The new price brings the Model 3 back to compete with non-electric executive cars (Photo: Keinan Cohen)
The wave of Tesla discounts in the world has reached Israel.
The American electric car manufacturer published a new price list tonight that expresses discounts of tens of thousands of shekels for its two popular models, Model 3 and Model Y. In the case of the 3, the new price list erases most of the price increase of the model since it was launched in Israel two years ago.
The basic Model 3 was discounted by NIS 37,000 and now costs NIS 205,000, almost the same as it cost in November 2021. The Model 3 Long Range now costs NIS 252,000, NIS 38,000 less than it cost yesterday.
Whereas the Model 3 Performance is now sold for NIS 289,000, the price of the accent has been reduced by NIS 30,000.
Model Y Long Range was discounted by NIS 65,000, almost 20%, to NIS 285,000.
The performance version was also reduced by NIS 65,000 to NIS 317,000.
What will happen to used prices?
Tesla's move is unusual: the old car importers lower the list prices to avoid damaging the value of the used cars of the same model.
When they grant discounts, the move will only be made as part of a sale for a limited period of time, or for a limited audience, or for customers who are offered discounts, trade-in benefits and financing in the hall.
Lowering the list price may create difficulty for customers who purchased their Tesla with 100% financing, and now the value of their vehicle is lower than the value of their remaining debt.
On the other hand, the move will make the 3 and the Y much more competitive for new customers.
A basic 3 now costs like Chinese and Korean electric Jeeps, with a shorter range.
Model Y is now more competitive against Hyundai Ioniq 5, Skoda Aniac and Kia EV6, and will be even more competitive when the standard version arrives later this year, with a price that may be lower than NIS 250,000.
The prices of second-hand Teslas will also decrease.
So far, one and two year old Model 3 owners have demanded about NIS 200,000 even for the basic model.
The fact that it is now possible to purchase a new 3 for the same price, may send the prices of the two-year-old used standard models on the way to NIS 150,000.