Tesla updated its online configurator for Model 3 and Model Y overnight to increase the prices across the lineup.
This is just the latest small price increase in a long series that is starting to add up.
As we have previously reported, Tesla’s 2021 is off to a strange start when it comes to price changes.
Tesla would always regularly adjust pricing, but it never did it as often as it has been doing it in the last four months and not with a pattern of small changes.
In April, the automaker again increased the prices across the Model 3 and Model Y lineup, and then one more time in late April.
Last night, Tesla again updated prices, and it’s now the fourth price increase in just over two months.
Tesla Model 3 prices
The price changes are similar to the one from two weeks ago.
Tesla’s Model 3 Standard Range Plus and Model 3 Long Range AWD are both receiving $500 increases in price.
Here are all the prices of the different versions of the Model 3:
- Tesla Model 3 Standard Range Plus: price went from $38,990 to $39,490
- Tesla Model 3 Long Range AWD: price went from $47,990 to $48,490
- Tesla Model 3 Performance: price stayed the same at $56,990
With these four price increases in a row, Model 3 Standard Range Plus, Tesla’s cheapest vehicle, has now increased in price from a low of $37,000 back in February to $39,500.
The Long Range AWD version has also seen a significant price increase now coming from a low of $46,490 in March to now going for $2,000 more.
Tesla Model Y prices
Model Y prices have also steadily been going up over the past few months.
The latest change again increases the price of the Model Y Long Range AWD by $500.
Here are all the price changes for the Model Y:
- Tesla Model Y Long Range AWD: price went from $50,990 to $51,490
- Tesla Model Y Performance: price stayed the same at $60,990
As we previously discussed, it’s hard to pinpoint the reason behind those frequent price changes with a clear upward trend.
We reported yesterday that Tesla already sold out its production capacity for the quarter as it is seeing exceptional demand.
Tesla could be capitalizing on that demand.
It might simply be due to raising supply costs as Elon Musk disclosed that Tesla had very challenging supply chain issues recently, but we really don’t know.
A popular theory is also that Tesla is gradually increasing the prices of the cheapest Model 3 and Model Y in anticipation for a new EV rebate in the US.
When Tesla buyers lost access to the federal tax credit for electric vehicles, Tesla adjusted the prices down to adapt.
If Tesla buyers again gain access to EV incentives as part of an expected revamp of the program by the new administration, it is expected that Tesla would adjust the prices back up.
The reason could also be a mix of all those reasons. Who knows?
What do you think? Let us know in the comments section below.
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