AUTO

Tesla Model Y Discounts Drop Below $40K Before Juniper Update

January 20, 2025

Tesla is offering discounts on Long Range AWD Model Y inventory, with prices as low as $39,490 with the $7,500 federal tax credit.
Leasing deals for discounted Model Y inventory start at $329 per month, slightly lower than standard rates.
The current Model Y deals apply to the 2020 version, with the updated Juniper Model Y expected to arrive in the U.S. next year.

When was the last time you saw an all-wheel-drive electric SUV priced under $40,000? That’s what Tesla is offering right now with select Model Y inventory vehicles, as the company prepares for the U.S. debut of the updated Model Y Juniper. These discounts are turning heads because they offer one of the most popular electric SUVs at a price usually seen on less-equipped models.

Electrify Expo Seattle 2024 Tesla Model Y demo — _{Red Tesla Model Y in motion during a test drive at Electrify Expo.}

Tesla Model Y Discounts Make EVs More Affordable

Tesla’s inventory page currently offers real deals on the Long Range All-Wheel Drive Model Y. For example, a Pearl White AWD Model Y is listed at $39,490, which includes the $7,500 federal tax credit, making it $1,000 less than the price shown on Tesla’s build-to-order page.

According to Kelley Blue Book, the Model Y was the best-selling EV in 2024, accounting for a large portion of the U.S. EV market when combined with the Model 3.

Tesla Model Y AWD Discounts Drop Below $40000 Before Juniper Update - Inventory

Tesla Model Y AWD Discounts Drop Below $40000 Before Juniper Update - Pearl White Inventory

Leasing options have also become more affordable, with some deals offering monthly payments as low as $329 compared to the usual $399 for an AWD Model Y. As Tesla clears out its current inventory before the Juniper update, these savings could make the switch to electric more appealing for buyers ready to act.

Tesla Model Y AWD Discounts Drop Below $40000 Before Juniper Update - Lease Pearl White Paint

Tesla Model Y Discounts Highlight Uncertainty Around EV Tax Credits

These discounts apply to the current version of the Model Y, first introduced in March 2020. While this model has earned a strong reputation among EV enthusiasts for its reliability and performance, the upcoming Juniper update brings a range of upgrades that could appeal to those looking for a refreshed design and improved features.

Tesla Model Y Juniper in China, refresh redesign, front bumper camera

According to Tesla’s recent announcement in China, the Juniper Model Y will adopt many of the changes already seen in the refreshed Model 3. This includes subtle exterior design tweaks and an upgraded interior for a quieter, smoother ride. Many buyers interested in the update are expected to be those who already own a Tesla. First-time buyers, however, might be less inclined to hold out, especially when the current discounts are so compelling.

As President Donald Trump is inaugurated today for his second term, it’s important to consider the current availability of the $7,500 federal tax credit for electric vehicles. While this credit is accessible now, its future remains uncertain under the new administration. Potential buyers should be aware that this incentive might not be available when the updated Model Y Juniper is released in the U.S. next year. Staying informed about policy changes will help in making timely and cost-effective purchasing decisions.

Discounted Model Y or Wait for Juniper Update

So, is it better to grab a discounted Model Y today or hold off for the updated version? The answer depends largely on your priorities. If you’re looking for a high-performing, family-friendly electric SUV at a competitive price, the current deals are hard to beat. With all-wheel drive, a spacious interior, and Tesla’s solid supercharger network, the Model Y remains a solid choice even without the Juniper improvements.

However, if features like quieter cabin acoustics and refreshed Cybercab–Cybertruck aesthetics are high on your list, waiting for the Juniper release could be worthwhile. Keep in mind, though, that any delay risks missing out on the federal tax credit, which could significantly impact the total cost of ownership.

Tesla’s inventory discounts won’t be around indefinitely. With the Model Y continuing to attract buyers in the EV market, these deals are drawing interest from shoppers who know a good opportunity when they see one.