Blog Model Y Receives Another $500 Price Increase

Tesla has increased the price of the Tesla Model Y Long Range AWD for the second time this month.

The latest increase of $500 brings the price of the base model to $52,990. The same vehicle was priced at $50,000 a few months ago.

While the price of the base Model Y has continued to increase, the base Model 3 price did not increase. Chief Executive Elon Musk has explained that major supply chain issues are causing price increases.

Certain variants of the Model 3 and Model Y received price reductions in February and early March, then the price of the Model 3 increased in late March. Another three increases for Model 3 and Model Y have occurred since.

While it’s understandable that the Covid-19 pandemic has impacted many industry’s, a part of Tesla’s mission has been to make electric vehicles affordable enough to appeal to the masses. Hopefully, the company can correct the issue to help bring those base model prices to a range that can appeal to a broader set of consumers.

 

[Josh X]

performance model pricing seems stable

That's likely because the margin on the Performance models are a lot higher than other models.

 

[Stephan Bogan]

Roaring Kitty Diamond Hands

 

[YBLee]

Like Bacharach wrote, "L.A. is a great big freeway, put a hundred down and buy a car." I did this for a "Y" last week, delivery in September. Will I need to pay more now?

No... your price is locked in as of the date of order. UNLESS... you make any changes then any increases will take effect.

 

[EVJJ]

performance model pricing seems stable

means slightly overpriced...
YPs still have a room to play with price I guess.

 

[NJRebateFan]

No... your price is locked in as of the date of order. UNLESS... you make any changes then any increases will take effect.

Thanks, YB!

 

[turrmoil]

Is there any chance prices will come down?
I booked a Y today and paid the new increased $53,990

 

[Zorg]

Is there any chance prices will come down?
I booked a Y today and paid the new increased $53,990

With the surging demand and supply issues, my guess is price will stay where it is or go up for the rest of this year

 

[Arkbird]

If I order now and put it on hold and then the price goes down, will I still be on the hook for the higher price? And if so, would I be able to somehow get the lower price?

 

[PNWLeccy]

Putting it on hold should keep your lower price locked in.

Even though inflation is increasing the costs of everything and demand doesn’t seem to be an issue, I do feel like Tesla might start to get some flack if we get to ~$56k price because then we’ll be at $7k higher than it’s low in February this year of $49k. People will accuse them of intentionally raising the cost to capture any EV tax credit that may pass (most likely $7k). I know people already think this is the case, even though Elon has responded on Twitter that it’s due to increased cost of supplies, but it won’t look good for Tesla.

I wish that there weren’t any phaseout at 200k EVs sold per manufacturer and rather a % of total passenger cars threshold (for ex: once EVs make up >50% of new car sales).

 

[Fred42]

If I order now and put it on hold and then the price goes down, will I still be on the hook for the higher price? And if so, would I be able to somehow get the lower price?

Tesla will give you the lower price if the price goes down before delivery.

 

[Arkbird]

Then I'm just going to order now and try to put it on hold until November unless that's when they can deliver.

 

[sgalla04]

Putting it on hold should keep your lower price locked in.

Even though inflation is increasing the costs of everything and demand doesn’t seem to be an issue, I do feel like Tesla might start to get some flack if we get to ~$56k price because then we’ll be at $7k higher than it’s low in February this year of $49k. People will accuse them of intentionally raising the cost to capture any EV tax credit that may pass (most likely $7k). I know people already think this is the case, even though Elon has responded on Twitter that it’s due to increased cost of supplies, but it won’t look good for Tesla.

I wish that there weren’t any phaseout at 200k EVs sold per manufacturer and rather a % of total passenger cars threshold (for ex: once EVs make up >50% of new car sales).

The bill that made it out of committee actually does change the phase out to just what you stated (>50%). Which is why Teslas would qualify again if the bill ever passes.

 

[thesmokingman]

The bill that made it out of committee actually does change the phase out to just what you stated (>50%). Which is why Teslas would qualify again if the bill ever passes.

Crosses fingers.

 

[turrmoil]

Do we know the steps for the bill to pass? What’s the expectation in the current political climate?

 

[YBLee]

I have a Model Y, LR w/ Hitch on order from 5/5/21 at the then base price of $50,990 + $1,000 for the hitch. The total price with all the Fees and Taxes is approximately $56,645. At this point my order does not have a delivery date because I had the dealer put it on hold for one month that expires today so my page may get an update any time now. I'm considering moving to the CyberTruck as I've decided I want the option to tow w 6,800 lb. trailer. I may take delivery and sell with only miles to get it home/less than 500. If I sell it this way via a private sale, can the buyer get the FTC if I do not take it? Big question, what price should I sell it for???

 

[jcanoe]

First, at this time, there is no Federal Tax Credit (FTC) for Tesla vehicles as the vehicle allowance has been used. When you purchase a vehicle that qualifies for the FTC (such as Ford MME) the tax credit can only be taken one time, when the vehicle is initially titled.

 

[YBLee]

First, at this time, there is no Federal Tax Credit (FTC) for Tesla vehicles as the vehicle allowance has been used. When you purchase a vehicle that qualifies for the FTC (such as Ford MME) the tax credit can only be taken one time, when the vehicle is initially titled.

According to what I've read, you are given a Certificate from the EV manufacturer that indicates the vehicle qualifies for the FTC. You can use it on the first EV you buy or any other but I couldn't find any info on whether one could claim an FTC if the car was purchased used from another individual. I can understand that it should be only "one" FTC per VIN but if you buy a Tesla now that doesn't quality but then buy a used one after new legislation is signed into law, it could quality for the one-time, one-VIN FTC - that's if the legislation is written to that specific level of detail or it's left vague to interpretation and misuse.

 

[jcanoe]

The FTC only applies to a new vehicle, i.e. one that has not been titled. Even if the original buyer does not use the FTC the tax credit cannot be taken when the vehicle is later sold as a used vehicle. If the dealership decides to title the vehicle, which sometimes happens, then the dealership would qualify for the FTC. When the dealership later sells the vehicle it is not eligible for the FTC. (I recall this happening a few times with Chevrolet Volt vehicles.)

Tesla vehicles purchased today do not qualify for the FTC. If legislation is passed to extend the current limit beyond the first 200,000 vehicles sold whether this would be made retroactive to Tesla vehicles previously sold in 2021, before the legislation was signed, is unknown.

 

[sgalla04]

According to what I've read, you are given a Certificate from the EV manufacturer that indicates the vehicle qualifies for the FTC. You can use it on the first EV you buy or any other but I couldn't find any info on whether one could claim an FTC if the car was purchased used from another individual. I can understand that it should be only "one" FTC per VIN but if you buy a Tesla now that doesn't quality but then buy a used one after new legislation is signed into law, it could quality for the one-time, one-VIN FTC - that's if the legislation is written to that specific level of detail or it's left vague to interpretation and misuse.

Only for a new car: www.fueleconomy.gov/feg/taxevb.shtml

 

[YBLee]

Only for a new car: www.fueleconomy.gov/feg/taxevb.shtml

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That is GREAT. "In God We Trust", "Everyone Else - Bring Data"!!!