Caught between a collapse in sales and punishing tariffs, the automaker is making a dramatic pivot, creating a bizarre pricing situation and leaving recent buyers with a serious case of regret.
Now, in a bid to reignite sales, Tesla has reversed course. The Model Y Long Range All-Wheel Drive now has a starting price of, according to the company’s website, $64,990—a full $20,000 less than its peak. The likely explanation for this dramatic reversal is a major strategic pivot: the new, cheaper Model Ys are reportedly being imported from Tesla’s Gigafactory in Berlin, Germany, allowing the company to bypass the steep tariffs on U.S.-made vehicles.
Funny how tariffs work. Trump thought he’d incentivize U.S. production, but in this case he’s displacing U.S. production with German production.
Not necessarily how tariffs work if implemented sensibly on select goods you want to keep domestic, but there’s nothing sensible about how Trump is doing it.
Funny how tariffs work. Trump thought he’d incentivize U.S. production, but in this case he’s displacing U.S. production with German production.
Not necessarily how tariffs work if implemented sensibly on select goods you want to keep domestic, but there’s nothing sensible about how Trump is doing it.