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Tesla increases Model Y prices, but for how long?

Tesla has increased Model Y prices on all trims of its best-selling electric SUV. The question is: for how long?

Over the last few years, Tesla has been changing prices more often than most people change their sheets.

The automaker has been increasing its production capacity, but it has had issues matching demand to the new capacity. Price changes have been Tesla’s go-to strategy to increase demand during those times.

But instead of a price reduction, Tesla warned of a price increase last month.

Today, Tesla went through with it as all trims of the Model Y went up by $1,000:

The Model Y rear-wheel-drive now starts at $45,000, and the Model Y Long Range at $50,000.

Top comment by KingFisher

Liked by 21 people

Ford is offering 2.9% interest rates.

I think Tesla needs to do the same thing.

Sure, it's a subsidized rate, but that's the market.

Secondly Colors: MORE.

Third: Allow buying after leasing, Like EVERYONE ELSE.

The tax credits are allowed on lease sales.

View all comments

Now, the question is how long are they going to stay at that level?

Electrek’s Take

I would bet not long. This strategy of warning of a price increase at the beginning of a new quarter is virtually the same as a temporary discount at the end of the quarter.

It wouldn’t surprise me if, within a month or two, Tesla decreased prices again.

At this point, it doesn’t look like demand is going to come any easier for Tesla. The competition is mounting globally, especially in China. It’s not going to get any easier and there’s still no interest rate reduction in sight.

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Avatar for Fred Lambert Fred Lambert

Fred is the Editor in Chief and Main Writer at Electrek.

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