Tesla (TSLA) increases Model 3 and Model Y prices, now start at $40,000

Tesla has again increased Model 3 and Model Y prices across the lineup. It is the automaker’s fifth incremental price increase on its vehicles in just a few months.

Thanks to Tesla’s lack of communications, it’s impossible to know the exact reason behind these price changes, but we are tracking them nonetheless.

In February, Tesla made several changes to Model 3 and Model Y prices, mostly going down, again in early March, and then increased Model 3 prices in late March.

In April, the automaker again increased the prices across the Model 3 and Model Y lineup, followed by another increase in late April, and another one in early May.

On their own, the price increases are all small, but they are quickly adding up and are becoming significant when combined together.

They also don’t seem to stop as Tesla again increased prices in an update to its online configurator last night.

Tesla Model 3 Prices

Just like the last few price increases, 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 $39,490 to $39,990
• Tesla Model 3 Long Range AWD: price went from $48,490 to $48,990
• Tesla Model 3 Performance: price stayed the same at $56,990

With these now five 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 $40,000 – a more than 8% increase in price.

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 $2,500 more.

Tesla Model Y prices

Similar situation with Model Y prices with the latest price update resulting in again increasing 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 $51,490 to $51,990
• Tesla Model Y Performance: price stayed the same at $60,990

Just a few months ago, the Model Y Long Range AWD was selling for less than $50,000.

Electrek’s Take

Again, we don’t know the exact reason behind all those prices changes.

It could be that Tesla’s costs are being affected by the supply chain issues the automotive industry is currently experiencing, especially when it comes to the chip shortage.

Earlier this week, Electrek reported that Tesla had to put between 10,000 and 20,000 Model 3 and Model Y vehicles on a containment hold due to a missing part.

The automaker could also simply be taking advantage of higher demand.

We reported earlier this month that Tesla already sold out its production capacity for the quarter as it is seeing exceptional demand.

Also, there’s the theory that Tesla is gradually increasing the prices of the cheapest Model 3 and Model Y in anticipation for a new EV rebate coming to the US.