Blog Tesla Increases Prices Again

Another price change has hit Tesla vehicles.

Late Friday, Tesla raised the price on variants of all currently available vehicles.

The Model Y Long Range price increased $2,000 from $54,990 to $56,990. The Model 3 Standard Range Plus price also jumped $2,000 to $43,990 from $41,990.

Tesla’s priciest cars also received the biggest price hike. The Model S sedan and Model X SUV prices are now $5,000 higher. Tesla’s highest-priced Plaid variants of the vehicles were unchanged.

Tesla’s prices have fluctuated all year as the company has tried to overcome challenges with suppliers caused by the pandemic. Tesla did not give a specific reason for the new price increase, but mentioned during its Q3 earnings call that it expected to continue experiencing pains from the pandemic going into next year.

 

[teslick2]

Sheesh, glad I ordered my SR+ in April - it was still under 40K back then. For only 6K it's hard to justify not going for the Long Range at this point.

I think that’s the point of the price increases on the SR+. There are likely slimmer profit margin on it, so raising the price closes the gap and will push some folks to the more expensive models.

Unless you absolutely need a new car right now, my recommendation to everyone is to wait until supply normalizes again.

 

[Atomadam]

hello inflation...

 

[BostonBurley]

This has been going on since 2010 when the Model S was announced, starting at $49,000. Our P85 got so expensive we got a solid roof instead of glass, and it was still 98,100. Hook, line and sinker.

 

[BostonBurley]

I think that’s the point of the price increases on the SR+. There are likely slimmer profit margin on it, so raising the price closes the gap and will push some folks to the more expensive models.

Unless you absolutely need a new car right now, my recommendation to everyone is to wait until supply normalizes again.

I kindly disagree. It's a money grab, but with waits as long as a full year on a Tesla, plenty of people can ditch their reservations and someone else paying 10% more (SR+) will happily buy. Every quarter, Elon must figure out how to outperform last quarter. This is a familiar tactic, albeit, in the midst of a chip and supply shortage. Elon said that the SR+ Model 3 had (or could have?) a 25% gross margin. Per vehicle profit is always increasing for Tesla. So I truly think this is a money grab and maybe its the best thing for them to do after all. Pace of Innovation sometimes means Need to be Greedy.

 

[TarmacSurfer]

Glad I got mine when I did. I figured inflation would be going through the roof late last year and guess what?

This should underscore why it’s so vitally important to start making all of our own stuff (including microchips) right here in the USA.

 

[tivoboy]

gotta get the avg MSRP up about $8,000 by 12/31/21. ;-)

 

[dr_frankfurt]

I think that’s the point of the price increases on the SR+. There are likely slimmer profit margin on it, so raising the price closes the gap and will push some folks to the more expensive models.

Unless you absolutely need a new car right now, my recommendation to everyone is to wait until supply normalizes again.

That, along with the $25K model. Chances are it will be using whatever SR platforms and battery packs are left, the price increase must be to encourage people not to get the SR+ in order to save the batteries for the new model. Wouldn't be surprised to see Tesla use the same chassis just with a different shell on the outside.

 

[teslick2]

I kindly disagree. It's a money grab, but with waits as long as a full year on a Tesla, plenty of people can ditch their reservations and someone else paying 10% more (SR+) will happily buy. Every quarter, Elon must figure out how to outperform last quarter. This is a familiar tactic, albeit, in the midst of a chip and supply shortage. Elon said that the SR+ Model 3 had (or could have?) a 25% gross margin. Per vehicle profit is always increasing for Tesla. So I truly think this is a money grab and maybe its the best thing for them to do after all. Pace of Innovation sometimes means Need to be Greedy.

Pretty sure we are saying the same thing but in different ways. Huge demand and limited supply give manufacturers the ability to charge more.

 

[GenSao]

Charts help show the changes.

Source.

Note: Pricing is for online orders in the US market in US dollars. Global prices, trims, and options vary by region. Pricing excludes destination charges, government fees, taxes, promotional offers, and all options. Base Price includes features included as standard at a given time and excludes impact of added/removed features.

 

[tivoboy]

Charts help show the changes.

View attachment 725858
View attachment 725856View attachment 725857View attachment 725859
Source.

Note: Pricing is for online orders in the US market in US dollars. Global prices, trims, and options vary by region. Pricing excludes destination charges, government fees, taxes, promotional offers, and all options. Base Price includes features included as standard at a given time and excludes impact of added/removed features.

Nice charts.. I know it’s just excel and graphs but it’s nicely done and represented. It’s easy to see, somewhat contrary to herd opinion, but pricing increases started really in earnest at the beginning of 2021, and certainly then accelerated. A point at which nobody was really talking about inflation or supply chain issues and we were in the darkest days of the pandemic.

 

[GenSao]

Nice charts.. I know it’s just excel and graphs but it’s nicely done and represented. It’s easy to see, somewhat contrary to herd opinion, but pricing increases started really in earnest at the beginning of 2021, and certainly then accelerated. A point at which nobody was really talking about inflation or supply chain issues and we were in the darkest days of the pandemic.

@tivoboy Thank you.

All the graphs start in 2018 (except for the Model Y in 2019) where there was some price movements. I debate on uniformly starting the graphs on January 1, 2018, but there would be empty space with no new information.

 

[ZilWin]

Don't worry, the folks in DC told us inflation and the supply chain issues are 'transitory'.

 

[tivoboy]

Don't worry, the folks in DC told us inflation and the supply chain issues are 'transitory'.

Transitory, NOT Temporary.

 

[Legalbulldog]

So a $4000 increase on the best selling Model 3 (SR+) in the span of a month! I bet people that were on the fence about buying one in Sept are kicking themselves now.

Or it pushed them to get something else. I am a Tesla fan and an Elon Musk fan, however I hope that Tesla doesn’t price themselves out of the market. Inflationary adjustments are one thing but if they are following the “Disney Model” and just raising the price because people are still paying it will eventually bite you in the ass.

 

[Atomadam]

Transitory, NOT Temporary.

Transitory to what?

 

[Mikedrives]

I have a 2019 M3 and was going to upgrade to the MY but not anymore! They just lost a sale but I’m sure Elon doesn’t care. I really hope they shot themselves in the foot and sales go down!

Hertz just bought 100,000 M3s. I bet Elon is over missing you MY purchase by now! Love my M3.

 

[BostonBurley]

That, along with the $25K model. Chances are it will be using whatever SR platforms and battery packs are left, the price increase must be to encourage people not to get the SR+ in order to save the batteries for the new model. Wouldn't be surprised to see Tesla use the same chassis just with a different shell on the outside.

Highly doubt for a dozen reasons. Wheelbase, width, to name a few.

 

[vickh]

hey at least I still have my 39K CT reservation

 

[tivoboy]

Tesla now has the Model 3 price increases raised, JUST about up to the new (proposed but most likely) retroactive EV tax credit for it's class, now up 8,000$ overall in 2021, nearly matching the amount of the proposed federal tax credit that would apply to Tesla, and this model type.

Oh wait, no that is EXACTLY the same amount as the new proposed federal EV tax credit for this model. My bad.

Tesla increases Model 3 and Model Y prices across the board again, adds new standard paint

Today, Tesla has updated its pricing for Model 3 and Model Y vehicles to increase prices across the board once...

electrek.co

 

[ChadS]

Were the price increases just in the US, or have prices gone up in other countries too?