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Tesla Increases Price on Model 3, Model Y

Tesla has once again altered pricing on its vehicles. 

According to the company’s online configurator, the best-selling Model 3 and Model Y will receive price hikes.

The Tesla Model 3 Standard Range Plus received a $2,000 price increase, now starting at $41,990. The Model 3 Performance received a $1,000 price increase to start at $57,990. Tesla did not alter the price of the Model 3 Dual Motor AWD, which remains at $49,990.

For Tesla’s crossover SUV Model Y, the Long Range version received a $1,000 increase to $54,990. The Performance version jumped $1,000 to $61,990.

Tesla did not alter pricing for its more pricey Model S and Model X vehicles. In July, the Long Range versions of Tesla’s Model S sedan and Model X SUV received a $5,000 price increase.

Pricing for Tesla’s vehicles have fluctuated all year as the company tries to keep up with demand while dealing with shortages and delays from suppliers.

Ogre

Member
Sep 6, 2021
335
949
Oregon
The way prices were increasing in the months before I placed my July order, I’m surprised it took this long for an increase.

MYLR is now $54,990 and MYP $61,990.
Well now it's $5k higher than it was when I bought mine in February. I can officially sell mine at a profit.

Is Tesla ramping up the price expecting the government incentives to cushion the blow? As it is now, someone buying the car with $7500 in rumored incentives is only getting $2500 off the price I paid.
 

Ogre

Member
Sep 6, 2021
335
949
Oregon
Tesla is raising prices because they can't keep up with demand and they are making money hand-over-fist selling the Model Y.

If raising the price by $4000 didn't slow down orders, how about raising the price $5000. How about the full $7500?

They are maximizing profits. Not super complicated to figure out.

Supply meets Demand.
 

GenSao

Member
Aug 3, 2017
570
970
Pleasant Hill, CA
Well another $1K price increase. Now $62K for the P and $55K for the LR.

Tesla Model Y Base Price History.png
 

Ogre

Member
Sep 6, 2021
335
949
Oregon
Seems to me they've left the perfect umbrella for reintroducing the two older products in their lineup once they get their production numbers up where they want them. (Tera Texas, I'm looking at you!) This would be a killer lineup. The LR AWD model would be a competition killer.

Range might be something like:

SR: 260
LR RWD: 320
LR AWD: 375-400
Performance: 350

1633535596891.png
 
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mark95476

Active Member
Jun 21, 2020
1,837
1,415
Bay Area CA
Yup. I really like that everyone pays the same price and you don't have to jump through dealership hoops, even with a car shopping service.

Placing a reservation to lock the price makes sense if you're serious about buying.

Still not nearly as bad as the dealership markups I've been seeing on many of the vehicles in my area. $15k markups for RAV4 Primes and Mach-Es in my area.
 

mark95476

Active Member
Jun 21, 2020
1,837
1,415
Bay Area CA
Yes, demand is very good, however, I don't think Tesla is just pocketing the $1k/2k as profit.

Just look at all of the constant incremental improvements. There's essentially two packages on the Y: P or LR. Buyers get an excellent vehicle that has been outfitted with many standard options which cost extra from other manufacturers. Tesla isn't nickel and dimeing you with $500 here, $250 there, and $1k for that thing you might want.

They changed the Fremont-built LR 75 kWh battery pack to 82 kWh earlier this year when they could have demanded $$$. I know would have paid for the larger pack had I the option.

Tesla is raising prices because they can't keep up with demand and they are making money hand-over-fist selling the Model Y.

If raising the price by $4000 didn't slow down orders, how about raising the price $5000. How about the full $7500?

They are maximizing profits. Not super complicated to figure out.

Supply meets Demand.
 

Ogre

Member
Sep 6, 2021
335
949
Oregon
Yes, demand is very good, however, I don't think Tesla is just pocketing the $1k/2k as profit.

Just look at all of the constant incremental improvements. There's essentially two packages on the Y: P or LR. Buyers get an excellent vehicle that has been outfitted with many standard options which cost extra from other manufacturers. Tesla isn't nickel and dimeing you with $500 here, $250 there, and $1k for that thing you might want.

They changed the Fremont-built LR 75 kWh battery pack to 82 kWh earlier this year when they could have demanded $$$. I know would have paid for the larger pack had I the option.
Tesla would do this all regardless. Continuous improvement is what they've always done.

In February when I bought my car, they **dropped the price** you can see the little blip in the above chart. That wasn't due to lessening features, it was simply a lull in demand. They also very briefly made the Model Y SR available. At that same time Tesla was shooting out emails to all Cybertruck reservation holders suggesting they lease a Model 3 while they wait for their reservation.

Shortly after, they raised the price and removed the Model Y SR from the menu. Then wait lists went through the roof. They are clearly responding to demand. The longer the wait list, the higher the price.

Until Tesla is able to meet demand, they can and absolutely should take some profits.

As I posted above, I'll bet once they are able to meet demand they will offer some better pricing to undercut the competition sneaking in at the sub $50k levels.
 
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mrwug

Member
Jul 30, 2021
208
112
Colorado
Wouldn't surprise me if another consideration was potential tax credit MSRP ceilings being engineered to exclude Tesla vehicles. Raise prices now so there's more maneuvering room to get under the cap.

Politics is a crazy beast.
 

PNWLeccy

Active Member
Jul 11, 2019
1,303
1,129
Seattle
Well another $1K price increase. Now $62K for the P and $55K for the LR.

View attachment 718306
Thank you for including the brief period where the MYLR was $49k. I know it’s semantics but technically it is now priced $6k higher than the lowest price this year, not $5k like most people say.

@GenSao Do you know the source of the price change chart or is this something you put together?
 
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DayTrippin

Member
Apr 30, 2021
727
714
Jax
This just blows me away. Ford isn't even done with their pre-order roll and some of their dealers are already able to crank out massively marked up models.

A giant middle finger to their loyal customers.
You need the Federal tax credit to just offset the added dealer markup!
 
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RD3P

Member
Sep 2, 2021
31
9
Ohio
I've been on the fence about ordering the Model 3 Perforamnce now for months all because of the bill to hoipefully reinstate the tax incentive. Yesterday I spoke with my SA and was so close to just paying the $250 to "get in line" as they told me I could always pause my delivery date into 2022 if I wanted to hold out for a potential bill to pass. Now I am kicking myself that I didn't Effectively just lost $1000. feels bad
 

LBM4

Tesla Fealty
Aug 20, 2021
132
105
California
Glad I bought my M3 a couple months ago and feel sorry for anyone buying a SR+ or M3P now. Basically, being penalized for high demand.

At the same time, as a Tesla stockholder, I don't mind the price increase. Even after the news broke on the price increase, stock is still in positive territory. Thought it might take a hit.
 

LBM4

Tesla Fealty
Aug 20, 2021
132
105
California
You need the Federal tax credit to just offset the added dealer markup!
Except, there isn't one for Tesla. City, county and state rebates do exist though, which is better than the tax incentive, since it's money that goes directly into your pocket. I got $5000 cash from my city and county rebates here in Cali. Free money.
 

RD3P

Member
Sep 2, 2021
31
9
Ohio
So now what on a M3P??? Suck it up and get in line now with a $1k increase in hopes that's where the price hikes stop? Or just more reason now to wait on this stupid bill to pass or fail one way or another? If tax incentives come back in 2022 this isn't all that bad. Still sucks, but not that much. $57.9k is now $2.9k OVER the proposed $55k cap for sedans to qualify anyway.
 

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