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.