or a Free Trade Agreement country and 50% of the value has to be assembled or manufactured in North America. If the mineral is recycled in North America it will meet the mining requirement.
| Tax Credit (must meet income req) | Price | |
| Model Y AWD/279 | $7,500 | $49,990 |
| Model Y Long Range/330 | $7,500 | $52,990 |
| Model Y Performance/303 | $7,500 | $56,990 |
| Model 3 RWD/272 | $7,500->$3,750 after 4/18/2023 | $41,990 |
| Model 3 Performance/315 | $7,500 | $52,990 |