Tesla updates Model Y prices, increases price of Model 3 Performance

Tesla has updated its Model Y prices to match recent changes and it increased the price of the Model 3 Performance by $1,000 a month after significantly decreasing the price of the higher-end version of the Model 3.

Over the last year, Tesla has been consistently adjusting its prices, especially in the US as its federal tax credit has been gradually reduced after hitting 200,000 electric car deliveries in the US.

The automaker has also been frantically adding and removing different variants of its Model 3, Model S, and Model X vehicles.

For example, Tesla dropped its newly introduced ‘Standard Range’ Model S after just three weeks before reintroducing it again and killing it once more last month.

In July, Tesla updated its entire pricing and options.

One of the biggest changes was again decreasing the price of the Tesla Model 3 Performance, which was offered for just $54,990 at the time.

Today, Tesla updated the price to increase it by $1,000 to $55,990:

The small price increase pales in comparison with the several price decreases this version of the vehicle has had over the last year.

When Tesla first launched the Model 3 Performance last year, the vehicle could be ordered for $69,000, but Tesla quickly changed the base price to $64,000 and unbundled some features to offer a $5,000 Performance Upgrades Package.

Soon after, Tesla started offering this upgrade package for free — resulting in a new net price of $64,000 for the Model 3 Performance.

The price kept going down in 2019.

With all the price changes throughout the year, the discrepancy with the Model Y prices released in March also started to make no sense.

This week, Tesla updated the Model Y prices to follow the recent Model 3 price changes:

Of course, the bigger vehicle is still more expensive, but the prices are now closer to Model 3 prices with a $4,000 to $5,000 difference.

Tesla plans to bring Model Y to production in the fall of 2020.

Electrek’s Take

Tesla got a little too aggressive with the Model 3 Performance price decrease.

I think Tesla saw the opportunity to do it since the Performance version is not that different and more expensive to build than the Dual Motor version, but after the recent price changes, the company thinks it can still see good demand for the car at $1,000 more.

For the Model Y prices, it makes sense to have them follow the Model 3 price changes.

Unfortunately, it looks like Tesla hasn’t updated the prices based on the pre-orders placed since March.

That’s not that big of an issue since we are still a year away from production. I assume Tesla will start updating those in the coming months.