Tesla Increases All Vehicle Prices, Some By As Much As $6000, Model Y Now Starts At $66K
The entire world economy is currently experiencing inflation set off by a combination of factors including supply chain disruptions and an unprecedented increase in money supply necessitated by the COVID-19 lockdowns.
The US is currently at a 40-year high inflation rate which has prompted the Federal Reserve to increase interest rates by an amount not seen in 22 years. Musk has recently warned fellow EV makers Rivian and Lucid saying that they will need to cut costs or else “they will end up in the cemetery like all other car companies.”
Just yesterday, Ford has also come out saying the company’s all-electric crossover, the Mustang Mach E, is no longer a profit-making vehicle mainly due to an increase in battery costs.
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Given all these macroeconomic pressures, Tesla has been increasing vehicle prices steadily over the past 2 years. And today, in an update to the company’s online configurator, Tesla has instituted yet another price hike throughout the company’s vehicle lineup.
Model 3 Price Increase
Tesla has increased the price of the Model 3 Long Range by $2000 and the vehicle now starts at $58,000. The Model 3 Performance saw a more modest $1000 price increase and the vehicle now starts at $63,000.
Tesla’s cheapest vehicle, the Rear-Wheel Drive Model 3 however did not see any price bump and remains at a relatively affordable $47,000 starting price. It should however be noted all prices are excluding Tesla’s mandatory $1,200 destination and doc fees while purchasing any vehicle.
Model Y Price Increase
Tesla increased the prices of both variants of the Model Y currently on sale. The Long Range Model Y saw a $3,000 price increase and now the vehicle starts at $66,000.
When you add the $1,200 destination and doc fee, now in order to get your hands on Tesla’s all-electric crossover you will need to pay a minimum of $67,200.
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Currently, there is a cheaper version of the Model Y, with Tesla’s newest 4680 cells and a structural battery pack on sale. This version, called Model Y AWD, starts at $60,000 and has $279 mile EPA and 5 seconds 0 to 60 time.
And recently Tesla has started selling the 4680 Model Y to customers outside of Texas. However, there is no way to currently order this vehicle online and the only way a customer could get his/her hands on the vehicle is if Tesla emails them asking if they would like to convert their preexisting Model Y order to this version.
It’s nice to see a cheaper version of the Model Y on the way. However, this is still a far cry from Tesla’s initial hope of delivering a compelling mid-sized all-electric SUV for under $40,000.
The Performance Model Y also saw a $2,000 price increase and now the vehicle starts at a whopping $70,000.
Model S Price increase
Since the refreshed Model S & X came out in 2021, Tesla has been steadily increasing the price of the company’s more premium vehicle offerings. The pre-refresh Long Range Model S had a starting price of $69,420.
However, after yesterday’s $5,000 price bump, the Long Range Model S now starts at $105,000. This makes the Model S 50% more expensive than its 2020 starting price.
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The Model S Plaid, after seeing several price increases has been spared from the most recent hike and the vehicle remains at the $136,000 starting price.
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Model X Price Increase
The All-Wheel-Drive Model X saw the biggest price bump, increasing starting price of the vehicle by $6,000. The vehicle now starts at $121,000.
Similar to the Model S Plaid, Tesla has chosen to keep the price of the Model X Plaid unchanged and the vehicle remains at a starting price of $139,000.
All these price increases have been disappointing for those of us excited to see mainstream adoption of electric vehicles. However, it’s also understandable given the unprecedented rate of inflation.
Currently, wait times for Tesla vehicles have ballooned from several months to up to a year. So these price increases are unlikely to affect Tesla’s demand in the short term. However, we will be sure to keep you updated as we get further information.
Until then, make sure to visit our site torquenews.com/Tesla regularly for the latest updates.
So what do you think? Disappointed Tesla has once again chosen to raise vehicle prices? Also, How do you think this will affect Tesla’s demand going forward? Let me know your thoughts in the comments below.
Image: Courtesy of Tesla
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Tinsae Aregay has been following Tesla and The evolution of the EV space on a daily basis for several years. He covers everything about Tesla from the cars to Elon Musk, the energy business, and autonomy. Follow Tinsae on Twitter at @TinsaeAregay for daily Tesla news.