If prices stay the same after years, it means price is going down overall due to inflation (even when inflation is lower, it's still 2-3% usually). So, although prices are just going back down to 'normal', they're lower.
Also, this is after basically every single other EV manufacturer has raised prices significantly citing profitability issues. Given Tesla's margins, they can afford to drop their prices and still maintain margins that are positive (possibly, significantly positive).
I'd say it's bullish. Anecdotally, everyone in my circle basically had written off Tesla because of Musk's antics plus the cars seemed to be pricing evenly (or slightly above) to other EVs on the market. However, after the price drops, I'm seeing a LOT of people saying they've reconsidered since the deal is so good compared to other EVs.
There was originally a $7,500 federal tax credit available. Tesla's eligibility for the that tax credit was cut in half at the start of 2019 and fully ended at the start of 2020, so anyone buying in 2020 or later would have paid the sticker price, unless they benefitted from state-level tax credits.
I think the Model Y qualifies for the new tax credit that just took effect, though there's an income limit and other restrictions.
Also, this is after basically every single other EV manufacturer has raised prices significantly citing profitability issues. Given Tesla's margins, they can afford to drop their prices and still maintain margins that are positive (possibly, significantly positive).
I'd say it's bullish. Anecdotally, everyone in my circle basically had written off Tesla because of Musk's antics plus the cars seemed to be pricing evenly (or slightly above) to other EVs on the market. However, after the price drops, I'm seeing a LOT of people saying they've reconsidered since the deal is so good compared to other EVs.