Tesla has once again raised prices on the Model Y long range by $1,500. We think this is going to continue.
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Tesla Model Y Prices Continue To Increase
The Tesla Model Y price has just been increased by about $1,500. This comes after Tesla made sweeping price cuts across the board for all of its vehicles.
The Tesla Model Y Performance - an unreal vehicle, also had its price increased by $1,000.
This change makes sense as Model Y inventories are just about sold out and wait times have increased by a couple of months.
Some have thought that Tesla has had brand damage due to Elon Musk buying Twitter and using it as a platform to make political Tweets, but the sheer amount of Tesla Model Y vehicles being bought is suggesting otherwise.
The Model Y is a very spacious vehicle, and the Model Y has very comfortable suspension in newer versions. Elon Musk has said it will be the best-selling vehicle in the world of all vehicles, and it looks like this is going to be true.
How much more is the Model Y price going to increase? I think we'll see price increases incrementally of $1,000 to $2,000 until the inventory levels out. Tesla is very aware of its inventory levels and now that people on Twitter are tracking them, it's becoming predictable when Tesla will lower or raise prices. It's like anything - more supply lowers the price and less supply raises the price.
I expect to see the Model Y go up in price by another $5,000 before the inventory starts to level off. After March, and depending on if the tax credits continue, this may change.
Model 3 Prices Are Dropping
Tesla has other vehicles that were lowered in price along with these prices. The Model 3 RWD, which has inventory levels increasing, was lowered in price by $500. This is an interesting price to lower it by because the Model Y was increased by this much just a few days ago.
Some new Model 3 vehicles can be bought for $30,000 right now, making Tesla's $30,000 vehicle available today.
It all comes down to available inventory. Right now, Tesla does not list the Model 3 long range as available for purchase, but says it will be some time in 2023. Is it going to be before or after Thanksgiving? :). Some have joked about this because it really could be ANYTIME in 2023, even December 31.
The Tesla Model 3 is going to keep going down in price unless the inventory levels for it start to drop.
Tesla will need to get its Project Highland going for the Tesla Model 3 RWD in order to lower prices a lot more, and there have been reports of covered cars at its Fremont factory, suggesting that these could be Project Highland prototypes.
If Tesla can keep improving its manufacturing and processes and lower the cost of making each of its vehicles, then we should see lower prices on all Tesla vehicles eventually, especially as EV adoption continues to go up. Eventually, Tesla will make its compact or robotaxi car, which will also be in high demand.
Do you think Tesla will continue to raise the prices of the Model Y?
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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.
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