Why is Tesla killing the Model Y by heavily discounting the Model 3?

By working from €3100 – which is equivalent to the new ecological bonus CEE – its Model 3, Tesla creates a significant price gap with the Model Y.

You can already hear the protests about what’s next: Tesla’s Model 3 and Model Y are almost identical cars, only differing in appearance. The platform is the same, but obvious details emerge: one is a sedan, the other a raised SUV.

This philosophy results in a certain type of behavior and comfort onboard. The Model 3 is more pleasant because its body movements are better controlled. If children are prone to car sickness, do not take the Model Y. If they love traveling with their entire bedroom, do not choose the Model 3.

The Model 3 and Model Y each have qualities and flaws: the former features sleek aerodynamics and better range. The latter offers absolutely crazy interior space, with trunk capacities (front and rear) unmatched at 2,138 liters! By comparison, the Model 3 offers just 682 liters, which is already quite sufficient.

Frunk or Range?

Regarding performance levels, it’s a tie between the two “Models,” with Tesla adjusting features through software updates. If the Model Y Propulsion benefits from 220 kW (299 horsepower) on the rear wheels, the Model 3 is limited to 208 kW (282 horsepower). Despite a curb weight of 1928 kg, the Model Y accelerates slightly faster than the 1761 kg Model 3, with 0 to 100 km/h in 5.9 seconds versus 6.1 seconds.

WARNING: the official weight of the Model Y Propulsion, including the 75 kg legal driver weight at homologation, exceeds 2 tonnes. In Paris, parking fees skyrocket and become three times more expensive than for the Model 3!

In terms of charging power, it’s the same, with a peak of 170 kW for the Model 3 and 175 kW for the Model Y. As for range, Tesla limits it to 513 km for the former and 500 km for the latter. However, all indications suggest that the Model 3 will soon benefit from a power boost to 220 kW as well as an increased range to 550 km, compared to what is observed with the models sold in China… where European Model 3s are produced.

And it is precisely this Made in China aspect that triggers, in summer 2025, a controversial discount.

Does Tesla Pay the Ecological Bonus?

Since July 1, 2025, the method of functioning for the Ecological Bonus has changed. It is now a Certified Energy Savings Certificate (CEE), financed by energy providers. And the good news is that the aid has increased from €2000 to €3100 for all households.

Consequently, the Model Y Propulsion’s price drops from €45,443 (including registration tax) to €42,343. A significant increase compared to the Model 3 Propulsion, which is sold at €40,333 (including registration tax). And this summer 2025, for any order placed before September 27 and delivery before September 30, Tesla offers an additional €3100 bonus. An amount strangely similar to the new CEE Ecological Bonus.

The Model 3 Propulsion, reduced to €37,233 (including registration tax), becomes €5110 less expensive than the Model Y Propulsion. A decisive gap that clearly tips the scales in favor of the sedan.

Strange strategy from Tesla, which is shooting itself in the foot at a time when Model Y sales are already very modest. Are you surprised?

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