Tesla has reduced the price of the seven-seat, third-row feature for its popular Model Y SUV to $3,000, down from the previous $4,000. This adjustment comes as Tesla faces a high inventory level and follows a series of recent price changes.
The standard Model Y comes with five seats, but customers have the option to upgrade to a seven-seat configuration. While the two additional seats in the third row may not be very spacious, they can accommodate families who frequently transport multiple children. Unlike the rear-facing seats in the trunk of the original Model S, the Model Y’s third-row seats are forward-facing.
Initially, the option was available for $3,000 when it was introduced, but earlier this year, the price increased to $4,000. However, Tesla has now brought the price back down to $3,000, aligning it with other recent price reductions.
Throughout the year, Tesla has made several adjustments to its car prices. It began with significant cuts at the start of the year, followed by a slight increase, and then further substantial reductions, along with additional incentives to stimulate demand.
One of these price adjustments included raising the price of the seven-seat option from $3,000 to $4,000. The recent price drops have largely reversed the significant price hikes observed in the previous two years. As a result, Tesla vehicles are now priced similarly to the pre-COVID-19 era when supply chain challenges, surging electric vehicle demand, and opportunistic price increases were not factors.
The latest price reduction is relatively modest, amounting to $1,000. It is smaller than several of the previous cuts and only applies to the specific option, not the base vehicle. The reason behind this reduction could be related to normalizing supply costs for the parts associated with the seven-seat configuration or other temporary issues that arose in recent months. Nevertheless, these frequent price changes, occurring almost weekly, contribute to the overall confusion surrounding Tesla’s pricing strategy.
In the US, the cheapest Model Y with a seven-seat configuration now sells for $53,000. It’s worth noting that the seven-seat option is not available for the entry-level Model Y Standard Range AWD, which starts at $47,000. Instead, it can only be added to the Long Range model, which begins at $50,000.