Tesla May Start Raising Prices Soon
According to multiple sources and the Chinese media Autohome reports, Tesla may raise prices as soon as Thursday, November 9th, 2023 - which is in two days at the time of writing this article.
The vehicles mentioned that will receive the price increase are the long range versions of the Model 3 and Model Y. I've been writing extensively about how Tesla is lowering prices and will continue to do so. This was true so long as interest rates continued to rise.
However, since interest rates now have a chance of lowering, there's a good chance that Tesla will reverse course and begin raising their prices again. Those who want to get a Tesla at a low price may want to get it now instead of waiting until interest rates lower. This makes sense, especially if you can pay cash for the car without paying interest.
There are also standard range versions of the Model 3 and Model Y in China, and those are also big sellers. It'll be interesting to see if Tesla also decides to raise the prices on those vehicles. There have been very small price increases done lately, such as a $500 increase on the Model Y long range - which was a 1% increase to $48,990.
You May Also Be Interested In: Elon Musk responds with, "I guess we're doing ok" to top EVs sold in California list.
Are We At the Bottom?
With the way interest rates are going and if you pay attention to what Elon Musk says about the economy and interest rates, there's a good chance we are at the bottom of Tesla prices. The only way this isn't true is if somehow interest rates keep rising substantially. I don't think this is what is going to happen, but you never know.
The current price of the Model 3 long range and Model Y long range in China are as such:
* Model 3 LR: ¥295,900 (~$40,600)
* Model Y LR: ¥299,900 (~$41,100)
Tesla will raise the prices of the long-range versions of the Model 3 and Model Y in China on Thursday, Nov 9
The U.S. versions of these vehicles are similar as well, with the Model 3 RWD and Model 3 long range priced at:
* Model 3 RWD: $38,990
* Model 3 LR: $45,990
These prices may increase because next year will begin a point of sale U.S. EV tax credit of $7,500. As more people buy EVs, this is going to cost the U.S. government quite a bit of money.
For the next couple of years, I see Tesla slowly starting to increase their prices as long as interest rates turn the other direction and start to go down.
In Other Tesla News: The Tesla talking car, powered by Grok AI.
What do you think about Tesla vehicles increasing in price? Will this happen in China first?
Share the article with friends and on social media.
Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News. Image Credit, Tesla, Screenshot