Tesla’s Offensive in South America Continues as the Brand Arrives in Uruguay, Cuts Prices in Chile

Tesla is pushing hard into South America's electric vehicle market, cutting prices and expanding into new countries. In Uruguay, Tesla just launched with a Model 3 starting at $32,990 and a Model Y at $36,490, prices low enough to undercut competing electric models from Geely and BYD. Uruguay has quickly become the leading electric vehicle market in the Americas, with electric models making up more than 40 percent of car sales in some recent months.

In Chile, Tesla has quietly made deep, permanent price cuts. A Model 3 that cost roughly $42,800 in December 2025 now starts around $32,000, and the Model Y has dropped from about $47,000 to roughly $39,500, discounts of up to 25 percent. This follows a similar move in Colombia last year, where low Tesla prices helped the Model Y become the country's best-selling vehicle overall, not just among electric cars.

None of this directly changes rebates or programs for U.S. homeowners, but it's a sign of how fast electric vehicle prices are falling worldwide as automakers compete for market share. If you're weighing an electric vehicle purchase alongside other home energy upgrades, like a heat pump or rooftop solar, it's a reminder that EV prices remain in flux and vary a lot by market. Tesla says it may bring similar pricing strategies to other countries, including Argentina and Brazil, as it works through excess factory capacity built up over the past two slow sales years.