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.