Tesla is done cutting prices and there has been another price increase on the Model Y for $250.
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Tesla Done Cutting Prices
The days of Tesla cutting prices again and again appear to be over. Tesla has recently raised the price of the Model Y in the U.S. by $250. There hasn't been any change to the Model 3 prices.
Tesla prices are managed by Tesla, in large part, due to supply and demand. There has been a continued drop in Model Y inventory since the end of April and when this happens, Tesla is going to raise prices to handle the strong demand for its vehicles.
One interesting thing that may catch your attention if you live in the U.S. is that the Model 3 Long Range ends up costing MORE than the Model Y Long Range when you factor in the tax credit, and it's by about $500.
The Model 3 Long Range only gets $3,750 because the battery is most likely not sourced from the U.S. and is either a 2170 from LG Chem, or an LFP battery from CATL. Regardless of the battery type, the Model 3 Long Range is either going to have to get its battery from the U.S. or it is going to have to get its price reduced through manufacturing improvements and cost-cutting measures.
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Tesla Raising Prices
I don't expect to see Tesla dropping prices anymore. One of the reasons for this is that I think people were waiting for more price drops before buying a Tesla. Now that the price drops have stopped, people are going to have to see this as the bottom and buy their Tesla now, or wait and get one at an increased price.
I don't see prices going up that high either - I think we are going to reach a place now where the prices remain fairly steady without large jumps in either direction. Earlier in the year, there were some major price cuts that created a huge spike in demand.
Now, things appear to be leveled off, with inventory slowly going down for the Model Y - which is Tesla's most popular vehicle.
I own a Model 3 RWD from 2022 and this is still a very good vehicle. I do think the Model Y is a superior vehicle to it, however, price was definitely a factor in my decision and I like that I can charge to 100% regularly.
Do you think Tesla will keep raising prices?
In Related News: Elon Musk Gives Nod to Model 3 - Project Highland
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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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